Bangladesh's can export $42 billion worth of non-cotton garments by 2032 if it invests $18 billion in the segment, says a new study by BGMEA.
Titled ‘Beyond Cotton: A Strategic Blueprint for Fibre Diversification in Bangladesh Apparel,’ highlights the fact that Bangladesh currently holds the second top position in the global apparel market, predominantly exporting cotton-made garments. However, global trends indicate a shift towards non-cotton fibers, with 78 per cent of total fiber production constituting non-cotton items in the last five years.
The study identifies several challenges hindering Bangladesh's exploitation of its non-cotton potential, including the unavailability of local fabric, technical manpower shortages, dependence on imports, high manufacturing costs, and limited product ranges.
To realise the projected $42 billion worth of non-cotton garment exports by 2032, Bangladesh needs substantial investments across various segments of the supply chain. This includes $4.6 billion in fiber, filament, and yarn manufacturing, $9.2 billion in fabric manufacturing, and $4.2 billion in garment manufacturing.
Faruque Hassan, President, BGMEA emphasises the importance of government support, especially as Bangladesh faces rising production costs and impending graduation from the LDC status in 2026. Hassan advocates for policy incentives to bolster the industry's capacity and competitiveness in the global market.
The study recommends strategic initiatives to propel Bangladesh's non-cotton apparel sector forward, such as establishing special zones for value chain integration, enhancing industry-specific education and training programs, fostering research and development, and promoting collaboration with international players.
Despite challenges, Bangladesh has made strides in non-cotton garment exports, with a 4 per cent increase over the past three years, amounting to $15.6 billion in 2022. However, this pales in comparison to China's $116 billion non-cotton garment exports in the same period.
Moving forward, Bangladesh aims to increase its non-cotton apparel exports to diversify its product portfolio and secure a larger share of the global market.
