B Mirror Report:  Apparel exports to the European Union started 2026 on a fragile note, with Bangladesh recording one of the sharpest declines among major suppliers as both demand and prices weakened.

The downturn reflects a broader slowdown in global apparel trade, with industry insiders cautioning that sluggish consumer demand, shipping disruptions, and geopolitical tensions are putting increasing pressure on exporters.

According to Eurostat data released on March 20, Bangladesh earned €1.42 billion from apparel exports to the EU in January 2026, marking a steep 25.25 per cent drop from €1.91 billion in the same month last year.

Knitwear shipments fell by 26.4 per cent to €843.3 million from €1.15 billion, while woven garment exports declined 23.6 per cent to €585.6 million from €766.0 million.

Overall, EU apparel imports also contracted, falling 15.5 per cent year-on-year to €7.03 billion in January.

Bangladesh’s exports to its largest single market, the United States, also saw a slight dip. The country earned $791.77 million from RMG shipments in January, down 0.9 per cent compared to a year earlier.

Mohiuddin Rubel, additional managing director of Denim Expert Ltd, said the decline in EU imports was driven by both lower volumes and falling prices, indicating a structural shift in the market rather than a temporary slowdown.

European consumers continue to grapple with cost-of-living pressures, while Red Sea shipping disruptions prompted retailers to advance orders late last year, creating weaker demand at the start of 2026, he explained.

Exporters are now facing severe margin pressure, as they are hit by both reduced order volumes and lower unit prices.

Bangladesh has been particularly affected due to its reliance on bulk, low-margin apparel, which EU buyers tend to cut back on during downturns. The country is also dealing with disrupted shipping routes alongside domestic energy and financial constraints impacting production.

Although a recovery in the European market had been anticipated in the coming months, rising geopolitical tensions, particularly involving Iran and the United States, have added fresh uncertainty to the outlook.

Among other major suppliers, China showed relative resilience with exports declining 6.9 per cent to €2.22 billion. Vietnam saw a 7.34 per cent drop to €362.9 million, while Turkey posted a sharp 29.1 per cent fall to €620 million.

India’s exports decreased by 15.2 per cent to €336.23 million, Cambodia’s by 25.11 per cent to €313.48 million, and Pakistan’s by 17.1 per cent to €288.8 million, the data showed.

Industry observers warn that continued geopolitical risks and energy price volatility could further weigh on Bangladesh’s export performance in the months ahead.