Bangladesh’s readymade garment (RMG) exports to non-traditional markets showed significant growth during the July-September period of the 2026-27 fiscal year, signaling a noteworthy shift in the sector’s export dynamics. While exports to traditional markets such as the European Union (EU) grew modestly by 3.33 percent year-on-year, shipments to emerging destinations surged by 9.40 percent, highlighting new opportunities for Bangladesh’s garment industry.
Exports to the United Kingdom and Canada increased by 5.94 percent and 3.85 percent respectively during this period. However, shipments to key EU countries Germany and France contracted by 0.15 percent and 4.91 percent. Several other European countries, including Spain, Sweden, and the Netherlands, compensated to some extent for the decline in demand from Germany and France.
The United States market recorded a notable 10.40 percent growth in garment exports, yet Bangladesh lost its position as the second-largest apparel supplier to the U.S. to China, with Vietnam maintaining the top spot. Exports to China saw marginal growth of 0.09 percent, while exports to neighboring India declined by 5.37 percent. Both India and China represent complex markets for Bangladesh, serving as competitors as well as consumers of its garments. Analysts suggest that identifying niche segments within these large markets could substantially increase export revenue.
The broader context for these shifts includes ongoing international trade uncertainties and energy market disruptions. Bangladesh’s graduation from Least Developed Country (LDC) status, which may result in reduced trade preferences, combined with India’s recent free trade agreement (FTA) with the EU, have contributed to the subdued growth observed in traditional export destinations. Experts note that Bangladesh has yet to initiate negotiations for an FTA with the EU, a development that could be critical in sustaining competitiveness.
Despite the rise in exports to smaller, non-traditional markets, these countries alone are unlikely to fully compensate for losses in major EU markets. This underscores the need for continued trade diplomacy and strategic market diversification. Maintaining strong trade relationships with key partners such as the EU, India, and China remains essential, even as geopolitical tensions exist.
Industry observers emphasize that Bangladesh must leverage business acumen to identify specialized product segments aligned with diverse consumer preferences across different markets. Moreover, diversifying the export portfolio beyond RMG products is considered vital for long-term growth. Until such diversification is realized, the garment sector will need to remain responsive to evolving trends in styles and materials, including increased use of man-made fibers, to sustain export performance in the global marketplace.