Reza Mahmud:
Bangladeshi readymade garments (RMG) export experienced a significant growth to European markets amid fear of additional tariff barriers in USA, sources said.
The European Union (EU) witnessed an 11.90% growth in apparel imports from global sources, amounting to $39.71 billion between January and May 2025. This growth was marked by a significant 13.40% increase in import volume (measured in million kilograms), alongside a 1.33% decline in average unit price (USD per kilogram). Eurostat data revealed it.
This combination indicates heightened consumption across Europe, with buyers opting for more volume at slightly lower prices – a trend that holds opportunities for cost-efficient manufacturing hubs like Bangladesh.
Bangladesh capitalized effectively on this positive shift. The country’s apparel exports to the EU surged to $9.68 billion in the first five months of 2025, up from $8.23 billion during the same period in 2024 – reflecting robust year-on-year growth of 17.61%. This performance was backed by a 15.08% increase in shipment volume and a 2.20% rise in average unit price. The simultaneous growth in volume, value, and unit price suggests a healthy balance between competitiveness, market demand, and value addition. It also indicates that European buyers are recognizing the improved quality, sustainability, and compliance standards of Bangladeshi garments, beyond just low cost.
Comparatively, other major players also recorded strong growth in EU apparel exports during this period. China’s exports rose to $10.10 billion from $8.35 billion, registering a 20.86% jump, along with a notable 6.69% rise in unit price. This suggests a growing preference for premium Chinese apparel or cost-push factors influencing pricing.
RMG exporters said there are huge potentials untapped in different European and other countries. It has to be explored for further expansion of the RMG markets.
When contacted, Mohiuddin Rubel, former Director, Brand BGMEA and Managing Director, Bangladesh Apparel Exchange told The New Nation, “There are huge potentials of new RMG exporting destinations for Bangladesh. The authorities have to come forward with policy support.”
He said, “Businesses and government has to work together for searching new horizons actively for tapping the potentials of the RMG of the country.”
Sources said, India, Pakistan, and Cambodia exported $2.51 billion, $1.75 billion, and $1.90 billion respectively, with growth rates of 16.39%, 19.09%, and a staggering 28.64%. Vietnam also performed well, achieving $1.83 billion in exports, up 15.63%, along with a 5.45% rise in unit price. However, Turkey faced a decline of 6.00%, with exports falling to $3.87 billion, indicating potential competitiveness or supply-side challenges.
In this highly competitive environment, Bangladesh’s performance in the EU is especially noteworthy. The country has not only maintained its position as a top exporter but has done so by improving both product value and buyer confidence. With exports to the EU now accounting for nearly half of Bangladesh’s total RMG export destinations, the European market holds strategic importance. The EU’s stable demand, favorable trade access through the Everything But Arms (EBA) initiative, and increasing focus on sustainability align well with Bangladesh’s ongoing improvements in environmental compliance, circular fashion initiatives, and green manufacturing.
Moreover, Bangladesh is uniquely positioned to expand further within the EU by targeting specific high-value markets such as Germany, France, Italy, Spain, and the Netherlands. These countries offer diverse consumer preferences, which Bangladesh’s increasingly versatile and design-capable RMG sector is well-equipped to meet. In addition, niche segments such as ethical fashion, organic cotton apparel, and sportswear offer room for diversification and premiumization.
While China still maintains a lead in absolute export value, Bangladesh’s value-driven growth model, supported by low production cost, skilled labor force, and improving infrastructure, continues to attract European buyers. Furthermore, Bangladesh is steadily investing in backward linkages, digitization of supply chains, and social compliance – all of which are critical for long-term success in the EU’s increasingly regulated and transparent apparel market. At the same time, as challenges persist in the US market – especially concerning tariff barriers and shifting buyer dynamics – it becomes even more crucial for Bangladesh to consolidate and expand its footprint in the EU.
