Project Profile of Cosmetics and Beauty Product Manufacturing Unit in Bangladesh

Project Profile of Cosmetics and Beauty Product Manufacturing Unit in Bangladesh

The cosmetics and beauty product industry in Bangladesh is expanding rapidly. People are becoming more conscious about personal care, skincare, and beauty standards. This creates a lucrative business opportunity for entrepreneurs who want to invest in manufacturing cosmetics locally. Starting a cosmetics and beauty product manufacturing unit in Bangladesh offers not only profitability but also long-term growth potential.

The most important aspect of this business is understanding the types of products to manufacture. These can include skincare creams, facial washes, shampoos, hair oils, lipsticks, perfumes, body lotions, and other beauty-related items. Besides that, local consumers increasingly prefer products made with natural and herbal ingredients. This trend can give new businesses a competitive advantage in the market.

Market Overview

Bangladesh’s cosmetics market is growing at around 12% per year. Urbanization, increasing female workforce participation, and rising disposable income are driving factors. Major cities like Dhaka, Chattogram, Sylhet, and Rajshahi are the highest-consuming markets.

Item	Market Size (BDT)	Growth Rate	Demand Drivers
Skincare Products	2,500 Crore	12%	Increasing awareness of skin health
Hair Care Products	1,800 Crore	10%	Hair care trends & urban lifestyle
Color Cosmetics	1,200 Crore	15%	Growing young population & fashion trends
Fragrances & Perfumes	700 Crore	11%	Rising lifestyle consciousness
Body Care Products	900 Crore	12%	Increasing disposable income & wellness trends

Investment Requirements

Setting up a medium-scale cosmetics manufacturing unit requires careful planning. You must consider land, building, machinery, raw materials, and labor costs. The total investment can range depending on scale and production capacity.

Category	Investment (BDT)	Details
Land & Building	1.5 – 2 Crore	Factory with production, storage & office space
Machinery & Equipment	2 – 3 Crore	Mixing tanks, filling machines, labeling & packaging lines
Raw Materials	50 – 80 Lakh	Oils, herbal extracts, chemicals, colorants
Labor & Staff	20 – 40 Lakh	Production staff, quality control, R&D team
Utilities & Miscellaneous	30 – 50 Lakh	Electricity, water, office supplies, insurance
Total Investment	4 – 6 Crore	Estimated cost for medium-scale production

Production Capacity

A medium-scale cosmetics plant can produce a variety of products. For instance, daily production targets can be:

Product Type	Unit per Day	Packaging
Face Cream	2,000 pcs	50g Jar
Shampoo	1,500 pcs	200ml Bottle
Lipstick	1,200 pcs	Tube
Perfume	1,000 pcs	50ml Bottle
Body Lotion	1,000 pcs	100ml Bottle

This production volume is sufficient to supply local markets and e-commerce channels. With proper marketing, you can expand to export markets in South Asia and the Middle East.

Raw Materials and Suppliers

Raw materials are key for quality production. Bangladesh has access to local herbal extracts and imported cosmetic chemicals. Sourcing high-quality ingredients ensures product safety and customer trust.

Raw Material	Source	Approx. Cost (BDT/kg)
Aloe Vera Extract	Local	1,200
Essential Oils	Imported	3,500
Color Pigments	Imported	2,000
Base Cream	Local	800
Fragrance Compounds	Imported	2,500
Packaging Materials	Local	500 – 1,000

Machinery and Equipment

The machinery setup is essential for smooth production. Some required equipment includes:

1. Mixing Tanks & Blenders

2. Filling Machines (automatic or semi-automatic)

3. Tube & Jar Sealing Machines

4. Labeling and Packaging Machines

5. Weighing Scales & Quality Testing Instruments

The choice of machinery depends on production scale and product variety. Imported machinery can increase initial investment but ensures precision and quality.

Manpower Requirement

A medium-scale unit requires around 25-40 employees, depending on automation level.

Department	No. of Staff	Responsibility
Production	15-20	Product manufacturing & packaging
Quality Control	3-5	Lab testing & product compliance
R&D	2-3	Formulation development & innovation
Marketing & Sales	3-5	Distribution & brand promotion
Administration	2-3	Accounts, HR, management

Licensing and Compliance

Cosmetics manufacturing in Bangladesh must comply with the Directorate General of Drug Administration (DGDA). Key requirements:

• Trade license & company registration

• DGDA cosmetic manufacturing license

• Environmental clearance for waste disposal

• Labor law compliance

Besides that, international certifications (ISO, GMP) can enhance product credibility, especially for export markets.

Financial Projections

Financial projections help investors understand profitability. Assuming medium-scale production:

Particulars	Monthly Revenue (BDT)	Annual Revenue (BDT)
Face Cream	30,00,000	3.6 Crore
Shampoo	25,00,000	3.0 Crore
Lipstick	20,00,000	2.4 Crore
Perfume	15,00,000	1.8 Crore
Body Lotion	15,00,000	1.8 Crore
Total Revenue	1,05,00,000	12.6 Crore

Particulars	Monthly Cost (BDT)	Annual Cost (BDT)
Raw Materials	40,00,000	4.8 Crore
Labor	12,00,000	1.44 Crore
Utilities	5,00,000	0.6 Crore
Miscellaneous	3,00,000	0.36 Crore
Total Cost	60,00,000	7.2 Crore

Profit:
Annual Revenue – Annual Cost = 12.6 Crore – 7.2 Crore = 5.4 Crore BDT

Profit margin is about 43%, which is highly attractive in the Bangladesh cosmetics sector.

Marketing Strategy

Marketing is key for growth. Focus on brand awareness, quality, and social media promotion. Strategies include:

• E-commerce platforms (Daraz, Chaldal, Ajkerdeal)

• Local retail stores and pharmacies

• Influencer partnerships for brand visibility

• Packaging innovation to attract urban consumers

• Participation in trade fairs and beauty expos

Expansion Potential

Once established locally, this business can expand to neighboring countries like India, Nepal, Bhutan, and Middle Eastern markets. Exporting offers higher margins due to premium pricing and brand positioning.

SWOT Analysis

Strengths	Weaknesses
Growing domestic demand	High initial investment
Low local competition for herbal cosmetics	Regulatory compliance complexity
Opportunity to export	Skilled manpower requirement

Opportunities	Threats
E-commerce and online marketing	Market saturation by imported brands
Rising interest in natural products	Price volatility of imported raw materials
Potential for private labeling	Competition from counterfeit products

Call to Action

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Whether you want to launch a medium-scale cosmetics manufacturing unit or explore larger opportunities, we provide complete project consultancy. From market analysis to financial projection and licensing guidance, we handle it all.

Starting a cosmetics manufacturing unit in Bangladesh is not only profitable but also builds a strong foundation for long-term business growth. With the right investment, planning, and marketing, your brand can dominate the local market and reach international consumers.