Bangladesh is on the verge of surpassing China as the world’s leading cotton apparel exporter, and the US Department of Agriculture (USDA) predicts that robust demand prospects will further drive cotton consumption, according to recent reports.
The USDA references the annual fashion industry benchmarking study conducted by the United States Fashion Industry Association (USFIA), which reveals that American fashion companies are actively seeking to reduce their reliance on China as the primary apparel exporter.
To minimise potential logistical and political risks, American brands are strategically reallocating their sourcing orders to alternative markets, with Bangladesh, India, and Vietnam emerging as the top three suppliers that retailers plan to increase their sourcing from over the next couple of years, diverting orders away from China.
The USDA’s latest report on global cotton trade highlights Bangladesh’s competitive advantage, particularly in terms of cost structure, making it the most attractive apparel supplier compared to other countries.
Notably, Bangladesh’s apparel sector has experienced remarkable growth, with nearly US $ 47 billion in woven and knitwear shipments during the fiscal year 2022-23, surpassing the targeted amount for that period even if majority of Bangladesh’s factories specialise in producing cotton-based garments, and over 70 per cent of its export shipments comprise cotton items, as reported by industry insiders.
In 2022, Bangladesh secured its position as the second-largest global garment exporter, trailing only China, according to data from the World Trade Organization.
