In the months of January and February this year, Bangladesh’s apparel exports to the European Union (EU) market rose by 36.99% compared to the same period last year, reaching $3.69 billion. Last year, this amount was only $2.69 billion.
During this time, the EU’s overall apparel imports increased by 17.81% in value and 28.66% in volume. These figures have been reported by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), citing Eurostat.
According to BGMEA, Bangladesh’s export growth is significantly higher than the overall import growth - clearly highlighting Bangladesh’s ability to capture the market. Experts mention that Bangladesh has successfully occupied the gap created by China's declining market share.
Progress in both Europe and US
On one hand, there has been remarkable success in exports to Europe, and on the other hand, Bangladesh’s apparel exports to the US have also surged.
Although some concerns have arisen regarding the new tariff policies in the US, during the July-March period of the 2024–25 fiscal year, Bangladesh’s apparel exports to the US increased by 17.23%, reaching $5.74 billion.
According to BGMEA data, the US is the single largest destination for Bangladesh’s apparel exports, accounting for 18.97% of total exports. This growth, despite global recession and protectionist policies, demonstrates the sustainable competitiveness of Bangladesh’s garment sector.
What lies behind this success?
Analysts and entrepreneurs say that several strong foundations are behind the success of Bangladesh’s apparel industry.
These include— the production of high-quality products, environment-friendly factories (green factories), progress in social and worker safety, fast delivery capabilities, and duty-free access (GSP benefits) to the EU.
In this regard, former BGMEA director Mohiuddin Rubel told Bangla Tribune: “Factories in Bangladesh are now of world-class standard. Buyers find reliability here.”
He further added: “The production of value-added garments, economic recovery in Europe, duty-free access, and combined efforts of workers and entrepreneurs have helped Bangladesh regain a strong position.”
Slight price drop, significant volume growth
The growth is driven more by volume than by price. The average unit price in the EU market decreased by 1.46%, yet the volume increased by 39.02%.
This proves that Bangladesh is supplying products at affordable prices according to buyers’ demands, which has become attractive amid global economic pressure.
China retreats, Bangladesh advances
During this period, China’s exports to the EU increased by only 25%, reaching $4.54 billion.
In comparison, Bangladesh’s growth rate of nearly 37% clearly indicates Bangladesh’s advancement.
Turkey’s exports declined by 3.64%. Although exports from India, Pakistan, and Cambodia grew by 21–22%, Bangladesh’s growth was comparatively much higher.
China’s dominance in the US market is also diminishing. In 2018, China’s apparel exports to the US were five times higher than Bangladesh’s. By 2024, the gap has narrowed to just two times. Bangladesh’s exports reached $7.34 billion, while China’s decreased to $16.50 billion.
Busy Christmas season ahead, but concerns remain
Bangladesh’s factories have already become busy with new orders for the Christmas market in the US. Apparel suppliers from Bangladesh have received sufficient purchase orders from American retailers and brands.
Therefore, factories will remain busy until the end of the year, particularly during the Christmas season. However, there is concern that these shipments could fall under the new tariffs introduced by the Trump administration.
Manufacturers said that production for Christmas will start in full swing from the upcoming June and will continue until the end of July. Exports will begin from August and the products will be sold in the US market in November and December.
Still, uncertainty remains as to whether these shipments will be affected by the new US tariff policy. In this regard, Abdullah Hil Rakib, Managing Director of Team Group, said: “Although there is concern regarding tariffs, our order bookings are currently quite good.”
He also mentioned that Bangladesh’s exports may increase due to higher tariffs on China and Vietnam. A US retailer has already visited his factory and expressed plans to place orders from Bangladesh instead of China.
In this regard, Syed M Tanvir, managing director of Pacific Jeans, said: “Orders are still coming in for the upcoming Christmas season in the US. However, if tariffs are implemented, future shipments might be affected.”
Bangladesh’s top position in Europe
Stakeholders said that during the July-March period of the 2024–25 fiscal year, Bangladesh’s exports to the EU amounted to $15.07 billion, representing almost half (49.82%) of the country’s total apparel exports.
Germany is the top importer in this region ($3.8 billion), followed by Spain, France, the Netherlands, Italy, and Poland. Notably, exports to the Netherlands grew by 23.15%, which is significant.
UK and other markets
According to BGMEA data, exports to the United Kingdom have also increased, although at a comparatively lower rate of just 4.14%.
Exports have also grown at an average rate of 6.66% in other markets like Japan, Australia, and India.
Future challenges and opportunities
Entrepreneurs say that a positive trend in Bangladesh’s apparel exports is expected to continue for the rest of the year.
Due to global instability and trade tensions in countries including the US, buyers are turning to Bangladesh as an alternative market, increasing the possibility of receiving new orders.
However, challenges such as competition, changes in tariff policies, and declining demand in European markets remain. Sustainable growth can be achieved through government policy support, increasing productivity, and product diversification.
It is crucial to enter new markets and enhance product variety. Skilled human resources must be developed, and technology-driven production must be further expanded.
In this regard, former BGMEA director Mohiuddin Rubel said: “Now it is necessary to maintain quality while entering diversified markets and to be strategic in managing political risks.”
Notably, currently, more than 900 factories are exporting to the US, of which 25 have the US as their primary market. After China and Vietnam, Bangladesh ranks third in the US market, with a market share of 9.3%.
The US, being an apparel importer of over $100 billion annually, creates a major opportunity for Bangladesh.
