In 2024, Bangladesh’s readymade garment (RMG) exports to the European Union experienced a notable growth in volume, but exporters grappled with a decline in unit prices as the increase in volume outpaced value gains. According to Eurostat data, apparel shipments from Bangladesh to the EU rose by 4.86 per cent year-on-year, reaching US $ 19.77 billion.
During the same period, Bangladesh exported 1,230.51 million kilograms of garments to the EU, marking a 10.18 per cent increase from the previous year’s 1,116.77 million kilogrammes. However, the per-unit price of the garments fell sharply to US $ 16.07 per kilogram in 2024, down from US $ 16.88 per kilogram the previous year, reflecting a significant 5 per cent drop.
The overall apparel imports into the EU also saw a rise, increasing by 1.53 per cent in value to reach US $ 92.56 billion, with a corresponding volume growth of 8.98 per cent. This resulted in an average unit price decline of 6.83 per cent, affecting major sourcing countries, including Bangladesh.
Despite these challenges, Bangladesh maintained its status as a key supplier to the EU, ranking second after China, which saw a 2.61 per cent growth in exports to US $ 26.07 billion. The decline in unit prices, however, raises concerns about profitability, as noted by Mohiuddin Rubel, additional managing director of Denim Expert Limited.
Rubel pointed out that several factors contributed to the rise in export volume and value, including the production of value-added garments, duty-free market access, and adherence to workplace safety standards. These improvements have bolstered buyers’ confidence and reinforced Bangladesh’s position in the export market.
While 2024 showed progress compared to 2023, earnings still fell short of the levels achieved in 2022. The year witnessed fluctuations, with a slow start followed by a surge in exports during the last quarter, particularly in October, November, and December.
Looking ahead, the outlook remains optimistic, with expectations of increased work orders sustaining growth momentum into 2025. Rubel emphasised the importance of strategic shifts, highlighting the need for value addition and market diversification to enhance Bangladesh’s competitiveness and protect profit margins amidst ongoing global price deflation.
