Export of apparel made from non-cotton fabrics, including man-made fibre (MMF), from Bangladesh is flourishing fast with the country ranking second-largest supplier to the European market, government findings showed.
Bangladesh's ready-made garment (RMG) export share from the MMF, wool-and silk-based fibre, and blended products grew to 29.2 per cent of its total export volume in 2022, according to the study.
The remaining 70.8 per cent of the country's total exportable apparel products is made from cotton as the traditional raw material-mostly import-dependent.
The country's export share from the non-cotton apparel was 23 per cent three years back, garment industry-insiders said.
After China, Bangladesh is the second-largest supplier of the non-cotton products to the European market while 3rd on the US market, a study finding of the Economic Relations Division (ERD) has shown.
The ERD, under the Support to Sustainable Graduation Project (SSGP), has drafted the report on 'Market Access, Comparative Advantage and Export Diversification and Upscaling the RMG Sector' aimed at working out way forward for Bangladesh during pre-and post-LDC graduation era.
Among the big markets, Bangladesh's share of MMF and blend product-based apparel to the EU market was nearly 8.0 per cent while that in the USA was about 5.0 per cent, the ERD study showed.
China is the largest non-cotton RMG supplier to the EU and US markets with its share of nearly 27 per cent and 30 per cent respectively.
"On the EU market, Turkey and Vietnam are the main competitors of Bangladesh as their shares of non-cotton exportable apparel are 5.0 per cent and 3.0 per cent respectively," the ERD study report says.
For the US market, Vietnam has also done well, beating Bangladesh by grabbing some 20 per cent of the total share of the MMF and blend-apparel supply.
Just after Bangladesh, Turkey is in the 4th position on the US market with its nearly 30-percent export share.
The primary source of inputs for production of MMF is the recycling of PET (Polyethylene Terephthalate) bottles, especifically the scraps and flakes derived from these bottles.
Meanwhile, the share of non-cotton apparel products on the global market is now dominating with 57.5 per cent as the big importing countries like the USA and European nations prefer those clothes rather than the cotton-based wears.
People in Europe and America are shifting their garment choice into the non-cotton, especially MMF-based products, over the years.
Bangladesh is still lag behind the global share of export of RMG products from the MMF, silk and wool and from the blended products.
Out of the 29.2 per cent of non-cotton export share of Bangladesh, the country made shipment of 21.8 per cent of garments from MMF, 7.0 per cent blended apparel and only 0.3 per cent silk and wool apparel, the ERD study showed.
Bangladesh has so far failed to grab the growing market of non-cotton apparel as its share is still very low compared to the global share of 57.5 per cent due to some policy and structural deficiencies, analysts say.
Mohammad Hatem, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), says Bangladesh's apparel industry is aggressively marching forward to grab the growing global market of non-cotton RMG.
"Our share of total export earnings from the non-cotton products was below 23 per cent three years back. It is good news that it has grown to 29.2 per cent," he adds.
"But some emerging problems like cut in incentives on the exports, high taxes on raw materials for MMF and some policy setbacks from the government side create obstacle on the way to our upgradation," he told the FE correspondent.
Mr Hatem, also Managing Director of the MB Knit Fashion Ltd, feels the need of government support for upgrading their industry in a bid to compete with the largest supplier, China, on the international export market.
Dr Masrur Reaz, Chairman of the Policy Exchange Bangladesh, says since the global demand for non-cotton apparel is rising due to human sensitivity to the environment and sustainability, Bangladesh has to upgrade its RMG industry that way.
"Bangladesh's RMG industry needs to develop its back-ward linkage, appropriate technology and skilled manpower," he told the FE.
On the other hand, the government and commercial banks need to ensure access to finance for the aspirant entrepreneurs who want to upgrade themselves as the non-cotton apparel producers targeting the global export market, Dr Masrur suggests.
Meanwhile, Bangladesh remains top cotton-based RMG exporter to European countries while second to the US market, the ERD study showed.
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