Bangladesh’s readymade garment (RMG) exports to the European Union (EU) grew by 4.86 per cent year-on-year (YoY) in 2024, reaching $19.77 billion, according to Eurostat data. Despite this growth, exporters are facing challenges as unit prices decline, driven by a rise in export volume outpacing the increase in export value.
The total export volume of RMG to the EU increased by 10.18 per cent YoY, reaching 1,230.51 million kg compared to 1,116.77 million kg in the previous year. However, the per-unit price fell sharply by 5 per cent, dropping to $16.07 per kg in 2024 from $16.88 per kg in 2023.
The EU’s overall apparel imports also grew, increasing 1.53 per cent YoY in value to $92.56 billion, while import volumes rose by 8.98 per cent. This led to a 6.83-per cent decline in average unit prices, impacting major sourcing countries, including Bangladesh, China, Turkiye, India, Vietnam, and Cambodia.
China retained its position as the largest apparel supplier to the EU, with its exports growing by 2.61 per cent YoY to $26.07 billion. Bangladesh remained the second-largest supplier, followed by Turkiye and India. However, all these countries faced declines in unit prices.
While Bangladesh continues to hold its position as a leading supplier to the EU, the drop in unit prices highlights an urgent need for strategies to safeguard profitability. Industry stakeholders have called for measures to address these challenges amidst the global trend of falling apparel prices, according to reports from Bangladeshi media.