Bangladesh’s packaged food market likely to reach $6b by 2030

Bangladesh’s packaged food market is on course to reach $6 billion by 2030, up from its current value of $4.8 billion, reflecting the sector’s steady growth and rising global footprint. 

Experts, however, warn that the country’s food exports remain heavily concentrated – both in terms of products and destinations – posing a challenge to diversification and long-term sustainability.

The data was revealed by Dr Khandaker Golam Moazzem, Research Director at the Centre for Policy Dialogue (CPD), during a workshop organised by leading agro-processor PRAN Group in Dhaka’s Gulshan on Tuesday, November 11. 

The event, titled ‘Agriculture and Agro-Processing Industry: Enhancing the Skills of Media Workers for the Overall Development of the Country’, brought together journalists and industry experts to discuss the sector’s potential, challenges, and contribution to national development.

According to Dr Moazzem, nearly 60 percent of Bangladesh’s processed food exports go to just five countries, while five product categories account for half of total exports. “The main buyers of our food products are still the ethnic markets serving the Bangladeshi diaspora abroad,” he said. “We are yet to expand into mainstream international markets or produce items that cater to the tastes and standards of developed countries.”

He added that Bangladesh’s agro-processing sector serves as a critical link between primary agriculture and industrial production, contributing significantly to GDP, export diversification, and rural employment. Yet, the industry remains below its full potential due to limited value addition, inadequate product innovation, and a lack of diversification in export destinations.

Dr Moazzem cautioned that the sector could face fresh challenges once Bangladesh graduates from Least Developed Country (LDC) status. The removal of existing incentives such as cash subsidies and duty exemptions on imported materials could affect competitiveness. “To strengthen the industry post-LDC graduation, the government must ensure low-cost financing through adjusted interest rates, encourage the use of advanced technology, and provide targeted policy support,” he said.

In his presentation titled ‘Current Context of Agriculture and Agro-Processing Industry’, Kamruzzaman Kamal, Director of PRAN-RFL Group, said the company sources most of its raw materials locally and now exports food products to 148 countries. However, he noted several ongoing challenges facing the sector – including unsafe crop production practices, a weak supply chain, and burdensome regulations.

“Excessive use of fertilisers and pesticides in farming is making many food products unsafe,” he said. “Due to the absence of Good Agricultural Practice (GAP) standards, harmful substances often enter the production chain and cannot be removed during processing.”

Kamal also highlighted significant losses at the storage and supply chain stages, as well as the lack of a world-class testing laboratory in Bangladesh. “We have long urged the government to establish a modern food quality lab, but progress has been slow,” he added. “On top of that, food businesses face regulatory hurdles – having to obtain clearance from more than 42 different agencies and pay high licence and renewal fees that exceed those in neighbouring countries.”

Despite these constraints, Kamal stressed that Bangladeshi agro-processed foods have reached international quality standards, and urged the media to promote a positive image of local brands to strengthen consumer confidence at home and abroad.

Riaz Ahmed, Editor of the Dhaka Tribune, emphasised the vital role of the media in shaping public perception and policy regarding the agro-processing sector. “The media does more than report – it shapes understanding,” he said. “Highlighting success stories, farmers’ innovations, and the sector’s potential can help accelerate economic transformation.”

As Bangladesh’s packaged food industry continues to expand, experts say that innovation, product diversification, and stronger policy support will be essential to sustaining growth, capturing new markets, and transforming the sector into a global player in the coming decade.