How To Start Bag Manufacturing Business In Bangladesh

bags

Thinking of starting a bag manufacturing business in Bangladesh? With rising global demand for eco-friendly and quality Bags, and a market set to grow by 4.62% annually, now is the perfect time to dive in. But what does it take to succeed in this dynamic industry? Let’s explore the key steps and opportunities ahead.

Market Overview of Bag Manufacturing in Bangladesh

Bag Manufacturing

Market Size and Growth

The bag manufacturing industry in Bangladesh is growing steadily:
– In 2023, the Bangladeshi handbag market grew 6.2% to $1.7 billion, recovering from three years of decline.
– The luggage market is expected to grow at a CAGR of 8.4% between 2021 and 2027, driven by higher demand for travel and casual bags.
– By 2024, revenue in the Luggage & Bags market is projected to reach $2.39 billion, with consistent annual growth expected.

Consumption Trends

  • Handbag demand peaked in 2019, fluctuated for a few years, and stabilized by 2023.
  • Urban consumers, driven by travel and education needs, are boosting demand for luggage bags.

Production Insights

  • Handbag production increased slightly in 2023 but has remained flat overall from 2020 to 2023.
  • Strong production growth in 2017 slowed in the following years and has not regained momentum.

Export and Import Dynamics

  • In 2023, handbag exports declined after two years of growth, but export performance overall remains strong.
  • Handbag imports have risen modestly, with China and India as leading suppliers to Bangladesh.

Key Market Drivers

  • Increased air and rail travel, rising disposable incomes, and government investments in education are driving market growth.

Market Segmentation

The Bangladeshi luggage market includes:
– Categories: Travel, casual, business, sports luggage, and others.
– Distribution channels: Online platforms, supermarkets, and hypermarkets.

Forecast

  • The Bags & Containers market is set to grow at 4.62% annually from 2024 to 2029, with a market volume of $0.89 billion by 2029.
  • Urbanization and economic development, including GDP per capita growth, will continue to fuel demand in the years ahead.

Key Players in the Bag Manufacture Industry

Leading Manufacturers of Apparel and Bags

  • Renowned for producing apparel, including bags and backpacks.
  • Quality Control Measures:
    • Inspects after 15% of production.
    • Conducts checks midway at 50%.
    • Performs a final review before shipment.

Sunteam Established in 2011

  • Known for: High-quality leather products and sustainable practices.
  • Focus: Innovation in leather production, eco-friendly manufacture, and customer-specific designs.
  • Facilities: Operates a state-of-the-art factory in Dhaka, Bangladesh, with:
    • 8 high-efficiency production lines.
    • Over 350 skilled workers, including 40 specialists in the sample department.
    • An integrated warehouse, service center, and office for seamless operations.
  • Capabilities: Monthly production of 100,000 leather goods, including wallets, handbags, travel bags, and accessories.
  • Expertise: In-house tannery for continuous quality control and material innovation, ensuring a broad range of leather options.
  • Global Reach: Supplies to markets in the USA, Europe, China, and the Middle East.
  • Sustainability: Commitment to using vegan leather and eco-friendly processes to reduce environmental impact.
  • Customer Service: Offers customized OEM and ODM services tailored to client needs.

Jute-Based Bag Manufacturers

  • Jute Product Specialist:
    • Focuses on producing jute bags, sacks, and hessian products.
    • Prioritizes customer satisfaction, quality, and competitive pricing.
  • Part of Noor Group:
    • Major exporter of jute yarn, twine, and diverse jute products.
    • Annual capacity includes:
      • 12,000 metric tons of jute yarn and twine.
      • 2.5 million jute bags.
  • Subsidiary of Akij Group:
    • Over 50 years of experience.
    • Annual capacity includes:
      • 60,000 metric tons of jute yarn.
      • 5 million jute bags.
  • One of the Largest Jute Manufacturers:
    • Operating since 1965.
    • Exports annually:
      • 100,000 metric tons of jute yarn.
      • 40,000 metric tons of woven and other jute products.

These companies highlight Bangladesh’s strength in manufacture a wide range of bags, from apparel bags to eco-friendly and sustainable jute products.

Starting a Non-Woven Bag Manufacture Business

To start a Non-woven bag manufacture business in Bangladesh, follow these key steps:

Conduct Market Research

  • Study the demand for non-woven bags in local and export markets.
  • Analyze competitors like N. Biswas Group, Favourite Hub, and Star Non-Woven Fabrics & Bags Ltd. Focus on their strengths and weaknesses.

Business Registration and Compliance

  • Register your business with the relevant Bangladeshi authorities.
  • Obtain necessary licenses and ensure you meet local and international production standards.

Raw Materials and Machinery

  • Use high-quality raw materials such as polypropylene (PP) non-woven fabric.
  • Invest in essential machinery, including:
    • Fabric production lines
    • Cutting machines
    • Sewing machines
  • Learn about production processes like chemical, mechanical, solvent treatment, and heat bonding to improve efficiency.

Production Setup

  • Set up a production line that includes fabric rolling, cutting, and bag formation.
  • Treat the fabric to enhance absorbency, liquid resistance, softness, and flame retardancy.

Product Specifications

  • Choose the bag types to manufacture, such as:
    • D-cut
    • W-cut
    • Envelope cut
  • Define material specifications, including the type of fabric (e.g., PP non-woven), color, pattern, and handle style.

Quality Control

  • Apply strict quality control measures to meet standards.
  • Compare your product samples with competitors to ensure high quality.

Marketing and Client Acquisition

  • Create a marketing strategy targeting local and international buyers.
  • Build partnerships with wholesalers, retailers, and businesses.
  • Use online platforms and attend trade shows to promote your products.

Financial Planning

  • Develop a financial plan that covers:
    • Startup costs
    • Production costs
    • Expected revenue
  • Highlight the cost advantages of producing non-woven fabric.

Environmental and Eco-Friendly Focus

  • Follow environmental standards during production.
  • Promote your products as eco-friendly in marketing efforts.

Workforce Development

  • Hire skilled workers and provide necessary training.
  • Work with local training centers to develop a capable workforce.

By following these steps, you can successfully launch and grow a non-woven bag manufacturing business in Bangladesh.

Creating a Comprehensive Business Plan

Market Analysis

  • Market Size: Analyze the total demand for non-woven bags in Bangladesh. Identify current market size, major suppliers, and new growth opportunities.
  • Growth Potential: Study trends that show rising demand for eco-friendly and sustainable products like non-woven bags.
  • Key Trends: Explore changes in consumer preferences, regulations encouraging eco-friendly products, and advancements in bag manufacturing technologies.

Target Market and Competitive Analysis

  • Target Market: Focus on audiences such as retailers, wholesalers, and end consumers. Understand their needs and preferences to match your product offerings.
  • Competitive Landscape: Review competitors’ market shares, pricing models, and product lines to find gaps and opportunities for differentiation.

Product Strategy

  • Product Description: Plan to produce various non-woven bags, including D cut, W cut, and box bags.
  • Benefits: Emphasize features like durability, eco-friendliness, and affordability to attract buyers.
  • Pricing: Create pricing strategies considering production costs, competitor prices, and market trends.

Operations and Distribution

  • Distribution Channels: Build effective distribution networks through partnerships with retailers, wholesalers, or direct-to-consumer sales.
  • Bag Manufacturing Process: Detail the steps from sourcing raw materials to producing finished bags using specialized machines, ensuring efficiency and quality.

Financial Plan

  • Initial Investment: Project startup costs between 25 and 30 lakh Rupees, covering equipment and setup expenses.
  • Monthly Profit: Expect monthly profits of 1 to 2 lakh Rupees based on market conditions and production volume.
  • Raw Material Costs: Account for the cost of essential materials, like non-woven fabric, starting at 90 Rupees per unit.

Summary and Goals

  • Summary: Combine insights from market analysis, product planning, and financial strategies into a cohesive plan.
  • Goals: Set clear objectives, recognize growth opportunities, and prepare for potential challenges to ensure sustained success.

Additional Considerations for Sustainability and Fair Trade

To build a sustainable and fair trade-focused bag manufacturing business in Bangladesh, these aspects are key:

Use of Locally Sourced Materials

  • Use jute, a common and biodegradable material in Bangladesh, to reduce plastic use and boost the local economy.
  • Example: Products like the Sonali Bag, made from jute, provide eco-friendly alternatives to polythene bag manufacturing.

Integration of Sustainable Fabrics

  • Use materials like organic cotton, bamboo, and recycled fabrics to reduce environmental impact.
  • Example: Companies such as Green Earth Bags Ltd. and Eco-Friendly Solutions Ltd. bag manufacturing from eco-friendly materials.

Implementation of Fair Labor Practices

  • Follow ethical labor standards by:
    • Paying fair wages.
    • Maintaining safe workplaces.
    • Offering equal opportunities for workers.
  • Case Study: Rasha Khan, founder of Escape, emphasizes inclusivity and community development in bag manufacturing.

Certifications and Compliance

  • Obtain certifications like:
    • ISO 9001 for quality management.
    • ISO 14001 for environmental management.
  • These certifications improve credibility and ensure adherence to international standards.

Biodegradable Alternatives and Waste Management

  • Focus on biodegradable bag manufacturing production to fight plastic pollution.
  • Invest in research and development to improve disposal methods and biodegradable products like geo bags.

Educational and Community Outreach

  • Launch awareness programs about environmental conservation and eco-friendly bags.
  • Collaborate with local communities to support shared sustainability goals.

Stakeholder Collaboration

  • Work with suppliers, retailers, and research organizations for ongoing improvement.
  • Balance customer needs with environmental responsibility.

Support for Job Creation and Rural Development

  • The jute bag industry creates jobs in agriculture, bag manufacturing, and retail.
  • Combine jute farming with bag manufacturing to support rural economies and improve living standards.

Policy Advocacy and Regulatory Compliance

  • Advocate for supportive government policies, such as:
    • Lower import duties on raw materials.
    • Greater tax rebates for exports.
  • Ensure compliance with regulations prioritizing sustainability and quality.

Focusing on these strategies will help the bag manufacturing business in Bangladesh achieve sustainability and fair trade goals, benefiting both the economy and the environment.

Conclusion

In conclusion, starting a bag manufacturing business in Bangladesh presents a promising opportunity, driven by growing global demand and local market support. By focusing on innovation, sustainability, and strategic partnerships, entrepreneurs can carve a competitive edge. This journey not only fosters economic growth but also positions Bangladesh as a leader in eco-friendly and quality bag manufacturing production.