RMG exports notches 8.84pc growth in FY25

The exports of Bangladeshi Ready Made Garment (RMG) showed a healthy growth of 8.84 per cent in the last fiscal year (FY25) fetching $39.35 billion despite global headwinds.

According to the country-wise export data for Bangladesh for the last fiscal year (FY25) released by the Export Promotion Bureau (EPB), the European Union (EU) was a key market, accounting for 50.10 per cent of Bangladesh’s total RMG exports, valued at $19.71 billion.

Exports to the United States were $7.54 billion (19.18 per cent), while Canada and the UK contributed $1.30 billion (3.31 per cent) and $4.35 billion (11.05 per cent), respectively.

Year-over-year growth in Bangladeshi RMG exports showed increases of 9.10 per cent for the EU, the USA 13.79 per cent, and Canada 12.07 per cent.

The country’s RMG exports to UK saw a modest growth of 3.68 per cent in FY25. In the EU, Germany was the largest market for RMG, with exports at $4.95 billion, followed by Spain $3.40 billion, France $2.16 billion, Netherlands $2.09 billion, Poland $1.70 billion, Italy $1.54 billion and Denmark $1.04 billion.

Even, growth rates were high in several EU countries, such as the Netherlands (21.21 per cent), Sweden (16.41 per cent), Poland (9.77 per cent) and Germany (9.47 per cent).

Bangladesh's RMG exports also saw a 5.61 per cent rise in non-traditional markets, totaling $6.44 billion with a 16.36 per cent market share for Bangladesh.

Japan, Australia, and India were the leading markets in this category, with country’s RMG exports to Turkey seeing 25.62 per cent, India 17.39 per cent, and Japan 9.13 per cent growth rate. However, Bangladeshi apparel exports to Russia, Korea, the UAE, and Malaysia have declined.

In the apparel industry, the knitwear sector has shown a remarkable growth of 9.73 per cent, with the woven sector also experiencing an increase of 7.82 per cent.

Since the onset of COVID-19 pandemic, industry insiders said that the global landscape has taken unexpected turns, presenting the country with a cascade of new challenges each day with new issues.

In the realm of traditional markets, Bangladesh’s export performances remains robust, boasting an impressive 84 per cent share of the total apparel exports.

However, the non-traditional market tells a different story, with the current stake standing at a modest 16 per cent.

The International Trade Centre (ITC) reports that the global apparel market reached approximately $500 billion in 2024. Within this, the nontraditional market accounted for about $150 billion.

Bangladesh, holding a 6 per cent share of the nontraditional market, shows significant potential for expansion. In 2024, Bangladesh contributed 5.50 per cent to Japan's total imports and 11.53 per cent to Australia's total imports, indicating a promising trajectory for growth.

Talking to BSS, Mohiuddin Rubel, former director, BGMEA and Managing Director, Bangladesh Apparel Exchange, said that adapting to this dynamic environment underscores the critical need to focus on cultivating fresh markets and products through relentless innovation to maintain the country’s competitive edge.

“Embracing innovation and venturing into new territories is not just a strategic move but a necessity in today's evolving landscape. Let's harness this potential and steer our course towards greater market diversification and expansion,” he said.

Rubel, also Additional Managing Director, Denim Expert Ltd. said staying competitive in today's market goes beyond just pricing.

“To truly stand out, you must maintain competitive advantages over rival countries which are essential to becoming the top choice for your customers. It's not just about the cost; it's about offering unique benefits that set you apart and keep you ahead in the game,” he added.