‘Bangladesh: The Surging Consumer Market Nobody Saw Coming’ the report by the Boston Consulting Group (BCG) shows Bangladesh is a growing market in terms of purchasing consumer goods

According to a recent report by BCG the middle class has grown in Bangladesh and at the same time the interest for a luxurious life has also increased. 20 million people are being added every year to the middle class. In the main cities of the country including the capital, the financial capacity of the people with specific changes in behavior of life has also changed. The per capita PPP or GNI has gradually increased in Bangladesh. It was 1580 dollars in 2009, the five-year compound annual rate of about 9%. As a result of that, the amount of polarisation in the new economy rose to 3330 dollar in 2014. Its per capita income has increased by $1045, which indicates the expansion of the economy positively According to Bangladesh Road Transport Authority from 2009 to August 2015; almost 34000 private cars were registered in the city. The high cost of fuel, a lot of traffic and transport, the government’s discouragement in importing tax inclusive cars is unable to reduce purchase of private cars. People are spending more on food, clothing and lifestyle management. There was business of nearly 50 billion dollars during Ramadan and Eid this year. The expenditure on luxurious goods has also been seen in the remote northern or southern towns of Bangladesh. Multi-storied shopping malls are being built in small towns and more people are moving towards eating outside their homes. As a result of this Bangladesh has huge potential for Fast Moving Consumer Goods-producing companies (FMCG). The report said, the purchasing power of the citizens of major cities in Bangladesh i.e. Dhaka, Chittagong, Rajshahi as well as in the northern, southern Khulna, Barisal cities to increase in next 10 years.

In short

• Bangladesh is emerging as one of the world’s next great growth opportunities for consumer product companies.

• At present, 7% of the country’s population can be classified as middle income or affluent, compared with 38 percent in Indonesia.

• 2 million Bangladeshis join the ranks of the middle class and affluent each year. Economists project that another 30 million to 40 million Bangladeshis will make the leap from poverty to the entry rungs of the middle class by 2025

• Wealth is also dispersing regionally: projections indicate that within the next decade, 63 cities will have middle class and affluent populations of at least 100,000, compared with 36 now.

The research indicated that Bangladeshi consumers are:

• highly optimistic, value foreign brands, and are jumping on the digital bandwagon

• intend to spend but are wary of debt

• are highly loyal to brands, but are also budget and quality conscious Read the full Report here.

This report could be of interest to British businesses that are considering expanding here in Bangladesh.