RMG exports to EU and non-traditional markets decline amid weak global demand
Bangladesh’s readymade garment (RMG) exports to Europe and non-traditional markets declined during the July–April period of FY2025–26 due to weak global demand, according to Export Promotion Bureau (EPB) data.
However, exports to the United States, United Kingdom, and Canada saw slight growth during the same period.
Overall, Bangladesh exported RMG goods worth $31.72 billion in the first ten months of FY26, reflecting a 2.82% decline compared to $32.64 billion in the same period of FY25.
Exporters attributed the downturn to weak international demand, fewer buyer inquiries, shifting sourcing patterns, geopolitical tensions, and strong competition—particularly in European markets.
EU market decline
The European Union, Bangladesh’s largest RMG destination, accounted for 48.98% of total exports. However, exports to major EU countries such as Germany, France, Denmark, and Italy declined during the period, although Italy, Spain, and Poland recorded moderate growth.
Slight growth in US, UK, and Canada
Exports to the United States rose 0.98% to $6.29 billion, while UK exports increased slightly by 0.3% to $3.64 billion. Canada also recorded growth of 3.69%, reaching $1.09 billion.
The US remains the single largest country market, accounting for 19.83% of Bangladesh’s total RMG exports.
Non-traditional markets under pressure
Exports to non-traditional markets—including Japan, Australia, India, South Korea, UAE, Malaysia, Brazil, and Mexico—fell 5.83% to $5.16 billion. These markets now account for 16.27% of total RMG exports.
Among them, shipments to Japan, Australia, India, South Korea, and Mexico declined significantly, while China, Malaysia, and South Africa showed growth.
Industry concerns
Industry leaders said global demand remains weak, with buyers reducing orders due to tariffs, inflation, and geopolitical uncertainty, including tensions in the Middle East and the Strait of Hormuz.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Mohammad Hatem said the sector has been on a negative trajectory for months, and recent fluctuations are largely statistical rather than demand-driven.
Former BGMEA director Mohiuddin Rubel noted that buyers are optimizing sourcing strategies, urging manufacturers to focus on innovation, sustainability, and value addition to stay competitive.
Despite fluctuations, the RMG sector earned $39.35 billion in FY2025 from global markets.
