There is growing optimism regarding the future of Bangladeshi apparel in the global market, with expectations of increased orders for apparel manufacturing set to sustain growth into 2025. Industry insiders report that the upward trend is likely to persist as buyers regain confidence and expand their sourcing activities in the country.
Despite experiencing fluctuations throughout the year, Bangladesh recorded significant year-on-year growth in apparel exports during October, November, and December, following a slow start in the last quarter of 2024. The positive momentum continued into January and February, bolstered by increased export figures.
In the first eight months of the 2024-25 fiscal year (July-February), the country’s apparel export earnings rose by 10.64 per cent, reaching US $ 26.79 billion, compared to US $ 24.22 billion during the same period last year. Notably, apparel export earnings in February rose by 1.66 per cent to US $ 3.24 billion, up from US $ 3.19 billion in February 2023.
The European Union’s apparel imports also saw a modest increase of 1.53 per cent, totaling US $ 92.56 billion for the January-December 2024 period. However, the overall import volume surged by 8.98 per cent, leading to a decrease in the average unit price by 6.83 per cent. This downward price trend has notably impacted major sourcing countries, including Bangladesh.
According to Eurostat, Bangladeshi ready-made apparel exports to the EU rose by 4.86 per cent in 2024, totaling US $ 19.77 billion compared to US $ 18.85 billion in 2023. The increase in export volume by 10.18 per cent reflects a significant recovery from previous challenges, although a 4.84 per cent decline in unit price poses ongoing profitability concerns.
The last four months of 2024 proved particularly fruitful for Bangladesh’s ready-made apparel exports to the US market, with December exports valued at US $ 580 million, an 18.36 per cent increase compared to December 2023.
Factors such as value-added apparel production, duty-free market access, adherence to workplace safety standards, and collaborative efforts between producers and workers have contributed to the sustained increase in export volume and value. These elements have bolstered buyer confidence, enhanced the business environment, and solidified Bangladesh’s status as a key player in the export market.
Furthermore, improving economic conditions in the EU and US have increased consumer purchasing power, positively impacting Bangladesh’s apparel exports. The high tariffs implemented by the US Government on China and Mexico have also opened up additional opportunities for Bangladeshi exports.
