Bangladesh’s RMG exports to non-traditional markets declined by 3.39 per cent Y-o-Y during July–November of the FY25–26. This downturn in alternative destinations - markets outside the EU, US, Canada, and the UK- signals mounting challenges in diversification strategy, market positioning, and policy support. Non-traditional markets account for approximately 16 per cent of the country's total apparel exports.
Data from the Export Promotion Bureau (EPB) highlights sharp contractions in several key non-traditional destinations. Exports to Australia, Bangladesh’s largest alternative market, contracted 10 per cent Y-o-Y to $313 million. Shipments to India dropped by over 8 per cent to $298 million. Other major declines included South Korea (-12 per cent), Mexico (-16 per cent), Turkey (-25 per cent), and Russia (-23 per cent).
Industry leaders attribute this contraction to several factors: sluggish global consumer demand, weak institutional marketing, limited product diversification for specific markets, and a significant reduction in government export incentives. Shehab Udduza Chowdhury, Vice-President, BGMEA, notes, poor marketing, lack of continuous follow-up, and the decrease in cash incentives hurt performance. The government previously offered a 5 per cent cash incentive for new market shipments, which has now been cut to 2 per cent, significantly discouraging exporters amid rising operational costs.
In contrast, traditional markets showed relative resilience. Garment exports to the United States rose by 3 per cent to $3.22 billion, and shipments to Canada and the United Kingdom grew by 6.51 per cent and 3 per cent respectively. The European Union remained the largest regional market, though results were mixed, with growth in Spain and Poland offset by declines in Germany, France, and Italy.
Despite the overall slowdown in non-traditional exports, niche markets like China, Japan, Brazil, and South Africa showed growth, suggesting that targeted strategies can still be effective. Trade analysts emphasize the urgent need for renewed policy incentives, market-specific product development, and stronger commercial diplomacy abroad to prevent Bangladesh from losing further ground in competitive global sourcing.
