Bangladesh’s handicraft sector faces significant challenges, including inadequate financing, outdated designs, and skill gaps, leading to lower-than-expected export earnings, industry insiders say.

An unorganized supply chain, limited competitiveness, and weak country branding further hinder the sector’s growth despite its potential. However, rising production costs in China and Vietnam have shifted buyers’ focus to alternative markets, offering Bangladesh an opportunity to expand exports.

The country possesses abundant natural resources and affordable labour, which, if supported by proper policies, could help boost handicraft exports.

Export earnings from the sector have fluctuated in recent fiscal years. In FY 2021-22, global buyers’ interest in eco-friendly products during the COVID-19 pandemic contributed to $42.83 million in exports. However, earnings varied in the following years, according to Export Promotion Bureau data.

Bangladesh’s handicraft industry primarily relies on jute, bamboo, cane, pottery, embroidery, and tapestry. A Bangladesh Bureau of Statistics survey indicates that 44% of establishments are bamboo and cane-based, with 97.6% operating as household enterprises. Women entrepreneurs own 51.2% of these businesses.

Entrepreneur Rashedul Karim Munna, a former FBCCI director, noted that international buyers are looking for alternatives to China due to high tariffs. He highlighted the need for large-scale production, design innovation, and better branding to capitalize on market opportunities.

Bangladesh currently exports handmade products to over 50 countries, including the EU, UK, and Japan, benefiting from trade privileges like GSP facilities.