Bangladesh Hair Oil Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Bangladesh Hair Oil Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Bangladesh Hair Oil Market size is expected to grow from USD 176.53 million in 2023 to USD 232.80 million by 2028, at a CAGR of 5.69% during the forecast period (2023-2028).

Key Highlights

• Factors that are projected to push market expansion throughout the forecast period include the improved quality of life, the impact of beauty and personal care on self-esteem and social connection, and the steady consumer shift towards sustainable hair oil brands. Using hair oil to promote growth and strength is one of the country's latest trends in hair care. Women in Bangladesh are focused on using oils to improve hair strength, nourishment, and scalp and to help hair to aid in growth.
• While many women in the country use oils around their kitchen, like olive oil and/or coconut oil, some other oils are believed to offer even more benefits to hair and scalp. For instance, almond oil makes the hair feel smoother to the touch. It often makes the hair softer, making it easier to comb through and style. Some women in the country even put a small amount of oil into other hair products like shampoo, conditioner, or leave-in products to help give an extra boost of moisture which is expected to boost sales further.
• Furthermore, with the fast-paced recovery of developing economies leading to increased disposable income and decreased inflation, consumer prices are expected to support the hair oil market demand during the forecast period.
• For instance, based on data from the World Bank, in 2021, the annual inflation rate for consumer prices was recorded at 5.5%, showing a slight decrease compared to the previous year when it stood at 5.7%. However, vendors are expected to face ongoing challenges due to intense competition, pricing concerns, and evolving consumer preferences, all of which will continue to exert pressure on their profit margins.

Bangladesh Hair Oil Market Trends

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.

Bangladesh Hair Oil Industry Overview

The Bangladesh hair oil market is consolidated with the presence of significant players. Brands such as Marico (Parachute), Dabur, Kumarika, Bajaj Corp Ltd, and Emami dominate the market, leaving less room for domestic players. A wide product range, a well-established presence in the Bangladesh hair oil market, and a high distribution network enable key players to hold a significant market share. The major market strategies adopted by the companies are agreements/partnerships, expansion, acquisitions, and new product launches. The introduction of hair oil in different sizes was one of the strategies by the manufacturers. This led to high sales, owing to the economic leverage provided to Bangladesh's lower-income customers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support