Shawdes Desk:

Bangladesh’s share in the United States’ denim trouser imports has steadily grown by 6.6 percentage points over the past seven years, increasing from 14.1 per cent in 2017 to 20.7 per cent as of September 2024 although the overall imports of the item by the US declined in the period.

According to data released by the Office of Textiles and Apparel under the US Department of Commerce, Bangladesh’s export value of denim trousers to the US rose from $495 million in 2017 to a peak of $927 million in 2022.

After a peak in 2022, Bangladesh’s exports fell to $639 million in 2023 and further to $491 million in nine months (January-September) of 2024.

Despite global uncertainties, Bangladesh has remained as one of the top exporters, competing directly with Mexico and surpassing traditional leaders like China.

The OTEXA data showed that Mexico’s share declined from 22.5 per cent in 2017 to 17.1 per cent in 2020, recovering slightly to 20.6 per cent in 2023 and dropping again to 19.6 per cent in September 2024.

China’s market share in the US denim trouser imports dropped significantly, from 25.4 per cent in 2017 to 8.5 per cent in 2022 and 10.3 per cent in September 2024.

The data also suggested that China’s decline was stark, from $892 million in 2017 to $246 million in nine months (January-September) of 2024.

Industry experts said that the trend was aligned with global shifts in sourcing away from China due to rising costs and geopolitical factors, and Bangladesh capitalised on this trend, gaining market share.

Former Bangladesh Garment Manufacturers and Exporters Association vice-president Abdullah Hil Rakib termed the current trend in work orders ‘very good’.

He expressed optimism for 2025, saying that huge work orders were coming and his factory’s outerwear capacity had already been fully booked for that year.

He, however, raised concerns about the rising share in a shrinking market, attributing the decline in the denim market to changing lifestyle preferences and sustainability issues.

Rakib said that consumers were increasingly opting for functional wear, such as activewear, sportswear, and athleisure — categories that cater to women’s needs for both style and performance.

He further explained that denim is often not seen as a sustainable option, as its production required significant water usage.

The OTEXA data also indicated that Pakistan’s market share more than doubled in the past seven years, rising from 6 per cent in 2017 to 12.7 per cent in nine months (January-September) of 2024.

Vietnam’s share in the US denim trouser imports raised from 5.8 per cent in 2017 to 11.5 per in the nine months of 2024.

Square Denim director Syeed Ahmad Chowdhury said that Bangladesh’s increasing share in the US denim trouser market was primarily driven by buyers shifting away from China.

Additionally, Turkey’s drastic reduction in denim production also contributed to this shift, he said.

He said that while the decline of China and Turkey played a role in Bangladesh’s market share growth, it did not imply that manufacturing in Bangladesh had not faced challenges.

Regarding the shrinking market share in the US denim market, Syeed said that US demand was growing more slowly than in the EU, with the US being Bangladesh’s single largest destination.

He also mentioned that orders from China and Turkey were increasingly shifting to Bangladesh, Mexico, and Pakistan.