Bangladesh’s ready-made garment (RMG) exports registered a slight year-on-year decline of 1.64 percent, totalling US$ 38.70 billion for the fiscal year 2025-26 from $39.34 billion in FY2024-25, according to recent data from the Export Promotion Bureau (EPB).
The export performance highlights shifting trends across major global destinations, featuring an erosion in the European Union (EU) market share alongside steady gains in North America and the United Kingdom.
June exports surge by 25.91%, FY26 earnings hold steady at $48 billion: EPB
EU Market Contraction Signals Diversification Urgency
The EU sustained its position as Bangladesh’s largest single destination bloc, but exports to the region fell by 3.31 percent to $ 19.06 billion.
This slump pulled the EU’s share of total apparel exports down to 49.25 percent from 50.10 percent a year earlier. Analysts view this contraction as a strong signal of intensifying market diversification pressure as Bangladesh moves closer to its Least Developed Country (LDC) graduation.
Gains in the US, UK, Canada offset declines
In stark contrast to the European slowdown, Bangladesh’s other traditional Western markets demonstrated resilience, posting across-the-board growth.
Apparel exports to the United States (US) rose by 2.63 percent to reach $ 7.74 billion, lifting its total export share to 20.01 percent from 19.18 percent in the previous year.
Shipments to the United Kingdom (UK) edged up by 0.91 percent to $ 4.39 billion, raising its overall market share slightly to 11.34 percent, while exports to Canada grew by 3.20 percent to reach $ 1.34 billion, with its share ticking up to 3.47 percent.
Combined, the US, the UK and Canada now account for more than 35 percent of Bangladesh's total RMG exports, partially cushioning the impact of the downturn in the EU market.
Slump Hits Non-Traditional Markets
The export crunch was not limited to Europe. Apparel shipments to non-traditional markets, including key destinations such as Japan, Australia, Russia, Turkey, and the Gulf states, dropped by 4.25 percent to $ 6.16 billion. Consequently, the collective share of these non-traditional destinations dipped to 15.93 percent from 16.36 percent, marking a second straight area of contraction for the sector.
Woven Outperforms Knitwear
Product category analysis revealed a varied performance between major garment types. Knitwear exports faced a steeper decline, dropping by 2.53 percent over the fiscal year.
Conversely, the woven garment category proved comparatively resilient, experiencing a marginal dip of just 0.61 percent, maintaining a steady trend of outperforming knitwear throughout the majority of the fiscal year.
Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), told UNB that Bangladesh has to diversify products to increase exports to EU markets.