BD's denim market share in US surges despite shrinking demand there

Monira Munni | Published: November 30, 2024 23:36:15

Bangladesh's share in the US denim trousers markets has witnessed a significant rise in the last seven years despite a gradual shrinking of the overall denim market there.
Locally-made trousers have accounted for around 20.7 per cent of the US market during the January-September period this year which was 14.1 per cent in 2017, according to OTEXA data. During the period, Bangladesh has fetched US$491 million from exports of denim trousers to the USA.
In contrast, China's market share decreased to 10.3 per cent until September in 2024 which was 25.4 per cent in 2017 while share of Mexico, a close competitor of Bangladesh, also declined to 19.6 per cent from 22.5 per cent during the same timeframe.
Pakistan's market share, however, doubled to 12.7 per cent from 6.0 per cent in 2017 while the share of Vietnam grew to 11.5 per cent from 5.8 per cent in 2017.
When asked, Director of Square Denim Syeed Ahmad Chowdhury said the share of Bangladesh in US denim trousers market increased mainly because of the buyers' China shift strategy while Turkey also drastically lowered its production of the items.
About the shrinking US denim market, he said it is concerning as demand in the US is slower compared to EU market and US is Bangladesh's single largest destination.
Orders from China and Turkey are shifting to Bangladesh, Mexico and Pakistan, he noted.
Experts, however, pointed out that competing for an increased market share in a declining sector is not a viable strategy. They recommended diversification of new products.
In 2023, US imports of denim trousers totaled $3.1 billion while total imports for the year were $77.9 billion, they said, adding that $3.1 billion is relatively a small figure.
Talking to the FE, Abdullah Hil Rakib, former vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the trend of work orders for denim items is "very good".
"2025 will be a promising year for us as a huge amount of work orders are coming in," he said, adding that his factory capacity for outerwear is fully booked for 2025.
He, however, expressed concern over the shrinking market saying denim market is dwindling due to changing lifestyle and sustainability issues. People now opt for functional wear like activewear and sportswear, he said.
Denim will not be considered sustainable items unless the entire production process meets sustainability standards, he said, adding that it lost appeal to Gen Z and millennials, as they prioritize sustainability.
At a recent denim show, Bangladesh Textile Mills Association President Showkat Aziz Russel said some $22 billion have so far been invested in the country's primary textile sector that can produce 55 million yards of denim fabric every month.
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