Bangladesh's packaged food industry is on a rapid growth trajectory, with the market projected to reach $5.8 billion by 2030, said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue (CPD), yesterday, citing official data.

Referring to data from the Bangladesh Investment Development Authority (Bida), he stated that the industry, currently valued at $4.8 billion, is witnessing steady growth, particularly in the ready-to-eat and processed food segments, as working families and younger consumers increasingly prioritise convenience.

"The expansion of the agro-processing sector, particularly in packaged food, is no longer just a domestic consumption story. It has strong potential to be Bangladesh's next major export engine," Moazzem said while presenting the keynote paper at a workshop on agri and agro-processing in Dhaka's Gulshan.

The prominent industrial economist noted that with nearly 40 percent of the population now living in urban areas, food habits are shifting fast. Consumers are leaning toward branded, hygienically packaged products such as biscuits, noodles, frozen parathas, juices, and snacks — items that already dominate both domestic shelves and export charts.

Citing data from the Bangladesh Agro-Processors' Association (Bapa), he said biscuits alone fetched $88.5 million in export earnings, followed by noodles and frozen parathas.

"These products reflect not just strong local demand but also growing international appetite. As incomes rise, demand for premium packaged foods will deepen further," he added.

Referring to Bangladesh Bureau of Statistics (BBS) projections, he said a significant shift in household food expenditure toward processed and ready-to-cook items is expected by 2030.

Moazzem likened the sector's evolution to a "tadpole turning into a frog," highlighting its transition from informal cottage industries to export-oriented manufacturing.

However, he cautioned that basic challenges persist, particularly in cold chain infrastructure, power supply, high interest rates, and red tape.

He pointed out that foreign direct investment (FDI) in the food processing sector reached $379 million in fiscal year 2024-25, largely driven by Dutch investors. But Bangladesh's impending graduation from the Least Developed Country category brings both opportunities and pressure.

"Export subsidies and cash incentives may need to be phased out under World Trade Organization rules post-graduation. Support must now focus on productivity, certification, and research and development," said Moazzem.

Currently, he noted that only 12 percent of agro-processing firms meet international safety certification standards, posing a major barrier to premium markets such as the European Union and North America.

He stressed the need for a one-stop digital investment portal, improved labour governance, and green technology adoption to maintain competitiveness.

The economist also emphasised shifting from cash-based incentives to more sustainable support measures such as low-cost finance, technology upgrades, and sustainability-linked subsidies.

Also speaking at the event, Kamruzzaman Kamal, marketing director of Pran-RFL Group, said his company has long contributed to agricultural development by sourcing most of its raw materials locally and exporting products to 148 countries.

"The quality of Bangladesh's agro-processed products has now reached international standards," he said, adding that efficient solutions to challenges in raw material collection, processing, and marketing are key to advancing the industry.

Reaz Ahmad, editor of the Dhaka Tribune, highlighted the role of the media in promoting the sector.

"The media doesn't just report; it shapes perceptions and policies. Sharing success stories of farmers, innovations, and export potential will help advance the agro-processing sector and, by extension, the national economy," he said.