Bangladesh overtakes China in RMG export volume to EU market

Bangladesh has overtaken China for the first time to reach the top in terms of export quantity of manufactured garments to the European Union (EU) market. Although the export value of Bangladeshi-made garments is $5.82 per kg less than that of China. And so in this market, China's garment exports are $7.26 billion more than Bangladesh, according to the latest data from Eurostat – the statistical agency of the European Commission.

Bangladesh's apparel exports to the EU have surged, capturing a 22.20% share of the market in 2022. In contrast, the market share of the country's top competitor, China, declined to 29.24%.

Bangladesh, the second-largest apparel exporter to the EU, showcased a remarkable 35.69% year-on-year growth. Meanwhile, China's exports grew 17.01%.

In 2021, Bangladesh's market share accounted for 19.80%, valued at $16.87 billion, while China dominated with a 30.22% share, totaling $30.22 billion.

Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), expressed his satisfaction with the rise in apparel exports to Europe. "Europe is one of the significant apparel importers in the world as well as for Bangladesh," he said.

He also highlighted that over the past five years, the value of the EU's apparel imports from Bangladesh has demonstrated a Compound Annual Growth Rate (CAGR) of 9.42%. This growth outpaced the EU's average annual apparel imports growth rate of 4.31% from the rest of the world.

The latest data reveals that the EU's overall apparel imports from all countries reached a staggering $103.09 billion in 2022, marking an impressive 20.97% year-on-year increase compared to $85.23 billion in the previous year.

In terms of quantity, the EU's clothing imports from Bangladesh surged by 21.20% year-on-year, surpassing China's 17.01% year-on-year growth in 2022.

Among other apparel exporters to the EU market, Turkey ranks as the third-largest supplier, holding an 11.62% share and achieving a 10.09% year-on-year growth in 2022.

On the other hand, the EU's imports from India reached $4.87 billion in 2022, up from $4.01 billion in 2021. Additionally, the EU's imports from Vietnam also saw a significant increase of 35.28% year-over-year, reaching $4.57 billion in 2022 compared to $3.37 billion in 2021.

Among the 27 countries in the EU region, there has been a substantial increase in imports from Bangladesh in the last five years by Hungary, Cyprus, Malta, Slovenia, Poland, and Denmark.