Bangladesh has emerged as the second-largest apparel supplier to the United States, overtaking China in January, signalling a notable shift in global sourcing patterns.
According to the latest data from the Office of Textiles and Apparel (OTEXA), Bangladesh captured a 12.73 per cent share of the US apparel market in January 2026, exporting goods worth $791.77 million.
The performance marks a strong start to the year for the country’s flagship export sector.
Industry insiders attribute the rise to a broader realignment in global supply chains, with US retailers increasingly adopting a “China Plus One” strategy to diversify sourcing.
China, once the dominant supplier, slipped to third place during the month, exporting $603.92 million in garments and accounting for a 9.71 per cent market share.
Rising production costs, higher wages, stricter domestic regulations, and ongoing trade tensions with Washington are key factors behind China’s decline, the RMG exporters said.
Vietnam maintained its position as the top supplier, with exports valued at $1.49 billion—representing 23.94 per cent of total US apparel imports, which stood at $6.22 billion in January.
While Bangladesh has outpaced China and remains ahead of competitors such as India, it faces growing competition from Southeast Asian producers.
Indonesia and Cambodia posted exports of $446.54 million and $406.84 million respectively, steadily strengthening their presence in the US market.
“Overtaking China is a significant achievement, but sustaining this position will require improvements in efficiency, shorter lead times, and a shift towards higher-value products,” said Mohiuddin Rubel, former director of the Bangladesh Garments Manufacturers and Exporters Association (BGMEA).
He further said that Bangladesh’s strength in high-volume, cost-efficient production—particularly in knitwear and denim—has driven its recent gains.
“However, reliance on volume alone may not be sufficient in the long term,” he added.
Industry insiders also emphasised that consolidating this position will require product diversification into high-end apparel and man-made fibres, faster turnaround times through improved port efficiency, and continued adherence to compliance standards.
As global sourcing patterns evolve, Bangladesh’s strong start to 2026 underscores its growing significance in the US apparel supply chain, provided it can navigate mounting competitive and structural challenges.
Suppliers from the Western Hemisphere, including Mexico and Honduras, continue to hold smaller shares but remain strategically important for brands seeking near-shoring options to reduce lead times.
