The US Department of Agriculture (USDA) has predicted that Bangladesh is set to surpass China as the world’s leading cotton apparel exporter. The USDA has further stated that robust demand prospects will further drive cotton consumption.
This assertion of the USDA quoted the annual fashion industry benchmarking study conducted by the United States Fashion Industry Association (USFIA) in this regard. The study revealed that American fashion companies are actively seeking to reduce their reliance on China as the primary apparel exporter.
The American brands are strategically reallocating their sourcing orders to alternative markets, with Bangladesh, India, and Vietnam emerging as the top three suppliers after diverting orders away from China. The retailers plan to increase their sourcing from these alternate sources over the next couple of years.
Bangladesh’s competitive advantage, particularly in terms of cost structure was highlighted by the USDA’s latest report on global cotton trade. This makes Bangladesh the most attractive apparel supplier compared to other countries.
It is pertinent to note that Bangladesh’s apparel sector has experienced remarkable growth, with nearly US $ 47 billion in woven and knitwear shipments during the fiscal year 2022-23, surpassing the targeted amount for that period even if the majority of Bangladesh’s factories specialize in producing cotton-based garments, and over 70 percent of its export shipments comprise cotton items.
In 2022, Bangladesh secured its position as the second-largest global garment exporter, trailing only China, according to data from the World Trade Organization.
Bangladesh likely to soon replace China as top cotton apparel exporter
