Bangladesh recorded the steepest decline among major garment exporters to the European Union (EU) market in the first seven months of 2026.
Shipments from the South Asian nation — the second-largest apparel supplier after China — fell faster than the overall contraction in demand in the world’s largest apparel market bloc.
During the period, however, China and Vietnam — the third-largest apparel exporter — gained market share.
Eurostat data compiled by Bangladesh Apparel Voice shows that EU apparel imports weakened in both value and volume terms during January-July, with average prices also declining.
The bloc imported apparel worth €51.61 billion, down 5.10 per cent year-on-year. Import volume fell 3.23 per cent to 2.60 billion kilogrammes, while the average import price declined 1.93 per cent to €19.84 per kilogramme, reflecting weaker demand and pricing pressure.
Bangladesh’s apparel exports to the EU fell 13.65 per cent to €10.37 billion, the steepest decline among major suppliers.
Shipment volume dropped 5.66 per cent to 751.91 million kilogrammes, while the average export price declined 8.47 per cent to €13.80 per kilogramme, the second-lowest among major suppliers after Pakistan.
The sharper decline in export value than volume indicates that lower prices also weighed on earnings as manufacturers competed to retain orders in a weaker market.
China, the EU’s largest apparel supplier, increased exports by 1.89 per cent to €16.42 billion, while Vietnam recorded 3.92 per cent growth to €2.55 billion.
Vietnam’s average export price rose 11.76 per cent to €29 per kilogramme, while Cambodia’s increased 7.86 per cent to €18.67 per kilogramme despite a 6.69 per cent decline in export value, indicating stronger pricing for higher-value shipments.
Other major suppliers also faced declines. Turkey’s exports fell 13.32 per cent to €4.38 billion, with shipment volume down 14.64 per cent to 154.85 million kilogrammes. However, its average export price increased 1.55 per cent to €28.31 per kilogramme.
India’s exports declined 12.24 per cent to €2.74 billion, while shipment volume fell 10.67 per cent to 133.03 million kilogrammes. Its average price declined 1.76 per cent to €20.62 per kilogramme.
Pakistan recorded an 11.81 per cent decline in export value to €1.96 billion despite a 3.44 per cent rise in shipment volume to 181.83 million kilogrammes. Its average export price fell 14.74 per cent to €10.77 per kilogramme, the lowest among the suppliers tracked.
Sri Lanka and Indonesia also saw export value declines of 11.83 per cent and 12.12 per cent respectively, with both recording lower shipment volumes despite slight increases in average prices.
Exporters said Bangladeshi manufacturers had been competing aggressively during the global slowdown by accepting lower margins to maintain capacity utilisation.
Mohiuddin Rubel, founder and CEO of Bangladesh Apparel Voice, said the decline showed signs of moderation towards mid-year. Bangladesh’s cumulative export decline to the EU narrowed to 13.65 per cent in January-July from 16.43 per cent in January-June, supported by growth in June and July.
Exports to the EU in June rose 0.87 per cent year-on-year to €1.37 billion, while July shipments increased 3.72 per cent year-on-year to €1.73 billion, he said.
However, exporters warned that domestic supply disruptions could affect the recovery. A Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) survey of 134 member factories found that gas and power disruptions lasting 55 days delayed shipments for 87 per cent of surveyed factories.
The survey found that 60 per cent of factories offered discounts to buyers due to shipment delays, while 55 per cent faced order cuts or cancellations.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Mahmud Hasan Khan said apparel exports from most countries were under pressure due to the global market situation.
China, responding to declining exports in the US market, is now focusing more on the European market and offering competitive prices to buyers.
“Bangladesh should look beyond short-term fluctuations in individual markets and focus on overall export growth and moving up the value chain,” Khan said.
Centre for Policy Dialogue Distinguished Fellow Mustafizur Rahman said Bangladesh’s decline could not be explained only by weaker EU demand.
“Bangladesh has also lost ground compared with competing countries,” he said.
Countries such as Vietnam were benefiting from trade advantages, he said, adding, “Earlier, Bangladesh enjoyed around a 12 per cent tariff gap compared with Vietnam in the EU market, but that gap no longer exists after its free trade agreement.”
Rahman said lower garment prices alone could not ensure competitiveness.
Although labour costs are relatively lower, productivity remains a challenge.
High capital costs, gas and electricity shortages and longer lead times are increasing production costs. Delayed shipments are also hurting exporters, the economist said.
According to Mustafizur Rahman, a significant share of orders shifting away from China was moving to countries such as Vietnam and Cambodia instead of Bangladesh.
He suggested improving productivity through investment in technology and skills, implementing the National Single Window and national logistics policy, and diversifying products and raw materials.
European demand is also shifting from cotton-based apparel towards man-made fibre and polyester-based products, requiring Bangladesh to expand capacity in those segments and develop non-garment export sectors.
Exporters stressed that ensuring energy, policy and interest rate stability would be critical to maintaining competitiveness and supporting the sector’s recovery.
