Bangladesh’s readymade garment (RMG) export earnings from the European Union (EU) fell by 4.14 per cent to $9.46 billion during the first six months (July–December) of the current fiscal year, reflecting weaker demand in the country’s largest apparel market.
According to country-wise data released by the Export Promotion Bureau (EPB), exports to the EU declined from $9.87 billion in the corresponding period of the previous year.
Despite the drop, the EU remained Bangladesh’s single largest apparel destination, accounting for 48.84 per cent of total RMG exports during the period.
“The decline in the EU market indicates prolonged inflationary pressure and slower retail sales across Europe,” said Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“Buyers are still managing inventories conservatively, which is directly affecting order volumes and prices,” he added.
The United States, Bangladesh’s second-largest apparel export market, showed near stagnation during the period.
RMG exports to the US slipped by 0.10 per cent year-on-year to $3.84 billion, accounting for 19.82 per cent of total apparel exports.
“Although the US market has not seen a sharp fall, growth remains flat as consumers continue to prioritise essentials over discretionary spending such as apparel,” Rubel said.
In contrast, exports to Canada and the United Kingdom posted positive growth, offering some relief to exporters amid the overall slowdown. Shipments to Canada rose by 4.66 per cent to $671.47 million, while exports to the UK increased by 2.13 per cent to $2.21 billion, which accounted for 11.42 per cent of total RMG exports.
“These two markets are showing relatively stable demand, particularly for value-added and sustainable apparel products,” Rubel noted, adding that brands in the UK and Canada are gradually resuming sourcing from Bangladesh.
Exports to non-traditional markets declined by 5.52 per cent year-on-year to $3.18 billion, though they still contributed a notable 16.45 per cent share of total RMG exports.
“The slowdown in non-traditional markets suggests that diversification alone is not enough without stronger trade facilitation, improved market access, and effective branding initiatives,” said Shovon Islam, managing director of Sparrow Group.
Product-wise data also showed a contraction across both major segments of the RMG sector. Knitwear exports declined by 3.22 per cent, while the woven segment fell by 1.91 per cent, indicating a broad-based slowdown.
“Rising production costs, volatility in energy prices, and intense price competition from regional competitors are squeezing margins for Bangladeshi manufacturers,” Shovon said.
“To regain momentum, the industry must focus on productivity improvement, product diversification, and moving up the value chain,” he added.
Overall, Bangladesh’s RMG exports declined by 2.63 per cent year-on-year in the first half of FY 2025–26, with export earnings standing at $19.37 billion during July–December, compared to the same period of the previous fiscal year.
Industry insiders believe export performance in the second half of the fiscal year will largely depend on a recovery in global demand, easing inflation in key markets, and renewed consumer confidence.
