Bangladesh Textile Manufacturing Market Analysis

The Bangladeshi textile manufacturing market is expected to register a CAGR of approximately

7% during the forecast period.

 COVID-19 had a severe impact on the textile manufacturing industry. In the first half
of 2020, the industry faced a shortage of labor supply and logistics difficulty due to
the country's lockdown. COVID-19 also impacted the sales of textiles due to the
closure of supermarkets and other physical retail stores as per the government's strict
restrictions.

 However, the COVID-19 crisis accelerated e-commerce sales in the market studied.
Still, in FY 2020-21, Bangladesh's ready-made garment (RMG) exports grew by
12.55% to USD 31.46 billion (out of USD 38.76 billion in total exports) as demand in
major markets in Europe and North America began to recover from the COVID-19
pandemic.

 The textile sector contributes more than 13% of Bangladesh's GDP. Over 84% of the
export earnings come from textiles and textile-related products. The country invested
around USD 15 billion in the primary textile sector. The Primary Textile Sector (PTS)
meets approximately 85-90% of the yarn demand for knit RMG and 35-40% for
woven RMG.

 The demand for local fabric and yarn for handlooms is also met by the Primary Textile
Sector (PTS). The Bangladesh Textile Mills Association (BTMA) is the national trade
 organization representing yarn and fabric manufacturers and textile product processors
in the country in the private sector. The BTMA has 510 yarn manufacturing mills, 901
fabric manufacturing mills, and 317 dyeing, printing, and finishing mills as members,
totaling 1,728 member mills.

 According to statistics from the Export Promotion Bureau of the Government of

Bangladesh, RMG exports were up by 13.4% from July to September 2022, at USD
10.27 billion from USD 9.06 billion a year earlier. The figure beat Bangladesh's
export target of USD 10.02 billion for the quarter. Knitwear exports were up by 9.4%
to reach USD 5.65 billion from USD 5.16 billion, beating a target of USD 5.5 billion.
Exports of woven garments jumped by nearly 19% to reach USD 4.62 billion, up from
USD 3.9 billion a year earlier. This trend greatly benefited the textile manufacturing
sector in the country. However, Bangladesh RMG exporters are facing hurdles with
declining shipments to and payments from Russia due to the ongoing Russia-Ukraine
war.

 Many garment suppliers are not receiving export receipts as several Russian banks
have been banned from using SWIFT, the global payments messaging network.
Around 150 apparel exporters from Bangladesh have been keenly tapping the
emerging Russian market. Bangladesh-Russia trade is valued at more than USD 1
billion and is growing. Many exporters stated that their goods are stuck at Chattogram
port because shipping lines are not ready to take them on board. Others have reported
that their documents have been sent back from Hungary due to the SWIFT ban. These
factors are negatively affecting the market.

Bangladesh Textile Manufacturing Industry Segmentation

The textile industry is mainly involved in processing fiber into yarn and yarn into fabric. The
report aims to provide a detailed analysis of the textile manufacturing market. The report focuses
on market dynamics, emerging trends in the segments and regional markets, and insights on
various product and application types. It also analyzes the key players and the competitive
landscape in the textile manufacturing market.

The Bangladesh textile manufacturing market is segmented by application type (clothing,

industrial, and household applications), material (cotton, jute, silk, synthetics, and wool), and
process (woven and non-woven). The report offers market sizes and forecasts for all the above
segments in value (USD billion).

Bangladesh Textile Manufacturing Market Trends

This section covers the major market trends shaping the Bangladesh Textile Manufacturing
Market according to our research experts:

Increasing Demand for Natural Fibers

Natural fiber composites are relatively lighter and stronger than conventional fibers. Thus, they
find extensive applications in the automotive industry for interiors and exteriors. Natural fibers
obtained from plants and animals include cotton, silk, linen, wool, hemp, jute, and cashmere.
These fibers are widely used to manufacture garments, apparel, construction materials, medical
dressings, and the interiors of automobiles. Silk is used in upholstery and apparel, as it is
available in both variations: fine and coarse. Wool and jute are used as textile materials for their
resilience, elasticity, and softness. Despite lower production volume, the requirement for raw
cotton for the textile industry is very high. In 2022, approximately 8.5 million 480-pound bales
of cotton were consumed in Bangladesh, an increase from 2020, when just over 6.9 million 480-
pound bales of cotton were consumed in Bangladesh. The increasing consumption of natural
fibers, such as cotton, silk, wool, and jute, will likely drive the Bangladeshi textile manufacturing
market during the forecast period.
 To understand key trends, Download Sample Report

Clothing Export is the Main Growth Driver

Currently, Bangladesh is the second-largest clothing exporter in the world, behind China. There
are more than 4,500 factories presently operating within the industry, with most of them located
around Dhaka. The garment industry in Bangladesh continues to drive economic growth for the
country, contributing a 6% average annual growth rate since 2007. The garment industry
accounts for about 80% of all export earnings achieved by Bangladesh each year. Europe
receives 61% of the exports that are created by the Bangladesh garment industry every year.
About 75% of Bangladesh's manufacturing employment is held within the clothing and textile
sector. At the same time, up to 75% of the value-added amount generated by the industry goes to
retailers or producers. Emerging export markets for Bangladesh represent 15% of the total
exports the garment industry can achieve. The emerging markets include China, Brazil, Japan,
and Australia.

In comparison, the United States accounts for 21% of the exports achieved by the industry each
year. For knit clothing, the United States leads the export market, accounting for 37% of the
purchases. Germany and the United Kingdom account for 24% of total knit purchases. Outside of
Europe and the United States, only Canada provides more than USD 1 billion in export revenues
to the Bangladeshi garment industry each year.

In 2021, the share of ready-made garment (RMG) exports in Bangladesh amounted to

approximately 81.16% of the total exports. Although a decrease from the previous year, this was
an increase from 2012, when RMG exports accounted for approximately 78.5% of the total
exports to Bangladesh. In 2021, the export value of ready-made garments (RMG) in Bangladesh
amounted to approximately USD 31.46 billion, an increase from the previous year when RMG
exports to Bangladesh amounted to just about USD 28 billion. With the clothing industry being
such an important aspect of the Bangladeshi economy, the textile manufacturing industry is
extremely important for the country and directly benefits from clothing exports.
Bangladesh Textile Manufacturing Industry Overview
The Bangladeshi textile manufacturing market is moderately fragmented in nature. The market is
highly competitive, with the presence of a considerable number of regional and global players.
The major strategies adopted by these companies include product innovations, expansions, and
mergers and acquisitions. The key players in the market are Ha-Meem Group, Noman Group,
Beximco Textile Division Limited, Square Textile Ltd, DBL Group, Thermax Group, Viyellatex
Group, Epyllion Group, and Mohammadi Group.

Bangladesh Textile Manufacturing Market Leaders

1. Ha-meem Group
2. Noman Group
3. Beximco Textile Division Limited
4. Square Textile
5. DBL Group

*Disclaimer: Major Players sorted in no particular order

Bangladesh Textile Manufacturing Market News
 December 2022: The Asian Development Bank (ADB) signed a EUR 10.8 million (USD 11.2
million) facility agreement with the Bangladeshi manufacturer of fashion denim, Envoy
Textiles Limited, to support and finance the purchase and installation of energy-efficient
spinning machinery and other equipment. This move is expected to enhance sustainable textile
production and generate local jobs. The proceeds of the loan will be used to fund a second
yarn spinning unit at Envoy’s manufacturing plant in Jamirdia, Bangladesh.

 March 2022: The American Apparel and Footwear Association (AAFA) signed a
Memorandum of Understanding (MoU) with the Bangladesh Garment Manufacturers and
Exporters Association (BGMEA). The two groups will explore opportunities and work
together to increase trade access for Bangladesh to the US market, improve purchasing
practices, build on the great work already done by the Bangladeshi industry on sustainability,
and expand the strong partnership between the US and Bangladeshi industries.
Bangladesh is a large contributor to the global textile industry, with the ready made garment
sector accounting for 84 percent of Bangladesh’s exports. This comes on the back of the sector’s
rapid growth and modernization over the past decade, as well as the strides it has made in
improving conditions for the country’s approximately four million garment workers. Bangladesh
has surprised the market by consistently showing profits.

1257.6 miles away, Pakistan’s industrial sector is fighting to live another day. Pakistan’s exports
during April-Jun 2022 amounted to $8,432.09 million, showing an increase of 2.52% over
January-Mar 2022 and by 27.43% over April-Jun 2021. The textile export data for the last five
years shows that volumetric textile exports are the primary driver, with a double-digit increase in
value-added items. Exports during July–Jun 2022 stood at $ 31,782.09 million.

Pakistan, while showing potential for increased exports until June–July 2022, later took a
nosedive for the worse. The country’s exports of merchandise experienced negative growth in
July. The export proceeds fell 5.17 percent to $2.21 billion in the first month of the current fiscal
year from $2.34 billion in the corresponding month of last year, according to data from the
Pakistan Bureau of Statistics. On a month-on-month basis, export proceeds tumbled by 23.95
percent, indicating a downward trend in the export sector, just as the increase before the current
drop in exports is entirely volumetric.

The textile sector exported goods worth $19.3 billion last year and has further expanded capacity
through an investment of $5 billion to increase exports to $25 billion. The expectation and goal
were to increase textile exports to at least $24 billion this year; however, this could not
materialize. Pakistan’s exports have started declining and will clock in at below $1 billion per
month for the rest of the year.
The textile and clothing industry has grown to be the single largest manufacturing sector in
Pakistan, employing almost 38.5 percent of the manufacturing labour force. The textile and
clothing industry is the backbone of Pakistan’s economy; however, the sector is confronted with
numerous challenges. The worsening international economic situation, primarily caused by the
Ukraine crisis combined with floods in Pakistan, has negatively impacted the already inefficient
supply chains of the country. Flooding in dozens of districts in Pakistan has destroyed a wide
swath of agricultural land. While the industry requires 14 million bales, the country could only
produce 5 million bales of cotton domestically. To meet this gap, cotton needs to be imported;
however, the forex issues in the economy have curtailed imports of cotton and other essential
inputs for exports. The issue of raw material clearance from the ports remains unresolved owing
to the unavailability of forex, and therefore mills are currently unable to obtain cash against
documentation and are closing down owing to the shortage of raw materials.

1. In 2021–2022, Bangladesh RMG exports reached $42.613 billion.

2. RMG exports saw 35.47% year-on-year growth in the fiscal year 2021–22.
3. Bangladesh is the second-largest cotton yarn exporter worldwide.
4. Knitwear is the largest export contributor at 41.8% of Bangladesh’s national export
earnings.
5. Bangladesh is the world’s fifth-largest exporter of home textiles, crossing $1 billion in
2020–21.
6. Bangladesh’s textile and garment industry employs around 4.4 million people, mostly
women.
7. In 2021, Bangladesh’s textile and garment industry attracted $3.5 billion in foreign direct
investment.
8. Bangladesh’s garment exports to India surged 69.58% to $715.41 million in 2021–2022.
9. BD garment manufacturers aim to hit $100 billion in export earnings by 2030 (BGMEA).
10. DTG is the largest garment machinery, home textile, and accessories expo in Bangladesh.

Bangladesh’s textile and garment industry is forecast to continue growing, and it is expected to
account for more than 10% of the global market by 2025, according to BGMEA. The industry is
also set to benefit from the ongoing shift in global sourcing patterns as more and more countries
look to diversify their supply chains.