If you stroll through stores in the UAE, Saudi Arabia, Malaysia, or even parts of Europe, you might find ‘Mr Mango’ candy on the shelves in one corner of superstores. While the candy’s charm has faded within the country, its popularity has soared abroad.

According to the Bangladesh Agro-Processors Association (BAPA), in FY 2022 alone, Bangladesh earned $30 million just by exporting candy.

It proves two things: the promises of the processed food sector and its evolving patterns. Bangladeshi biscuits and bakery items, spices, drinks, noodles, frozen snacks, chanachur, juice, jam, and jelly are in high demand overseas.

For over three decades, the apparel sector has dominated as the country’s largest export earner, contributing nearly 80% of total export revenue. Growing processed food exports signal export diversification in the coming days, with key players including PRAN-RFL Group, Olympic Industries, Square Food & Beverage, ACI Foods, and more.

Top products

According to the Bangladesh Agro-Processors’ Association (BAPA), Bangladesh earned $341.73 million by exporting processed foods in FY 2023-2024.

Biscuits, earning $74.79 million, lead the list. With their crisp texture and variety of flavors, Bangladeshi biscuits are affordable for South Asians abroad.

A staple for many South Asian students studying abroad is noodles. In FY 2023-24, noodles secured $29.89 million in exports, largely thanks to their convenience and budget-friendly appeal. The same can be said for frozen parathas. This item earned $22.32 million.

Meanwhile, fruit cocktail drinks contributed $24.04 million, while chanachur fetched $20.35 million in FY 2023-24. Candy exports, although shrank drastically compared to the previous year, brought $15.60 million. Puffed rice and mustard oil added $14.75 million and $14.60 million into the country’s coffers. Curry powder and turmeric powder earned $16.04 million and $12.73 million, respectively.

Altogether, these ten products contributed over $245.11 million in FY 2023-24 foreign currency earnings, 71.73% of total earnings from the processed food sector.

Top destinations

The latest BAPA data shows that the United Arab Emirates was the top destination. Bangladesh exported food worth $85.47 million to UAE, thanks to a strong presence of Bangladeshi expatriates in the Gulf nation. Saudi Arabia followed with $53.01 million.

Neighboring India ranked third with $28.92 million, while the United Kingdom accounted for $23.48 million.

Exports to the United States and Canada contributed $21.70 million and $8.27 million, respectively. Malaysia contributed $14.81 million to Bangladesh’s export earnings, while Oman and Qatar sent home $13.60 million and $9.51 million, respectively.

With $6.29 million from the Netherlands, these ten countries generated over $265.56 million, contributing a significant share of the total $341.73 million.

The Gulf countries—UAE, Saudi Arabia, Oman, and Qatar—alone imported processed foods worth $161.59 million, making the Middle East a crucial region for Bangladeshi exports. Notably, Bangladesh exported food to 100 countries in FY 2023-24.

Significant expansion

Kamal Kamruzzaman, head of marketing at PRAN, described the sector’s evolution in three phases: “Initially, 10-15 years ago, the market consisted solely of Bangladeshi expatriates. Over time, these products gained popularity among the broader South Asian community.” 

“Today, Bangladeshi food is making inroads with mainstream consumers, especially in the Gulf nations, Australia, Malaysia, New Zealand, and parts of Europe, and the USA,” he said.

Kamal said Pran makes local-language advertisements in Middle Eastern nations, Malaysia, and Nepal to connect with mainstream consumers by aligning with their cultural preferences.

“Frozen snacks like parathas, chicken nuggets, and rolls are getting increasingly popular abroad,” he added. 

In India, PRAN’s exports expanded from the Seven Sisters region to 28 states, generating $60 million (2023 data) in annual sales.

According to Export Promotion Bureau (EPB) data, Bangladesh’s agricultural product exports reached over $1 billion in FY22, with 13.04% year-on-year growth. PRAN led the sector with exports worth $532 million, supplying diversified products to the Middle East, Asia, Africa, and South Asia. 

Bangladesh exported sugar confectionery worth $26.93 million, malt extract and flour-based preparations valued at $67.23 million, and fruit and vegetable juices amounting to $58.20 million in FY22.

The country also earns millions by exporting shrimp, frozen fish, dried and frozen Fruits and Vegetables, and rice. For example, in FY 2021-22, Bangladesh’s shrimp and frozen fish exports reached $532 million, marking a 12% year-on-year growth, according to EPB data.

Shrimp, including Black Tiger and freshwater prawns (Golda), contributed a significant share of this figure, with primary export markets being the USA, Belgium, the UK, the Netherlands, and Japan. 

Major exporters include PRAN-RFL Group, Gemini Sea Food, and Fresh Foods Ltd. 

According to industry insiders, challenges like high freight charges, insufficient adherence to global food safety standards, and limited investment in value-added products hinder further growth​.

Tax breaks and the government’s flat 10% cash incentive have driven such growth.

Struggles in FY23

While FY22 data shows encouraging signs, FY23 turned pale for the sector. Agricultural exports fell short, earning $843 million, down from $1.16 billion the previous year—a 39.53% decline against the target of $1.394 billion. 

Regarding purely processed food, Bangladesh earned $381 million in FY 2022-23, $41.68 million more than FY 2023-24. So, in FY23, the processed food industry saw a 10.87% decline.

Key weaknesses highlighted by industry insiders include insufficient post-harvest infrastructure, high production losses, and quality assurance challenges.

Post-harvest losses, which account for up to 40% of agricultural output, result from inadequate cold storage and weak supply chain infrastructure. 

For example, Bangladesh has only a few cold storage facilities, mainly for potatoes, compared to over 500 packing houses in India and much more in Thailand. This limits the export of other vegetables and fruits, contributing to a 39% decline in vegetable exports and 81% in fruit exports.

Packaging and testing standards are another major setback. While countries like Thailand and Vietnam excel with advanced packaging, Bangladesh struggles with outdated processes. 

“The lack of modern labs means companies like PRAN must send products to India or Singapore for certification, which delays exports and increases costs,” said Mr. Kamal Kamruzzaman. 

“This issue is compounded by high air cargo fares, making Bangladeshi agricultural products less competitive globally.”

Meanwhile, the absence of automatic washing, drying plants, and advanced labeling systems hinders product shelf-life extension and market readiness. 

The result is reliance on expatriate communities rather than penetration into mainstream global markets like the EU or US, where Bangladesh’s share of vegetable imports is less than 0.5%.

Lack of standard testing facilities

In October 2022, Sweden suspended imports of Bangladeshi puffed rice and aromatic Chinigura rice after detecting pesticide residues—carbendazim and tricyclazole—above allowable limits. 

This followed earlier bans on turmeric powder, shrimp, and farm-raised fish from the EU and Saudi Arabia, signaling recurring quality control issues.

Industry experts attribute these setbacks to Bangladesh’s lack of Good Agricultural Practices (GAP). Kamal said lead detection in turmeric exports revealed exporters’ lack of awareness about potential contaminants. “Our local testing facilities cannot even detect lead in many cases,” he remarked.

Parvez Saiful Islam, Chief Operating Officer of Square Food and Beverage, emphasized discrepancies between local and European test results, occasionally resulting in rejected consignments. 

“Residues found in rice and puffed rice likely trace back to the soil, not direct application,” he explained. 

Bangladesh’s lone Gamma Irradiation Centre, set up to prevent spoilage and insect infestations in fresh produce, has been out of order for over a year, forcing exporters to send their goods to other countries for gamma radiation testing. 

“This delay significantly increases costs, adding to the financial burden on exporters,” he added.

“To overcome these challenges, investment in modern facilities, supply chain improvements, and skilled workforce development is crucial before LDC graduation in 2026 when Bangladesh will lose export incentives,” Kamruzzaman noted.

Besides, agro-processed exports were further disrupted last year as the government banned rice exports, including aromatic rice, in October 2023 to safeguard domestic supply after floods.

Bangladesh exported 9.5-10.5 thousand tonnes of aromatic rice to 136 countries annually, per EPB. Aromatic rice contributed around 30% of the agro-product export basket before the ban. The export value for rice dropped from $559.49 million in FY22 to $304 million in FY23.

“Square Food and Beverage, for instance, was permitted to export 3,000 tonnes in 2023 but managed only 200 tonnes before the restrictions kicked in,” said Mr. Parvez Saiful Islam.

If we analyze the BAPA data, Bangladesh earned only $2.94 million from aromantic rice exports in FY 2023-24. The restriction remained in place throughout 2024, meaning the country earned nothing from rice exports this year.

“Bulk orders for products like Chinigura rice often included other processed goods,” said Saiful. “So, banning rice exports is also hurting other products.”

“Meanwhile, competitors like India are now taking advantage of this gap, penetrating markets where Bangladeshi rice was in high demand,” Saiful added.

He said there is a vast global demand for Chinigura rice in global markets.

“Aromatic rice is used to make biriyani. People don’t eat biriyani often. So stocking aromatic won’t solve the food shortage. We urge the government to lift the ban on aromatic rice exports. Other countries are now taking over the market we worked so hard to establish,” Mr. Saiful remarked.

Lagging behind neighbors

India’s processed food exports dwarfed Bangladesh’s, reaching $24.77 billion in FY 2022-23, up from $19.69 billion the previous year. 

India’s success stems from comprehensive government policies, Pradhan Mantri Kisan Sampada Yojana (PMKSY) and Production Linked Incentive (PLI) scheme have been instrumental in fostering infrastructure, reducing agricultural waste, and increasing processing capabilities. These programs help scale production and enhance export readiness by providing grants, subsidies, and technical support for food processing companies.

Also, India’s Agricultural and Processed Food Products Export Development Authority (APEDA) promotes products through trade fairs, branding campaigns, and direct tie-ups with international retailers.

Incentives for export-oriented production have made Indian food brands globally competitive. The country’s ability to meet international food safety and quality standards has opened doors to premium markets in Europe and the US. 

Its brands, such as Haldiram’s and MDH Spices, are household names worldwide, thanks to their robust branding and aggressive marketing campaigns.

The country leverages Geographic Indications (GI) for branding, certification systems, and collaborations with over 220 internationally recognized labs, enabling products to access high-value markets​.

On the other hand, Thailand—a leader in processed seafood and tropical fruit exports—leverages strong geographic indication (GI) branding, such as Thai Jasmine Rice, to dominate niche markets​. Thailand, known for its seafood, fruits, and snacks, earns around $12 billion annually from processed food exports. 

With a well-developed cold chain infrastructure and innovative programs like the Food Valley initiative, Thailand has successfully integrated small producers into its export pipeline. 

Similarly, Vietnam’s exports, valued at $7 billion in FY22, focus on seafood, coffee, and tropical fruits, supported by strategic partnerships with global retail chains and streamlined logistics​.

China, with an export value of $18.7 billion in processed foods in 2022, excels in industrial efficiency, advanced automation, and the integration of e-commerce platforms. 

What Bangladesh can do

‘Made in Bangladesh’ is a globally recognized label in the apparel industry. From Donald Trump’s ‘Make America Great Again’ caps to jerseys worn by football icons at the World Cup, this brand has been strategically positioned as a hallmark of excellence. 

In comparison, the processed food sector has yet to develop a remarkable branding strategy. Concepts like ‘Taste of Bangla’ can represent the Bangladeshi food scene abroad–highlighting the uniqueness and specialties of Bangla food.

Take the case of the Indian dairy company Amul, for example. Their tagline, ‘The Taste of India,’ has been pivotal in building its global presence. Amul uses this identity in aggressive marketing campaigns overseas, targeting the Indian diaspora and local consumers in over 50 countries, including the US, Canada, Australia, and the Middle East. 

Countries like India, Thailand, and Vietnam have successfully built culinary identities around their exports, such as India’s Basmati Rice, Thailand’s tropical fruits, and Vietnam’s coffee. 

These nations have leveraged Geographic Indication tags, advanced packaging, and targeted marketing to create an emotional connection with global consumers.

Bangladesh is rich in unique, export-worthy products that resonate with cultural nostalgia and modern consumer trends. For instance, vacuum-packed or marinated in mustard oil, hilsa fillets could tap into global demand for premium seafood if branded properly.

Similarly, ready-to-eat rice cakes (pitha), or sweets like roshogolla can become festive treats beyond Bangladesh’s border. Count in fruits like Jackfruit and mango.

The country is already exporting ethnic items abroad. Cooked food like Khichuri shows the potential to go big. Bangladesh earned $3,612.55 by exporting this rich medley of rice, lentils, and spices. Follow it up with Borhani masala, the tangy, spicy yogurt drink that fetched $39,672.21.  

Chicken masala, chatpoti masala, desserts like faluda and firni, haleem mix, singara, somuch, alu-puri – all these desi food items showed potential to go big in foreign markets.

Despite this rich array of offerings, limited marketing, weak infrastructure, and quality control and packaging issues are curbing the sector’s potential. Bangladesh’s traditional foods hold immense promise, but it’s time for strategic campaigns and improved export systems to put its culinary heritage on the global map truly.

Bangladeshi companies must invest in advanced packaging, certifications like HACCP, and modern marketing strategies to position these foods as premium exports.

Visual storytelling, such as the journey of Rajshahi mangoes from orchard to table, could resonate with international audiences. 

Targeting supermarkets and e-commerce platforms globally while collaborating with chefs and influencers can elevate the appeal of Bangladeshi flavors.

Dr. Mohammad Abdur Razzaque, economist and the chairman of Research and Policy Integration for Development (RAPID), pointed out four major issues in Bangladesh’s processed food export sector: lack of product quality and standards, limited variety of products, inadequate domestic testing, and market research.

“The lack of quality and standards severely affects consumer confidence. Many products fail to meet international certification requirements, and even local consumers in Bangladesh often avoid processed foods due to quality concerns,” Dr. Razzaque said.

“While expatriates abroad consume these products as they are the only available taste of home, the quality is insufficient to attract mainstream global consumers.”  

He further added, “The limited variety of products is another barrier. Bangladesh primarily exports basic foods, far behind countries like Malaysia and Pakistan, which excel in offering a wide range of items with unique packaging.” 

Many products fail to meet European standards without proper radiation and certified food testing, making them ineligible for these markets.  

Dr. Razzak emphasized the need to diversify the consumer base, adding, “Unlike India, whose large diaspora sustains its food export market, Bangladesh must target mainstream consumers by researching their preferences, tastes, and standards. Expanding beyond expatriates is crucial.”  

He strongly advocated for foreign direct investment (FDI) to revolutionize the sector. Companies like Tesco, partnering with local entrepreneurs, could provide the expertise, direction, and collaboration needed to effectively serve global markets.  

Although the Bangladeshi diaspora in Arab nations, Europe, and America is not as big as India’s, there is still a huge potential to capture this market while gradually penetrating the local markets as well.

The author is a journalist with five years of experience, a media literacy trainer, and a former fellow of DW Akademie.