Why go for imported expensive products when local buys of veritably same-quality substitutes can save one over 35-percent expenses is a moot question prompted now by domestic industrial expansion.
A prime example being cited is homegrown toiletry and beauty products
that are increasingly substituting expensive imports that drain on Bangladesh's limited foreign-exchange reserves.
Start with everyday-used shaving foam -- and Asifur Rahman finds no reason why he should go for the buy of an import. A mid-level banker working in Dhaka's bustling financial district of Motijheel, Rahman starts his day -- as do many urban professionals-with a shave.
For years, he had relied on imported Gillette shaving foam, manufactured in India using raw materials from the USA. Occasionally, he opted for pricier UK-made alternatives.
Few months ago, while shopping at a local grocery store in RK Mission Road in the capital, he picked a can of locally-manufactured shaving foam, at the grocer's tipoff.
To his surprise, he finds no noticeable difference in quality. More importantly, the price is significantly lower: Tk 330 compared to Tk 510 for the imported brand-a saving of over 35 per cent.
"Incidentally, I took the local brand, and since then, I've been using it regularly," he says. "It feels the same but costs much less."
Rahman only represents a changing trend. Millions of Bangladeshi consumers are now turning to domestically produced toiletries and beauty products, too, signaling a switch in a market long dominated by imports and multinational giants.
Over the past two decades, Bangladesh's toiletries and personal hygiene market has transformed phenomenally. Lifesaving lockdowns of yesteryear proved a blessing in disguise in terms of economic transition.
The sector saw a sharp rise during the COVID-19 pandemic, when health consciousness soared amid medical emergencies across the planet.
Once dominated by exogenous names, shelves of stores -- from Dhaka's supermarkets to rural kiosks -- now display a growing array of local products.
From tissue paper and toothpaste to baby shampoo, sanitary pads, and hand sanitizers, domestic manufacturers are gaining market share by offering quality alternatives at lower prices.
Industry-insiders estimate the sector's annual turnover has crossed Tk 200 billion, equivalent to nearly $1.8 billion, driven by a rising number of consumers, higher disposable incomes, and increased awareness of hygiene across urban and rural areas of the country.
Currently, local and multinational companies occupy about 70 per cent of the market, with imports covering the remaining 30 per cent. Of that 70 per cent, local brands account for around 30 per cent.
Local companies like Square Toiletries, Keya Cosmetics, Kohinoor Chemical (maker of the time-tested brands Tibet and Sandalina), ACI Limited, and Bashundhara Toiletries are doing brisk business by offering affordable, culturally familiar, and easily available products.
Md Quamarul Hassan, Chief Business Officer of ACI Consumer Brands, says local companies are now producing high-quality, innovative, and trustworthy products tailored to the needs of Bangladeshi households.
"We are now competing head-to-head with multinationals," he told The Financial Express.
In many categories -- especially natural products -- growth is in the double digits, according to Mr. Hassan.
"There was a huge spike during the COVID-19 period, and now the market stabilised."
Despite quality gains, however, local manufacturers face a key challenge: heavy reliance on imported raw materials -- about 90 per cent, according to industry leaders.
The depreciation of the Bangladeshi Taka (BDT) is eating into their profit margins.
"The volatile foreign-exchange market has impacted our bottom line," says Malik Mohammed Sayeed, CEO of Square Toiletries Ltd.
"Over 90 per cent of raw materials are imported. The dollar has appreciated significantly in the last two years, which is squeezing profitability."
He urges policy support, especially rationalisation of duties on essential inputs like soap noodles -- a key ingredient in soap production.
Currently taxed at 25 per cent, he recommends reducing the rate to 5.0 per cent, which would make products more affordable, particularly in rural areas where hygiene is critical for disease prevention.
Mr. Sayeed also notes a growing focus on using locally sourced herbal ingredients for nature-based products that are increasingly in demand.
"The market is no longer just about global names," says a senior official at a major toiletries brand, indicating a growing trend of customers going native.
"Consumers are looking for functionality, affordability, and familiarity -- and that's where local brands are stepping up."
A key driver of this local success story is the widespread use of small sachets -- single-use packs of shampoo, toothpaste, or soap priced between Tk 2.0 and Tk 5.0.
These affordable options have unlocked demand in underserved rural areas and among low-income households, restaurants, and budget hotels.
"Now even families in remote villages can afford branded toiletries," says a distribution manager of an MNC overseeing supply chains in the country's far-flung northern districts.
"What was once considered a luxury has become a daily essential," he notes to underline interrelation between lifestyle change and consumption-led economic growth.
The pandemic further accelerated the shift.
Sales of handwash, sanitizers, and antibacterial soaps skyrocketed overnight, prompting both multinationals and local brands to ramp up production. While the initial spike has subsided, the hygiene habit has endured.
"COVID-19 made hygiene top-of-mind for everyone," says a marketing consultant who advises several local brands.
"That awareness has persisted. Both urban and rural consumers are now more likely to wash their hands regularly and seek germ-fighting products."
This behavioral shift, combined with rising incomes and growing urbanisation, has created fertile ground for market expansion.
Teenagers are buying more haircare and skincare products. Women are using sanitary napkins more frequently. Men are spending more on shaving kits and deodorants.
Bashundhara Group, known for its rapid expansion across industries, has entered the personal-care market with a full range -- from tissue rolls to diapers and feminine-hygiene products.
Yet the outlook is bright. E-commerce and digital connectivity are opening up new sales channels, especially among urban youth.
Some local companies are eyeing exports to markets like Nepal and Bhutan in Asia, and parts of Africa, according to industry-insiders.
Bangladesh's toiletries industry is undergoing a remarkable transformation. With innovation, affordability, and rising hygiene awareness on their side, local manufacturers are rewriting the rules in a market once ruled by global giants.
As more consumers like Mr. Rahman embrace homegrown brands, the country's hygiene revolution looks set to continue -- one sachet at a time.
jasimharoon@yahoo.com
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