From cotton to MMF: transforming the RMG industry

Bangladesh's ready-made garments (RMG) sector has driven the economy for decades, boosting exports and employing millions. However, the industry is now facing new challenges. New global trade regulations, along with stringent environmental laws from regions such as the European Union (EU) and the United States, are putting pressure on cotton exports. As global demand for cotton apparel drops, Bangladesh must adapt quickly.
To remain competitive, Bangladesh must consider alternatives such as man-made fibres (MMF). These fibres meet the growing global need for sustainable fashion while also opening up new markets. Shifting to MMF will not only help Bangladesh secure its position in the global apparel sector but will also ensure compliance with changing environmental regulations. This change will be critical to Bangladesh's long-term export growth, allowing it to remain competitive in a market where eco-friendly products are increasingly valued by international brands.
Bangladesh's RMG export performance slowed significantly in 2024. Between January and April, EU exports fell by 9.85 per cent, while exports to the United States fell by 14 per cent. Tightening environmental restrictions like the EU Green Deal and altering buyer policies have exacerbated this fall. Global brands prefer sustainable production processes, such as recycled materials and MMF-based garments, over traditional cotton. With cotton garments accounting for 67 per cent of its exports in 2022, Bangladesh must shift to MMF to remain market-relevant.
Global competitors like Vietnam and China have adopted MMF significantly more quickly than Bangladesh. Vietnam's MMF-based exports account for 56 per cent of its overall garment exports, with China leading at 62 per cent. Bangladesh had only 28 per cent of its garment exports from MMF in 2022, a favourable growth from 21.8 per cent in 2021. To catch up with these countries, Bangladesh must expand into high-value MMF-based products and align with the global demand for sustainability.
Regarding water use, MMF production has major environmental advantages over cotton. For example, polyester requires only 84-143 litres of water per kilogramme, whereas cotton uses 4,342-6,902 litres. China and Vietnam have established themselves as MMF hubs by exploiting these advantages, but Bangladesh has just started increasing MMF production to remain competitive.
The circular fashion movement promotes resource reuse throughout the production cycle, with MMF fibres like recycled polyester reducing reliance on virgin resources. Efficient production processes, eco-friendly packaging, and extended product life span promote responsible consumption. Post-consumer garments are sorted and recycled into new fibres, completing the circular fashion life cycle. By adopting circular fashion, Bangladesh can follow international sustainability standards while strengthening its export value chain.
Global fashion brands are promoting sustainable practices, particularly through the growing use of MMF. Adidas plans to replace all virgin polyester with recycled polyester by 2024, while Nike intends to convert to 100 per cent recycled materials by 2025. These initiatives highlight the growing demand for sustainable garments, pushing Bangladeshi RMG manufacturers to increase their MMF capabilities. Local collaborations with Chinese enterprises to create PET and PSF chips highlight the country's commitment to establishing backward links and promoting sustainable garment manufacturing.
Shifting to sustainable apparel production offers both benefits and challenges for the RMG sector of Bangladesh. Adopting man-made fibres (MMF) and eco-friendly practices keeps the industry aligned with global trends and raises production costs. This expense increase has created concerns about whether buyers will continue placing orders at the same level. Although buyers now prefer environment-friendly products, they still expect affordable prices, making it difficult for manufacturers to balance sustainability efforts with profitability.
Several factors contribute to the higher costs of producing sustainable MMF apparel. For example, recycled polyester requires advanced collection, sorting, and processing technology, making it more expensive than virgin fibres. Sustainable initiatives taken by well-known brands are pushing suppliers toward sustainable practices. However, these changes increase production costs, discouraging buyers from placing larger orders.
Although MMF is more sustainable than cotton, it requires additional production expenses. Recycling synthetic fibres such as polyester involves complicated processes that add to the overall cost. Bangladesh faces higher initial costs because it is relatively new to MMF production. In contrast, countries like China and Vietnam have more experience, which gives them an advantage in managing costs.
India and Vietnam offer useful strategies for Bangladesh to follow. India promotes MMF adoption through government programmes, including the "Make in India" initiative and subsidies for textile startups. Vietnam focuses on high-value MMF products like performance wear, which generates higher profits for manufacturers.
Bangladesh has also taken steps toward MMF production, achieving 20 per cent annual growth in products such as suits and blazers. However, Bangladesh needs stronger government support and foreign investments to keep up with Vietnam and India. Collaborating with international partners and attracting global brands will be essential for expanding MMF production. Learning from the successes of other countries, Bangladesh can strengthen its position in the global apparel market and increase its MMF export share in the years to come.
Bangladesh faces challenges in securing competitive prices compared to other countries. Peru earns 83 per cent more for men's cotton T-shirts, Thailand charges 79 per cent more for women's jackets, and Turkey achieves a 59 per cent markup on women's trousers, while Bangladesh struggles to match these premiums. To improve its market position, Bangladesh needs to shift toward high-value products like MMF-based blazers, active-wear, and jackets, which attract better prices globally.
Efforts by Bangladesh to promote sustainable apparel through MMF could erode buyer interest, if the country cannot offer competitive pricing. Buyers may shift their orders to countries like Vietnam and China, which have found ways to balance sustainable production with lower costs. Although sustainability is essential, it adds complexity to maintaining profitability in a market that demands both affordable products and eco-friendly practices.
Fibre mix comparisons show the heavy dependence of Bangladesh on cotton, with 67 per cent of its exports coming from cotton, compared to 51 per cent in India and 36 per cent in Vietnam. Turkey and Vietnam demonstrate greater flexibility, with 49 and 56 per cent of their exports made from MMF respectively. Bangladesh must reduce its reliance on cotton and increase MMF production to become competent. Adopting a more balanced fibre mix will improve its ability to meet global demand, negotiate better prices, and maintain buyer interest in a competitive market.
Bangladesh's shift from the status of a Least Developed Country (LDC) brings both challenges and opportunities. To stay competitive, the government has introduced several initiatives. One key step is the reduction of import duties on polypropylene yarn to support local MMF industries. The aforementioned initiatives with Chinese companies to produce MMF chips locally also strengthen supply chains and reduce reliance on imports.
In addition, Bangladesh is actively pursuing trade agreements with partners such as Uruguay to broaden its market reach. These agreements encourage export growth and open doors to new markets, including the Mercosur trade bloc. Expanding into non-cotton materials, such as wool and silk, offers new possibilities for diversifying products and supports environmental goals by promoting sustainable practices.
Sustainability has become essential in the global textile industry. Major brands now use recycled materials in their production processes, with recycled polyester making up 14 per cent of the recycled fibre market. In comparison, recycled cotton accounts for only 1.0 per cent because recycling natural fibres presents technical difficulties. This shift towards man-made fibres highlights the importance of manufacturers in Bangladesh embracing sustainable practices.
Increasing the use of MMF also helps Bangladesh achieve environmental targets by lowering carbon emissions. For example, replacing cotton with polyester throughout the production chain reduces CO? emissions by 1.5 kilogrammes per garment. This shift supports Bangladesh in meeting international sustainability standards and staying competitive in the evolving global market.
While MMF offers many benefits, relying entirely on synthetic fibres raises environmental concerns, such as microplastic pollution. Bangladesh can address this by exploring non-cotton materials like wool and silk, which have lower environmental impacts and biodegrade more easily. Increasing exports of wool-based outerwear and formal wear aligns with global demand for high-value products.
Bangladesh can also learn from Taiwan and India about how to diversify non-cotton apparel. Taiwan focuses on innerwear, which makes up 29 per cent of its non-cotton exports, while India emphasizes top wear and dresses, accounting for 24 per cent and 19 per cent respectively. Expanding into other categories, such as active-wear and innerwear, as seen in Taiwan and India, will improve Bangladesh's market flexibility. Bangladesh should also continue investing in new production processes and partnerships with international brands to capture niche markets, reduce dependence on traditional garments, and strengthen its position as a sustainable apparel supplier.
Adopting circular fashion practices, increasing production of MMF-based products, strategic investment in infrastructure, and focusing on sustainability will help the country stay competitive in the global RMG sector, even amid the global trade challenges. This shift will support Bangladesh in reaching its export goals and position it as one of the top countries in sustainable fashion production.

Tareq Ahmed Robin is an entrepreneur and industrial management expert.
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