EU apparel imports (Jan-Dec 2024) saw a modest 1.53% value increase ($92.56 billion), a substantial 8.98% rise in volume reveals a significant 6.83% drop in average unit prices.
This downward price pressure significantly impacted major sourcing countries, including Bangladesh.
Apparel exports from Bangladesh to the EU during the Jan-Dec period of the last calendar year amounted to $19.77 billion, up from $18.85 billion in 2023. Bangladesh’s readymade garment exports to the European Union showed a 4.86% growth in 2024, with strong 10.18% volume growth marking a significant recovery from previous setbacks, as reported by Eurostat data. However, a 4.84% decline in unit price offset these gains, highlighting the challenges of maintaining profitability in a falling-price environment.
Several factors contributed to this steady rise of export quantity and value growth including the production of value-added garments, duty-free market access, adherence to workplace safety standards, and the combined efforts of manufacturers and workers. These developments bolstered buyers’ confidence, enhancing the business environment and fortifying Bangladesh’s position as a key player in the export market.
Despite fluctuations throughout the year, with a slow start followed by a surge in the last quarter of 2024, Bangladesh experienced substantial year-on-year growth in October, November, and December. This positive trend, along with increasing exports, fueled the current growth trajectory. It is worth noting that while 2024 showed improvement over 2023, earnings still fell short of the levels achieved in 2022.
Looking ahead, the outlook remains optimistic as work orders are expected to increase, sustaining the growth momentum into 2025. With buyers regaining confidence and expanding their sourcing activities in the country, the growth trend is poised to continue.
In comparison to Bangladesh, China saw a 2.61% growth in 2024, while Pakistan and Cambodia experienced more significant growth rates of 12.41% and 20.73%, respectively. China’s apparel exports to the EU totaled $26.07 billion in 2024, up from $25.40 billion in 2023. On the other hand, Turkey witnessed a 6.64% decrease in apparel imports to the EU, amounting to $10.07 billion in 2024, while Vietnam recorded a 4.21% growth, reaching $4.30 billion in exports. Pakistan and Cambodia secured $3.79 billion and $4.22 billion in 2024, respectively, from the EU clothing market. In 2024, the EU imported apparel worth $4.52 billion from India, which was 1.97% higher than the earnings of 2023.
In conclusion, while Bangladesh showed resilience in maintaining export quantity and value, the data reveals more critical need for strategic shifts for future growth. Value addition and market diversification are essential for Bangladesh to secure its competitiveness and safeguard profit margins in the face of persistent global price deflation.
Mohiuddin Rubel, Former Director, Brand BGMEA, Managing Director, Bangladesh Apparel Exchange Ltd.
AMD, Denim Expert Ltd.
