Bangladesh’s January 2025 apparel exports to the EU increased by 60.9%
Exports to the European Union (EU) rise 60.9% year over year in January. It’s marking a solid start to 2025 for Bangladesh’s ready-made garment (RMG) sector. According to Eurostat Bangladesh RMG exports increased from €1.19 billion in January 2024 to €1.91 billion. Bangladesh is now the 2nd largest supplier of clothing to the EU behind China. Which is notable development for Bangladesh. Cost effective production, preferential trade agreements and efficiency gains continue to be the main drivers of the nation’s competitiveness in the international textile market.
What is RMG?
The industry that produces and exports pre-stitched apparel, including t-shirts, jeans, skirts, sweaters, formal wear and sportswear is known as the ready-made garment (RMG) sector. Bangladesh exports are mostly driven by the RMG sector. About 84% of total export revenue comes from this industry, which employs over 4 million people. The majority of whom are women. One of the most affordable locations for the production of clothing is Bangladesh. Favorable trade policies, a vast workforce and extensive production facilities have all contributed to exports increased standing in the global supply chain.
Breakdown of Export Growth
Exports of knitwear and woven clothing have increased significantly since January 2025
- Exports of knitwear grew 64.2%.
- Exports of woven clothing increased by 56.3%.
- From 80.25 million kilos in January 2024 to 126.86 million kilograms in January 2024.
- The total export volume to the 27 nation EU union increased by 58.1%.
This notable increase suggests that the market for clothing has recovered globally following a period of decline.
Factors Contributing to Growth
The remarkable surge in exports is due to several key factors
- Competitive Pricing – The RMG sector has experienced rapid growth but there are still a number of issues that must be resolved for long-term growth.
- Preferential Trade Agreements – The EU’s Everything But Arms (EBA) program, which grants duty free access to the EU market that helps the nation.
- Increased Production Capacity – Factories have expanded operations, improving efficiency and adopting modern technology
- Shift of Work Orders from China – Rising production costs in China and geopolitical factors have pushed global brands to diversify sourcing, benefiting Bangladesh
- Stronger Consumer Demand in the EU and US – As inflation stabilizes, consumers are spending more on fashion and clothing
Industry Insights
The growth was described as “encouraging” and an indication of a healthy market recovery by Mohammad Hatem the President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). He did it however, voice concerns about law-and-order difficulties, which may have an impact on foreign investment and buyer trust. In order to maintain the industry’s competitiveness, he also urged the government to provide a steady supply of gas and electricity at reasonable prices.
Global Apparel Trade Trends
The EU’s total apparel imports grew by 31.9% year on year. It’s reaching €8.29 billion in January 2025, up from €6.28 billion in January 2024.
Top Apparel Exporters to the EU in January 2025
- China – €2.38 billion (40.9%)
- Bangladesh – €1.91 billion (60.9%)
- Turkey – €874.09 million (5.4%)
- Cambodia – €420.9 million (72.5%)
- India – €397.7 million (44.5%)
- Vietnam – €398.6 million (34.3%)
- Pakistan – €347.7 million (31.9%)
Among these countries, Cambodia recorded the highest percentage growth, while China remained the largest supplier to the EU. Bangladesh continues to narrow the gap with China, strengthening its role as a leading apparel exporter.
Read more: Air Ticket Prices drops 75% to Saudi & more countries
Challenges and Future Outlook
Despite the strong growth the RMG industry faces several challenges that need to be addressed for sustainable expansion
Key Challenges
- Infrastructure Bottlenecks – The country needs better ports, roads and logistics to manage increasing export volumes efficiently
- Energy Crisis – Unstable gas and electricity supply raises production costs and disrupts production
- Workforce and Skill Development – The industry must train workers to handle advanced textile technology and sustainable manufacturing practices
- Political Stability – Uncertainty in governance and policies could impact investment and trade relations
The Future of Bangladesh’s RMG Industry
With both EU and US markets recovering, Bangladesh’s apparel sector is well-positioned for further expansion. To maintain its competitive edge the country should focus on
- Investing in sustainability – Green factories and eco-friendly production methods will attract global brands looking for responsible sourcing
- Enhancing compliance standards – Ensuring workplace safety, fair wages, and ethical labor practices will strengthen international trust
- Diversifying product offerings – Expanding beyond basic garments to high-value products like technical textiles, athleisure, and luxury apparel can open new markets
Bangladesh’s RMG industry can maintain its growth trajectory and solidify its position as a worldwide exporters king in clothing exports with the correct policies and tactics.
Conclusion
Bangladesh’s apparel sector has a bright future as seen by its record breaking exports in January 2025. However, sustaining expansion will require ongoing investments in labor development, energy supply and infrastructure. Bangladesh might further assured its position as one of the top exporters of clothing worldwide if obstacles are resolved.
