B Mirror Report: Bangladesh has further strengthened its position as the second-largest exporter of ready-made garments (RMG) to the European Union (EU), after China. Despite global economic pressures and sluggish demand, Bangladesh’s market share in Europe increased to 21.57 percent in 2025, maintaining its strong standing as the EU’s second-largest supplier.

According to Eurostat, total EU apparel imports rose from the equivalent of about Tk 8.76 trillion in 2021 to Tk 10.80 trillion in 2025. During the same period, Bangladesh increased its export earnings from around Tk 1.71 trillion to Tk 2.33 trillion, reflecting a growth of nearly 36 percent over five years.

In comparison, China’s exports grew by 21.48 percent during the same period, while India’s exports increased by 33.18 percent. On the other hand, Turkey’s exports declined by 9.48 percent, making Bangladesh the fastest-growing among the major suppliers.

Bangladesh’s exports to the EU reached their highest level in 2022, totaling about Tk 2.63 trillion, with a market share of 22.06 percent. However, in 2023, exports fell to around Tk 2.09 trillion due to high inflation and weakened consumer demand in Europe. Despite the decline, Bangladesh managed to keep its market share above 20 percent. Recovery began in 2024, and by 2025 export earnings rose again to about Tk 2.33 trillion, marking nearly 6 percent growth from the previous year.

The Export Promotion Bureau (EPB) said Europe remains the largest export destination for Bangladesh’s RMG sector. More than 80 percent of the country’s total merchandise export earnings come from this industry, with the majority shipped to European markets.

China still holds the largest share in the EU market. Its share was 30.28 percent in 2021, which dropped to 27.85 percent in 2023 but rose again to 29.54 percent in 2025. Although China remains in the top position, analysts believe Bangladesh’s consistent growth could narrow the gap in the future.

Bangladesh currently ranks second in the EU market. In comparison, Turkey’s market share stood at 9.27 percent in 2025, while India held 5.03 percent and Cambodia 4.99 percent.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the achievement is the result of long-term efforts and increased capacity in the sector. He noted that European buyers continue to maintain confidence in Bangladesh despite global economic challenges.

Former BGMEA director and Additional Managing Director of Denim Expert Ltd. Mohiuddin Rubel said competition will intensify after Bangladesh graduates from Least Developed Country (LDC) status. He emphasized the need to strengthen backward linkages, develop skilled manpower, expand large-scale production capacity, and accelerate efforts to sign a Free Trade Agreement (FTA).

The Centre for Policy Dialogue (CPD) said Bangladesh’s growing number of environmentally friendly production facilities and green factories has strengthened its position in the European market. However, it stressed that product diversification will be necessary to remain competitive in the future.

The growth over the past five years demonstrates the resilience and capability of Bangladesh’s garment industry amid global competition. Stakeholders believe this progress in the European market will have a positive impact on the country’s overall economy.