Bangladesh Loses $1.85b in EU Apparel Exports as Prices Slide

Bangladesh’s apparel exports to the European Union (EU) plunged 11.67 per cent year-on-year in January-August 2026, wiping out around $1.85 billion in earnings as falling prices and shrinking shipment volumes battered the country’s largest export market.

The steep decline far outpaced the 3.83 per cent contraction in the EU’s total apparel imports, exposing Bangladesh’s growing struggle to protect export earnings amid intensifying competition and mounting price pressure.

Eurostat data compiled by Bangladesh Apparel Voice (BAV) showed that Bangladesh’s apparel exports to the EU fell to 11.93 billion euro from 13.50 billion euro a year earlier, equivalent to approximately $13.9 billion and $15.7 billion respectively.
 
Shipment volume dropped 4.58 per cent, while the average unit price slid 7.43 per cent to euro13.76 per kilogram from 14.87 euro. Despite the sharp setback, recent trends offer some hope of recovery towards the end of this year and into 2027.

“Bangladesh has performed better in the European market over the last three months than in the first five months of this year. European imports have also increased gradually,” said Mohiuddin Rubel, founder and chief executive officer of Bangladesh Apparel Voice and a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

“If the trend continues, Bangladesh could see stronger export growth towards the end of this year and into 2027,” he said.
The EU imported apparel worth 60.29 billion euro, or around $70.1 billion, in January-August, down from 62.69 billion euro a year earlier. Overall import volume declined 2.57 per cent, while the average unit price fell 1.29 per cent to euro 19.65 per kilogram from 19.91 euro.

August offered a tentative sign of improvement, with the value of EU apparel imports rising 0.72 per cent year-on-year. Import volume, however, fell 0.57 per cent, while the average unit price increased 1.29 per cent.

The European market accounts for nearly 50 per cent of Bangladesh’s apparel exports, while the country supplies around 20 per cent of the EU’s total apparel imports, Rubel said.

He stressed that sustaining growth would require stronger competitiveness, strict compliance with European regulations, investment in higher-value garments and diversification into products made from different types of fibres. 

“European buyers increasingly prioritise sustainability and compliance when selecting suppliers, making improvements in these areas essential to retaining market access”, he said.

Competition from other major suppliers is intensifying. China was the only major exporter to the EU to record growth in both value and volume during the eight-month period. Its apparel exports rose 2.38 per cent to 19.71 billion euro, or around $22.9 billion, while shipment volume increased 3.45 per cent despite a 1.04 per cent fall in unit prices.

Vietnam’s exports grew 4.46 per cent to 3 billion euro, equivalent to around $3.5 billion, even as shipment volume declined 5.13 per cent. A 10.11 per cent increase in its average unit price lifted overall earnings.

Among other major suppliers, Turkey’s exports fell 11.02 per cent to €5.10 billion, while India recorded a 10.84 per cent decline. Exports from Sri Lanka, Indonesia, Pakistan, Morocco and Cambodia dropped 11.12 per cent, 11.03 per cent, 9.63 per cent, 6.10 per cent and 4.51 per cent respectively.

The contrasting performances underscore the importance of pricing power and product diversification. Pakistan shipped 3.82 per cent more apparel by weight but suffered a 12.96 per cent decline in unit prices, while Cambodia’s 11.63 per cent fall in shipment volume was partly offset by an 8.05 per cent increase in unit prices.

BGMEA President Mahmud Hasan Khan has attributed Bangladesh’s export weakness to global uncertainty, subdued demand, high bank interest rates, poor port operations and uncertainty over the country’s graduation from the least developed country (LDC) category.

“Tariffs, wars and geopolitics have eaten up global demand, causing a decline in work orders,” he said in remarks reported in June, identifying competitiveness in a shrinking global market as a major challenge.

BGMEA Vice-President Sheheb Udduza Chowdhury has also highlighted Bangladesh’s difficulty in capitalising on shifts in global sourcing, particularly in man-made fibre apparel, where Vietnam, Indonesia and Cambodia have stronger capabilities.

Rubel warned that Bangladesh must prepare for the challenges of LDC graduation, particularly the potential loss of trade preferences under the EU’s Generalised Scheme of Preferences (GSP).

He called for greater investment in value-added garments, a broader product range, stronger engagement with international brands and substantial improvements in sustainability and compliance.

A recovery in European demand could create fresh opportunities, but restoring export momentum will depend on Bangladesh’s ability to secure better prices, improve productivity and move into higher-value products to protect earnings and strengthen its position in the EU market.