Race for grabbing share of US apparel market

FE

Published :
May 12, 2026 21:50
Updated :
May 12, 2026 23:35

Despite a turbulent phase marked by a significant slowdown in the first half of FY26 (July-December 2025) with a decline in exports, the Readymade Garment (RMG) sector appears to be experiencing a turnaround in its fortunes in the first quarter of 2026. As reports go, Bangladesh overtook China as a top garment exporter to the US in early 2026 (between January and March) primarily due to aggressive American reciprocal tariffs on Chinese apparel products. According to the latest data from the Office of Textiles and Apparel (OTEXA) under the US Department of Commerce, Bangladesh exported US$2.4 billion worth of apparel products to the US during (January-March) period of 2026.

Notably, during the same period China's apparel exports to the US market fell to US$1.70 billion. The OTEXA figures also indicate that US apparel retailers in their bid to avoid Chinese goods amid tariff storms are considering Bangladesh as an alternative sourcing destination. This clearly points to a major realignment in the US retail market so far as China's share in it is concerned. Within just a year, Chinese apparel exports to the US dropped by about 53 per cent (in the first quarter of 2026 as compared with the same period in 2025). Actually, the performance of major exporters to the US market remained largely negative, but China and India recorded the sharpest decline. Interestingly, Bangladesh's apparel exports to the US market also declined by 8.38 per cent year-on-year. This essentially means that comparison with other exporters whose fortunes in a certain market might be on the rocks due to any non-market influence cannot be the perfect yardstick to measure one's overall performance. Now that Bangladesh demonstrated its strength vis-à-vis Chinese export to US apparel market, it has still a long way to go to beat Vietnam. Because, as Bangladesh increased its market share to around 11.5 per cent in the first quarter of 2026, Vietnam held on to its position with 22.5 per cent market share as a top apparel supplier to the US market, benefiting from the broader trend of brands moving away from China.

In consequence of these developments, the order of dominance has been reset in that China now ranks third, while Bangladesh and Vietnam occupy the second and first places so far as export to the US market is concerned. It would be worthwhile to note that Cambodia, a Southeast Asian country, has meanwhile emerged as yet another potential competitor in the US apparel market and is being touted as the fastest growing supplier in the US apparel market. That means, it is not only Vietnam, Bangladesh will have to be watchful of other emerging players in the South and Southeast Asian region who are also in a race to have a slice of the US apparel market. While this competition to grab the US retail market for apparel goods among the traditional exporters is evolving, the overall US market is shrinking due to reduced consumer spending and the market even saw a general decline across most major suppliers. As the same division of the US department of commerce shows, during the period under review, overall import of apparel goods in US market shrank by 11.63 per cent. Seeing that the size of the US retail market of apparel goods is shrinking, Bangladesh's RMG sector should consider widening its export destinations to other fast-growing economies across the globe.

At the same time, this industry should also shift its focus from relying solely on low-cost labour to high-value-added products. And the strategies to that end should include automation, diversifying fibre beyond cotton and transitioning to manmade fibres. That Bangladesh's apparel sector has achieved some success vis-à-vis China's in a certain market is no reason to rest on its laurels. On the contrary, it should stress progressive improvement of its performance year-on-year and expansion of its market footprints.​

Turning textile waste into opportunity

Atiqul Kabir Tuhin

Published :
May 14, 2026 00:03
Updated :
May 14, 2026 02:02



Bangladesh's readymade garment (RMG) sector stands at a crossroads. For decades, the industry has been the backbone of the country's export economy, transforming Bangladesh into the world's second-largest apparel exporter and creating employment opportunities for millions. However, the global apparel industry is now undergoing a major transition from a linear to a circular production model. Although Bangladesh has made considerable progress in increasing the number of green factories, the majority of its apparel manufacturers still follow the traditional "make, use and throw away" model. Speaking at a recent seminar, industry leaders warned that without urgent policy support, use of modern technology and infrastructure upgrades to develop advanced recycling capacities, Bangladesh risks losing not only competitiveness in major export markets but also a massive economic opportunity from waste recycling estimated to be worth $8 billion annually.

A circular economy is fundamentally different from the conventional production model. In a circular system, products are designed and manufactured in a way that allows materials to be used, reused, repaired and recycled repeatedly, thereby reducing waste and extending the lifecycle of resources. Rather than allowing products to end up in landfills after a single use, circularity seeks to recover value from materials at every stage of production and consumption. It also emphasises responsible sourcing, reduced water and energy use, minimisation of waste and lower carbon emissions throughout the supply chain.

This transformation is no longer driven solely by environmental concerns; it is increasingly becoming a trade and business imperative. Legislative initiatives in the European Union, including the Green Deal and the Digital Product Passport (DPP), are accelerating the shift towards sustainable and traceable supply chains. These regulations will require apparel exporters to ensure greater transparency regarding sourcing, production methods, recycling practices and environmental impact. Since the European Union remains Bangladesh's largest apparel export destination, these developments carry enormous significance for the country's textile and garment industry.

As the world's second-largest garment supplier, Bangladesh's apparel industry generates a substantial amount of textile waste. However, Bangladesh mainly deals with pre-consumer waste generated during the manufacturing process rather than post-consumer waste collected after products are used by consumers. According to BGMEA, the industry produces nearly 600,000 tonnes of pre-consumer textile waste annually. Yet this enormous volume of waste remains largely underutilised.

Currently, most textile waste is collected and traded through informal channels, with only a very small portion recycled domestically. A significant amount of recyclable garment waste is exported to neighbouring countries such as India and Pakistan, where it is processed into recycled yarn before being sold back to Bangladesh at higher prices. This represents not only a loss of valuable foreign exchange and domestic value addition but also a missed industrial opportunity. If textile waste is properly collected, sorted and processed within the country, it could become a valuable raw material for producing recycled fibres, yarns and fabrics, creating a new high-value industrial segment.

Industry leaders have rightly pointed out that formalising the recycling ecosystem would generate multiple benefits. It would reduce health and safety risks associated with unregulated waste handling, create new employment opportunities, strengthen industrial organisation and encourage safer working conditions. More importantly, it would help Bangladesh reduce its dependence on virgin raw materials at a time when global resource constraints and climate concerns are becoming increasingly severe.

Bangladesh's upcoming graduation from Least Developed Country (LDC) status adds further urgency to the issue. As preferential trade benefits gradually decline after graduation, maintaining export competitiveness will require stronger compliance with environmental, labour and sustainability standards. In this context, the transition to a circular economy should not be viewed merely as an environmental obligation, but as a strategy to preserve market access.

Experts also emphasise the importance of upstream circularity, which focuses on reducing waste at its source during design, production and cutting processes. Technology can play a transformative role in this regard. Innovations such as digital design systems, automated cutting technologies, 3D sampling and customised manufacturing platforms can significantly reduce fabric wastage and improve production efficiency. These technologies also enable closer collaboration between manufacturers and global buyers, helping both sides share responsibility for minimising pre-consumer waste.

However, upstream circularity alone cannot eliminate textile waste entirely. The next crucial step is to embrace the principle of "recycle and recover," whereby textile waste can be converted into fibre, fibre into yarn and fabric, and eventually into new RMG products. Recycling textile waste into new fabrics and apparel products would reduce the need for virgin resources while simultaneously lowering environmental pressure and carbon emissions.

A coordinated national strategy is therefore urgently needed to accelerate Bangladesh's circular transition. Such a strategy should include fiscal incentives for recycling investments, tax benefits for sustainable manufacturing, easier access to green financing and support for technological upgrading and research. Strong collaboration among the government, BGMEA, development partners, financial institutions and private entrepreneurs will also be essential. Special emphasis should be placed on developing domestic capacity for chemical recycling, improving waste traceability systems and encouraging innovation in eco-friendly materials and sustainable production techniques.

The future of Bangladesh's apparel industry will depend not only on how much it produces, but also on how environmentally responsible and sustainable its production processes are. If Bangladesh can successfully transform textile waste into economic value, it will not only protect its position in the global apparel market but also pave the way for a more resilient, resource-efficient and sustainable industrial future.​