Bangladesh’s RMG sector is facing an uphill battle in its primary export destination, with recent trade data indicating a noticeable loss of market share across the European Union.
Long relied upon to absorb nearly half of the country’s total apparel shipments, the 27-nation EU bloc is progressively shifting its procurement books toward regional competitors.
While a broad consumer demand contraction has impacted global fashion retail, neighboring India, China, and Vietnam have managed to protect their market footprints far more effectively, leaving local manufacturers exposed to intense price competition.
The shift comes at a critical time for local factories, as rising domestic operating costs and logistics delays make it increasingly difficult to match the aggressive pricing strategies and shorter lead times offered by alternative supply hubs.
According to the latest official data released by Eurostat for the first four months of 2026 (January–April), EU apparel procurement from Bangladesh experienced a sharp decline compared to the previous year.
This contraction caused Bangladesh’s total market share in the EU to slide from 24.4% down to 21.9%.
Industry analysts point out that this represents the sharpest structural footprint loss among all primary garment-exporting nations within the European zone.
While global buying orders have cooled, Bangladesh's core competitors are leveraging distinct policy and raw material advantages to secure order volumes.
India limited its export contraction to 12.1%, keeping its market share stable. Indian exporters benefit from an extensive domestic raw material base, a strong focus on high-demand Man-Made Fibers (MMF), and rapid progress toward an EU-India Free Trade Agreement (FTA).
This has led global fashion brands to ramp up sourcing from India as part of their broader "China Plus One" strategies.
Facing high import tariffs in the United States, Chinese exporters adopted highly competitive pricing models in Europe.
Backed by state subsidies and efficient automated logistics, China successfully expanded its EU market share to 28.6%.
Capitalizing on the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam kept its export drop to a minor 0.7% while expanding its high-margin knitwear shipments by 2.3%.
The unit value slump
Compounding the loss in order volumes, Bangladeshi manufacturers are facing a severe squeeze on profit margins.
The average unit price for local apparel shipments dropped noticeably over the four-month period.
Key Sectoral Export Metrics | Jan-Apr 2025 Base | Jan-Apr 2026 Status |
Average Apparel Unit Value | €15.59 per Kilogram | €13.96 per Kilogram |
Consolidated EU Market Share | 24.4% Share Base | 21.9% Share Base |
This downward price pressure demonstrates that local suppliers are having to offer steep discounts to clear inventories.
In contrast, Vietnam successfully increased its average unit price, showing its strength in high-value, technical apparel segments.
