The country’s garment industry has taken a giant stride by surpassing China in terms of export volume to the European Union (EU) market.
This significant milestone highlights the country’s burgeoning prowess as a global garment exporter. Simultaneously, industry insiders are strategically focusing on expanding their market share within the United States.
According to data sourced from EUROSTAT and cited by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh has outperformed China in export volume to the EU market. While a revenue gap still exists, this accomplishment underscores Bangladesh’s escalating influence in the global garment trade. The data reveals that Bangladeshi garments were priced at USD 5.82 per kilogram lower than China's offerings in the EU market.
Consequently, China maintains a revenue lead of USD 7.26 billion over Bangladesh.
Nevertheless, in terms of export volume, Bangladesh’s garment shipments to the EU have surged ahead, totaling an impressive equivalent of 133 million kilograms, exceeding China's 131 million kilograms. This ascendancy has been propelled by an outstanding growth rate of 21.20 percent in export volume, eclipsing China’s 11.86 percent growth from the previous year.
The BGMEA data underscores the EU’s robust demand for garments, culminating in an overall import value of USD 10.31 billion from diverse sources in the previous year, marking a substantial 20.97 percent increase compared to the previous year.
Though Bangladesh’s export revenue still trails behind China’s, the country’s concerted efforts have yielded a remarkable 35.69 percent increase, translating to USD 2.29 billion worth of ready-made garments being shipped to Europe. In comparison, China's garment exports reached USD 3.15 billion, demonstrating a growth of 17 percent.
In this competitive landscape, Turkey has emerged as a formidable contender, exporting garments worth USD 1.98 billion to the European market. Notable contributions also come from countries such as India, Vietnam, Pakistan, Cambodia, Morocco, Sri Lanka, and Indonesia.
Bangladesh’s garment exports have solidified its position in the European market, with an average price of USD 17.27 per kilogram, marking an increase from the previous year’s average of USD 15.42. Despite maintaining a competitive edge through attractive pricing, the market exhibits diversity, with various nations exporting garments at distinct rates. Vietnam, Indonesia, Morocco, and Sri Lanka cater to the high-end spectrum, while China, India, and Cambodia offer more budget-friendly options.
As Bangladesh continues its progress in terms of volume, revenue, and competitive dynamics within the EU garment market, the industry's future holds promising potential for growth, innovation, and strategic advancement.
Meanwhile, according to the Office of Textiles and Apparel (OTEXA) of the USA, Bangladesh has secured the position of the third-largest source of apparel imports for the country. With a 9.75 percent share of total apparel imports, Bangladesh's influence has grown from 8.76 percent in 2021. Remarkably, in 2022, the USA’s clothing imports from Bangladesh surged by an impressive 36.38 percent year-over-year. The total value of apparel imports from Bangladesh reached USD 9.74 billion in 2022, a substantial increase from USD 7.16 billion in 2021 and USD 5.40 billion in 2018.
Measured in terms of quantity based on per square meter equivalent (SME), USA’s apparel imports from Bangladesh registered robust year-over-year growth of 20.65 percent, reaching USD 3.14 billion SME in 2022 from USD 2.60 billion in 2021.
President of BGMEA Faruque Hassan emphasized the potential for expanding Bangladesh’s share in the USA's apparel imports, which currently stands at 9.75 percent. Highlighting Bangladesh’s recent dominance in the USA’s denim import market, Hassan underscored other potential product categories where the country could further penetrate.
He emphasized the untapped opportunities, highlighting that numerous US brands have yet to fully tap into Bangladesh as a sourcing destination.
Hassan reaffirmed the commitment to delivering high-quality products to customers, particularly in the USA, the largest market for Bangladesh’s exports. He also addressed trade challenges between the two nations, including the cotton fumigation requirement for importing cotton from the USA. The Bangladeshi government's move to waive this mandatory fumigation requirement is expected to streamline business processes and reduce costs for importers. Furthermore, concerted efforts are underway to secure duty-free market access to the USA for garments made from US cotton.
