Bangladesh has overtaken China to become the largest denim supplier to the European Union. The country has also become the third largest denim supplier -- after China and Mexico -- to the US. This was possible because of the millions of dollars that local denim fabrics makers have invested to set up state-of-the-art facilities in their plants.
Currently Bangladesh has 30 denim mills for which investment to the tune of a billion dollars has been made. The collective production capacity of the mills is 435 million yards a year. Bangladesh could win in the European denim segment not only for competitive prices but also for the quality of its products, shorter lead times and better commitment.
In terms of denim sales, the US and the UK are two major markets for Bangladesh. Bangladeshi entrepreneurs supply denim products to major global retailers including Levi's, Diesel, G-Star, H&M, Uniqlo, Tesco, Wrangler, s.Oliver, Hugo Boss, Walmart and Gap. The denim sub-sector could play a significant role in achieving the 50 billion dollar export target by the end of 2021.
By 2020, the global denim market will reach $64.1 billion while Bangladesh’s denim exports are forecast to reach $7 billion by the end of 2021.