Although the country’s apparel export sector has managed to maintain modest overall growth, weakening competitiveness in its key markets—the European Union and emerging (non-traditional) markets—has raised concerns.
During the first five months of the 2025–26 fiscal year (July–November), apparel exports reached USD 16.13 billion, marking only a 0.9 percent increase compared to the same period last year.
According to data from the Export Promotion Bureau (EPB), nearly half of total apparel exports—48.57 percent—come from the European Union. Export earnings from this region stood at USD 7.83 billion, but year-on-year growth declined by 1.3 percent.
Industry insiders say that global economic pressures and rising living costs have reduced consumer spending on clothing in EU markets. In addition, currency market volatility, inflation, and country-specific political and economic uncertainties may have contributed to the slowdown.
EPB data show that despite efforts to diversify into non-traditional markets, apparel exports to these destinations fell by 3.19 percent during the period. Efforts to penetrate emerging markets have yet to deliver the desired results. In contrast, a positive trend has been observed in the second-largest market, the United States, where exports increased by 3.6 percent to USD 3.22 billion.
The United Kingdom recorded 3 percent growth, while Canada saw a 6.51 percent increase, helping maintain competitiveness in those markets. Product-wise analysis shows a 1 percent decline in knitwear exports, while woven garment exports rose by 1.44 percent.
According to EPB data, apparel exports amounted to USD 3.14 billion in November, which is 5 percent lower than in the same month last year. However, on a cumulative basis, apparel exports remain positive.
During July–November of the current fiscal year, ready-made garment exports totaled USD 16.13 billion, representing a 0.9 percent increase compared to the same period of the previous fiscal year.
Exporters say that due to retaliatory tariffs imposed during the Trump administration, US buyers have increased apparel prices by 5 to 10 percent, which has slightly reduced demand in the US market. As a result, apparel exports from Bangladesh and other countries have declined in that market.
Moreover, concerns over instability surrounding national elections have made European and American buyers somewhat cautious in placing orders. The two main subsectors of apparel exports—knitwear and woven garments—have shown differing trends. During this period, knitwear exports grew by only 0.42 percent, while woven garment exports rose by 2.66 percent.
Industry stakeholders attribute the growth in woven garments to product diversification, increased demand in fashion segments, and competitive pricing. Exporters warn that despite positive growth in the US market, sluggishness in the EU market and declines in emerging markets could put pressure on the export sector in the future.
Additionally, rising raw material costs, energy prices, logistics expenses, and the need to keep pace with sustainable production pose major challenges for entrepreneurs.