Bangladesh’s apparel exports to key markets, particularly Europe and the United States, have experienced significant growth in the first seven months of the 2024-25 fiscal year, raising optimism for continued order inflows. This increase comes as some international orders have shifted from China due to ongoing tariff disputes between the US and China.
According to data from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), exports to the European Union reached US $ 11.81 billion, marking a year-on-year increase of 13.91 per cent during the July–January period. Meanwhile, shipments to the US, Bangladesh’s largest apparel market, surged by 16.45 per cent to US $ 4.47 billion over the same timeframe.
The share of Bangladesh’s garment exports to the EU rose to 50.15 per cent, up from 49.31 per cent a year earlier, while the US market share also increased, climbing to 18.99 per cent from 18.27 per cent in the previous year.
Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange, noted the decline in global apparel consumption over the last fiscal year and a corresponding drop in imports by both the US and Europe. However, he expressed optimism, stating, “Now these economies are doing better. Obviously, this is a reason. Buyers are placing more orders.”
Within the EU, Germany emerged as a crucial market, with exports to the country growing by 13.47 per cent year-on-year. Other significant markets included Spain, France and the Netherlands. Additionally, exports to the UK, which accounts for 10.83 per cent of total shipments, rose by 4.55 per cent.
Exports to non-traditional markets also saw a boost, increasing by 6.42 per cent, driven by higher demand from Japan and Australia. In contrast, exports to countries such as Russia, South Korea, China, the United Arab Emirates and Malaysia experienced declines.
Rubel emphasised the need for exporters to explore non-traditional markets for diversification and growth, particularly highlighting Bangladesh’s strong performance in South Korea.
Shams Mahmud, Managing Director of Shasha Denims Ltd., acknowledged the positive growth trend, attributing it to buyers shifting orders from China amidst the US-China tariff war. He noted that global brands with operations in Asia have increased their sourcing from Bangladesh.
For sustained growth, Mahmud stressed the importance of addressing payment issues for workers during the upcoming Eid festivals and ensuring a stable energy supply. “If we can pass this critical period, we will be able to achieve our export projections,” he stated.
Rubel added that ongoing global trade tensions are reshaping the industry landscape, offering opportunities for Bangladesh to capitalise on, provided it enhances its productive capacity. He called for increased investments in backward linkages to boost the competitiveness and growth potential of the readymade garment sector.
