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Bangladesh - January 15, 2024

BD tops in denim exports to US-EU

Staff Correspondent : Since 2017, Bangladesh is the top denim exporter to the EU and the top denim supplier to the United States and the European Union (EU). One in three people in the region wears denim pants made in Bangladesh.
However, due to increased demand, local businessmen are trying to increase their capacity to dominate the $64 billion global denim market. Currently, local exporters supply around five billion dollars worth of denim products worldwide. The global denim market is expected to grow to $76.1 billion by 2026. It will grow at the rate of 4.8 percent annually.
Local entrepreneurs have invested about Tk 25 thousand crore in the denim sector. There are already 42 modern factories in the country. From this it is possible to produce more than 90 million meters of denim fabric every year. About a decade ago, the investment in denim production in 12 factories was Tk 8000 crore. However, in the past few years, Bangladesh has overtaken neighboring China in supplying denim to the EU and US markets. According to the Bangladesh Textile Mills Association (BTMA), an investment of Tk 1.5 billion has been made for two factories in Habiganj with the aim of exporting $700 million worth of denim in the next five years.
Apart from the European Union and the United States, India, Japan, China, Latin America and the Middle East are growing destinations for Bangladeshi denim. Syed M. Tanveer, managing director of Chittagong’s Pacific Jeans Limited, one of Asia’s largest denim jeans suppliers, said that the target has been set to increase denim production by more than 12 percent this year compared to 2023. He said over the phone that the demand for denim this year is better than last year. Its exports are expected to increase this year.
As fashion changes and denim becomes softer and more comfortable, its demand is increasing worldwide. Mansoor Ahmed, Chief Executive Officer of BTMA, said that Bangladesh has already proven itself as a reliable source of denim, so new investment and reinvestment is ongoing in this sector. He also said that although most of the factories were established in the last 10 years, we have to increase our capacity due to the demand of international retailers and brands. According to him, locally produced denim is in high demand as it can be supplied in a short period of time.
The chief executive officer of BTMA also said that currently there is an investment of more than Tk 25 thousand crore in the denim sector. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) director Mohiuddin Rubel said that from January to September 2023, Bangladesh has exported denim worth $885 million to the EU. In 2022, EU denim exports generated $1.56 billion. In 2021, its amount was $1.18 billion. Even in the year of 2020 corona epidemic, the amount of denim export from Bangladesh to EU was $1.02 billion.
Similarly, the export of denim from Bangladesh to the United States has also increased. From January to October last year, Bangladesh exported denim worth $556.80 million to the United States. Rubel, Additional Managing Director of Denim Expert also said, the amount of denim export in 2022 was $943.70 million, in 2021 it was $798.42 million and in 2020 it was $56.12 million.

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