Why Bangladesh's float glass industry is facing a severe supply–demand mismatch

Bangladesh's float glass industry is under mounting pressure as production capacity has expanded far beyond what the domestic market can absorb. 

While manufacturers invested heavily on expectations of sustained construction-led growth, demand has failed to keep pace, creating a structural imbalance that now threatens the sector's viability.

Here's a breakdown of the key factors behind the widening gap between supply and demand.

Capacity raced ahead of demand

Bangladesh currently consumes around 30,000 tonnes of float glass a month, or roughly 3.5 lakh tonnes annually. In contrast, installed production capacity has crossed 10 lakh tonnes a year, almost three times domestic demand.

Most of this capacity was planned during 2018–19, when daily demand exceeded 1,000 tonnes and was forecast to double by 2025. Those projections were driven by rapid urbanisation, a buoyant real estate market and a surge in mega infrastructure projects.

That growth, however, did not materialise.

Float glass cracking under overcapacity, low demand

Economic slowdown changed the trajectory

The Covid-19 pandemic and the subsequent global and domestic economic slowdown sharply altered market dynamics. Construction activity slowed, private investment weakened and several infrastructure projects were delayed.

As a result, glass demand stagnated, and in some segments declined, leaving factories operating well below capacity and margins under heavy strain.

Industry leaders say the assumptions underpinning large investments made before 2020 are no longer valid in today's economic environment.

A rigid production structure

One of the biggest challenges unique to the float glass industry is its inability to scale down production.

Float glass furnaces, once ignited, must run continuously for 10 to 12 years. Shutting them down risks permanent damage, leading to losses worth hundreds of crores of taka. This forces manufacturers to keep producing even when demand is weak.

In downturns, companies often sell glass at a loss, or even destroy unsold stock, simply to keep furnaces operational.

Rising costs squeezed profitability

While demand has slowed, costs have moved in the opposite direction.

Global raw material prices have risen, the taka has depreciated since 2020, and factory construction costs have nearly doubled. Energy expenses, especially gas, remain high and supply constraints persist.

Together, these factors have eroded margins and undermined the commercial viability of new and existing plants.

Fresh investments in a saturated market

Despite the imbalance, new investments continue to flow into the sector. Several major groups have expanded capacity or announced fresh projects worth thousands of crores of taka.

Industry insiders warn that adding capacity to an already oversupplied market could intensify price wars and financial stress—unless demand rebounds sharply or exports scale up significantly.

Dumping adds external pressure

Local producers say dumping of low-priced glass, particularly from China and India, has worsened the situation. Around 20% of Bangladesh's glass demand is still met through imports, often sold at steep discounts.

Unlike India, which has imposed strict anti-dumping duties, Bangladesh's tariff structure and enforcement mechanisms are seen as weak, leaving domestic manufacturers exposed to unfair competition.

Shift towards value-added products

To cope, manufacturers are increasingly turning to value-added and specialised glass products aimed at niche domestic and export markets. While this strategy may help improve margins, industry experts say it cannot fully resolve the core issue of excess capacity.

Standard float glass has become a high-volume, low-margin business, making survival difficult without structural adjustments.

Policy gaps deepen the challenge

Entrepreneurs argue that policy shortcomings are exacerbating the crisis. They cite inconsistent industrial policies, high import duties on raw materials, unreliable energy supply, and inadequate trade protection.

Industry stakeholders are calling for stronger anti-dumping measures, rationalised tariffs, export incentives, and policies that encourage wider use of locally produced glass.

Without coordinated policy support and demand-side recovery, they warn, the mismatch between supply and demand could continue to destabilise Bangladesh's float glass industry for years to come.