Beyond basics: The rise of quality-first brands

From ultra-high-temperature milk and advanced face washes to artisanal cookies and premium chocolates, Bangladesh's fast-moving consumer goods (FMCG) market is undergoing a quiet but significant transformation. No longer content with just affordability and availability, consumers are now placing a growing emphasis on quality, safety, and convenience.

Driven by rising incomes, urban lifestyles, and increased awareness of global standards, a new generation of local brands is stepping up to meet evolving demands, offering everything from gourmet bakery items to premium skincare at competitive prices. Industry leaders say this shift isn't just a passing trend, but a fundamental evolution that is reshaping the future of the country's consumer market.

From just food to good food

"In the past, food only needed to satisfy hunger. Now it must also be safe, nutritious, and hassle-free," said Kamruzzaman Kamal, marketing director at PRAN-RFL, one of the country's largest FMCG conglomerates.

And they're not alone. From personal care to packaged food, companies across the board are betting big on quality—and winning over consumers in the process.

Take milk, for instance. Pasteurised milk, which needed boiling before drinking, used to dominate the market. PRAN introduced UHT (Ultra-High Temperature) milk back in 2005 to make life easier for consumers. At that time, UHT milk had only a 10% share in the packaged milk market. Today, it commands more than 65%.

"People are choosing convenience, and they're willing to pay for it," Kamal said.

The same shift is visible in the juice market. PRAN once focused on fruit-flavoured drinks. But as health consciousness grew, a more affluent group of consumers began seeking actual fruit juice, especially for breakfast. Sensing the opportunity, PRAN introduced real fruit juice five to six years ago, and it quickly gained popularity among urban households.

Chocolate is another telling example. "There was a time when chocolate lovers had two options: buy average local products or spend a lot on imported ones," said Kamal. "We introduced a premium chocolate line that's now loved by consumers and offers a good alternative."

The premium food category is still small—around 5% to 7% of the total food FMCG market—but Kamal believes it could make up as much as 40% within the next decade if the economy stays on track.

"But if growth slows down," he warned, "premium demand will grow, just more gradually."

Kamal pointed to the bakery segment as another example. "In the early 2000s, brands with national distribution networks made up just 10% of the bakery market. Now they hold 40% to 50%," he said. That leaves plenty of room for quality-focused brands to win over consumers from the still-dominant substandard segment.

Beauty goes local, and premium

It's not just food that's evolving. The personal care industry is undergoing its own upgrade.

Malik Mohammed Sayeed, CEO of Square Toiletries Ltd, said their move into premium products was originally meant to reduce reliance on imports.

"We saw a gap in the market and filled it with local versions of products like herbal cream Maya, advanced hair oils for hair fall control, and premium moisturisers," he said. "These are no longer luxuries—they're part of modern daily routines."

The cosmetics and toiletries market in Bangladesh is now worth an estimated Tk25,000 crore, and Square holds about 12% of it. Premium cosmetics, once a niche segment, now account for Tk2,500 to 3,000 crore—a third of the cosmetics market.

"And it's growing fast," Sayeed added. "Even five years ago, no one was making local sunscreens or advanced face washes. Now we are. And because we make them locally, prices are half of the imported versions."

Local production has also helped reduce the dominance of the so-called "gray market," where smuggled products—sometimes counterfeit—used to flood in unchecked. These imports often escaped taxes and posed safety risks. But with more trusted local options, consumers are turning their backs on risky alternatives.

Café culture boom

Premium food isn't limited to supermarkets. Step into one of Le Delecia's cafés in Dhaka and you'll see a different side of the evolving consumer trend. The homegrown brand was launched in 2021 with a focus on Mediterranean and French-style bakery and coffee items.

Today, it has ten outlets and is growing fast. According to Group CEO M Rezaul Hassan, their newly opened café in Banasree is already being expanded to triple its size due to overwhelming demand.

"Urban middle-class consumers are flocking to cafés for the experience, not just the food," said Hassan. "We're selling premium cookies for over Tk1,300 per kilo—and they're flying off the shelves. Honestly, five years ago I wouldn't have believed it."

He sees a clear opportunity for premium brands to thrive. "Bangladesh is one of the fastest-growing consumer markets in the region. Any brand ignoring this is missing out."

Even major commodity players are joining the quality revolution. Since 2021, the T.K. Group has been pushing premium offerings under its flagship brand, Pusti. The company is now exporting biscuits and beverages to Europe and North America—thanks to stringent internal quality standards.

Marketing Director Mohammad Mofassel Haque summed up the company's approach: "We won't make anything that I wouldn't let my kids or our MD consume."

Beyond taste, he said, health, hygiene, and packaging are now top concerns for consumers. That's forcing companies to raise the bar.

This shift has also had a big impact on small-scale producers. According to Haque, more than 25% of the 7,000+ traditional bakery operators in Bangladesh have shut down over the past decade. "Consumers are moving away from manual, unregulated products. They're demanding better, even in the basic segments," he said.

The bakery sector is now worth at least Tk10,000 crore, and as consumers grow more discerning, there's a big opportunity for quality-focused brands to expand.

What's next?

There's no doubt that premium FMCG is on the rise. Basic products will always have a place in a price-sensitive market like Bangladesh. But the desire for quality is growing—and fast.

"The premium segment will outgrow the rest, but only if the economy continues to expand," said PRAN's Kamal. "It all depends on how fast we move as a country."

What's certain is this: Bangladeshi consumers are no longer settling for less. They want food that's safe and tasty, cosmetics that work and don't harm, and experiences that feel special.