Bangladesh’s ready-made garment exports to the European Union recorded a decline in unit prices of nearly 4 percent in 2025, reflecting mounting pressure on the country’s key export sector as weak demand and intensified competition weigh on margins.
Trade data show that average prices of Bangladeshi apparel shipped to the European Union fell by about 3.8 percent year-on-year, even though overall export volumes increased. The drop in per-unit earnings highlights the strain exporters face in maintaining orders while coping with tighter price negotiations from international buyers.
Despite lower prices, Bangladesh’s total apparel export value to the EU rose to approximately 19.4 billion euros in 2025, up from around 18.3 billion euros a year earlier, supported by higher shipment volumes. However, industry insiders say the faster growth in quantity compared to value signals shrinking margins for manufacturers.
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The EU remains the largest export destination for Bangladesh, accounting for a significant share of its garment shipments. The ready-made garment sector contributes about 80 percent of the country’s export earnings, making price movements in the European market crucial for economic stability.
Exporters attribute the price decline to sluggish retail demand across Europe, where consumers continue to limit discretionary spending. At the same time, competition from major suppliers such as China and India has intensified, increasing supply in the region and exerting downward pressure on prices.
Industry leaders warn that prolonged pricing weakness could impact profitability and reinvestment capacity in factories, even if shipment volumes remain steady. Analysts say sustaining competitiveness while protecting margins will be a key challenge for Bangladesh’s apparel sector in 2026 as global demand recovery remains uneven.
