New markets that are gaining traction and paving the way for Bangladesh’s next chapter.
Bangladesh’s Emerging Market Landscape
Bangladesh’s open-field-like economy has become a thriving ground for new markets. It’s a playground for entrepreneurs and businesses – a sandbox of opportunities. Some ideas have taken off remarkably well, turning into highly successful ventures. These ideas often emerge in phases, waiting for the right moment, such as the availability of enabling technologies or the spread and influence of cultural trends, before transforming into game-changing business models. A prime example is the rise of mobile financial services, ride-sharing, and delivery platforms. When mobile penetration surged in Bangladesh, these industries flourished, becoming not just popular but essential to daily life.
There is always a new market on the horizon in Bangladesh, and some are already gaining momentum. Their growth is expected to accelerate, but their ultimate success may depend on the interests and aspirations of today’s Gen Z and tomorrow’s Gen Alpha when they enter the workforce and become integral to our local consumer base.
The Gen Z youth has a strong voice, and their philosophy is deeply rooted in a revolutionary spirit that champions the ‘Made in Bangladesh’ spirit. They are driven by a desire to build a nation that takes pride in both its successes and failures. They understand the value and importance of supporting and developing local industries. Most importantly, this generation places a strong emphasis on individuality, an essential entrepreneurial trait.
If this philosophy endures, the emerging markets of today, that are being built and shaped by the youth of the nation, will not only thrive but also define the future. These markets, both business-to-business (B2B) and business-to-consumer (B2C) are already in motion, poised to sprint ahead and secure a significant share in the economy of tomorrow.
The Rise of Service-Oriented Businesses
Service-oriented businesses are on the rise in Bangladesh. Traditionally an informal sector marked by low wages and labour-intensive work, it is now undergoing a gradual shift toward formalisation as its consumer base becomes younger. This transformation is driven by a growing demand for reliable, high-quality services from certified professionals who can earn fair wages through structured employment. Vocational training institutes are playing a crucial role in this shift, equipping workers with the skills needed to thrive in a more organised service industry.
Currently, Bangladesh has 502 vocational training institutes, according to the Bangladesh Technical Education Board (BTEB). Many graduates from these institutes either secure full-time employment, migrate abroad under corporate contracts or enter the local job market. Over time, as demand for skilled professionals in the service sector rises domestically, the formalisation of the industry will accelerate. This presents a lucrative opportunity for entrepreneurs and job seekers looking to fill gaps in the market by investing early.
Health, Wellness, and Fitness: A Growing Industry
A similar growth trajectory is visible in the health, wellness, and fitness industry. Since 2011, the number of fitness centres, primarily local gyms, has steadily increased, though profitability remains a challenge due to the historically weak fitness culture in our country. However, conversations around health and well-being are gaining momentum. Mindfulness and wellbeing instructors and personal training programs are growing in popularity, fueled by young professionals who are increasingly aware of the risks of an unhealthy lifestyle.
Instructors like Tanvir Hasan Britto focus on young parents seeking healthier lifestyles, while events such as Dhaka Flow promote mindfulness and positivity through yoga. Fitness studios like Yasmin Karachiwala’s Body Image Dhaka, corporate boutique gyms like Aamra Active, fitness accessories retailers such as Nutrition Depot, and premium activewear brands like Turaag Active are gaining traction. Currently valued at approximately USD 100 million, the fitness and wellness sector is projected to grow at a compound annual growth rate (CAGR) of 3.65% over the next five years. The digital fitness and wellness market, including wearables, apps, and online services, is expected to expand even faster, with an estimated CAGR of 8.74% over the same period. This sector is poised for rapid acceleration.
BANGLADESHI COMPANIES CURRENTLY DEVELOPING AI SOLUTIONS WILL HAVE A SIGNIFICANT ADVANTAGE, AS THEY WILL BE ABLE TO TAILOR AUTOMATION SOLUTIONS FOR CUSTOMER SERVICE, SOCIAL MEDIA ENGAGEMENT, CONTENT CURATION, PUBLIC RELATIONS, AND MEDIA AND COMMUNICATIONS.
The Potential of Artisanal Products
The artisanal food and products market faces a more uncertain trajectory, experiencing occasional bursts of growth but struggling to sustain momentum. Artisanal goods often struggle against the dominance of FMCG giants. Small entrepreneurs offering premium, high-priced products frequently fail due to market saturation and consumer habits focused on per-unit pricing (e.g., cost per millilitre or per item). Corporations, benefiting from economies of scale, maintain a competitive edge.
However, consumer values are shifting. The younger generation is significantly more environmentally conscious, human-rights oriented, and aligned with Sustainable Development Goals (SDGs). As they enter the workforce and gain disposable income, they are increasingly choosing brands that reflect these values rather than solely considering cost. Artisanal products meet these evolving preferences by offering sustainability, craftsmanship, and superior longevity.
F-commerce has provided home-based businesses with a testing ground for this market. Though still in its infancy, the artisanal sector is expected to gain momentum as Bangladesh continues its economic development. As the country moves toward developing-nation status, corporate compliance costs will rise for larger companies, making artisanal products more competitive in terms of overall value. This value extends beyond mere pricing. It includes sustainability, craftsmanship, and ethical production. When this paradigm shift fully takes hold, the artisanal market could finally gain the speed needed to thrive.
The Semiconductor Industry: A New Frontier
The semiconductor industry is poised to establish a stronger B2B market presence in Bangladesh, particularly following the recent announcement of a semiconductor task force by the Bangladesh Investment Development Authority (BIDA). Currently, Bangladesh plays a role in semiconductor chip design as an outsourcing destination for international manufacturers. While the global chip design industry is valued at approximately USD 450 billion, Bangladesh’s chip design sector remains relatively small, at around USD 5 million. However, with a projected compound annual growth rate (CAGR) of 17.5% in the Asia-Pacific region over the next decade, the chip design industry is primed for expansion.
Bangladesh holds a strategic advantage due to its proximity to the Asia-Pacific region. With competitive labour costs and a young, skilled workforce, Bangladesh has the potential to become an attractive destination for global semiconductor firms. By leveraging expertise from the Bangladeshi diaspora, industry professionals, academia, and policymakers, the country can strengthen its role in the global value chain and build an innovation-driven economy. The already phenomenal interest in strengthening our chip design industry could become as significant for Bangladesh’s B2B market as the ready-made garment (RMG) industry did for the nation as a sourcing destination.
BANGLADESH HOLDS A STRATEGIC ADVANTAGE DUE TO ITS PROXIMITY TO THE ASIA-PACIFIC REGION. WITH COMPETITIVE LABOUR COSTS AND A YOUNG, SKILLED WORKFORCE, BANGLADESH HAS THE POTENTIAL TO BECOME AN ATTRACTIVE DESTINATION FOR GLOBAL SEMICONDUCTOR FIRMS.
The Rise of Corporate Communication in B2B Markets
Another emerging B2B sector is corporate communication, fueled by a growing skill set among young Bangladeshi university students, particularly those in business schools. The rising recruitment standards of multinational corporations (MNCs) in Bangladesh have driven students to develop strong communication and presentation skills. Competitions like BAT Bangladesh’s Battle of Minds and business reality shows like Shark Tank Bangladesh have further highlighted this emerging talent pool.
Corporate communication is rapidly gaining traction, particularly in two key industries: RMG and the development sector. Both require professionals who can craft compelling narratives about corporate success stories, rooted in industry knowledge, for both local and global audiences. Currently, Bangladesh relies on expensive foreign professionals for corporate communication, hiring upper-management talent from neighbouring countries due to their superior industry knowledge and expertise. However, this is beginning to change as more young professionals recognize the career potential in business communication.
In the RMG sector, corporate communication will go beyond financial success stories. It will showcase how companies are uplifting communities, reducing poverty, advancing sustainability, strengthening the local economy, and maintaining high compliance standards. Meanwhile, many businesses in Bangladesh struggle with branding, marketing, and effectively communicating their market potential. Traditional marketing agencies, which focus on specific consumer demographics, often fail to deliver significant business growth. In contrast, corporate communication operates on a much larger scale, targeting investors, partners, and stakeholders both locally and internationally.
As businesses increasingly recognise the importance of strategic messaging, B2B corporate communication is set to expand rapidly, bridging the gap between Bangladeshi enterprises and global opportunities.
CORPORATE COMMUNICATION IS RAPIDLY GAINING TRACTION, PARTICULARLY IN TWO KEY INDUSTRIES: RMG AND THE DEVELOPMENT SECTOR. BOTH REQUIRE PROFESSIONALS WHO CAN CRAFT COMPELLING NARRATIVES ABOUT CORPORATE SUCCESS STORIES, ROOTED IN INDUSTRY KNOWLEDGE, FOR BOTH LOCAL AND GLOBAL AUDIENCES.
AI and the Future of Business in Bangladesh
It is impossible to ignore the growing omnipresence of AI, particularly with the increasing competition and affordability spurred by China’s Deepseek R1, the latest major player challenging US AI tech giants like OpenAI. Whenever China enters a market, B2B processes tend to become more affordable for developing countries. As a result, we can expect to see an influx of AI-driven business solutions in Bangladesh. While the country is unlikely to produce globally competitive AI models, open-source AI technology will make its way into many businesses. Bangladeshi companies currently developing AI solutions will have a significant advantage, as they will be able to tailor automation solutions for customer service, social media engagement, content curation, public relations, and media and communications.
The Road Ahead: Markets in Motion
The good news is that these markets are not in a race against time. Their biggest barrier to entry is simply their own emergence – they are still picking up the pace. Entrepreneurs are already testing the waters, striving to gain a foothold, positioning themselves as first-movers, and working to create a culture around these industries.
Like most markets in Bangladesh, these sectors will take time to fully take off. However, their trajectory is clear: once they accelerate, they will gain momentum rapidly, driving not just economic growth but also cultural transformation. When these markets reach their full potential, they will generate substantial revenue, create jobs, open new opportunities, employ skilled professionals, and foster an entrepreneurial ecosystem that values homegrown talent.
These are today’s markets in motion. Tomorrow, they will be at full speed.
