Introduction
The textile and apparel industry in Bangladesh plays a decisive role in shaping the country’s economic growth, employment structure, and global trade integration. Over the past four decades, Bangladesh has emerged as one of the world’s leading apparel manufacturing hubs, supplying garments to major international brands and retailers. At present, the sector is navigating a complex landscape characterized by global demand fluctuations, sustainability pressures, technological shifts, and increasing competition. This article presents an empirical analysis of the present scenario of the textile and apparel industry in Bangladesh, supported by recent data, export trends, structural dynamics, challenges, and future opportunities.
Overview of the Textile and Apparel Industry in Bangladesh
The Bangladesh textile and apparel industry consists of several interconnected segments, including spinning, weaving, knitting, dyeing, finishing, and garment manufacturing. Among these, the ready-made garment (RMG) sector is the most dominant, accounting for the majority of export earnings.
 |
| Textile and Apparel Industry in Bangladesh |
Key Highlights
- Bangladesh is the second-largest apparel exporter in the world, after China
- The industry contributes over 80% of total national export earnings
- More than 4 million workers are directly employed, with women representing around 60% of the workforce
The sector has become a cornerstone of poverty reduction, women’s empowerment, and industrialization in Bangladesh.
Current Export Performance and Economic Contribution
Export Earnings and Growth Trends
In recent years, Bangladesh’s textile and apparel exports have shown resilience despite global economic uncertainties:
- Total apparel export earnings reached approximately USD 38–39 billion in FY2024–25
- Apparel exports contribute around 11–12% to national GDP
- The industry continues to serve major markets such as the European Union, United States, United Kingdom, and Canada
Although certain months have experienced year-on-year declines due to global inflation and reduced consumer spending, the overall annual trend remains positive.
Market Diversification
Bangladesh is gradually expanding into non-traditional markets, including:
- Japan
- Australia
- South Korea
- Middle Eastern and Latin American countries
Exports to non-traditional markets now account for over 16% of total apparel exports, reducing dependency on traditional buyers.
Employment Structure and Social Impact
The textile and apparel industry is the largest formal employment generator in Bangladesh.
Workforce Characteristics
- Over 4 million direct jobs
- Majority female workforce, contributing significantly to women’s economic participation
- Millions more indirectly employed through logistics, accessories, packaging, and services
- Rural-to-urban migration
- Household income stability
- Female empowerment and social mobility
Bangladesh in the Global Apparel Value Chain
Bangladesh holds a global apparel export share of approximately 7–8%, positioning it as a key sourcing destination. However, competition from countries such as Vietnam, India, and Cambodia is intensifying.
Competitive Advantages
- Competitive labor cost
- Large-scale production capacity
- Strong compliance and safety improvements after industrial reforms
- Growing reputation in sustainable manufacturing
Competitive Limitations
- Lower productivity compared to regional competitors
- Heavy reliance on imported raw materials for woven garments
- Limited backward linkage in high-value textiles
Sustainability and Green Manufacturing Initiatives
One of the most notable developments in recent years is Bangladesh’s leadership in sustainable garment manufacturing.
Green Factory Achievements
- Over 230 LEED-certified garment factories, the highest in the world
- More than 70 LEED Platinum-rated factories
- Increasing investment in energy efficiency, water recycling, and waste management
These initiatives enhance Bangladesh’s brand image and align with global buyers’ sustainability requirements.
Key Challenges Facing the Industry
Despite its strengths, the textile and apparel industry in Bangladesh faces several critical challenges:
1. Global Demand Volatility
Economic slowdowns, inflation, and geopolitical tensions have reduced apparel consumption in key markets, affecting order volumes and prices.
2. Rising Production Costs
- Increased wages
- Higher energy and utility costs
- Rising logistics and freight expenses
These factors are squeezing profit margins, especially for small and medium-sized factories.
3. Infrastructure and Logistics Constraints
Port congestion, customs delays, and transportation bottlenecks continue to affect lead times and operational efficiency.
4. Climate Change Risks
Flooding, heat stress, and extreme weather events pose growing threats to factory productivity and worker health.
5. Skills and Technology Gap
Limited adoption of automation, digital manufacturing, and advanced textile technologies restricts value addition and productivity growth.
Future Opportunities and Strategic Directions
The future of Bangladesh’s textile and apparel industry depends on strategic transformation and innovation.
Product and Market Diversification
- Shift toward high-value garments, technical textiles, and man-made fiber products
- Expansion into fashion-forward and functional apparel segments
Technological Upgradation
- Industry 4.0 adoption
- Smart factories and digital supply chains
- Automation to enhance productivity and reduce lead time
Policy and Institutional Support
- Trade agreements and preferential market access
- Skill development and training programs
- Investment incentives for backward linkage industries
Conclusion
The present scenario of the textile and apparel industry in Bangladesh reflects a sector at a critical crossroads. While it continues to dominate export earnings, generate massive employment, and lead in sustainable manufacturing, it also faces mounting challenges from global competition, cost pressures, and climate risks. With strategic policy support, technological advancement, sustainability leadership, and market diversification, Bangladesh’s textile and apparel industry has the potential to sustain its global position and move toward higher-value, innovation-driven growth in the coming decade.