Bangladesh’s apparel exports to the United States recorded a modest 0.75% year-on-year growth, reaching $7.34 billion in 2024, despite a volatile market throughout the year. However, the country’s share of the US apparel market slightly dipped to 9.26% from 9.37% in 2023 reportedly.
In terms of volume, ready-made garment (RMG) shipments grew by 4.89%, totaling 2.37 billion square meters, up from 2.26 billion in 2023, according to the US Department of Commerce’s Office of Textiles and Apparel.
The year kicked off on a difficult note, with January exports plunging 36.73% to $547.96 million. This downward trend persisted in March, April, May, June, and July, with August seeing a marginal 0.20% dip. However, the tide turned in the second half of the year. September marked the beginning of a strong recovery, leading to November’s highest single-month surge of 42.14%, followed by a 16.52% increase in December, ultimately ensuring a positive annual performance.
Faruque Hassan, former President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), acknowledged the industry’s resilience despite hurdles such as gas and electricity shortages, labour unrest, and political uncertainty. Looking ahead to 2025, he expressed confidence in rising Western demand, easing inflation, and lower interest rates, while underscoring Bangladesh’s potential to capitalize on the China-US trade war—provided domestic stability is maintained.
Read more: Bangladesh’s January PMI Surges, Signaling Stronger Economic Momentum
Abdullah Hil Rakib, Managing Director of Team Group, echoed similar sentiments, highlighting Bangladesh’s opportunity to capture a larger share of the US market as businesses diversify away from China. He noted that the US government’s 10% import duty on Chinese goods could create further advantages for Bangladesh. However, he urged a policy review based on IMF recommendations, cautioning that failure to implement reforms could lead to stagnation. Drawing a parallel with Singapore’s economic success without IMF prescriptions, Rakib suggested that Bangladesh explore alternative strategies to sustain its growth.
Over the past decade, Bangladesh has strengthened its foothold in the US apparel market, with exports growing 35.87% in value and 26.62% in volume between 2015 and 2024.
- 2015-2019: Exports fluctuated between $5.40 billion and $7.14 billion, with setbacks in 2016 and 2017, followed by a strong recovery.
- 2020: The pandemic caused a decline to $5.23 billion, but the industry rebounded in 2021 with a 36% surge to $7.14 billion.
- 2022: The sector hit an all-time high of $9.73 billion before dropping 25% in 2023 to $7.29 billion, largely due to global economic uncertainties.
Bangladesh remains the third-largest apparel supplier to the US, with a 9.26% market share, trailing China (20.83%) and Vietnam (18.90%). In 2024, total US apparel imports reached $79.26 billion, marking a 1.71% increase from the previous year.
As market dynamics shift, Bangladesh’s ability to navigate domestic challenges, adapt to global trade policies, and capitalize on shifting supply chains will determine its future trajectory in the world’s largest apparel market.
For more updates, be with Markedium.
Leave a comment