Industry Analysis of Plastic Bags

Industry analysis of Plastic Bags

The industry is in the cash cow quadrant. In Bangladesh, plastic bags have been outlawed by the government and that has put the industry into the hibernation, though it sparked a black market. Since Bangladesh outlawed it, the other countries still haven’t outlawed it have been the focus of the producers in Bangladesh. And these days, those countries are also getting conscious about its prospective effect regarding health, environment and so on. So, that window is also getting squeezed.  So, now producers are working on a short term basis to reap out as much cash as possible because in the long run people will not be using this product the way they are using today. The other thing causing impact on its industry is bio-non-degradability. Some plastic bags take decades to be decomposed. So, this poses a negative signal to the conscious people and these people are switching to the shopping bag, paper or jute bag. In Bangladesh, it was found that the bags had clogged up the drainage system, exacerbating deadly flood. Apart from this, in terms of raw materials import, the importers will have to face a lot of problems and have to give bribe to some dishonest people which definitely will have an impact on the producers’ bottom line and some of the producers cannot afford to do this and that will leave those producers to be squeezed out of the market. On top of everything, from national perspective, as long as the black market exists, this industry will exist to help the workers working in this industry meet their both ends. Provided that such direction shall not be applicable to the following cases :(a) if the article specified in the notification is exported or used for export; (b) if the direction mentions that it is not applicable to any particular kind of polythene shopping bag. The substitutes are paper bag, shopping bag and jute bag etc. The markets of these substitutes are also gaining momentum.