Apparel exports to US grow slightly to $7.34b in 2024

Bangladesh's apparel exports to the United States grew by 0.75% year-on-year to $7.34 billion in 2024, despite fluctuations throughout the year. 

However, the country's share of the US apparel market slightly declined to 9.26% from 9.37% in 2023. 

In volume, ready-made garment (RMG) shipments rose by 4.89%, reaching 2.37 billion square metres compared to 2.26 billion in 2023, according to the US Department of Commerce's Office of Textiles and Apparel.

The year began with a challenging 36.73% drop in January exports to $547.96 million, and further declines were recorded in March, April, May, June, and July, with August showing a marginal dip of 0.20%. 

Despite early setbacks, exports rebounded in the second half of the year, with robust growth starting in September. November saw the highest single-month increase at 42.14%, followed by a 16.52% rise in December, leading to a positive overall outcome for the year.

Faruque Hassan, former president of the Bangladesh Garment Manufacturers and Exporters Association, told The Business Standard that despite challenges such as gas and electricity shortages, labour unrest, and political transitions, the industry should take satisfaction in sustaining modest growth. 

He expressed optimism for 2025, citing rising demand from Western markets, easing inflation, and lower interest rates, while emphasising Bangladesh's potential to benefit from the China-US trade war, provided internal factors like political stability improve.

Echoing Faruque's comments, Abdullah Hil Rakib, managing director of Team Group, agreed, noting the opportunity for Bangladesh to expand in the US market as businesses shift from China. 

He highlighted that the US government's plan to impose a 10% import duty on Chinese goods could further benefit Bangladesh. 

However, Rakib criticised the lack of government support, saying, "The government has shown no intention of aligning policies with the industry's needs." 

He urged a review of policies based on IMF recommendations, warning that without reforms, the industry could stagnate. Drawing from Singapore's growth without IMF prescriptions, Rakib suggested Bangladesh explore alternative strategies.

Apparel exports to US see steady rise over the decade

Over the past decade, Bangladesh's apparel exports to the US have steadily increased, solidifying its position as a key supplier. 

From 2015 to 2024, shipments grew by 35.87% in value and 26.62% in volume, reaching $7.34 billion in 2024. Exports fluctuated from $5.40 billion in 2015 to a dip in 2016 and 2017, before recovering in 2018 and 2019. 

A decline to $5.23 billion in 2020 was followed by a strong rebound in 2021, rising 36% to $7.14 billion, according to the government data.

The peak came in 2022, with exports hitting $9.73 billion, before dipping 25% to $7.29 billion in 2023 due to global economic factors. 

Bangladesh remains the third-largest apparel exporter to the US, with a 9.26% market share, while China and Vietnam dominate with 20.83% and 18.90% shares, respectively. 

Total US apparel imports reached $79.26 billion in 2024, a 1.71% increase from the previous year.