Dhaka: The exports of Bangladeshi Ready Made Garment (RMG) showed a growth of 8.84 percent in the last fiscal year (FY25), fetching $39.35 billion despite global headwinds.
According to Bangladesh Sangbad Sangstha, the European Union (EU) was a key market, accounting for 50.10% of Bangladesh's total RMG exports, valued at $19.71 billion.
Exports to the United States were $7.54 billion (19.18%), while Canada and the UK contributed $1.30 billion (3.31%) and $4.35 billion (11.05%), respectively. Year-over-year growth in Bangladeshi RMG exports showed increases of 9.10% for the EU, the USA 13.79%, and Canada 12.07%.
The country's RMG exports to the UK saw a modest growth of 3.68% in FY25. In the EU, Germany emerged as the largest market for RMG, with exports at $4.95 billion, followed by Spain at $3.40 billion, France at $2.16 billion, Netherlands at $2.09 billion, Poland at $1.70 billion, Italy at $1.54 billion, and Denmark at $1.04 billion. Growth rates were high in several EU countries, such as the Netherlands (21.21%), Sweden (16.41%), Poland (9.77%), and Germany (9.47%).
Bangladesh's RMG exports also saw a 5.61% rise in non-traditional markets, totaling $6.44 billion with a 16.36% market share for Bangladesh. Japan, Australia, and India were the leading markets in this category, with the country's RMG exports to Turkey seeing 25.62%, India 17.39%, and Japan 9.13% growth rate. However, Bangladeshi apparel exports to Russia, Korea, the UAE, and Malaysia have declined.
In the apparel industry, the knitwear sector showed a growth of 9.73%, with the woven sector also experiencing an increase of 7.82%. Since the onset of the COVID-19 pandemic, industry insiders noted that the global landscape has taken unexpected turns, presenting the country with a cascade of new challenges each day.
In traditional markets, Bangladesh's export performance remains robust, boasting an 84% share of the total apparel exports. However, the non-traditional market tells a different story, with the current stake standing at 16%. The International Trade Centre (ITC) reports that the global apparel market reached approximately $500 billion in 2024, with the nontraditional market accounting for about $150 billion. Bangladesh, holding a 6% share of the nontraditional market, shows potential for expansion.
Talking to BSS, Mohiuddin Rubel, former director of BGMEA and Managing Director of Bangladesh Apparel Exchange, said that adapting to this dynamic environment underscores the need to focus on cultivating fresh markets and products through relentless innovation. 'Embracing innovation and venturing into new territories is not just a strategic move but a necessity in today's evolving landscape. Let's harness this potential and steer our course towards greater market diversification and expansion,' he said.
Rubel, also Additional Managing Director of Denim Expert Ltd., emphasized that staying competitive in today's market goes beyond just pricing. 'To truly stand out, you must maintain competitive advantages over rival countries which are essential to becoming the top choice for your customers. It's not just about the cost; it's about offering unique benefits that set you apart and keep you ahead in the game,' he added.