Market Trends of Bangladesh Hair Oil Industry
Organic/Herbal Oils are Gaining Popularity
- As awareness of chemical products grows and consumer perceptions of herbal goods change, consumers in the nation are moving away from conventional hair oil and towards organic and herbal alternatives. Products made from herbal or organic ingredients are said to nurture hair and have positive effects.
- Additionally, consumers favor herbal-based hair oils because they are composed of natural ingredients and offer significant advantages. Customers use these hair oils to moisturize their hair and to encourage hair development in addition to treating hair issues, including thinning hair and dry or flaky scalp.
- Moreover, few consumers also use these products for their added health, scalp, and hair benefits. For instance, aloe vera-based hair oil gives the hair a better texture and helps boost the hair density of the individual. In addition, growing air pollution concerns in the country have further promoted such hair oils, which were claimed to promote healthy hair. For instance, according to IQAir, Bangladesh had an average PM2.5 concentration of nearly 65.8 micrograms per cubic meter of air (µg/m3) in 2022, becoming the 5th most polluted country in the world.
- Furthermore, product innovation and the growing popularity of value-added herbal hair oils are driving the Bangladeshi hair oil market. Since a significant share of the Bangladesh population is rural, the introduction of sachets by manufacturers has led to market growth. Sachets in different volumes have garnered a significant share among the population, especially the lower-income and rural groups.
- For instance, in March 2022, SESA, an Indian reputed hair care brand that claims to rely on 100% natural ingredients and makes herbal hair care products, launched its daily care herbal oil for regular usage in Bangladesh. Such developments, along with the rising demand for herbal ingredients in hair oil, are expected to support the hair oil market in Bangladesh.
Online Retailing and Promotions are Supporting the Markets Growth
- The e-commerce sector in Bangladesh has been gaining popularity for the past five years, with high internet penetration, ease of access, pricing, and home delivery. Bangladesh is still one of those emerging economies with a growing GDP and an increased scope in terms of reach and usage for purchasing consumer goods. For instance, according to the World Bank, the GDP of Bangladesh in 2021 was USD 416.26 billion, which increased from USD 373.9 billion in 2020.
- Additionally, factors such as increasing urbanization, growing awareness of customers in utilizing technology, and growing popularity of online shopping will likely lead to high market penetration in the next ten years. To increase online shopping, investors are coming up with online portals. Some common e-commerce websites in Bangladesh for consumer goods are ajkerdeal.com, bagdoom.com, beautystore.com.bd, daraz.com.bd, and chaldal.com.
- Moreover, the aggressive promotional activities or campaigns carried out by various major players operating in the market are expected further to boost the market's sales in the country. For instance, in April 2023, Marico launched a social media campaign to celebrate the launch of Parachute Advanced Onion Hair Growth Oil in Bangladesh. The brand has collaborated with renowned beauty expert Navin Ahmed and popular personalities Mumtaheena Chowdhury Toya and Raba Khan for the social media campaign. Such collaborations with popular personalities are expected to aid the market to penetrate deeper and thus proper its growth during the forecast period.
