The steady rise in the consumption of locally produced toiletry and hygiene products marks a significant and welcome shift away from reliance on imports. Recent reports indicate that homegrown toiletry and beauty brands are increasingly replacing expensive imported alternatives, driven by affordability, improved quality and an expanding range of offerings. Over the past two decades, the domestic industry has undergone remarkable transformation, with many product categories now experiencing double-digit growth. According to a Financial Express (FE) report, the sector saw particularly sharp growth during the COVID-19 pandemic, when global health consciousness surged amid widespread medical emergencies. Sales of liquid handwash, sanitisers, and antibacterial soaps soared almost overnight, prompting both multinational and local companies to rapidly increase production to meet the unprecedented demand.
Besides the hygiene products, domestic manufacturers are steadily gaining market share across a wide range of products - tissue paper, toothpaste, shampoo, face creams, deodorant, shaving foam etc. They are doing so by providing affordable alternatives to imported brands. Industry insiders estimate that the sector's annual turnover has surpassed Tk 200 billion, nearly $1.8 billion, driven by a combination of factors including a growing consumer base, rising disposable incomes across both urban and rural areas. Presently, local and multinational companies account for about 70 per cent of the market, while imports make up the remaining 30 per cent. Notably, local brands represent around 30 per cent of that 70 per cent share.
Market observers point out that consumer preferences are no longer dominated solely by global names. Instead, today's consumers prioritise functionality, affordability, and familiarity - reason why local brands have found an opportunity to thrive. By focusing on innovation, competitive pricing, and meeting the hygiene demands of a wider range of conscious public, local manufacturers are reshaping a market once dominated by international brands. Reports suggest that the quality of local products is generally good and, in many cases, comparable to imported brands and they come at far lower prices. One of the key factors driving 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 budget-friendly options have opened up new demand, particularly in rural communities, among low-income households, restaurants, and budget hotels.
Despite these impressive gains, local manufacturers face a critical challenge---their heavy dependence on imported raw materials, which accounts for about 90 per cent of inputs, according to industry leaders. Experts suggest that rationalising import duties on essential raw materials would help domestic players strengthen their hold on the local market and make their products more competitive abroad. There is a clear need to explore international markets, understand consumer preferences, and ramp up exports. While a few companies have already begun exporting, the current export volume remains well below the sector's true potential. It is time the industry people seriously looked into the prospect of exporting, especially in the Middle Eastern, African as well as South Asian markets.