Garment exports from Bangladesh to non-traditional markets declined at a faster pace than the country’s overall shipments during the first seven months of the current fiscal year, raising fresh concerns over efforts for market diversification beyond the EU and US.
According to the latest country-wise data of the Export Promotion Bureau (EPB), exports to non-traditional destinations fell 4.99 per cent year-on-year to $3.77 billion in July-January of FY26, accounting for 16.40 per cent of the total RMG exports.
Performance across these markets remained mixed, with several key destinations posting sharp contractions while only a handful registered notable growth.
Japan retained its position as the largest non-traditional market, with exports worth $700.98 million, though earnings slipped 2.84 per cent. Shipments to India declined 8.13 per cent to $392.84 million.
Australia recorded a steep 13.24 per cent drop to $444.97 million, while exports to Turkey fell 23.86 per cent to $200.31 million. Russia saw a 27.15 per cent decline to $134.63 million, and Mexico contracted 17.39 per cent to $171.84 million.
In contrast, some markets showed resilience. Exports to China surged 25.52 per cent to $164.32 million, Malaysia grew 18.24 per cent to $135.81 million, and Saudi Arabia expanded 25.90 per cent to $121.53 million.
Shipments to the United Arab Emirates rose 16.56 per cent to $168.22 million, while Brazil posted an 8.91 per cent increase to $119.86 million.
The slowdown comes at a time when policymakers and industry leaders are intensifying efforts to broaden market outreach to reduce risks associated with reliance on a few major buyers.
Industry insiders attributed the contraction to sluggish global consumer demand, weak institutional marketing, limited product diversification tailored to specific markets and a reduction in government export incentives.
Rezwan Selim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said non-traditional markets are facing deeper difficulties than traditional ones.
“The situation is worse in non-traditional markets mainly due to weak marketing, lack of continuous communication and follow-up, and reduced incentives,” he said, adding that Bangladesh has struggled to match the aggressive market outreach of its competitors, particularly China, in countries such as Japan and South Korea.
Overall, Bangladesh’s garment exports stood at $22.98 billion during the period, marking a 2.43 per cent decline compared to the same period last fiscal year, reflecting subdued global demand and cautious purchasing by international retailers.
The EU remained the largest destination, absorbing nearly half of total shipments. Exports to the bloc reached $11.34 billion, accounting for 49.35 per cent of the total, though earnings dropped 3.98 per cent year-on-year.
The US, the second-largest market, recorded near-flat performance, with exports of $4.47 billion, representing 19.46 per cent of total shipments and a marginal 0.03 per cent decline.
Among other traditional markets, Canada posted 4.42 per cent growth to reach $784.17 million, while exports to the United Kingdom rose 2.55 per cent to $2.62 billion.
Product-wise, both major segments showed weakness, with knitwear exports falling 3.13 per cent and woven garments declining 1.60 per cent.
Industry leaders said the slowdown underscores the need to enhance competitiveness, diversify products and deepen penetration into emerging markets to sustain long-term export growth.
Mohiuddin Rubel, a former BGMEA director, stressed that accelerating diversification efforts is essential to protect the sector from market-specific shocks.
