Bangladesh’s apparel exports to the United States, its largest single market, recorded an impressive year-on-year growth of 41.6% in November 2024. According to data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, exports reached $613.91 million in November, significantly higher than $433.56 million in the same month of 2023. This marks the highest monthly percentage growth of the year and underscores Bangladesh’s growing competitiveness in the US market, especially during the crucial final quarter of the year.
Despite this remarkable growth in November, cumulative apparel exports to the US from January to November 2024 saw a marginal decline of 0.44% compared to the same period in 2023. Total earnings during this period stood at $6.76 billion, slightly lower than the $6.79 billion recorded in 2023. While the final quarter saw a strong recovery, the earlier months of the year witnessed sharp declines that dampened overall performance.
Challenges at the Start of 2024
The year began with significant challenges for Bangladesh’s apparel exports. January saw a steep 36.7% drop in export value, and March followed with a 14.2% decline. These sharp decreases can be attributed to a combination of global economic uncertainties, inventory adjustments by US buyers, and competitive pressures from regional peers.
From April to August, however, the declines moderated, ranging between 0.2% and 6.8%. This period of stabilization provided a foundation for the robust recovery seen in the final quarter.
A Strong Comeback in the Final Quarter
The turning point came in September 2024, when apparel exports to the US increased by 18.4%. This momentum continued with a 26.7% rise in October and culminated in November’s remarkable 41.6% growth. This recovery highlights Bangladesh’s resilience and ability to adapt to market demands, leveraging competitive pricing and improving supply chain efficiencies.
Former BGMEA director Mohiuddin Rubel attributed the recovery to strategic efforts by exporters and favorable market dynamics during the holiday season. “While the recovery is commendable, it is important to note that November 2023 had unusually low import levels, which contributed to the high year-on-year growth rate,” he said. Rubel, who is also the additional managing director of Denim Expert Ltd., emphasized the need for continued focus on value addition and diversification to sustain long-term growth.
Performance of Regional Competitors
While Bangladesh showed strong growth in the final months of 2024, regional competitors like India and Vietnam outperformed in overall annual performance.
India recorded a 4.49% growth in export value and an impressive 13.26% increase in volume during January to November 2024. Indian exporters benefited from competitive pricing and locally sourced raw materials, shipping 1.27 billion square meters of apparel, up from 1.12 billion square meters in 2023. Total export earnings from India reached $4.36 billion, compared to $4.18 billion in 2023.
Vietnam, another key competitor, achieved a 4.48% increase in export value, earning $13.77 billion between January and November 2024. Its export volume rose by 9.02%, reaching 3.82 billion square meters. Vietnam’s focus on high-value products and strong buyer relationships helped it maintain steady growth.
China, the largest apparel exporter to the US, experienced a slight decline of 0.30% in export value but recorded a 5.50% increase in volume, shipping 8.58 billion square meters of garments. China’s total export earnings stood at $15.22 billion during this period.
Bangladesh’s Position and Way Forward
During January to November 2024, Bangladesh’s garment shipments to the US totaled 2.17 billion square meters, marking a 3.98% increase in volume. However, the unit price of Bangladeshi garments declined by 4.24%, which impacted revenue. This trend indicates that while Bangladesh has maintained export volumes, competitive pricing strategies and market pressures have resulted in reduced earnings.
Industry experts highlight the importance of balancing volume growth with value addition. Diversifying product offerings, improving productivity, and strengthening buyer relationships are key to enhancing Bangladesh’s competitiveness.
Global Context and Insights
Total US apparel imports in the first 11 months of 2024 amounted to $72.94 billion, reflecting a modest 0.63% growth compared to 2023. Despite strong recovery efforts, Bangladesh’s share of this market faced challenges due to rising competition from regional players and shifts in global sourcing trends.
“To sustain growth in the US market, Bangladesh must focus on upgrading its product mix, adopting advanced technologies, and ensuring consistent quality,” Mohiuddin Rubel added.
The strong recovery in late 2024 signals optimism for the future, but sustaining this momentum will require strategic efforts from both industry stakeholders and policymakers. Continued investments in innovation, infrastructure, and workforce development are essential for maintaining Bangladesh’s position as a key player in the global apparel market.
Reference: https://www.tbsnews.net/economy/rmg/apparel-exports-us-grew-416-november-2024-1039951
