Due to significant investments and a deliberate quest for global leadership, Bangladesh’s denim sector has seen a notable upsurge in recent years. This momentum represents a profound change in the country’s apparel industry, with denim emerging as a key factor in export diversification and economic growth. Based on data, Bangladesh has become one of the world’s leading producers of denim, with an annual manufacturing capacity of over 500 million denim garments and over 1.5 billion metres of denim fabric.
Bangladesh’s rise to worldwide domination has been greatly aided by the inflow of capital into its denim industry. Industry studies state that Bangladesh’s garment industry has seen a sharp increase in foreign direct investment (FDI), much of which has gone towards enhancing the country’s denim manufacturing capacity. This capital inflow has made it easier to build cutting-edge denim production facilities with cutting-edge equipment and technology, which has improved productivity, output, and creativity throughout the denim value chain. Bangladesh’s rise in the global denim market has also been accelerated by alliances with foreign denim merchants and brands, which give Bangladesh access to cutting-edge knowledge, fashion trends, along with market insights. Bangladesh is positioned to open up new doors for economic growth, job creation, as well as sustainable development on both the domestic and international fronts as it continues to leverage investments to solidify its status as a denim powerhouse.
Bangladesh has become the world’s foremost producer of denim because of a surge in investments and a dedication to innovation. Let’s explore some more evidence to support this astounding increase:
Production Powerhouse: With over 22% of global exports in 2022, Bangladesh ranks as the second-largest exporter of denim clothing in the world (Source: World Trade Organisation). The Bangladesh Garment Manufacturers and Exporters Association [BGMEA] estimates this corresponds to an annual export value of almost $8 billion.
Investment Boom: In recent years, Bangladesh’s textile industry, which includes denim, has seen an exponential increase in foreign direct investment (FDI). Over $3.2 billion in foreign direct investment (FDI) was drawn to the industry in 2023 alone, with a sizable amount going towards the expansion of denim (Source: Bangladesh Bank).
Job Creation Locomotive: With over 1.1 million direct employees, Bangladesh’s denim sector contributes significantly to job creation. This corresponds to millions of additional employment that the industry indirectly supports along the whole textile supply chain (Source: BGMEA).
Sustainable Advancements: Bangladesh’s denim sector is making noteworthy advancements in recognition of the increasing significance of sustainability. Leading brands and manufacturers formed the Bangladesh Denim Alliance (BDA) in 2020, intending to cut water use by 50% and remove dangerous chemicals from the production process by 2025. According to a 2023 report by the Bangladesh Denim Alliance, there has been a noteworthy 32% decrease in water consumption and remarkable advancements in the eradication of hazardous chemicals.
Future Outlook: For the foreseeable future, industry analysts project that Bangladesh’s denim output will rise at a healthy rate of 8–10% each year. Bangladesh’s sustained emphasis on efficiency and innovation, together with the growing worldwide demand for denim and increasing consumer awareness of sustainability initiatives, are the main drivers of this rise.
Case Studies: Achievements in the Denim Industry
Vertical Integration: Many denim producers in Bangladesh are using this technique to combine several manufacturing phases under one roof, from yarn spinning to garment finishing. This methodology enhances efficacy, curtails expenses, and guarantees more oversight of quality. For instance, this approach has contributed to the notable expansion of the vertically integrated denim behemoth Denim Experts Ltd. (Source: Denim Experts Ltd. website).
Innovation Hubs: Several Bangladeshi denim mills serve as innovation hubs by continuously investigating and creating new materials, treatments, and washes. An excellent illustration is the Parkland Denim Ltd. R&D centre, which focuses on producing high-performance, environmentally friendly denim fabrics (Source: Parkland Denim Ltd. website).
Bangladesh’s success in the denim industry is a result of its commitment to sustainability, efficiency, and quality—not simply statistics. Due to its strategic strategy, highly skilled workforce, and encouraging government policies, the nation is well-positioned to maintain its leadership position in the global denim market. Bangladesh is positioned to establish the standard for the denim sector for years to come as long as it keeps funding innovation and adopting sustainable practices.
Mohiuddin Rubel, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated that, between January and September of 2023, Bangladesh shipped denim goods to the EU valued at $885 million, citing figures from Eurostat. Denim shipments to the EU brought approximately $1.56 billion in revenue in 2022. It was worth $1.18 billion in 2021. $1.02 billion worth of denim was exported from Bangladesh to the EU even in 2020, a year that COVID-19 impacted. In the same vein, Bangladesh’s denim exports to the US increased. Last year, Bangladesh shipped $556.08 million worth of denim to the US from January to October. According to Rubel, another managing director of Denim Expert, it was $561.29 million in 2020, $798.42 million in 2021, and $943.70 million in 2022. In recent years, Bangladesh has become a significant player in the global denim business. The nation has established itself as the leading provider of denim clothing to the US and the EU thanks to strategic investments and high-quality production.
Key Factors Underpinning Bangladesh’s Leadership in the EU and US in Denim: Bangladesh has continuously been the leading export of denim to the EU since 2017. It is astonishing to learn that one in three Europeans wears denim trousers made in Bangladesh.
The denim market is worth $64.5 billion worldwide, and businesses are keen to capitalise on the growing demand for denim.
Increase in Investments: Local business owners are aware of the denim industry’s enormous potential. Within the primary textile business, they have invested around Tk 25,000 crore (Bangladeshi Taka) in state-of-the-art denim mills. With their modern facilities, these 42 mills can now produce more than 900 million metres of denim fabric annually. Ten years ago, just Tk 8,000 crore was invested in the denim industry.
Beyond China: Bangladesh is now the top provider of denim to the US and EU markets, surpassing even China. A local mill established two denim mills in Habiganj with an ambitious plan to export denim valued at $700 million over the next five years, having invested Tk 1,500 crore in them.
Emerging Destinations for Exports: Bangladeshi denim is becoming more and more popular in countries outside of the US and EU, including Latin America, the Middle East, Japan, China, and India. Due to its ease, flexibility to shifting fashion trends, and versatility, denim’s appeal is still rising dramatically on a global scale.
Dependable Source: Bangladesh has established itself as a dependable denim fabric provider, even though most of its mills were only built in the last ten years. Because Bangladeshi millers can quickly acquire textiles to suit worldwide demand, shorter lead times have played a significant role in the growth of the local denim sector.
Future prospects
Bangladesh’s leading position is expected to become even more solidified as the global denim market is anticipated to reach $76.1 billion by 2026. Bangladesh’s success in denim is expected to have a lasting impact on the fashion industry if it maintains its current level of investment and dedication to quality.
In conclusion, Bangladesh’s ascent to the top of the global denim sector, thanks to growing investments, is evidence of the country’s steadfast dedication to innovation, sustainability, and superior manufacturing. The substantial inflow of money into the denim industry has strengthened Bangladesh’s manufacturing capacities and enhanced its reputation as a top destination for sourcing for major international brands and retailers. Bangladesh now has a strong presence in the global denim market. It is well-positioned to take a more significant portion of this profitable industry, potentially producing over 500 million denim garments and over 1.5 billion metres of denim fabric annually. The transformative impact of increased investments goes beyond economic indicators to cover broader societal advantages as Bangladesh strengthens its place as a denim powerhouse. Increased employment, skill acquisition, and industrial transformation have been sparked by the denim industry’s expansion, boosting local economies and promoting inclusive growth across the country. Furthermore, Bangladesh’s achievements in the denim industry serve as an example of how well-timed investments may encourage innovation, sustainable development, and the rise of developing nations to prominence in the world economy. As we advance, other countries looking to leverage investments to open doors, spur economic growth, and pave the way for a more prosperous future will find Bangladesh’s denim conquest a compelling case study.
References:
- https://www.thedailystar.net/business/economy/news/investment-rises-bangladesh-conquers-the-world-denim-3518526
- https://www.dhakatribune.com/business/9176/investment-required-for-denim-to-go-high-end
- https://www.thedailystar.net/business/economy/news/denim-mills-expand-global-market-booms-2982416
- https://rmgbd.net/2022/08/denim-industry-banks-on-new-tech-for-a-further-leap/
- https://www.dhakatribune.com/magazine/weekend-tribune/129726/bangladeshi-denim-the-future-lies-in-innovation
- https://denimfocus.net/bangladesh-triumphs-the-global-denim-markets-in-a-remarkable-surge-to-supremacy/
