Bangladesh’s apparel exporters are losing ground in their biggest market, with shipments to the European Union (EU) falling nearly 12 per cent in the first nine months of 2026, far outpacing the bloc’s overall decline as Chinese suppliers gained market share.
Exports fell 11.91 per cent to €13.48 billion during January-September, the steepest drop among the EU’s 11 largest apparel suppliers. Bangladesh lost €1.82 billion in export earnings, exceeding the €1.78 billion decline in the bloc’s entire apparel import market.
According to Eurostat data compiled by Bangladesh Apparel Voice, EU apparel imports fell 2.46 per cent to €70.72 billion during the period, with both import volumes and average prices declining slightly.
Bangladesh faced a sharper decline on both fronts. Its export volume fell 5.74 per cent, while the average unit price dropped 6.54 per cent to €13.70 per kilogram, about 30 per cent below the EU average. Lower prices accounted for slightly more than half of the lost export value.
The figures also show Bangladesh struggling to benefit from a recovery in European demand.
After a steep decline early in the year, EU apparel imports recovered by 3.54 per cent in May–August. Bangladesh’s exports, however, remained 1.25 per cent lower during the same period, following a 20.89 per cent plunge in January-April.
The gap widened again in September, when Bangladesh’s exports fell 9.49 per cent against the EU market’s 2.72 per cent decline. Bangladesh accounted for about 69 per cent of the market’s overall fall that month.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) former director and Bangladesh Apparel Voice CEO Mohiuddin Rubel said China was capturing much of the gradual recovery in European demand.
“China is doing business very aggressively in the European market. As the market’s decline narrows, China is capturing most of the improvement, while Bangladesh has not been able to close the gap to the same extent,” he said.
Rubel said September’s decline should also be viewed against a high comparison base, as September 2025 was the EU’s biggest apparel import month of that year.
China’s apparel exports to the EU rose 4.46 per cent to €24.25 billion during January-September, increasing its market share to 34.29 per cent from 32.02 per cent. Bangladesh’s share fell to 19.06 per cent from 21.10 per cent.
China was the only major supplier to record growth in both export value and volume, with shipments also rising in September despite the broader market decline.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said Chinese exporters had cut prices following changes in US tariff policy, securing European orders that might otherwise have gone to Bangladesh.
“We could not match the prices they offered, which resulted in fewer orders for our exporters,” he said.
Hatem warned that rising domestic wages and production costs could further hurt competitiveness if international buyers refused to pay higher prices.
Other competing suppliers recorded mixed results. Vietnam increased export earnings despite lower shipment volumes by securing higher prices, while Cambodia also achieved price gains.
Pakistan shipped more garments but at sharply lower prices, while India, Turkey, Sri Lanka and Indonesia recorded declines in export earnings.
Looking ahead, Rubel said Europe’s energy crisis and geopolitical uncertainty could weaken demand and make buyers more cautious.
He said Bangladesh’s confirmed graduation from the least developed country (LDC) category could strengthen buyer confidence, although exporters must prepare for changes in trade preferences.
Rubel called for stronger backward-linkage industries, sustainable production, higher value addition and product diversification. He also stressed compliance with stricter European textile and environmental regulations, urging Bangladesh to move beyond low-priced garments towards higher-value, sustainable products.
