Bangladesh’s apparel exports to its largest market, the United States, witnessed an extraordinary 41.6% year-on-year increase in November 2024, reaching $613.91 million compared to $433.56 million in November 2023. This marked the highest growth rate of the year, solidifying Bangladesh’s position in the US market during a crucial final quarter reportedly.
Despite this remarkable recovery, the overall picture from January to November 2024 tells a different story. Exports during this period fell by a slight 0.44% compared to 2023, totaling $6.76 billion, marginally below the $6.79 billion earned in the same period last year, according to data from the Office of Textiles and Apparel (OTEXA).
The year began with steep declines, January plummeted by 36.7% and March by 14.2%. However, a gradual stabilization between April and August, with declines narrowing to between 0.2% and 6.8%, set the stage for recovery in the last quarter. September saw an 18.4% increase, followed by a 26.7% rise in October, and November’s record-breaking performance.
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While Bangladesh achieved a 3.98% increase in export volume to the US during the first 11 months of 2024, the decline in unit prices, down 4.24% contributed to lower revenue growth. Experts attribute this to intense competition, changes in product mix, and fluctuations in raw material costs.
In contrast, key competitors like India and Vietnam gained significant ground. India reported a 4.49% growth in export value and a notable 13.26% increase in volume, leveraging competitive pricing and local raw material sourcing. Vietnam saw a 4.48% rise in value and a 9.02% growth in volume, earning $13.77 billion during the January-November period. Meanwhile, China experienced a slight 0.30% decline in value but boosted its export volume by 5.50%.
Overall, US apparel imports totaled $72.94 billion in the first 11 months of 2024, reflecting a modest 0.63% year-on-year growth. While Bangladesh’s export volume rose, the revenue decline highlights challenges in maintaining competitiveness in pricing and market share against rivals like India, Vietnam, and China.
According to Mohiuddin Rubel, a former BGMEA director and additional managing director of Denim Expert Ltd., these trends underscore the need for Bangladesh to address market pressures, refine its product mix, and optimize costs to strengthen its position in the competitive US market.
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