Bangladesh Textile Manufacturing Market Size

Bangladesh Textile Market Analysis

The Bangladesh Textile Manufacturing Market size is estimated at USD 19.04 billion in 2024, and is expected to reach USD 25.25 billion by 2029, growing at a CAGR of 5.81% during the forecast period (2024-2029).

• 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.