Despite being a promising sector in export diversification, the toy industry is grappling with critical challenges, including a lack of policy support, according to the businesses.
They also stated that, although the global toy market exceeds $100 billion, Bangladesh鈥檚 exports stand at only $77 million.
They were speaking at a focus group discussion on 鈥楧iversifying the Export Basket: Innovation, Export Potential and Market Expansion of the Toy Manufacturing Industry鈥�, organised by the Dhaka Chamber of Commerce and Industry on Monday at its office in the capital.
At the discussion, Shamim Ahmed, president of the Bangladesh Plastic Goods Manufacturers and Exporters Association, presented the keynote.
He stated that there are approximately 5,000 enterprises in the plastic sector in Bangladesh, with around 250 engaged in toy manufacturing, employing approximately 1.5 million people.
鈥業n financial year 2023鈥�24, exports聽from this sector reached $276 million, while the domestic market is worth nearly Tk 400 billion,鈥� he added.
He also stated that in FY2016鈥�17, toy exports totalled $15.23 million, which increased to $77 million in FY24, serving 88 countries.
He also stated that if the current annual growth rate of approximately 24 per cent continues, toy exports could reach $466.31 million by 2030, positioning Bangladesh as the 28th largest toy exporter globally.
Shamim Ahmed, also managing director of Jalalabad Polymer Industries, said the lack of product quality assurance, inadequate infrastructure, absence of research, and lagging behind in innovative design development are major hurdles to growth.
鈥楾he global toys and games market size was estimated at $324.66 billion in 2023 and is projected to reach $439.91 billion by 2030, growing at a CAGR of 4.3% from 2024 to 2030,鈥� he added.
He also stated that the lack of various United States and European Union-grade compliance standards, certificates, and quality management systems poses a challenge for the country鈥檚 toy sector.
鈥楬owever, competitive labour costs, growing local expertise, strategic locations and government incentives could play a vital role in developing the sector,鈥� he added.
For the overall development of this sector, he emphasised the importance of cluster development, human resource training for innovation, and encouraging joint venture investments with global firms.
Moreover, infrastructural development, formulation of toy-specific policies under the existing plastic industry policy, and reducing supplementary duties on necessary machinery could also accelerate the toy exports.
DCCI president Taskeen Ahmed said that due to a lack of necessary policy support, high tariffs on raw material imports, the absence of bonded facilities, inadequate infrastructure, and insufficient testing facilities, the potential of this sector remains largely untapped.聽
鈥楾o utilise the immense potential of this growing sector, more involvement of the education sector in innovation and enhanced coordination among government agencies are a must,鈥� he added.
Martin Dawson, deputy development director at the British High Commission in Dhaka, stated that Bangladeshi toys have immense export potential, and the UK government is keen to cooperate in this regard.
鈥業f the existing policy barriers are addressed, exports to the UK could multiply significantly,鈥� he added, saying that the UK government recently initiated simplification of Rules of Origin requirements, which could help Bangladeshi entrepreneurs expand their exports to the UK.
Md Juhirul Islam Shimul, deputy general manager and head of marketing at Redmin Industries Ltd., said that product innovation and introducing novelty in design are crucial for sustaining a presence in the toy manufacturing sector.
Musa Bin Tareque, general manager of Hashy Tiger Company Ltd, said that high tariffs on imported plastic raw materials increase production costs, which leads to higher consumer prices.
He urged revising the tariffs on plastic raw materials to boost exports.聽
Md. Anisur Rahman, deputy executive director, Premiaflex Plastics Limited (ACI PLC), emphasised the proper implementation of tariffs and policies, along with lowering bank interest rates.
Abdullah Al Mamun, deputy director (waste and chemicals management), Department of Environment, said that the government exempted industry renewal fees for the green and yellow categories of the plastic sector for 5 and 2 years, respectively, which would eventually ease business processes.
He also stressed involving academia in research and enhancing capacities in energy, water, and waste management.
Muhammad Mubinul Kabir, member (customs: policy and ICT) of the National Board of Revenue, said that in order to survive in the post-LDC era, Bangladesh should focus on other potential sectors alongside the RMG sector.
鈥楾o diversify our export basket, NBR has been working to simplify policies and extend bonded facilities to the businesses of other potential sectors,鈥� he added.
He said that there is limited scope for mid-year policy changes, but during the next budget formulation, the government might consider providing necessary policy support to this sector.
Md. Mamun-Ur-Rashid Askari, joint chief of the International Cooperation Division of the Bangladesh Trade and Tariff Commission, urged businesses to adopt Single Window facilities to simplify import procedures and prioritise intellectual property protection to attract foreign investment.聽
Ashoke Kumer Roy, Director (Patents and Industrial Design), Department of Patents, Industrial Design, and Trademarks, stated that to sustain in the post-LDC era, businesses need to adapt to the concept of patents, designs, and trademarks rather than copying designs from global brands.
Leaders from DCCI and other business representatives also spoke at the event.