Market Trends of Bangladesh Contract Logistics Industry
Pharmaceutical and healthcare spending is driving the market
One of the industries with the highest export potential is pharmaceuticals, which can provide 98% of domestic demand and have a domestic market of USD 3.5 billion. Several developed, developing, and least developed nations (LDCs) purchased USD 188.8 million worth of export in FY22. The vast majority of Bangladesh's raw material and chemical imports come from developing nations including China, India, Korea, Singapore, and Malaysia, and totaled roughly USD 1.050 billion last year. Pharmaceuticals and chemicals made up only 1.94% of all foreign direct investments, with the United Kingdom accounting for 40.6%, India for 7.1%, and the Netherlands for 5.7%. More foreign direct investment is required for improved technical transfer.
The export of pharmaceutical products is one of the main opportunities, and Bangladesh's pharmaceutical industry has long been planning for this. Around 20 to 22 businesses in the industry are investing a lot of money in R&D to increase exports. The local businesses are working very hard to produce raw materials at affordable pricing. Active pharmaceutical ingredients (API) have been successfully produced by numerous businesses for some goods. For a variety of products, Incepta can also create APIs.
Growth in E-commerce is Driving the Market
The expansion of online meal delivery services like HungryNaki and FoodPanda is proof that B2C websites have gained popularity in big cities. The demand for home delivery services has also increased as a result of severely congested highways and hazardous driving conditions. B2C initiatives may also be seen in Facebook-based shopping portals like Shoprbd and ShoptoBd, which let Bangladeshi consumers buy goods from popular international e-commerce destinations like the US, the UK, India, and China. C2C companies are expanding as well. The top competitors in this market are Bikroy, Ekhanei, and ClickBd. The C2C market has lately undergone some consolidation as a result of the acquisitions of CellBazar by Telenor Group and playeOLX by Ekhanei.com. Online hiring is also on the rise, particularly in the private sector.
In Bangladesh, several B2B websites offer manufacturing and supply chain solutions. For instance, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and other sizable ready-made garment companies have implemented B2B e-commerce solutions for international ready-made garment (RMG) orders and procurement.
Consumers can now purchase goods online with more ease thanks to the expanding mobile financial services (MFS) market, which is helping the e-commerce sector. A survey by the Asian Development Bank (ADB) on the cottage, micro, small, and medium enterprise (CMSME) sector predicts that the market would triple in size by 2023. There are currently 2,500 or more e-commerce businesses operating in the nation, and there are at least 50,000 business pages on Facebook.
