Bangladesh’s readymade garment export performance weakened during the July-November period of the 2025-26 financial year as contraction and marginal growth in key destinations curtailed overall momentum, reflecting continued demand softness in major destinations.
According to detailed country-wise export data from the Export Promotion Bureau, Bangladesh exported RMG items worth $16.13 billion in the first five months of FY26, which is a very narrow 0.09 per cent increase from that of $16.12 billion exported in the same period of FY25.
Exporters reported that exports had been hit hard as global demand slowed due to economic sluggishness across major markets and the reshaping of international trade due to tariffs imposed by the Trump Administration.
Buyers have been forced to scale back orders as consumers prioritise essential spending over discretionary items like clothing, they added. Moreover, Indian and Chinese firms are pushing into European Union markets, intensifying competition and squeezing Bangladesh’s market share. Some manufacturers have been exporting at lower prices to sustain the business, which consequently led to a decline in earnings.
In the July-November period of FY26, Bangladeshi exporters recorded a 1.03 per cent decline to $7.83 billion exports to the European Union market, the largest destination for Bangladeshi manufacturers, down from those of $7.92 billion in the same period of FY25.
Export earnings from the EU accounted for over 48 per cent of total revenues. Export earnings from major EU countries, such as Germany, France and Italy, declined in the first five months of FY26.
Export earnings from the United States witnessed a thinner growth of 3.06 per cent to $3.22 billion, higher from those of $3.12 billion in the July-November period of FY25.
The US, the largest single-country destination for Bangladeshi exporters, accounted for approximately 20 per cent of total earnings, according to the EPB data compiled by the Bangladesh Apparel Exchange, a private initiative that promotes the apparel and textile industry in Bangladesh.
Bangladesh bagged $1.84 billion from the UK in the first five months of FY26, 3 per cent higher than the $1.76 billion earned in the same period of FY25.
From Canada, the RMG sector earned $554 million in the reporting period of FY26, 6.51 per cent more than that of $521 million earned in the corresponding period of FY25.
In the July-November period, export earnings from Germany declined by 7.84 per cent to $1.81 billion, compared to those of $1.96 billion in the same period of FY25, according to the EPB data.
Export earnings from France declined by 6.92 per cent to $833 million, compared to those of $895 million in the same period of FY25.
Bangladeshi exporters also recorded negative growth of 3.56 per cent to $584 million in the first five months of FY26, lower than the $606 million earned in the same period of FY25.
Export earnings from Spain stood at $1.52 billion, those from the Netherlands $897 million and Poland $690 million, all of which witnessed lower to moderate positive growth in the July-November period of FY26, said the EPB data.
Regarding apparel exports, countries such as the US, Canada, the UK and the EU are considered traditional markets, whereas others are deemed non-traditional. Japan, Australia, Russia, India, China, South Korea, the United Arab Emirates, Malaysia, Brazil and Mexico are major non-traditional export destinations.
However, despite heightened expectations and intense focus, export earnings from non-traditional markets have declined since October.
In the July-November period of FY26, growth further declined by 3.19 per cent to $2.67 billion, compared to that of $2.76 billion in the same period of FY25.
The non-traditional market represented 16.55 per cent of Bangladesh’s total RMG exports.
Among these markets, Japan led with imports worth $501 million from Bangladesh, followed by India at $298 million, Australia $313 million and South Korea $173 million.
However, exports to Australia, India and South Korea declined by 8-12 per cent, according to EPB data, while exports to Japan grew by 0.98 per cent.
RMG exports to other major non-traditional markets also declined.
Mohiuddin Rubel stated that their infrastructure, mindset and goals were focused on traditional markets; consequently, they had struggled in emerging destinations. ‘Our close competitors are producing their product line aligning with the demands of the market. We don’t set targets, and for this, we cannot develop or vice versa,’ he added. He also said that manufacturers lowered their prices to maintain export volumes, which affected overall exports.
Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that the global demand for RMG had declined, affecting most exporters as consumers changed their buying practices.
Moreover, the impact of the US tariffs is already visible on EU markets, as Indian and Chinese firms are pushing into EU markets, intensifying competition and squeezing Bangladesh›s market share, said the exporters.
Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, said that buyers were reducing orders and that Chinese and Indian exporters were redirecting shipments to Europe to avoid US tariffs. This, he said, has put additional pressure on Bangladeshi exporters.
