For decades, China dominated the global apparel market, supplying the majority of garments to the United States. But in recent years, that dominance has begun to weaken. Rising tariffs, shifting supply chains, and growing buyer interest in diversification have opened the door for new leaders. One of the biggest winners of this shift? Bangladesh.
In this article, we’ll explore how Bangladesh apparel exports to US are growing, why China’s share is shrinking, and what this shift means for brands, buyers, and the future of global sourcing.
China’s Decline in the US Market
The numbers tell a clear story. According to the US Office of Textiles and Apparel (OTEXA), China’s apparel exports to the United States have been falling for more than a decade:
From 2015 to 2024, Chinese apparel exports to the US dropped by 46% in value.
Export volume fell by over 18% in the same period.
Average unit prices of Chinese garments decreased by 34%, showing both declining demand and weaker market positioning.
Trade tensions are a key factor. Since 2017, when the US-China tariff war began, Chinese apparel has faced steep duties—estimated at around 145% on many products. This has made China less competitive compared to alternative sourcing countries.
Bangladesh’s Steady Rise
While China has lost ground, Bangladesh has gained:
Between 2015 and 2024, Bangladesh apparel exports to US grew by 36% in value.
Export volume increased by 7.5%.
Average unit prices of Bangladeshi garments rose by 7.5%, from $2.89 to $3.10 per unit—showing stronger buyer confidence and improved product quality.
Today, the US is the largest single market for Bangladeshi apparel, contributing about 18–20% of total export earnings.
Two main factors drive this growth:
Favorable Tariffs – Unlike China, Bangladesh faces only 20% tariffs, and in some cases enjoys duty-free benefits for products made with US raw materials.
Cost-Competitiveness – Bangladesh remains one of the most cost-efficient sourcing hubs, offering buyers a balance of affordability and improving quality standards.
Why Buyers Are Turning to Bangladesh
Global apparel buyers are rethinking supply chains for resilience, cost savings, and political stability. Bangladesh offers several advantages:
Large-Scale Capacity – With over 4,000 garment factories, Bangladesh is the world’s second-largest apparel exporter.
Skilled Workforce – A labor force of millions with experience in ready-made garments ensures high-volume production.
Compliance Improvements – After years of reforms, factories now emphasize safety, compliance, and sustainability.
Product Range Expansion – From basics to denim, outerwear, uniforms, and performance workwear, Bangladesh has diversified beyond just low-cost t-shirts.
The Road Ahead: Volume vs. Value
Despite the growth, industry leaders caution that Bangladesh must go beyond volume-based growth. Competing countries like Vietnam often export less but earn more due to value-added products.
China’s weakness gives Bangladesh a window of opportunity.
Vietnam, Cambodia, and India remain strong competitors.
Innovation, sustainability, and value addition are where Bangladesh must focus next.
For example, performance fabrics, technical textiles, and sustainable production practices are in high demand among US retailers. By moving up the value chain, Bangladesh can increase not just export volumes, but also profit margins.
What This Means for Global Trade
The shift from China to Bangladesh signals a broader trend in global apparel sourcing:
Diversification over Dependence – Brands don’t want to rely heavily on one country anymore.
Tariffs Matter – Trade policies and tariffs can reshape global supply chains in just a few years.
Sustainability is Key – Buyers are under pressure to source from countries improving environmental and labor standards.
Bangladesh’s growth is not just about cheaper labor—it’s about being in the right place at the right time, with the right reforms.
Final Thoughts
The decline of Chinese dominance in the US apparel market has created space for new leaders. Bangladesh apparel exports to US are rising, and the momentum shows no signs of slowing.
But the long-term success of Bangladesh won’t depend solely on tariff advantages or cost competitiveness. It will depend on how quickly the industry can embrace innovation, sustainability, and value-added products.
For buyers, the message is clear: Bangladesh is no longer just an alternative—it’s becoming a strategic sourcing hub. For Bangladesh, the challenge is to transform this opportunity into sustainable leadership in the global apparel industry.
