Despite global economic challenges, Bangladesh's ready-made garment (RMG) export sector achieved an 8.84% growth in the 2024-25 fiscal year. Total export earnings in this sector reached US$39.35 billion in the recently concluded fiscal year.
While US President Donald Trump poses a significant challenge by imposing an additional 35% tariff on Bangladeshi products, non-traditional markets are offering hope to Bangladesh.
According to the Export Promotion Bureau (EPB) of Bangladesh, Bangladesh's exports to non-traditional markets have increased by 5.61%.
However, despite overall growth in non-traditional markets, Bangladesh has faced some setbacks in markets like Russia, UAE, and Malaysia. Therefore, apparel sector entrepreneurs have advised focusing more on new markets.
Key Market Performance
According to data released by the EPB, the European Union (EU) remains Bangladesh's largest export destination for ready-made garments. In the recently concluded fiscal year, Bangladesh's export earnings from this market totaled $19.71 billion, accounting for 50.10% of the country's total RMG exports.
Meanwhile, export earnings from the United States stood at $7.54 billion, making up 19.18% of total exports. Exports to Canada and the United Kingdom were $1.30 billion and $4.35 billion, respectively.
Growth in Major Markets
Separately, in the 2024-25 fiscal year, export growth in the EU market was 9.10%, in the US it was 13.79%, and in Canada it was 12.07%. Additionally, exports to the UK saw a growth of 3.68%.
EU Market Breakdown
Within the European Union, Germany is Bangladesh's largest market, with export earnings of $4.95 billion. It is followed by Spain ($3.40 billion), France ($2.16 billion), Netherlands ($2.09 billion), Poland ($1.70 billion), Italy ($1.54 billion), and Denmark ($1.04 billion).
Promising European Markets
Significant growth was observed in some European countries, such as the Netherlands (21.21%), Sweden (16.41%), Poland (9.77%), and Germany (9.47%).
Non-Traditional Market Insights
Overall RMG exports to non-traditional markets increased by 5.61%, with total export earnings reaching $6.44 billion, representing 16.36% of the country's total export earnings. Japan, Australia, and India hold significant positions in this market. Among these, exports to Turkey increased by 25.62%, to India by 17.39%, and to Japan by 9.13%.
Challenges in Specific Markets
However, concerns have arisen regarding the markets of Russia, Korea, the United Arab Emirates, and Malaysia, where Bangladesh's apparel exports have declined. Export earnings to Russia decreased by 10.28% to $326 million. In the UAE, they fell by 10.96% to $232 million, and in Malaysia, they declined by 11.21% to $189 million. Nevertheless, there are opportunities to re-enter these regions if Bangladesh adopts specific strategies.
Expert Recommendations
Experts suggest that simply supplying garments at low prices will not sustain market presence. Instead, high-quality and new-design apparel, sustainable production systems, and cost-effective yet eco-friendly processes must be the key areas of future competition.
Industry insiders note that market demands and realities are rapidly changing, creating new challenges for Bangladesh. Bangladesh's exports still hold a strong position in traditional markets, which account for almost 84% of total apparel exports. However, the share of non-traditional markets is still relatively small, at only 16%.
Global Market Potential
According to the International Trade Centre (ITC), the global apparel market size was approximately $500 billion in 2024. Of this, the non-traditional market size was about $150 billion.
Bangladesh maintains a 6% share in the non-traditional market, with further potential for expansion. In 2024, 5.50% of Japan's total apparel imports and 11.53% of Australia's total imports came from Bangladesh, indicating positive prospects for the future.
Industry Leader Perspectives
Mohiuddin Rubel, Managing Director of Bangladesh Apparel Exchange and former director of BGMEA, stated, "To survive in the changing global market, we must focus on new markets and new products. Entering new markets and innovation is not just a strategic matter; it is an imperative in the current global context. We must leverage this potential and move towards market diversification and expansion."
Fazlee Shamim Ehsan, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), commented, "To sustain progress, we need to focus on product innovation, diversification, and developing new designs and products based on market demand. Additionally, we can pursue FTA or PTA agreements to expand bilateral trade facilities with non-traditional countries. Bangladeshi apparel must be promoted as a symbol of 'quality and fair price'."
