Overcoming all COVID-19 related uncertainties, Bangladesh has emerged top supplier of denims to the US and the EU. The denim jeans market in Bangladesh is expected to grow at 6.7 per cent from 2022-2029 indicates a research report by Data Bridge Market. The market price of denim jeans in Bangladesh is expected to grow at 3 per cent CAGR from 2021-2031 to reach $152 billion by 2031, adds Textile Focus.

US emerges top export destination

One of the top producers and exporters of denim garments in the world, Bangladesh exports about 200 million pieces of denims every year. There are 35 denim fabric mills in Bangladesh manufacturing over 435 million yards of fabrics every year, as per BTMA. It was the top exporter to the US from January-September 2021. Its exports to the country increased by 32 per cent to $436.53 million during the year. Data from Office of Textiles and Apparel (OTEXA) shows, Bangladesh exported denim products worth $436.53 million to the US in 2021. In 2020, exports to the US had declined 4 per cent to $561 million in 2019. Bangladesh is also one of the top exporters of denim garments to the EU. However, exports to the region declined to €1 billion in 2020 from €1.27 billion in the previous year. The country had a 29 per cent market share in total EU denim market.

Supply chain disruption in China impact Bangladesh

The pandemic has had a deep impact on Bangladesh denim industry. The industry is suffering from supply chain disruptions in China-the main source of raw materials. Disruptions are affecting Bangladesh industries dependent on Chinese market for 50 per cent raw materials.

Around 93 per cent of Bangladesh suppliers faced delays in raw material supplies during the pandemic. Delays also resulted in a surge in prices, resulting in the shutdown of many factories. They also resulted in order cancellation from denim brands and retailers. The industry is also facing payments delays from retailers. Additionally, sales of brands and retailers have gone down to zero. On the other hand, many workers lost their jobs during the pandemic.

Industry to reach $87.3 billion by 2027

The Bangladesh denim industry is expected to reach $87.3 billion by 2027. It is currently facing rising production costs, VAT & taxes, increase in power crisis, lack of product innovation, increased workers’ wages, development and innovation of denim products.

To meet the growing demand for denim in international market, factories need to produce high value-added and high quality garments by acquiring the required machinery and technology. The industry also needs to step up investments in research and innovation in the denim sector. It can reach its desired goal by prioritizing on the denim industry and supporting entrepreneurs.