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Published : 25 May 2026, 01:54 AM
Bangladesh’s soft drink industry is stuck in a low-growth phase due to what industry leaders describe as “excessive” taxation, according to Kazi Nazmul Hassan, chief executive of Abdul Monem Limited’s Coca-Cola business unit.
He argues that reducing taxes could unlock a sharp expansion in consumption and potentially triple government revenue from the sector.
Speaking on bdnews24.com’s flagship interview series “Chinwag With the Chiefs”, Nazmul said demand for soft drinks typically rises during festivals and the summer heat, with a further boost expected before Eid-ul-Azha.
But structural constraints, he suggested, are preventing the market from reaching its full potential.
“Excess tax is stalling growth in this sector,” he said, adding that Bangladesh’s current tax burden on beverages stands at 49.5 percent, which he claims is higher than in neighbouring countries.
“Whatever business grows, the government earns more revenue,” he said. “If the tax can be brought to a reasonable level, government revenue could increase three to four times.”
Nazmul said the industry could expand rapidly if pricing becomes more accessible.
“We are unable to reduce prices because of high taxes. If taxes are reduced, prices will come down and the product will become affordable for everyone. That would increase sales and multiply revenue.”
He added that Bangladesh’s soft drink market has significant room for growth over the next five years, depending on macroeconomic stability.
“Right now, due to the sluggish economy, growth has slowed,” he said. “If the economy turns positive, the industry we have today could double in five years.”
On consumption trends, Nazmul said Bangladesh’s young and middle-aged population is a key driver of demand.
The company has deliberately positioned its products across income segments, from Tk 20 glass bottles to Tk 70 premium variants.
“We have made the product for everyone,” he said.
He also pointed to strong historical growth, noting that Coca-Cola saw its highest sales expansion in Bangladesh in 2021.
Addressing health concerns, Nazmul rejected the perception that soft drinks are inherently harmful.
“What in Coke is harmful to health? It is sugar. Everything we consume has sugar,” he said. “Coke is not unhealthy. Tea also contains sugar -- how much sugar we take in tea, we don’t even count.”
He added that sugar-free variants are also available for health-conscious consumers.
Responding to criticism of foreign brands and rising local competition, Nazmul said market expansion naturally attracts new entrants.
“As the market grows, new brands come in. Earlier, multinational companies dominated this space. Now local brands are also entering and competing,” he said.
Nazmul also addressed sharp price increases in recent years, attributing them to global supply chain disruptions, the COVID-19 pandemic and geopolitical conflicts.
“The price of sugar rose from Tk 46 per kg to Tk 145,” he said. “Plastic and other inputs have also become more expensive.”
He noted that after price hikes in 2022–23, sales dropped significantly, forcing companies to introduce smaller, more affordable packaging such as 200ml bottles.
On social media calls for boycotting Coca-Cola over alleged political affiliations, Hasan dismissed the claims as misinformation.
“Coca-Cola is a US brand. When it was founded, there was no state called Israel,” he said, adding that the company is publicly listed and globally owned.
On environmental concerns, he said the company is working to reduce plastic usage and expand recycling partnerships.
“Our bottles use thinner plastic compared to others to reduce usage,” he said. “We aim to recycle at least 70 percent of the plastic we put into the market.”
