Bangladesh's readymade garment (RMG) exports to non-traditional markets recorded a sluggish growth in Q1, FY26, reflecting weak global demand and persistent economic uncertainty.

Official data from the Export Promotion Bureau (EPB) shows, exports to these new destinations- including Japan, Australia, India, Korea, China, Mexico, and Turkey - grew by a mere 0.77 per cent Y-o-Y to $1.65 billion during the July-September quarter. Industry insiders attribute this marginal increase to high living costs, sluggish global economic growth, and geopolitical tensions that are forcing consumers worldwide to prioritize essential spending over clothing purchases.

Within the non-traditional category, woven garments outperformed knitwear. Woven exports rose by 2.99 per cent to $847.37 million, while knitwear shipments declined by 1.45 per cent to $808.91 million.

Despite the overall muted performance, a few countries stood out. China emerged as the fastest-growing destination, with RMG exports soaring by 59.52 per cent to $71.14 million, largely driven by an 85.88 per cent growth in woven garments. Japan remains the largest non-traditional market, importing $334.91 million in apparel. Other strong performers included Saudi Arabia (up 34.38 per cent), Chile (up 14.37 per cent), and Brazil (up 9.66 per cent) In contrast, exports to Australia, Turkey, Korea, and Mexico saw declines ranging from 8.13 per cent to 31.30 per cent.

The country's total RMG exports showed resilience, growing by 4.79 per cent to reach $9.97 billion overall in the quarter. This total growth was supported by strong performance in traditional, major markets: exports to the United States rose by 8.60 per cent to $2.01 billion, the European Union grew by 3.14 per cent to $4.74 billion, and the United Kingdom increased by 6.74 per cent to $1.21 billion.