Baby diapers have been emerged as a new business opportunity for the local manufacturers to capture domestic market through substituting imports.
A sharp rise in use of the product across the country has offered the opportunity, industry insiders said.
Since most of the working women prefer to use the diapers for their babies, the demand for nappies is on the upswing. Most interestingly, the number of the working women in Bangladesh is also increasing day by day.
Around 70% of its total demand is met by imports while the local manufacturers contribute the rest, said local manufacturers.
According to World Health Organismic report, Bangladesh will be the seventh largest users of baby diaper among the world by 2025.
Out of 14 available brands in the Bangladeshi market, only four brands are locally manufactured.
At present, the market size of baby diapers in Bangladesh is around Tk400 crore, of which 70% are totally captured by the multinational companies, according to an estimate by manufacturers.
At present, over 1% of total population uses baby diaper, while the country is witnessing a 50% growth annually.
Currently, Chu-Chu of Bangladesh Silicon Corporation, Bashundhara Baby diaper of Bashundhara, and NeoCareof Incepta are being sold across the country. Meanwhile, Square Group, the flagship entrepreneur in the baby care, is all set to launch diaper in the name of Supermom very soon.
The usages of the baby diaper are increasing day by day due to more women’s involvement in jobs, enhancement of purchase capacity and health awareness, Marketing Manager of Square Toiletries Dr Jesmin Zaman told the Dhaka Tribune.
“Considering the demands, we are very close to launch our products,” she added.
The manufacturers demanded testing lab and import guidelines to ensure hygienic products as there is no testing lab and other facilities for the baby products.
The government should set standard for the products as already some substandard products had been marketed, they claimed.
The importers of the baby diapers are doing their business under invoice to pay lower tax to the government whereas the imported product are being sold at higher prices, said Rashedul Imam, senior Brand Manager. Incepta Hygiene and Hospicare Ltd.
If substandard products are used for sensitive babies, it can cause health hazards to the babies, said Jesmin said.
As per the installed capacity of the country’s manufactures, they can produce double of the domestic demands.
Though the market is currently dominated by the imported products, but the local producers would be able to capture over 70% market by next one year, said Imam.
At the present context of Bangladesh, the use of baby diapers is not a luxury one, rather a necessity to every one as the mothers are keeping her child either to grandmothers or others and wants to avoid washing clothes, said Imam.
There should be a level playing field for the both importers and the local manufacturers. As the 100% raw materials are imported, the government should lower tariff to help the local industry growth, noted Imam.
As a service holder, there is no other option for my kid, rather than using diapers as it helps me to remain tension-free whenever I am leaving my child to domestic help, Afrin Mehrab, a banker, told the Dhaka Tribune.