Bangladesh’s apparel industry is experiencing a slower-than-usual Christmas export season as weak consumer demand in key Western markets and persistent domestic energy shortages disrupt production and delay shipments.
Industry leaders say Christmas apparel shipments are at least 10% lower than the same period last year. The slowdown comes at a crucial time, as more than 60% of Bangladesh’s annual garment exports are typically shipped between August and the first week of December.
Exporters attribute the decline to high inflation in Europe and North America, cautious purchasing by international retailers, and excess inventories held by major global brands. The prolonged energy crisis in Bangladesh has further compounded the situation, with low gas pressure and frequent power outages reducing factory production capacity.
The situation worsened following an accident at a floating LNG terminal in Cox’s Bazar, causing severe gas shortages across major industrial zones. Several garment factories in Gazipur temporarily suspended operations and granted workers extended leave due to insufficient gas supply.
Anwar-Ul Alam Chowdhury Parvez, Chairman and Managing Director of Evince Group, said factories have struggled with low gas pressure for several months, significantly affecting production. He also noted that international buyers have remained cautious in placing new orders amid economic uncertainty and Bangladesh’s recent national election.
Official trade data reflects the challenging market conditions. According to Eurostat, Bangladesh’s apparel exports to the European Union fell 18.89% year-on-year to €7.28 billion during January–May 2026. Meanwhile, Export Promotion Bureau (EPB) data shows apparel exports to the EU declined 3.31% to $19.06 billion in FY2025-26.
In the United States, Bangladesh’s largest single-country export destination, apparel exports declined 5.75% year-on-year to $4.01 billion during January–June 2026, according to the US Office of Textiles and Apparel (OTEXA). However, June shipments showed signs of recovery, increasing 5.74% to $763.57 million.
Kutubuddin Ahmed, Chairman of Envoy Legacy and Sheltech Group, said weaker consumer demand has affected all major garment-exporting countries, resulting in lower Christmas shipments across the industry.
Sharif Zahir, Chairman of Ananta Group, noted that while demand for woven garments remains relatively stable, knitwear exports have softened this season.
Ramzul Seraj, Managing Director of Elite Garments Ltd, said his company has experienced around a 10% decline in exports this season as buyers delayed placing orders.
Despite the short-term challenges, BGMEA President Mahmud Hasan Khan expressed optimism that Bangladesh’s apparel exports could match or slightly exceed last year’s performance by the end of the current fiscal year. He said anticipated improvements in gas supply and the government’s support measures, including business stimulus initiatives, are expected to help restore factory production and strengthen export performance.
Industry stakeholders also stressed the need to diversify Bangladesh’s apparel portfolio. A major European buyer recently advised exporters to move beyond basic garments and focus on higher-value products, noting that five core product categories—including T-shirts, trousers, formal shirts, sweaters, and underwear—currently account for nearly 78% of Bangladesh’s garment exports.
Manufacturers further warned that intensified competition from countries such as China, Vietnam, India, and Pakistan, particularly following recent changes in US trade policies, is making it increasingly important for Bangladesh to enhance product diversification, innovation, and value addition to maintain its global competitiveness.
