Bangladesh’s garment exports to non-traditional markets such as Australia, India, South Korea and Russia have declined sharply, with overall shipments to these destinations falling by more than 3% in the first five months of the current fiscal year.
Data from the Export Promotion Bureau (EPB) show that from July to November of the fiscal 2025-26, garment exports to non-traditional markets dropped by 3.39% compared with the same period a year earlier.
Infographic: TBS
The fall has been steeper in several of the larger non-traditional destinations, such as Australia, India, South Korea, Russia, Turkey and Mexico, according to data.
Industry insiders say the slowdown in global consumer demand, weak marketing efforts by both the government and the private sector, a lack of product diversification in line with market demand, and reduced government incentives for exports to these markets have all contributed to the decline. Around 16% of Bangladesh’s total garment exports go to non-traditional markets, which include about 15 major countries outside the United States, the United Kingdom, Canada and the 27-member European Union. These markets have long been seen as crucial for reducing reliance on traditional destinations.
Sharp drops in key destinations
An analysis of EPB data suggests that while garment exports to traditional markets are also facing pressure, the rate of decline has been higher in non-traditional markets. Exports to India fell by more than 8% during the five-month period. Bangladesh shipped garments worth $298m to India between July and November, $26m less than in the same period of the previous financial year.
Australia, the largest non-traditional export destination for Bangladesh garments, saw exports drop by 10% year-on-year to $313m during the period. Exports also fell sharply in other non-traditional markets, declining by 12% in South Korea, 16% in Mexico, 25% in Turkey and 23% in Russia.
However, garment exports increased in some newer or non-traditional markets, including Brazil, China, Japan, Malaysia, the United Arab Emirates and South Africa.Shehab Udduza Chowdhury, vice-president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told The Business Standard, “Overall, our export performance is not good. The situation is worse in non-traditional markets mainly because of weak marketing, a lack of continuous communication and follow-up, and reduced incentives.”
He said Bangladesh has been unable to match China’s aggressive marketing strategies in markets such as South Korea and Japan. He also criticised the performance of commercial wings at Bangladeshi missions abroad, saying they have not met expectations.
“There was once a 5% cash incentive to encourage exports to new markets, which has now been reduced to just 2%. This has discouraged exporters and is one of the reasons behind the decline,” he added. Former BGMEA director Mohiuddin Rubel echoed similar concerns, saying Bangladesh’s failure to develop products in line with market demand and its weak marketing efforts remain key challenges.
Mixed picture in traditional markets
EPB data show a mixed trend in traditional markets. Garment exports to the United States, Bangladesh’s single largest destination, rose by 3% in the July-November period to $3.22 billion, up from $3.13 billion a year earlier.
Exports also increased by 6.51% to Canada and by 3% to the United Kingdom. Within the European Union, exports grew to Spain, Poland and the Netherlands. However, shipments declined to Germany – the second-largest single-country destination for Bangladeshi garments – as well as to France, Denmark and Italy.
