Garment Exports to US Signal Recovery: Analysis

Garment export industry of Bangladesh

The garment export industry of Bangladesh, a key player in the global apparel market, is witnessing a notable resurgence in shipments to its largest market, the United States. 

After facing a downturn in 2023, the sector is now displaying signs of recovery, buoyed by a revitalization of the US economy, increased consumer spending, and a decline in inflation. This report delves into the factors driving this resurgence, the current state of the garment export industry, and the outlook for future growth.

Rebound in Garment Exports to the US

In 2023, Bangladesh experienced a significant decline of 25 percent in apparel shipments to the United States. However, this trend has begun to reverse, with the decline narrowing to 19.24 percent in the first two months of 2024, as reported by the Office of Textiles and Apparel (OTEXA). Experts anticipate a continued growth trajectory in garment exports to the US, with projections indicating a potential crossing of the $10-billion mark by the end of 2024.

Factors Driving Recovery

Several factors contribute to the resurgence of Bangladesh's garment exports. Firstly, US retailers and brands are replenishing their inventories after facing challenges related to unsold stock during the peak of the pandemic. Additionally, the severe economic impact of events such as the Covid-19 pandemic and the Russia-Ukraine war has led to increased consumer spending as economies stabilize. As a result, orders for goods from Bangladesh and other countries have surged, driving the rebound in garment exports.

Bangladesh's Competitive Edge

Bangladesh has emerged as a preferred sourcing destination for US retailers and brands, owing to competitive pricing and a strong capability for order execution. Despite facing stiff competition from countries like China and Vietnam, Bangladesh holds a significant position in the US garment market, particularly as the top denim exporter.

Outlook and Projections

The National Retail Federation (NRF) forecasts moderate but steady growth in retail sales for 2024, driven by consumer resilience and confidence. Non-store and online sales are expected to witness substantial growth, reflecting evolving consumer preferences. While GDP growth is projected to be slightly slower compared to the previous year, the economy remains robust, supporting job creation and sustained consumer spending.

The resurgence of Bangladesh's garment exports to the United States signifies a positive trend in the global apparel industry amidst economic recovery. With favorable market conditions and increasing consumer confidence, the sector is poised for continued growth. 

Bangladesh's competitive edge and its ability to meet evolving consumer demands position it as a key player in the international garment trade, promising a bright future for the country's economy and the global apparel market as a whole.