Although the European Union’s garment market recorded slight growth throughout 2025, a clear setback emerged in December, the final month of the year.
The latest data from the European statistical office Eurostat show that in December 2025, the total value of EU garment imports declined by 2.27% compared to December 2024.
On a full-year basis, the market grew by 2.10%.
However, the December decline indicates that demand weakened toward the end of the year and price pressure intensified.
Market analysts say whether this slowdown is temporary or long-term will depend on trends in European consumer spending.
Bangladesh’s garment exports to the European Union fell significantly in December.
Compared to December 2024, in December 2025:
- Export value declined by 12.05%
- Supply volume declined by 0.61%
- Average unit price declined by 11.50%
The notable point is that although there was no major decline in volume, the drop in prices caused a major hit to total export earnings. This means that while supply remained nearly stable to retain market share, buyers purchased products at lower prices.
Industry insiders say European retailers focus on inventory adjustments in the final quarter of the year. Reduced post-festival sales and consumer spending restraint affected the situation. As a result, price pressure on new orders increased.
According to the latest Eurostat data, from January to December 2025, garment imports into the European Union increased by 2.10% to reach a total of $90 billion.
This growth was mainly driven by a 13.78$ increase in import volume (million kilograms). However, during the same period, the average unit price (euro per kilogram) declined by 10.27%, indicating price pressure in the market.
In this context, Bangladesh’s garment exports to the EU also increased. From $18.32 billion in 2024, exports rose to $19.41 billion in 2025, representing growth of 5.97%.
Export volume increased by 10.20%, but the average unit price declined by 3.84%.
However, some slowdown appeared toward the end of the year. Compared to December 2024, in December 2025 export value declined by 12.05%, volume by 0.61%, and unit price by 11.50%—indicating a recent downward trend.
Other major exporting countries also recorded overall positive growth. China exported garments worth $26.58 billion to the EU, an increase of 1.17% compared to the previous year. The country’s export volume increased by 11.64%, although unit price declined by 9.38%.
This reflects China’s strategic shift toward the European market amid challenges in the US market.
India, Pakistan, and Cambodia also maintained positive growth. Vietnam achieved 9.66% growth, exporting $4.38 billion, and its unit price increased by 4.51%.
On the other hand, Turkey’s exports declined by 10.73% to $8.34 billion.
In this regard, former BGMEA director Mohiuddin Rubel told Dhaka Tribune: “Overall imports in the EU market have increased, but competition has intensified due to price declines. In Bangladesh’s case, although volume increased, actual earnings did not grow as expected because unit prices declined. The December downward trend is a warning—we must now focus more on higher-value products, skill development, and market diversification.”
December data show three clear trends in the European market. First, buyers have adopted a cautious stance instead of placing large orders. Second, price competition has intensified. Third, supplying countries have been forced to offer discounts to retain market share.
As a result, the average unit price has declined rapidly. Although unit prices fell throughout the year, the decline intensified further in December.
China remains the top supplier in the European Union market. In December, it also faced price pressure. Although it continued its strategy of higher volume supply, the average unit price declined. This indicates that China also adjusted prices to retain market share.
Turkey’s decline was more pronounced. Its export value fell by double digits. Rising production costs and falling behind in price competition are believed to be the reasons.
Vietnam, on the other hand, managed to show relative stability. India and Pakistan maintained limited growth.
Overall, price pressure was widespread across the European market in December.
What is the message for Bangladesh?
Bangladesh’s garment industry has long depended on its ability to produce and supply in large volumes. December data show that even if volume remains stable, total earnings can decline rapidly when price pressure increases.
Production costs, especially wages, energy, and raw material prices, are rising. But when average unit prices decline in the international market, industry profit margins shrink. This can affect new investment, technological development, and employment.
Analysts say sustainable growth cannot be achieved by increasing volume alone. Greater focus must be placed on increasing unit prices through value addition, improved design, diversified products, and quality enhancement.
Outlook ahead
If the December slowdown is temporary, the market may recover in the new year. However, if consumer demand remains weak for a prolonged period, price competition among supplying countries will intensify further. In this situation, Bangladesh faces three major challenges—
- Ensuring fair prices,
- Controlling production costs, and
- Increasing participation in higher-value products.
It is noteworthy that December 2025 data clearly indicate that growth momentum in the European Union garment market has slowed and price pressure has intensified.
The double-digit decline in Bangladesh’s export value shows that although market position remains strong, income stability is at risk.
The data were published by Eurostat. Differences in data collection methods among countries may exist, so direct comparison with other sources may not always be possible.
Overall, December figures indicate that the European garment market is now being determined more by price competition than by volume. For Bangladesh, it is now essential to ensure sustainable income through value addition while retaining market share.
