After several years of hefty growth, the country's export earnings from paper and paper products declined in recent months due to factors like weaker global demand and supply chain disruptions, insiders have said.
According to data available with the Export Promotion Bureau (EPB), the export earnings from the sector stood $232.25 million during July-May period of the fiscal year 2025-26, 14.44 per cent down from that of $271.46 million in the corresponding period (July-May 2024-25).
Besides, the export earnings slumped by around 23.8 per cent in May this year to reach $18.36 million from $23.9 million in the same month of last year.
The EPB data revealed that the sector experienced a steady year-on-year expansion between the fiscal years 2020-2021 and 2024-2025.
The export value from the sector surged to $105.1 million in FY 2021-2022 from $71.44 million in FY 2020-2021, before more than doubling to $229.41 million in FY 2022-2023.
Such a robust growth continued with the figure reaching $273.06 million in FY 2023-2024 and it jumped to $285.83 million in FY 2024-2025.
Industry insiders attribute the recent downturn in the export receipts to a combination of macroeconomic headwinds.
An executive at a leading paper and paper products manufacturing company said rising production costs, elevated energy costs, and a significant increase in shipment expenses have hampered operations and exports in recent months.
"Bangladesh is largely dependent on pulp import for the sector," he mentioned.
Furthermore, large paper mills predominantly operate captive power plants that rely on gas, leaving the manufacturing industry highly vulnerable to potential gas price hikes and supply inconsistencies, he added.
Despite having various challenges, the sector has immense potential, he observed.
The EPB has also acknowledged such potential by declaring paper and packaging 'the 'Product of the Year' during the opening of Dhaka International Trade Fair 2026 in January.
Currently, Bashundhara leads the sector as the top exporter, followed by other leading local manufacturers namely Meghna, Amber, Sonali, and Magura.
The country's export basket predominantly consists of tissue papers, toilet tissues, paper cups, paper bags, and cartons. These products are shipped to over 50 nations, including the United States, the United Kingdom, Malaysia, and South Korea.
According to insiders, around 70 out of 105 registered private paper mills are currently in operation in Bangladesh.
The size of Bangladesh's paper market is estimated to be Tk 55 billion, with an average annual growth rate of more than 5.0 per cent in recent years.
The sector has attracted cumulative investment worth around Tk 700 billion, enabling an annual production capacity of 1.6 million tonnes, although domestic demand for paper products is estimated at about 0.6 million tonnes.
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