Bangladesh’s Readymade Garment (RMG) export sector registered a mixed performance at the opening of the new fiscal year (FY27), with overall July shipments contracting by 1.92% year-on-year to $3.88 billion, compared to $3.96 billion in July FY26.
Data compiled by Bangladesh Apparel Voice from Export Promotion Bureau (EPB) records reveals that while demand weakened across major legacy destinations like Germany, France, the UK, and Canada, the sector recorded strong month-on-month momentum—jumping 14.73% compared to June’s $3.38 billion.
The month was highlighted by an extraordinary 31.91% surge in exports to Italy, alongside steady gains in Spain and the Netherlands.
- Total Apparel Exports: $3.88 billion in July FY27, down 1.92% YoY ($3.96 billion in July FY26).
- Month-on-Month Acceleration: Monthly exports rose 14.73% (+$499 million) over June FY26 ($3.38 billion).
- Standout Italian Growth: Shipments to Italy jumped 31.91% YoY to $142.18 million.
- US Market Stability: The single largest destination remained stable at $795.79 million (-0.18% YoY), accounting for 20.47% of total RMG exports.
- European Union Contraction: Total EU shipments dipped 2.45% YoY to $1.92 billion (49.64% market share), pulled down by drops in Germany (-2.84%) and France (-4.44%).
- Product Performance Split: Knitwear declined by 0.90% to $2.15 billion, while Woven garments faced a sharper drop of 3.16% to $1.72 billion.
Geographic & Product Breakdown of RMG Exports (July FY27)
Region / Market | July Export Value (USD) | YoY Growth (%) | Global Export Share (%) | Key Product Segment Drivers |
European Union (EU Total) | $1,929.22m | -2.45% | 49.64% | Mixed regional performance across major buyers |
── Germany | $458.39m | -2.84% | 11.79% | Weakening retail demand in heavy outerwear |
── Spain | $404.52m | +3.26% | 10.40% | Sustained fast-fashion re-orders |
── Netherlands | $234.89m | +1.20% | 6.04% | Stable logistics hub allocations |
── France | $160.90m | -4.44% | 4.13% | Lower consumer discretionary spend |
── Italy | $142.18m | +31.91% | 3.65% | Surging knitwear & value-added apparel demand |
United States | $795.79m | -0.18% | 20.47% | Stable shelf share; slight increase in total share |
United Kingdom | $450.82m | -2.44% | 11.60% | Inflationary retail pullbacks |
Canada | $130.62m | -8.39% | 3.36% | Inventory adjustment cycles |
Non-Traditional Destinations | $580.26m | -0.48% | 14.93% | Japan uptick (+0.29% to $108.51M); India (-3.97%) |
PRODUCT CATEGORY SUMMARY | ||||
Knitwear | $2,150.96m | -0.90% | 55.34% | Higher resilience in basic cotton & sportswear |
Woven Garments | $1,727.66m | -3.16% | 44.45% | Vulnerable to lead-time and energy costs |
Infrastructure challenges
Despite positive month-on-month growth, industry leaders highlight severe domestic operational constraints that threaten global competitiveness and shipment schedules:
"Export growth cannot be sustained without resolving core domestic supply chain bottlenecks," stated Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).
"Intermittent gas and electricity supply continues to disrupt factory production lines, making it difficult to meet delivery deadlines. Rising energy tariffs and overhead costs are squeezing margins, making continuous energy supplies and business cost reductions vital for survival."
"July’s export data underscores both resilience and structural vulnerability," observed Mohiuddin Rubel, founder and CEO of Bangladesh Apparel Voice.
"While heavy reliance on traditional European and North American markets poses cyclical risks, robust growth in Italy, Spain, and the Netherlands demonstrates that demand remains strong. Expanding into non-traditional destinations and shifting toward high-value, diversified products will be critical over the coming months."
