Bangladesh's Apparel Industry Adapts to Global Market Trends with Growing Manmade Fiber Imports

The apparel industry in Bangladesh is witnessing a significant shift as imports of manmade fibers (MMF) surge, reflecting a strategic move to diversify garment manufacturing and capture a larger share of the rapidly expanding global market for non-cotton wear. Industry sources indicate a more than 13% increase in non-cotton fiber imports in the past calendar year, as Bangladesh aims to keep pace with the evolving landscape of global clothing demands.

According to data from the Bangladesh Textile Mills Association (BTMA), the country imported 0.21 million tonnes of polyester and viscose fibers between January and November 2023. This represents a notable 13.39% increase compared to the corresponding period in 2022.

In the backdrop of a changing market scenario, where the global apparel market size reached $440 billion in 2021, the MMF-based apparel market expanded to $222 billion (51%), surpassing cotton-based apparel at $190 billion (42%). This transition has prompted Bangladesh to explore new avenues in the industry.

While the majority of Bangladesh's ready-made garments for export are currently cotton-based, recent times have witnessed a growing inclination towards non-cotton or manmade fibers. Fazlee Ehsan Shamim, Vice President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), sees this shift as a positive indication of the industry's adaptability to changing global trends. Shamim emphasizes the need for supportive government policies, particularly in customs-related matters, to encourage further investment in non-cotton segments.

Faruque Hassan, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), stated that their vision is to achieve $100 billion worth of exports by 2030. To realize this ambitious goal, diversification of products, fibers, and markets becomes crucial. Hassan highlighted recent investments in high-value-added segments such as active wear, outwear, denim, lingerie, suits, fancy dresses, and formal wear.

Acknowledging the challenges faced by the industry, BGMEA is actively working on developing luxury dresses for women using traditional materials like jamdani and muslin fabrics. The association is also focused on enhancing efficiency, capacity development, innovation, and building a more technologically advanced industry.

Despite the positive strides, industry leaders have called for additional policy support, including incentives, for MMF-based garment manufacturing. They argue that this support is essential not only for increasing value addition but also for addressing the challenges post-graduation and remaining competitive on the global stage.

Research by Research and Policy Integration for Development (RAPID) in 2022 suggests that Bangladesh could earn $95 billion by 2030 from readymade garment exports by increasing MMF-based garment shipments alongside existing cotton-made clothing items. To achieve this, the country needs to secure 12% and 20% of the global MMF and cotton-based items' market share, respectively.

Currently, while almost half of the total global apparel exports are MMF products, Bangladesh's garment exports consist of over 72% cotton-based items and only 24% MMF. Industry leaders stress the importance of aligning the country's strategies with global market trends and expanding the production of manmade fiber-based garments to enhance competitiveness and value addition.