The European Union (EU) is the largest market for Bangladeshi readymade garment (RMG). However, the beginning of this year saw a major blow to exports in this market.
In January 2026, Bangladesh’s apparel exports to the EU plummeted by 25.25%, falling to €1.43 billion.
According to the latest Eurostat data, Bangladesh’s exports to the same market in January 2025 stood at €1.91 billion. This indicates a decline of approximately €480 million within a single year.
Industry stakeholders attribute this significant drop to dwindling consumer demand in Europe, cautious procurement policies by retailers, and increasing pressure on apparel prices.
Two primary factors behind the decline in Bangladesh’s exports are evident: a drop in export volume and a decrease in the average unit price.
Data shows that in January 2025, Bangladesh exported 126.80 million kg of apparel to the EU.
In January 2026, this fell to 104.63 million kg—a 17.49% decrease in volume.
Simultaneously, the average unit price of apparel has declined. In January 2025, the average price per kg was €15.08, which dropped by 9.41% to €13.66 in January 2026.
Analysts suggest that European buyers are now attempting to source products at lower prices, increasing the pressure on exporters for discounts.
Experts believe this contraction in EU apparel imports reflects the overall global economic situation. Reduced new orders are a result of the high cost of living in Europe, rising interest rates, declining consumer confidence, and falling retail sales.
Consequently, international brands and retailers are exercising more caution, often seeking lower-priced goods, which creates pricing pressure on supplier nations.
Mohiuddin Rubel, former director of BGMEA and additional managing director of Denim Expert Ltd, told Dhaka Tribune: "European retailers are now trying to procure products at relatively lower prices. This has increased the pressure on supplier countries to reduce rates."
He noted that the total value of EU apparel imports was €8.32 billion in January 2025, which fell to €7.03 billion in January 2026.
The downturn is not limited to Bangladesh; the EU, one of the world's largest apparel markets, saw a major slump in total imports at the start of the year.
Both import volume and unit value have decreased significantly, indicating not just a drop in demand but intensified price competition.
Eurostat data reveals that total EU apparel imports in January 2026 fell by 15.48% year-on-year to €7.03 billion, down from €8.32 billion in January 2025.
Total volume also decreased by 8.36%, from 411.90 million kg to 377.45 million kg.
Furthermore, the average unit price dropped by 7.76%. Stakeholders cite weak consumer demand, high inflation, cautious retail buying, and global economic uncertainty as the causes.
Rival nations also struggle
Other major exporters also faced negative trends in the EU market:
- China: The largest supplier exported €2.22 billion in January 2026, a 6.90% decrease. While its volume increased by 1.21%, a 8.01% drop in unit price lowered total earnings.
- Turkey: One of the sharpest declines occurred here, with exports falling 29.12% to €619.98 million.
Export declines in other nations:
- Sri Lanka: -26.04%
- Cambodia: -25.11%
- Indonesia: -19.46%
- Pakistan: -17.06%
- India: -15.24%
- Morocco: -15.17%
- Vietnam: -7.34%
To retain market share, several countries were forced to lower prices.
- Unit price decreases: Pakistan (-44.34%), Sri Lanka (-17.52%), Bangladesh (-9.41%), China (-8.01%), and Morocco (-7.36%).
- Unit price increases: Indonesia (+14.26%), Vietnam (+6.50%), Cambodia (+5.09%), Turkey (+3.72%), and India (+1.83%).
Analysts believe prices rose in some countries because they focused on higher-value products.
Pakistan showed an exceptional trend: its export volume surged by 49%, rising from 27.24 million kg in January 2025 to 40.59 million kg in January 2026.
However, because its unit price plummeted by over 44%, its total export revenue did not see a significant boost.
The EU is a vital market for Bangladesh, accounting for nearly half of the country's total apparel exports.
Therefore, a decline in demand here directly impacts export growth.
Industry insiders emphasize the need for increasing production efficiency, diversifying into high-value products, and expanding into new markets.
Experts warn that if the European consumer market does not recover quickly, global apparel exports may face further pressure in the first half of 2026.