Written by Syed Md. Rakeen, Team MBR

Environmental sustainability has positioned itself at the heart of the policies of global governing bodies, with the use of plastic earmarked as one of the key contributors to global pollution. As the world leans more towards increased urbanisation and production, the consumption patterns of plastic experienced an exponential rise along with pollution, environmental degradation, and waste mismanagement, leaving the world with one of the biggest problems of the 21st century. Despite its usage in various industries across the world, plastic continues to attract heavy criticism among environmentalists due to its non-biodegradability. The United Nations Environment Programme (UNEP) has responded to the challenges by creating a 17-year roadmap to reduce plastic pollution by 80% in 2040. The question surrounding balancing the involvement of plastic in day-to-day life stems from the fact that the substitutes for plastic products may often be a huge contributor to environmental hazards as well. The popularity of plastic is still prevalent globally due to its durability, cost-effectiveness, and widespread availability in various shapes and sizes. Bangladesh currently boasts a plastic product market worth BDT 400 billion (40 thousand crore), with around 5,000 businesses associated with the manufacturing of plastic items. With a dire need for export diversification, Bangladesh can tap into the global plastic products market, with the rising trend of exports viewed as crucial to the country’s development. 

Global Plastic Adoption and Pollution

Global plastic production has experienced a staggering rise in recent decades, with over 430 million metric tonnes of plastic manufactured annually in the world, according to the United Nations. According to the World’s Top Exports survey, China presently maintains a 26.8% global market share and earns USD 21.4 billion, making it the leading player in the plastics industry, with Germany coming in second with a 12% global market share. Plastics are not considered homogenous products as they involve various polymer types as well as applications encompassing drinking bottles, cable insulation, food packaging, and automotive parts. Besides, it also plays an instrumental role in preserving food, fuel-efficient vehicles, the development of computers, mobile phones, and several lifesaving modern medicines. The exponential growth of plastics across the world, which has increased by 230-fold since 1950, can be hugely attributed to features such as lightweight and insulation capacity. Additionally, it preserves fossil fuels, which would have otherwise been utilised in transportation and heating. Increasing global consumption can be hugely attributed to plastic due to its role in making possessions lighter, safer, cheaper, and stronger.

Despite the widespread usage of plastic, plastic pollution inflicts significant damage to the environment, economy, and human health. Increased global consumption has played a key role in the escalating use of single-use plastics such as grocery bags, food packaging, bottles, straws, etc., which has exacerbated the global waste management problem. As per the World Bank, global plastic waste has shot up to 400 million metric tonnes between 2000 and 2019, with single-use plastics comprising two-thirds of that. Packaging such as plastic bottles or plastic bags accounts for 40% of the waste; however, only 10% is recycled. The United Nations Environment Programme reported that close to 98% of single- use plastic products are manufactured from fossil fuel or virgin feedstock, with the emission of greenhouse gases during the production and disposal of traditional fossil fuel-based plastics expected to increase to 19% of the global carbon budget by 2040.

Exploring the Local Market of Bangladesh

While the international governing bodies continue their attempts towards the reduction of plastic usage, plastics have emerged as a promising export item in the diversification of the export basket in Bangladesh. As per Aspire to Innovate (a2i) of the ICT Division, a programme of the government’s Digital Bangladesh agenda supported by UNDP, the current market size of the global plastic market stands at around USD 570 billion and is experiencing an average annual growth rate of 20%. Currently, Bangladesh occupies only 0.5% of the global market share, with several business leaders in the sector planning to increase the figure to 3% by 2030. The domestic market size of the plastics industry is BDT 40,000 crore, where local demand accounts for 80% of it. Bangladesh currently consumes roughly 2.4 million metric tonnes of plastic, as per the Financial Express. On average, a citizen from Bangladesh currently consumes 6 kg of plastic, whereas India consumes half of its neighbouring country.

The local demand for plastic has increased over the years, with annual sales estimated to be almost BDT 150 billion in the domestic market, with household items accounting for about BDT 20 billion, as per the Financial Express. According to various industry insiders, this sector is attracting an investment of about BDT 1–1.5 billion annually. In terms of employment, about 1.2 million people are currently working in the plastics sector, both directly and indirectly, at about 4,500 SME manufacturing units. Plastic is essential to numerous goods in various economic sectors, including textiles, healthcare, electronics, buildings, and automobiles. 

Exploring the Export Space for Plastics

With plastic items driving trade expansion, Bangladesh’s export market diversification has now ramped up its efforts to enhance this export segment. The sector’s exports were largely fueled by the government offering a 10% financial incentive for exporting plastic goods back in 2016, prompting the plastic manufacturers to ramp up their plastic production. According to the Export Promotion Bureau, plastic exports ranked as the 12th most exported item, racking up foreign earnings of over USD 1.2 billion annually. According to the Bangladesh Investment Development Authority (BIDA), currently there are 5,030 plastic manufacturers in the nation, and 98% of them are owned by small and medium-sized businesses, with the BPGMEA reporting that 250 of these businesses are involved in exporting plastic products. Currently, plastic products are being exported across 126 global markets, including all European countries, the USA, Canada, and various Asian countries such as China, India, and Nepal. 

The plastic toy industry boasts the potential to play an influential role in diversifying Bangladesh’s export basket. According to the Bangladesh Toy Merchants, Manufacturers, and Importers Association, 85 percent of the domestic market is currently manufactured by local toy manufacturers, whereas five years ago, the scenario was completely different. The domestic toy industry is currently valued at BDT 7,000 crore, with an expected demand of BDT 10,000 crore in the coming years. Hindrances in raw material imports had affected the manufacturers ability to satisfy the demand for plastics.

As per the Export Promotion Bureau, Bangladesh currently exports toys worth USD 36.5 million in FY 2020–21 to 46 countries, including the United States, Russia, Japan, Germany, India, and even China. Several full-fledged export-oriented factors have been set up, with Golden Son Limited in Anwara of Chattogram, Hashy Tiger at Cumilla EPZ, and M/s Sonic (Bangladesh) Ltd., a Hong Kong-based toy company at Uttara EPZ, emerging as some of the biggest exporters. 

Inefficient Plastic Waste Management in Bangladesh

Bangladesh has been grappling with the challenges of informal waste collection for some years now. Even though the municipal government is in charge of the waste collection process, the majority of the waste is collected from the informal sector. According to the World Bank, in December 2021, the annual per capita plastic consumption in Dhaka alone was 22.25 kg. Currently, 646 metric tonnes of plastic waste are collected in Dhaka, and only 37.2% of them are recycled. Even though the average per capita plastic consumption in European countries far outweighs the per capita consumption of Bangladesh, the country is still ranked as one of the top countries in the world in terms of plastic pollution due to inadequate plastic waste management. During 2020, only 31% of the plastic waste was recycled out of the 977,000 metric tonnes of plastic, with the majority of the mismanaged waste being single-use plastics such as shopping bags, packs, and wrappers. This leads to the pollution of cities, countryside, rivers, and canals while clogging drains and urban flooding, while its slow degradation to microplastics poses a significant threat to humans, ecosystems, and marine life.

Tackling the Hindrances to the Plastic Industry’s Growth

While plastic exports are perceived as a potential export segment in Bangladesh, their growth directly conflicts with the goals of international governing bodies such as the United Nations and the World Bank. Besides, the export figures of plastics remain quite inconsistent, as plastic manufacturing plants have only recently moved to modern technology for producing food and non-food-grade products. Even on the production side, there is a dearth of improvement in quality and product diversification, which has held back the plastic industry’s growth to a large extent. Significant enhancements in infrastructure, waste management, recycling, and skill development are areas in dire need to elevate the industry’s trajectory. As the plastic manufacturers often miss out on product diversification and adaptation, Bangladesh often misses out on maximising its export proceeds from global markets.

Besides, the plastics sector has experienced a scarcity of skilled individuals in recent times. However, through the involvement of the Bangladesh Institute of Plastic Engineering and Technology (BIPET), the gaps in skills can be shortened, giving rise to higher productivity levels in the future. The Plastic Industry Development Policy 2023 plans to increase the plastics and packaging industry market from USD 4 billion to USD 10 billion by 2028. The realisation of this policy will also help generate 5,00,000 new employment opportunities by 2028. However, inadequate policy support so far, coupled with the energy crisis, including gas and electricity, has led to severe disruptions in plastic manufacturing growth.

Unlike other industries, the plastic industry is subject to arguments both for and against its fundamental tenet. The numerous negative consequences that are inextricably tied to it are mostly to blame for the pessimistic outlook. Global governing bodies are continuously stressing on reducing the negative impacts of plastics with the hopes that it helps billions who depend on plastic items worldwide. While gradually phasing out plastic may be a long-term problem, the immediate stumbling block appears to be the insufficient or poor recycling of discarded plastic which often end up in landfills. The government of Bangladesh would need to strengthen its attempts to create a more formalized waste collection process to facilitate waste recycling process. Also, as the plastic industry could be one of the biggest export segments of Bangladesh in the coming years, the onus is on the government to strike a balance between environmental sustainability and the plastic industry’s growth by managing economic shocks and offering adequate policy support while implementing environmental-friendly measures to stem the flow of unrecycled plastic spiral out of control.