Abdullah Al Mamun, Business Area Manager, M&S Bangladesh
The global ready-made garments (RMG) industry is undergoing significant growth and transformation. In 2024, the market was valued at approximately USD 1,110.98 billion and is projected to reach USD 2,468.62 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.3%. Another source estimates the 2024 market size at USD 1,055 billion, with growth expected to reach USD 1,970 billion by 2032, reflecting a CAGR of 8.12%.
Key Trends Shaping the RMG Industry:
- Sustainability Efforts: The fashion industry is placing greater emphasis on sustainability. However, challenges such as the U.S. withdrawal from the Paris Agreement may hinder progress. Relaxed environmental regulations could result in higher carbon footprints, making it harder for the industry to adopt renewable energy and recycling initiatives.
- Corporate Accountability: Companies like Shein are facing increased scrutiny over their environmental and labor practices. Since 2021, Shein’s emissions have surged by 176%, sparking concerns ahead of its anticipated IPO. Critics call for comprehensive systemic changes to address these issues effectively.
- Market Growth Projections: The apparel market is forecast to grow from USD 1.80 trillion in 2025 to USD 2.97 trillion by 2033. This expansion is driven by factors such as rising disposable incomes, urbanization, and the growth of online retail platforms.
- Regional Dynamics: Asia-Pacific remains a key player in garment manufacturing, with China and India at the forefront due to their large labor forces and competitive pricing. Initiatives like India’s ‘Make in India’ program are encouraging investments in manufacturing, further solidifying the region’s prominence in the global market.
- Shifts in Consumer Behavior: Consumers are increasingly favoring sustainable and ethically produced garments. In response, brands are adopting eco-friendly materials and promoting transparency in their supply chains to meet this growing demand.
In conclusion, the global RMG industry is on a strong growth trajectory, driven by trends such as sustainability efforts, corporate responsibility, and changing consumer preferences. Understanding these dynamics is essential for stakeholders aiming to thrive in the evolving RMG landscape.
