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Bangladesh is failing to tap a global packaging market worth an estimated $700 billion due to policy bottlenecks and the absence of export incentives, industry leaders said on Sunday.

The garment accessories and packaging sector has already built strong export capacity, with direct exports close to $1.6 billion and deemed exports exceeding $7.8 billion. Yet growth has stalled as regulatory and fiscal constraints continue to weigh on competitiveness, according to industry representatives.

Speaking at a press conference in Dhaka ahead of the Garments Accessories and Packaging Expo (GAPEXPO) 2026, BGAPMEA president Md Shahriar said Bangladesh has struggled to secure a meaningful share of the expanding global packaging market because direct exports receive no cash incentives, unlike regional competitors.

“Packaging products exported directly from Bangladesh are not eligible for any cash incentive, while countries such as China, Vietnam, Cambodia and Indonesia offer incentives ranging from 4.0 percent to 17 percent,” he said, adding that the sector has never been included in any export incentive scheme.

He also pointed to high import duties and taxes on paper below 300 GSM, which in some cases range between 58 percent and 83 percent, sharply raising production costs and eroding price competitiveness. Such tariff structures, he said, undermine the sector’s ability to compete with peers in the region.

The BGAPMEA president alleged that while the ready-made garment sector benefits from extensive policy, banking and regulatory support, the accessories and packaging industry remains largely excluded. “Facilities related to bank financing, customs and central bank policies applicable to the garment sector are not implemented in practice for us,” he said.

He noted that accessories and packaging products are excluded from cash incentives for both direct and deemed exports, even as similar benefits are extended to some other export items. Restrictions on duty-free imports of lower GSM paper further limit production flexibility and increase costs, he added.

Calling for reforms, Shahriar urged the government to extend the validity of Utilisation Permits from one year to three years, saying shorter durations create operational challenges. He also said provisions allowing deemed exporters to enjoy facilities similar to direct exporters exist on paper but are not reflected in implementation.

Bangladesh is now capable of producing 100 percent of garment accessories and packaging products locally, he said, arguing that existing infrastructure, skilled labour and factory capacity developed for the garment sector can be leveraged to boost direct exports without major new investment.

Industry leaders said written proposals have already been submitted to the National Board of Revenue and the Ministry of Commerce, seeking export incentives, tax exemptions on raw material imports and broader policy support. They expressed optimism, noting that the government has identified the sector as a potential driver of export growth and employment.

Responding to questions, Shahriar said the sector complements, rather than competes with, garments. “If this sector advances, it will help increase export earnings and create more jobs,” he said.

The four-day expo began on January 14 at the International Convention City Bashundhara in Dhaka. It is being held alongside Garment Technology Bangladesh 2026 and the International Yarn & Fabrics Sourcing Show 2026, bringing together about 350 exhibitors from more than 15 countries across 1,500 booths.

Addressing the event, ASK Tradeshows managing director Tipu Sultan Bhuiyan said global competitiveness will depend on faster digital adoption, worker upskilling, investment in smart and sustainable technologies, and closer collaboration with global brands. “The expansion of this edition reflects growing optimism in the sector,” he said.