The two main export destinations for Bangladesh’s ready-made garments are the European Union (EU) and the United States. About 70 percent of the country’s total ready-made garment exports go to these two markets.
Non-traditional markets had long been a potential alternative. However, in the outgoing fiscal year 2025-26, even that market has suffered a major collapse.
According to data from the Export Promotion Bureau (EPB), ready-made garment exports to non-traditional markets declined by 4.29 percent in the outgoing fiscal year. At the same time, exports to the European Union, among the major markets, declined by 3.31 percent.
However, exports to the United States increased by 2.63 percent. Overall, the country’s ready-made garment exports decreased by 1.64 percent.
Bangladesh earned $38.70 billion from ready-made garment exports during the entire fiscal year 2025-26. This income was $39.35 billion in the previous fiscal year.
Exports to Japan, the largest non-traditional market destination, fell from $1.18 billion to $1.13 billion. Exports to Australia fell from $814 million to $739 million. Exports to India fell from $644 million to $571 million. Exports to Turkey fell from $450 million to $401 million.
However, the exceptions among the non-traditional markets were Brazil and China. Bangladesh’s exports to these two countries, the world’s largest importers of ready-made garments, increased by about 17 percent in the outgoing fiscal year. The amount of Bangladesh’s garment exports to these two markets is within $200 million.
Despite its potential, Bangladesh’s ready-made garment exports to non-traditional markets are not growing at the expected rate due to various structural problems. In addition, the impact of the Western economic slowdown on new markets has made it difficult to expand exports, said Mohiuddin Rubel, former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).