In a remarkable shift of dynamics, Bangladesh’s apparel exports have surged to claim a 22.20% share of the European Union (EU) market in 2022, as per the latest data unveiled by Eurostat, the statistical agency of the European Commission. This surge comes in direct contrast to China’s declining market share, which has dwindled to 29.24%.
Emerging as the EU’s second-largest apparel exporter, Bangladesh’s exports in 2022 reached an impressive $22.89 billion, showcasing a substantial year-on-year growth of 35.69%. In comparison, China’s exports amounted to $30.15 billion, reflecting a growth rate of 17.01%.
Only a year prior, in 2021, Bangladesh held a market share of 19.80% worth $16.87 billion, while China dominated with a commanding 30.22% share, totaling $30.22 billion.
Faruque Hassan, the president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed immense satisfaction with this exponential growth in apparel exports to the European market. “Europe stands as a pivotal apparel importing hub worldwide, a role magnified for Bangladesh,” he noted.
Hassan underscored the incredible trajectory of the EU’s apparel imports from Bangladesh over the past five years, revealing a staggering Compound Annual Growth Rate (CAGR) of 9.42%. Notably, this growth has outpaced the EU’s average annual imports growth rate of 4.31% from other global suppliers.
The latest data further illuminates the EU’s overall apparel imports, which soared to an astonishing $103.09 billion in 2022 – a remarkable 20.97% year-on-year leap compared to $85.23 billion in the preceding year.
From a quantifiable standpoint, the EU’s clothing imports from Bangladesh experienced a 21.20% year-on-year upsurge, overtaking China’s growth of 17.01% in 2022.
Faruque Hassan celebrated Bangladesh’s newfound distinction in the EU market, as the country seized the top position in terms of quantity, surpassing China for the first time.
Anticipating the future, the BGMEA president envisions Bangladesh ascending to the throne of the EU apparel market by the end of 2023, solidifying its place as the leading apparel-sourcing nation in terms of value.
Among the array of apparel exporters to the EU, Turkey holds the third-largest supplier position with an 11.62% share and a commendable 10.09% year-on-year growth in 2022.
Meanwhile, the EU’s imports from India saw an upswing to $4.87 billion in 2022 from $4.01 billion in 2021. Similarly, imports from Vietnam experienced a notable surge, with a 35.28% year-over-year increase, reaching $4.57 billion in 2022 compared to $3.37 billion in 2021.
Faruque Hassan highlighted the pivotal strides Bangladesh has taken in product diversification in recent years. The nation’s manufacturers have invested significantly in the backward linkage industry and sophisticated high-end items. “We’re also focusing on mid and upper-mid-priced brands in Europe, exporting high-valued items, which is evident in our unit price surge,” he affirmed.
Bangladesh’s market diversification efforts have also yielded fruitful results, with increased imports reported from Hungary, Cyprus, Malta, Slovenia, Poland, and Denmark among the 27 EU member countries.
In this era of shifting trade dynamics, Bangladesh’s ascent as a dominant player in the EU’s apparel market serves as a testament to its commitment to excellence and strategic growth.
Read More from Business Cloud.
