The current situation and huge potential of Bangladesh's plastic recycling market
Bangladesh's plastic industry has an average annual growth rate of over 18%. With a population of 165 million and cheap labor, it faces a high dependence on imports of raw materials and machinery - China accounts for 65.9% of its raw material supply. This emerging Asian market is opening up a blue ocean of value for global investors.
I. The significance of plastic recycling is huge
In recent years, with the accelerated urbanization process and lagging garbage management, Dhaka, the capital of Bangladesh, has faced serious plastic waste problems, resulting in blocked drainage systems, river pollution, etc., which seriously affect the quality of life of residents and the sustainable development of the city. It is gratifying that with the development of the plastic recycling industry, the waste plastics here are quietly experiencing a "rebirth". Many factories are converting waste plastics into reusable plastic fragments, granules and other products, giving these waste plastics new economic and environmental value.
II. Advantages of Bangladesh's plastic industry
Low labor cost: Bangladesh has a population of 165 million, and low labor costs are a major advantage in its development of the plastic industry. In the ten years from 2005 to 2014, Bangladesh's plastic industry achieved an average annual growth rate of more than 18%, showing huge market potential.
International market transfer: As international buyers gradually shift their demand for plastic products from China and India to Bangladesh, the country's demand for plastic products is also growing. The plastic manufacturing industry is gradually declining in developed Western countries, but in developing countries, especially in countries like Bangladesh with low labor costs, the industry is showing vigorous vitality.
III. Challenges of Bangladesh's plastic industry
Low product export rate: Although Bangladesh has the advantage of low labor costs in the plastic industry, its share in the global market is not high. Its export ranking is 89th in the world, accounting for only 0.01% of the global plastic market demand.
Backward production technology: 98% of Bangladesh's plastic production enterprises are small and medium-sized enterprises. Most enterprises use imported modified machinery and locally produced manual equipment. It is difficult to purchase high-end equipment with high automation and sophisticated technology with their own funds, resulting in the overall quality of Bangladesh's plastic products being low and the international competitiveness being weak.
IV. Market potential and opportunities for Chinese enterprises
Bangladesh, an easily overlooked member of Asia's emerging markets, is actually holding huge business opportunities. Despite its limited land area and relatively weak economic foundation, Bangladesh has successfully made the plastics industry a pillar industry of the national economy over the past 20 years with its abundant cheap labor and strong support for the plastics industry. However, due to the relatively backward industrial technology in the country, Bangladesh's plastics industry is highly dependent on imports for raw materials and machinery, which undoubtedly provides a broad market space for the export of Chinese plastic raw materials and plastic machinery.
At present, Bangladesh has become an important market for my country's plastic machinery exports, ranking among the top ten markets. We mainly export various types of plastic machinery to Bangladesh, including injection molding machines, injection machines, extruders, granulators and thermoforming machines. In addition, the raw materials of Bangladesh's plastics industry are also basically dependent on imports and plastic waste recycling. China, Saudi Arabia, Taiwan, South Korea and Thailand are the five major raw material supply markets, accounting for 65.9% of Bangladesh's total plastic raw material imports.
V. Future industrial upgrading
The success of plastic recycling depends on efficient processing processes, a strong recycled product market, a good waste management system and lower pollution levels. “Ideally, we should be pursuing higher quality recycled plastics, introducing stricter regulations, providing incentives, and implementing producer responsibility to truly make recycling an environmental solution.
VI. Kiake Machinery: Join hands with customers to promote green recycling
As a professional recycling machinery manufacturer with more than ten years of industry experience, Kiake Machinery is committed to providing customers with efficient and reliable solutions. Our independently developed automatic laser filter screen changer can be flexibly adapted to various single/twin screw extruder models, perfectly meeting your stringent needs for daily plastic recycling production, and completely solving the pain points and downtime troubles of frequent manual screen changes.