Bangladesh denim exports: Humble start to a global market leader

Primarily as a supplier of basic denim products, Bangladesh has found a prominent place in the global markets and is gradually entering the high valued segment with quality jeans to cater global consumers. Over the years, Bangladesh has transformed the sector by adopting the latest technology and sustainability and has become the number one denim supplier to US and European markets and grabbed a larger market share.

Since 2017, Bangladesh has been the top denim exporter to the EU, while later it also topped the list of exporters in the US market and kept the dominance till date. The modest journey of the Bangladesh denim sector has now opened vast opportunities riding on the transformation of the sector into a compliant and sustainable one. Integration of eco-friendly washing, dyeing, and green manufacturing gave a boost and attracted the attention of global buyers.

State of exports.

According to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data, during the January-November period of 2023. Bangladesh exported denim products of $604 million to the United States of America.

In the US market, Bangladesh holds 20.55% market share. In 2022, it amounted to $943.70 million while it was $798.42 million in 2021 and $561.29 million in 2020. On the other hand, exports to the European Union stood at $1.1 billion in nine months of 2023, which is 23.33% of total imports of $3.9 billion.

In 2022, earnings from denim shipments to the EU stood at $1.56billion. In 2021, it amounted to $1.18billion. Even during the Covid-19-affected year of 2020, denim exports from Bangladesh to the EU stood at $1.02 billion.

“We are now exporting not only the basic denim but also entering into the high valued segment. Right now, exporters are getting $5 to $18 dollars per piece denim,” said Syed M Tanvir, Managing Director of Pacific Jeans Ltd, one of the largest suppliers of denim.

The company produces about 45 million pairs of denim jeans for export and is aiming to increase production by double digits compared to 2023.

“A couple of years back, Bangladeshi denim manufacturers were not able to secure orders of jackets worth $25 a piece and above. Now, they're making jackets for $100 each,” Faruque Hassan, ex-President of the Garment Manufacturers and Exporters Association (BGMEA).

Bangladesh is becoming stronger in the global markets and capturing new buyers and brands because of high value and quality supply of denims, said the business leader. The good news is global fashionbrands are transferring their orders to Bangladesh from China and Vietnam as they trust us as reliable supplier, said Hassan.

“Though, Bangladesh's journey in the denim industry began modestly with focus on basic denim production, it entered in high valued segment in recent years. This is because of sustainable washing, dying and quality improvement,” said Md. Ashikur Rahman Tuhin, Managing Director of TAD Group.

Country’s denim manufacturers have adapted technological advancements to increase productivity and quality, said Tuhin, also a director of BGMEA. New investments latest technology and automation have streamlined production processes, resulting in higher efficiency and consistency in denim manufacturing he added.

Along with technological development, denim makers have diversified products such as stretch denim, eco-friendly denim by using sustainable practices. On top of that global fashion brands and designers have collaborated with Bangladeshi denim manufacturers to diversify products and technology transfer.

For incorporation of cutting-edge designs and styling elements, Bangladesh has turned itself as a hub for fashion-forward denimproducts, said the industry people.

“We are also implementing water-saving techniques in dyeing and finishing processes using organic and recycled materials. This is to curb environmental impacts and meeting consumer demand for sustainable denim,” Tuhin said Continued investment improving capacity, quality With the growing demands, local manufacturers are making new investments to attract buyers.

They are also enhancing capacity. Different research organisations projected that the global denim market is to reach $76.1 billion by2026, growing at a rate of 4.8 percent per annum. As the demand for denim has been rising because of changes in fashion, new investment and reinvestment are being made in the sector, Monsoor Ahmed, Chief Executive Officer of the Bangladesh Textile Mills Association (BTMA), said.

Over the years, Bangladesh has established its capacity and has become a reliable source for denim fabrics. As BTMA data, investment in the denim sector reached over Tk25,000 crore.

There are 42 modern denim mills, which can supply more than 900 million metres of denim fabrics annually. Textile mills plays pivotal role Textile mills are paying a pivotal price by producing high-value fabrics, which curtails lead time.

Fabric supply from domestic sources saves time compared to import one. Bangladesh supplies denims to high-end brands such as RalphLauren, Hugo Boss, G-Star RAW, AG and Puma.

Bangladesh now is not only supplying basic items but also premium quality jeans. We are developing denim fabrics for high end brand Ralph Lauren and providing it to local nominated suppliers in Bangladesh, said Kutubuddin Ahmed, Chairman of Envoy Textile Limited, the world's first LEED platinum-certified mill another pioneer in denim fabrics, ShaSha Denim also supplies fabrics to Ralph Lauren-nominated garments.

The local garment suppliers started procuring fabrics from local sources instead of imported fabrics to comply with demands for a shorter lead time.