Bangladesh has the potential to raise its non-cotton apparel exports to $42 billion by 2032, from the current $15.6 billion, provided it establishes a fully integrated value chain, according to a recent study.
To develop the value chain, the country needs to invest around $18 billion in yarn, fabric and garment manufacturing, according to it. Besides, the key challenges for establishing the value chain are a lack of technical know-how and limited upstream capacity.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) published the study findings at a press conference at its headquarters in Dhaka's Uttara on Sunday.
The study, titled 'Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh's Apparel Industry', found that the use of non-cotton fibres in garment production in Bangladesh has increased to 29 per cent from 25 per cent over the past three years.
To explain the rise, the study notes that local apparel exporters are diversifying into man-made fibres to get better prices and secure more business.
The research was conducted by Indian firm Wazir Advisors Pvt Ltd, with the support of BGMEA.
"Over the past five years, there has been a notable surge in global non-cotton fibre production, capturing an impressive 78 per cent share of total fibre production," said Varun Vaid, business director of Wazir Advisors Pvt Ltd, while presenting the key findings at the press conference.
In contrast, global cotton fibre production has declined during the same period.
Mr Vaid said Bangladesh's share of non-cotton apparel exports is still lower than cotton apparel exports, but it is increasing rapidly. This indicates a growing buyer preference for sourcing all types of apparel from the country.
However, the study also found that Bangladesh's cotton apparel exports are highly concentrated, primarily focusing on four categories -- tee shirts, jerseys, and woven trousers -- accounting for 63 per cent share.
As Bangladesh approaches graduation from least developed country status in 2026, the government and industry leaders are negotiating to extend duty-free global market access until 2032.
In this context, the country should aim to achieve a sustained double-digit growth rate in non-cotton apparel exports, with the aspiration of increasing earnings to $42 billion, according to the study report.
To realise this vision, the report recommends developing a dedicated policy for the non-cotton industry, encompassing a clearly defined vision, mission and actionable points that specifically address the key challenges of insufficient technical expertise and limited upstream capacity.
The report also says that an $18 billion investment in the non-cotton segment would create an additional 1.8 million jobs.
Lack of technical know-how and limited upstream capacity have been identified as the key challenges for establishing a non-cotton value chain.
Speaking at the press conference, BGMEA President Faruque Hassan said they want to increase the global market share of locally made apparel from 7.87 per cent to 12 per cent by utilising non-cotton materials.
Local garment exporters are currently producing cotton garments while also increasing the volume of non-cotton shipments to secure new markets and get better prices, he noted.
Mr Hassan said due to climate change, consumer preferences have shifted towards durable and sustainable products, leading to a recent increase in non-cotton fibre imports.
The BGMEA president said diversification of fibres does not necessarily mean a shift away from cotton fibre production.
Responding to a question about the recent electricity price hike, Mr Hassan said any price increase in factory inputs has a negative impact as it raises production costs.
He requested the government to maintain the previous rate, citing the current challenges faced by the industry.
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