Bangladesh’s ready-made garment (RMG) industry earned US$38.70 billion in export revenue during FY2025-26 (July-June), accounting for 80.63% of the country’s total exports of US$48.00 billion. Despite ongoing global economic uncertainty, apparel exports declined by only 1.64% compared to the previous fiscal year, reflecting the industry’s resilience amid challenging market conditions.
Knitwear and Woven Export Performance
Knitwear exports generated US$20.62 billion, representing 53.29% of total RMG exports. However, the segment recorded a 2.53% year-on-year decline.
Woven garment exports reached US$18.08 billion, contributing 46.71% of total apparel exports, with a comparatively smaller decline of 0.61% over the previous fiscal year.
Performance in Major Export Markets
The European Union (EU) remained Bangladesh’s largest apparel export destination, importing garments worth US$19.06 billion, accounting for 49.25% of total RMG exports. However, exports to the EU declined by 3.31% compared to FY2024-25.
The United States retained its position as the second-largest market, with exports reaching US$7.74 billion, representing 20.01% of total apparel exports and recording a 2.63% year-on-year growth.
Other major export destinations performed as follows:
- United Kingdom: US$4.39 billion, accounting for 11.34% of total exports, with 0.91% growth.
- Canada: US$1.34 billion, contributing 3.47% of total exports, with 3.20% growth.
- Non-traditional markets: US$6.16 billion, representing 15.93% of total RMG exports, although shipments declined by 4.25% year-on-year. Bangladesh’s RMG Exports -FY 2025-26 -Country-Wise.docx
Export Performance to the European Union
Bangladesh exported apparel worth more than US$50 million to the following EU member states during FY2025-26:
Export Performance in Non-Traditional Markets
Among non-traditional destinations, Japan remained Bangladesh’s largest apparel market, followed by Australia and India.
Also Read: Bangladesh Apparel Exports to U.S. Fall 11% in January–April 2026
Key Takeaways
Although Bangladesh’s apparel exports experienced a slight decline during FY2025-26, the industry continued to demonstrate remarkable resilience amid persistent global economic challenges, supply chain disruptions and rising operational costs.
The European Union remained the dominant export destination, accounting for nearly half of Bangladesh’s total RMG exports, while the United States continued to register positive growth. At the same time, non-traditional markets maintained a significant contribution, highlighting the importance of continued market diversification.
To sustain long-term growth and strengthen Bangladesh’s position as a preferred global sourcing destination, the industry must continue investing in:
- Product diversification
- Value-added and innovative apparel
- Quality and consistency
- Sustainable manufacturing
- Faster lead times
- Design and branding capabilities
As the backbone of Bangladesh’s export economy, the RMG sector continues to play a pivotal role in generating foreign exchange, creating employment and supporting the country’s overall socio-economic development.