The rise of made in bangladesh cosmetics has seen remarkable growth over the past decade. Once dependent on imported goods, the market is now shifting towards locally produced items that cater to a diverse range of consumers. 

From skincare and haircare to personal care products, the expanding industry is responding to the demands of the middle and lower-middle classes, providing more affordable alternatives to foreign brands. Yet, despite this growth, challenges remain, particularly concerning product safety and regulatory standards.

According to the National Board of Revenue (NBR) data

Bangladesh imported 11,529.45 tonnes of personal care items worth Tk937 crore from May 2022 to February 2023, which was Tk1423 crore in the corresponding period of the previous year. 

Market size of consumer products in Bangladesh

Total domestic market size of consumer products in Bangladesh is approximately Tk50000 crore. Toiletries and cosmetic products contribute Tk25000 crore, whereas food and beverage items contribute the rest. 

According to research organisations LightCastle Partners and Allied Market Research, an estimated $1.23 billion worth of skincare and personal care products were sold in Bangladesh in 2020, and the amount is expected to hit $2.12 billion by 2027.

The rise of made in bangladesh-cosmetics Industry on the rise

According to market insiders, Bangladesh’s fast-moving consumer goods (FMCG) market is valued at around Tk 50,000 crore annually, with toiletries and cosmetics accounting for approximately Tk 25,000 crore. The market is experiencing a value growth trend of about five percent per year.

Previously, Bangladesh’s premium cosmetics market was almost entirely dependent on imports. However, local brands are now making inroads with their own premium offerings, alongside basic cosmetic products, aiming to better understand and cater to local needs, preferences, and price sensitivities.

The cosmetics industry in Bangladesh

The cosmetics industry in Bangladesh relies heavily on imported raw materials, primarily from countries like China, South Korea, Thailand, the USA, and various European countries. However, rising import costs and the ongoing dollar crisis have posed significant challenges for companies, making it difficult to sustain operations without passing the burden of price hikes onto cons bangladesh-cosmetics Prevalence of Counterfeit and Substandard Cosmetics

A substantial portion of cosmetic products in Bangladesh are counterfeit or of poor quality. According to the Consumers Association of Bangladesh (CAB), approximately 70% of cosmetics in the country are either counterfeit or substandard. Many of these products lack essential labeling, expiration dates, or proper manufacturer information

Challenges for Local Manufacturers

Local cosmetic manufacturers face several challenges, including:

• Higher Tax Burden: Local producers often face higher taxes compared to imported products, making it difficult for them to compete in the market.
• Complex Export Processes: The export process for cosmetics from Bangladesh is complex and time-consuming, hindering the global expansion of Bangladeshi brands.

Recommendations for Improvement of Bangladesh cosmetics

To address these challenges, experts suggest the following measures:

• Strengthen Enforcement: Enhance the enforcement of existing regulations and introduce stricter penalties for counterfeit manufacturers and sellers.The Morning Herald
• Increase Consumer Awareness: Educate consumers about the risks associated with counterfeit and substandard cosmetics and encourage them to purchase products from reputable sources.Jagonews24+2The Morning Herald+2Dhaka Tribune+2

By taking these steps, Bangladesh can improve the safety and quality of its cosmetic products, protect public health, and support the growth of its local industry.