In 2023, Bangladesh ranked among the top exporters of handicrafts according to Tendata, with North America as a key destination market. However, sustaining and expanding this momentum requires more than just tradition. It calls for a deep understanding of global market dynamics, shifting consumer preferences, and competitive landscapes.
The source of handicraft production in Bangladesh
Bangladesh’s handicraft industry is deeply rooted in its neighbourhood clusters, where generations of artisans have honed their skills and preserved traditional techniques. Today, these clusters have become a hub of cultural heritage and a vital driver of the country’s exports.
As reported by the Bangladesh Bureau of Statistics, the country has over 73,500 handicraft businesses, with nearly 98% being household-based operations. Many of these are part of 38 handicraft clusters spread across 177 SME clusters nationwide, making them key contributors to both the rural and urban economies. These clusters foster collaboration, shared resources, and innovation, allowing artisans to scale production while maintaining craftsmanship quality.
A survey conducted by the Handicraft Establishment Bangladesh revealed that the sector is dominated by female entrepreneurs, who own more than half of the establishments (51.2%). Bangladeshi women also comprise the majority of the workforce. Many of these women are housewives who produce handicraft items as a form of self-reliance and income generation, helping to sustain household livelihoods while contributing to national exports.
From bamboo and cane products to Nakshi Kantha embroidery, pottery, and puppetry, these neighborhood clusters ensure Bangladesh remains a reliable source for buyers seeking unique, handmade goods. For B2B buyers, partnering with these artisan clusters means gaining access to handicraft products that are not only authentic and sustainable but also made with centuries of tradition behind them.
The unique export advantages of Bangladesh's localities
Unlike mass-produced goods, handicrafts from Bangladesh are tied to the country’s culture and heritage, making them distinct and highly appealing to international buyers seeking originality and ethical value. These advantages strengthen Bangladesh’s export competitiveness and create opportunities for sustainable partnerships in the B2B landscape.
1. Authenticity and heritage
The appeal of Bangladeshi handicrafts is that they showcase the artisan’s skill and heritage. From Nakshi Kantha embroidery to bamboo and cane crafts, foreign buyers receive items that carry centuries of tradition and artistry. This heritage-rich authenticity increases their desirability in international markets, especially among consumers who value sustainability, cultural depth, and unique storytelling.
2. Agility and niche focus
While these small handicraft enterprises are small, they are highly adaptable. Unlike large manufacturers that struggle with the cost and complexity of frequent design changes or small production runs, these small businesses can typically handle customised designs, smaller batch orders, and specialised requests. This agility makes them attractive B2B partners for niche retailers, designers, and boutique importers seeking unique offerings. Their flexibility allows foreign buyers to differentiate their product lines and gain a competitive edge in demanding markets.
3. Community-driven production
Every handicraft purchase directly sustains local communities and supports women entrepreneurs. These enterprises not only provide employment but also contribute to the country’s economy. By sourcing from Bangladesh, international partners also play a role in preserving endangered artisan skills and promoting inclusive economic growth.
Strategic approaches for empowering neighbourhood-based artisans in Bangladesh
Bangladesh’s handicraft sector, despite facing challenges, is well-positioned to scale its presence in global markets. With a strong cultural foundation, government policy support, and rising global demand for sustainable products, Bangladeshi businesses can leverage multiple avenues for growth.
1. Leveraging policy support and incentives
The government has recognized handicrafts as a Special Development Sector under both the Export Policy 2021–24 and the National Industrial Policy 2022. While the National Handicraft Policy 2015 is yet to be fully implemented, current incentives such as cash subsidies on exports (8%) and income tax exemptions present immediate opportunities for businesses to strengthen competitiveness.
2. Product diversification and innovation
The sector can move beyond traditional crafts and expand into new product categories such as:
- Diversified leather handicrafts and handloom fashion items
- Eco-friendly jute goods, soil savers, and paper bags
- Bamboo and rattan-based lifestyle products (e.g., wickerwork, plaiting materials)
- Handcrafted fiber products that are both sustainable and durable
By investing in R&D and design centres, artisans can develop modern designs while preserving traditional techniques, making products more relevant for contemporary global markets.
3. Market diversification and branding
Bangladesh’s handicrafts already have recognition in global markets, but there is significant room to expand exports to high-value destinations such as various parts of Europe, like Spain and the UK, as well as the US. To succeed, businesses must focus on country and heritage branding to distinguish Bangladeshi crafts from competitors like India, China, and Singapore. Businesses should also consider building exporter capacity to meet international compliance standards.
4. Tapping into global consumer trends
Consumer preferences worldwide are shifting toward eco-friendly, handmade, and sustainably produced goods. This shift aligns seamlessly with Bangladesh’s artisanal heritage, where handicrafts are often created using natural and locally sourced materials. As a result, Bangladeshi artisans are well-positioned to cater to the growing demand in eco-conscious fashion and lifestyle markets, particularly in Europe and North America.
Beyond traditional wholesale channels, the rise of online retail and e-commerce platforms has opened new doors for direct engagement with global buyers. By leveraging these platforms, artisans can showcase the authenticity and sustainability of their products, reaching niche audiences who value craftsmanship, cultural heritage, and ethical sourcing.
5. Strengthening the supply chain and logistics
Strengthening the supply chain and logistics is crucial for Bangladeshi businesses looking to expand beyond local markets and capture international opportunities. Partnering with experienced logistics providers like DHL Express allows businesses to streamline their export processes, access reliable international shipping networks, and ensure the timely delivery of products to global buyers. With expertise in customs clearance, documentation, and compliance, working with logistics partners can help overcome trade barriers while reducing risks of delays and added costs.
Bridging distances: Reliable shipping and logistics for handicraft exports
Bangladesh’s local clusters are thriving hubs of creativity and entrepreneurship. By connecting artisans and small businesses with international buyers, these neighbourhoods can diversify the country’s export base while sustaining livelihoods and preserving cultural heritage.
Reliable express logistics is at the heart of this transformation. It ensures that handicrafts and other niche products reach global markets efficiently, meeting compliance requirements while safeguarding quality throughout the shipping journey.
At DHL Express, we support neighbourhood exporters with our international shipping network, enabling them to reach key markets overseas quickly and securely. We offer both express and standard delivery options, giving businesses flexibility to balance cost and urgency. Beyond overseas shipping, we support businesses with customs clearance and compliance, ensuring smooth cross-border trade.
With our expertise, Bangladeshi entrepreneurs can focus on growing their business while we handle getting handicraft products safely and on time to their foreign buyers in different parts of the world.
Ready to share your neighbourhood’s unique products with the world? Open a business account today.
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