Rapid switch to man-made fibre (MMF) garment-making is seen imperative to meet changing apparel demand in the West as consumers change taste away from cotton wears that Banglsdesh predominantly exports thus far.
Latest statistics show Bangladesh is the top cotton-based apparel exporter to the European Union and United Kingdom, surpassing China, in 2022 while second to the US market after Vietnam, while a tangible transition from the traditional to the new-generation clothing is taking place.
Bangladesh's share in cotton-fibre- garment exports to the EU in 2022 was 34.7 per cent, while China's only 14.9 per cent, according to data of Research and Policy Integration for Development Bangladesh (RAPID) study based on ITC.
On the other hand, China's share in non-cotton garment items to the EU was a predominant 41.2 per cent as against Bangladesh's lowly 12.2 per cent, it showed.
The shares of Turkey, India, Pakistan, Cambodia and Vietnam in cotton-garment exports to the EU market in the last calendar year were 14.6 per cent, 7.4 per cent, 6.5 per cent, 3.6 per cent and 2.3 per cent respectively.
The non-cotton share of Turkey is 8.9 per cent followed by Vietnam's 6. 5per cent, Myanmar's 5.2 per cent, Cambodia's 3.9 per cent and India's 2.5 per cent respectively, the RAPID data showed.
The EU imports of apparel are worth $195 billion with cotton apparel making up $89 billion (46 per cent) and manmade fibre (MMF) and blended apparel $102 billion or 52 per cent of the trade.
In 2022, Bangladesh grabbed 27.95-percent share of UK's cotton-based garment imports and China's market share was 12.33 per cent, according to ITC data.
On the other hand, Vietnam led the US market by having 15.3 per cent of the USA's cotton garment share followed by Bangladesh with 14.6 per cent and China 12.7 per cent, as per the ITC data.
Bangladesh is likely to earn $11 billion from RMG exports to the UK by 2030, according to projection in another RAPID report.
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has set a target of $100 billion worth of export earning by 2030, projecting a 10-11percent gradual growth each year.
Of the targeted $100 billion, about $90 billion could be earned from the EU, the UK and the US, RAPID data analysis showed.
Globally, $495 billion worth of apparel goods were imported in 2022 where $212 billion or 43 per cent were cotton-based and $262 billion (53 per cent) MMF and blended apparel, according to data.
Global cotton-apparel-market share is 43 per cent and MMF and blended share 53 per cent in the process of ongoing demand-driven switch.
Clothing is Bangladesh's largest foreign currency-earning sector accounting for more than 84 per cent or US$46.99 billion out of US$55 billion in the last fiscal year of 2022-23.
Its exports are mostly based on cotton and maximum of the earnings depend on five items: trousers, shirt, t-shirt, sweater, and underwear.
Data analysis shows Bangladesh's greater dependence on single products and its proportion of products while economists and industry people stressed the country's need and opportunity to diversify within the largest forex- earning sector to avoid global shocks and future challenges.
"Excessive dependence on cotton garments could be a cause for concern. It's time to move into non-cotton items," says RAPID chairman Dr MA Razzaque.
"So, here Bangladesh has the potential to explore more markets in the EU if it can diversify the products within the garment items," he adds.
The country's current readymade garment exports to the EU market are worth around $25 billion per year.
According to the RAPID study, Bangladesh's apparel exports to the EU are projected to increase up to $60 billion by 2030.
Buyers' sourcing strategy of diversification away from China may greatly contribute to Bangladesh's RMG-export growth, Mr Razzaque says.
Experts have said moving towards MMF can be greatly facilitated by extended EU preferences beyond LDC (Least Developed Country) graduation while UK's preferential trading scheme for developing countries (DCTS) would be helpful to an increase in apparel exports.
When asked, Bangladesh Garment Manufacturers and Exporters Association president Faruque Hassan said it is good that Bangladesh has raised its market share and become top supplier of global cotton-based garment items.
"We are now also focusing and working on increasing the MMF share as the demand for such goods is on the gradual rise," he said, adding that they need policy supports from the government to attract investment in the segment.
The BGMEA leader reiterated his demand to the government for providing 10-percent cash incentives in MMF-based garment manufacturing that would not only support bringing investment but also create fresh employment and increase export earnings.
Citing the cash incentives given for the non-traditional markets excepting the EU, the USA and Canada, he said the perks helped in raising export earnings.
The non-traditional markets accounted for 17.82 per cent or US$8.37 billion of the total RMG earnings worth US$46.99 billion in the last fiscal year which was US$1.08 billion or 8.66 per cent of total RMG-export earnings in fiscal 2009-10.
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