Market Trends of Bangladesh Shampoo Industry
Increasing Demand for Herbal and Medicated Shampoo
- Herbal shampoos formulated using natural ingredients have gained massive acceptance among all groups of customers in the country. This is majorly due to the increasing awareness about the harmful effect of chemically formulated shampoos and educating customers about the benefit of herbal products through social media and other sources.
- Herbal shampoos are especially beneficial for people with sensitive skin and scalp issues. They contain no harsh chemicals or additives such as parabens, dyes, and silicones that could irritate the scalp or cause further damage. As a result, the players in the market are using natural ingredients such as coconut milk, coconut oil, aloe vera, and onion to formulate herbal shampoos as per changing consumer behavior.
- For instance, Marico Bangladesh Limited offers Parachute Naturale shampoo with three exciting variants: nourishing care, damage repair, and anti-hair fall. Conversely, medicated shampoos are formulated to help treat scalp conditions such as dandruff and psoriasis.
- While demand for herbal shampoo is increasing in rural and urban markets, urban consumers are more extravagant. This is due to the growing awareness of the potential benefits of using herbal and medicated shampoos over conventional shampoos. Additionally, due to the popularity of plant-based ingredients used in herbal personal care & cosmetics products, this category witnessed significant growth. This trend is anticipated to contribute significantly to the market growth over the forecast period.
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Increased Penetration of E-Commerce Platform
- Bangladesh's total population was 167.1 million in January 2022. According to the Bangladesh Telecommunication Regulatory Commission (BTRC), the total number of Internet subscribers was 117.3 million in May 2021. With increased access to e-commerce in Bangladesh, the sales of shampoo through online stores are expected to rise, thereby benefitting the market. In addition, the availability of a broader range of products and the convenience of shopping online is also strengthening e-commerce sales.
- E-commerce players are launching international brands to cater to the rising demand for shampoos and attract potential customers, especially millennials. With the growth of e-commerce, consumers are increasingly looking for convenience and a wider variety of products. By offering international brands, e-commerce players can provide consumers access to products that may not be available locally.
- Moreover, brands are launching their own e-commerce website to offer a seamless experience in language, easy-to-operate applications, interactive sessions, and multiple product offerings that can appeal to the wider consumer base.
- Furthermore, according to the Bangladesh Telecommunication Regulatory Commission (BTRC), in 2021, there were over 2,000 e-commerce sites and more than 50,000 e-commerce pages on Facebook. Facebook remains a popular method for advertising and selling personal care products, including shampoos. Hence, the increasing availability of Internet services has significantly improved the availability of web-based and online stores for the sales of shampoos and other products through e-commerce platforms. This has led to the emergence of many new entrants in the market over the years, as it has become easier for businesses to set up an online presence and reach a wider customer base.
