Bangladesh has the potential to increase its export in non-cotton garments to up to US $ 46 billion annually by 2032, if entrepreneurs invest US $ 18 billion to expand their manufacturing capacity as the consumption of apparel made from artificial fabrics is rising rapidly, according to a recent study.
The manufacturing of fibre, filament, and yarn requires an investment of US $ 4.6 billion, the creation of fabrics requires US $ 9.2 billion, and the production of garments requires US $ 4.2 billion.
The study Beyond Cotton: A strategic blueprint for fibre diversification in Bangladesh’s apparel industry was completed by Wazir Advisors Pvt Ltd, a Jharkhand, India-based company, on behalf of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Varun Vaid, the company’s business director, revealed the results to reporters at the BGMEA office in Dhaka. He added that the investment will increase capacity by installing an extra 4.7 million spindles, 14,000 new knit machines, 31,000 new looms, and 0.5 million sewing machines.
1.76 million new employments are anticipated to be created by the new investments.
In the past five years, the output of non-cotton fibre has climbed globally, whereas that of cotton fibre has decreased.
Polyester filament yarn, with a 39 per cent share, and polyester staple fibre, with a 15 per cent share, lead the manmade fibre group.
Around the world, 75 per cent of apparel is manufactured with non-cotton fibre. Bangladesh, on the other hand, produces 71 per cent of its export-oriented goods using cotton fibres.
In the non-cotton garment market, Bangladesh, the world’s second-largest apparel supplier, appears to have promising prospects as well, given China’s diminishing market position in this sector.
According to the survey, Bangladesh’s proportion of the non-cotton garment market increased from approximately 1 per cent a few years ago to 5 per cent in 2022.
China’s portion, on the other hand, decreased from 56 per cent to 36 per cent. In a similar vein, India’s market share is declining.
Outerwear is among the largest exported items in the non-cotton category. Outwear shipment from Bangladesh stood at nearly US $ 16 billion last year while it was US $ 115 billion for China.
BGMEA President Faruque Hassan stated during the press conference that exporters are increasingly converting from cotton to manmade fibre to get better prices and increase their footprint. As a result, the percentage of non-cotton fibre used in Bangladeshi textile manufacturing has increased to 29 per cent from 25 per cent over the previous three years.
The BGMEA has targeted to increase its share in the global apparel market to 12 per cent from the existing 7.87 per cent on the back of items produced from artificial fibres.
Bangladesh imports US $ 1.2 billion worth of non-cotton fibres annually, as stated by BGMEA director Asif Ashraf. According to him, local investments in this market can benefit clothing exporters and open up new doors.
Four categories account for 63 per cent of the exports of clothing made of cotton. According to the report, T-shirts make up 21 per cent of the market, jerseys 12 per cent, and woven pants 30 per cent.
