Bangladesh is on the verge of surpassing China as the world's leading exporter of cotton apparel, and an increase in demand is anticipated to boost cotton consumption, as stated by the US Department of Agriculture (USDA).
Referring to the annual fashion industry study conducted by the United States Fashion Industry Association (USFIA), US brands are shifting their sourcing orders to other markets, including Bangladesh, to minimize potential risks related to logistics and politics.
According to the USDA's recent report on global cotton trade, Bangladesh, India, and Vietnam are the three primary sources from which retailers intend to expand their sourcing over the next two years, diverting orders away from China which currently holds the top spot in apparel exports.
In its report titled "Cotton: World Markets and Trade," released on August 11, the USDA noted that the USFIA study reveals that Bangladesh outperforms other countries in terms of cost competitiveness as an apparel supplier.
The projection made by the US agency follows Bangladesh's achievement of nearly $47 billion in woven and knitwear shipments during the fiscal year 2022-23, surpassing the target set for that period.
Most of Bangladesh's factories produce garments made from cotton, and over 70% of their export shipments consist of cotton products, according to industry insiders.
The World Trade Organization identified Bangladesh as the world's second-largest garment exporter after China in 2022.
The USDA indicated that Bangladesh aims to achieve more than $50 billion in apparel exports in the fiscal year 2024, slightly exceeding the previous year's figures, which is seen as "evidence of the government's anticipation of increased demand."
The US agency's forecast predicts an 800,000-bale, or 10%, year-on-year increase in Bangladesh's cotton consumption due to the escalating apparel exports in the fiscal year 2023-24. Apparel contributes to over 80% of the country's total annual exports, with the current export value of nearly $47 billion being more than double what it was a decade ago.
