In January 2025, EU apparel imports surged by 25.12%, reaching $8.57 billion, accompanied by a notable 41.10% spike in volume and an 11.33% decrease in average unit prices. This pricing shift notably impacted key sourcing countries, notably Bangladesh.
Bangladesh’s apparel exports to the EU in January 2025 soared to $1.97 billion, up from $1.29 billion in January 2024. The country witnessed a remarkable 52.56% growth in readymade garment exports, supported by a strong 58.08% volume increase, showcasing a significant recovery. However, a 3.49% drop in unit price tempered these gains, underscoring the challenge of maintaining profitability in a competitive market.
Various factors contributed to this positive export trend, such as value-added garment production, benefits from the tariff war with China, duty-free market access, adherence to safety standards, and collaborative efforts of manufacturers and workers. These developments enhanced buyer confidence, solidifying Bangladesh’s position in the export landscape.
Looking forward, the outlook remains optimistic with an anticipated rise in work orders throughout 2025, sustaining growth momentum. As buyers expand sourcing activities in Bangladesh, the growth trajectory is set to continue.
Comparatively, China experienced a 33.55% growth in January 2025, with India, Pakistan, and Cambodia also posting substantial growth rates of 36.99%, 25.12%, and 63.54%, respectively. China’s apparel exports to the EU totaled $2.46 billion in January 2025, up from $1.84 billion in January 2024. Conversely, Turkey saw a marginal 0.03% decrease in apparel imports to the EU, amounting to $904 million in January 2025, while Vietnam recorded a 27.35% growth, reaching $412 million in exports. India, Pakistan, and Cambodia secured $411 million, $360 million, and $435 million in January 2025, respectively, from the EU clothing market.
In conclusion, the data indicates a more pressing need for strategic changes for future growth, even though Bangladesh demonstrated resilience in preserving export quantity and value. For Bangladesh to maintain its competitiveness and protect profit margins in the face of ongoing global price deflation, value addition and market diversification are still crucial.
Author: Mohiuddin Rubel, Former Director, Brand BGMEA, Managing Director, Bangladesh Apparel Exchange, Additional Managing Director, Denim Expert Ltd.
