Apparel export to US sees around 46% growth in January

Infographic: TBS

Highlights:

• Bangladesh's apparel exports to the US grew 45.93% in January 2025 
• US imports from Bangladesh hit $799.65 million, outpacing rivals
• The US apparel market grew 19.46%, while China slowed and Honduras declined 
• Experts cite pricing, sustainability, and sourcing shifts for Bangladesh's rise

Bangladesh has emerged as the fastest-growing apparel exporter to the United States in January 2025, achieving a remarkable 45.93% year-on-year growth, according to the latest data published by the Office of Textiles and Apparel (Otexa) and compiled by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

As per the data, US imports of Bangladeshi apparel reached $799.65 million in January 2025, a significant jump from $547.95 million in the same month of 2024. This growth rate outpaced all other major suppliers, including Indonesia (41.70%), India (33.64%), and Vietnam (19.90%).

The overall US apparel import market grew by 19.46% year-on-year to $7.2 billion during the same period. 

The rise in exports from countries like Indonesia, India, and Cambodia suggests a diversification of sourcing by US buyers, possibly influenced by competitive costs and geopolitical considerations.

Meanwhile, China's slower growth and Honduras's sharp decline indicate shifting dynamics in global sourcing patterns. Factors such as trade policies, production costs, and sustainability requirements continue to shape these trends.

Despite global economic challenges, Bangladesh's competitive pricing, enhanced production capabilities, and commitment to sustainable and ethical manufacturing practices have likely contributed to this robust growth in January.

Industry insiders opined that the diversification of sourcing by US retailers, coupled with Bangladesh's ongoing efforts to enhance factory compliance and sustainability, has strengthened its position in the global apparel supply chain.

Talking to The Business Standard, Mohiuddin Rubel, a former director of BGMEA, said, "As Bangladesh continues to invest in sustainability and innovation, the country's apparel sector is poised for continued growth."

He also emphasised the need to diversify product offerings to sustain this momentum.

Among the other major exporting countries, China has maintained its position relative to the US, with apparel exports rising by 13.72% to $1.6 billion from $1.41 billion in January 2024. While the growth is steady, it's relatively lower compared to some emerging competitors.

Vietnam also recorded a 19.90% increase in exports, reaching $1.44 billion, showcasing its sustained competitiveness in the US market. 

Indonesia has achieved an impressive growth of 41.70%, with exports rising from $296.36 million to $419.95 million, positioning it among the fastest-growing exporters.

India exported $473.27 million worth of apparel, marking a 33.64% year-on-year growth, while Cambodia posted a strong growth of 29.95%, with exports rising to $324.99 million.

Mexico saw marginal growth of 1.26%, indicating relatively stagnant performance compared to others.

However, Honduras has faced a sharp decline, with exports falling by 26.10% to $112.02 million, highlighting competitive pressures or supply challenges.

Faruque Hassan, a former BGMEA president, said American buyers are placing more orders in Bangladesh, as reflected in recent import data.

He explained that US imports recorded in January indicate that goods were shipped prior to that month, likely in late November or December last year.

He also expressed optimism that the US market will improve in the coming months, with an increase in global sourcing.

He also pointed out that some orders are shifting from China to Bangladesh due to an additional 10% duty imposed by the Trump administration on Chinese exports to the US from last month.

Furthermore, additional tariff measures were to be imposed on US imports from China and Mexico starting from 4 March. 

Under the new regulations, Chinese exports to the US will face an additional 10% duty, while Mexican exports will be subjected to a 25% duty.

Previously, Mexican exports benefited from zero duty under the North American Free Trade Agreement (NAFTA).

China has also imposed a 15% duty on US cotton imports. 

Faruque highlighted that this measure will benefit Bangladeshi spinning and textile millers by enabling them to purchase cotton at more competitive prices.

To capitalise on these opportunities, he said the government must address four major issues: ensuring an uninterrupted supply of gas and electricity, reducing prices, improving customs services, and strengthening law and order management.

The former BGMEA president added that attracting new investment and securing orders for Bangladesh depends on maintaining law and order, which remains a top priority. "The government should take immediate steps to stabilise the situation."