Bangladesh gains big in US apparel market as China loses ground
Industry insiders said Bangladesh’s growth reflects more than just a diversion of orders from China.
Highlights
- Apparel exports to the US rose 21.66% in Jan–Jul 2025 to $4.98b
- Growth far outpaced overall US import rise of 4.96%
- Export volume increased 20.33%, unit price up 1.11%
- China's shipments to US plunged 21%, while Bangladesh gained market share
- Industry seen as a major beneficiary of sourcing shift away from China
Bangladesh's apparel exports to the United States jumped 21.66% year-on-year in the first seven months of 2025, consolidating the country's position as one of the fastest-growing suppliers to the world's largest clothing market.
Between January and July, Bangladesh shipped apparel worth $4.98 billion to the US, according to the latest trade data. This outpaces the overall US apparel import growth of just 4.96% during the same period, which totalled $45.80 billion globally.
Keep updated, follow The Business Standard's Google news channel
In terms of quantity, the number of Bangladeshi garments imported by the US rose 20.33% year-on-year, while the unit price climbed by 1.11%.
"This strong growth proves Bangladesh is consolidating its position as one of the most reliable sourcing destinations for global buyers," said Mohiuddin Rubel, former director of BGMEA and managing director of Bangladesh Apparel Exchange.
"Even as China's apparel exports to the US declined by more than 21%, Bangladesh gained significant ground with both volume and value increases," he added.
Global shifts in sourcing
Once the undisputed leader in global apparel exports, China saw its shipments to the US tumble by 21.01% in value and nearly 16% in quantity. Its average unit price also fell 6.05%.
Meanwhile, several Asian competitors posted double-digit growth: Vietnam up 16.94%, India 16.10%, Pakistan 11.81%, Indonesia 16.80%, and Cambodia 24.45%. Cambodia stood out with a 31.11% rise in the number of pieces shipped, while Bangladesh was close behind at 20.33%.
Non-Asian suppliers showed mixed performance. Mexico's exports rose only 2.40%, while Honduras fell sharply by 11.78%. Korea also recorded a steep 7.59% decline.
"Global buyers are diversifying sourcing beyond China, and Bangladesh is one of the biggest beneficiaries of this shift," Rubel added. "The combination of competitive costs, strong compliance, and sustainability credentials is helping us win orders that previously went to China."
Why Bangladesh performing strongly
Industry insiders said Bangladesh's growth reflects more than just a diversion of orders from China. The country's investments in green factories, worker safety, and social compliance over the past decade have made it an attractive sourcing hub for US and European retailers.
"Today, Bangladesh has the highest number of green garment factories in the world," said Rubel. "Global buyers are increasingly prioritising sustainable supply chains, and our industry is delivering on that front."
At the same time, Bangladesh's ability to produce large volumes of basic apparel at competitive prices gives it an edge. The modest 1.11% rise in unit prices suggests buyers are still getting value for money, while suppliers enjoy slightly improved margins.
