Analysis of data from the US Office of Textiles and Apparel (OTEXA) indicates, Honduras emerged as the leading contributor among the top ten apparel suppliers to the US market in 2023. It was also the only top supplier to witness an increase in shipment value.

According to OTEXA, apparel imports by the US for the year ending January 2024 totaled 24.2 billion sq m equivalent (SME), marking a 21.0 per cent decrease compared to the previous year. Despite this, Honduras registered the most substantial increase of 27.5 per cent to 42 million SME in shipment volume compared to January 2023.

Furthermore, Honduras also experienced a 22.4 per cent rise in shipment value from $124 million in the year ending January 2023 to $152 million in the year ending January 2024. This positive trend positions the country as a noteworthy player in the apparel market, especially considering its small market share of 2.1 per cent in 2023, which had grown from 1.5 per cent in 2022.

Patricia Figueroa, Executive Director, Central America–Dominican Republic Apparel and Textile Council (CECATEC-RD), emphasised the significance of even a 1 per cent growth rate for sourcing countries in the Central American region. This growth is attributed to factors such as the proximity to the US market and the benefits derived from the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR).

The attractiveness of Central American countries, including Honduras, as sourcing alternatives to China is reinforced by their speed to market advantage. With close proximity to the US and efficient transportation routes, these countries offer agility in supply chain operations, aligning with the preferences of fashion brands and retailers.