The Ready-Made Garment (RMG) sector is the backbone of Bangladesh’s economy, contributing significantly to exports and employment. The latest data from the Export Promotion Bureau (EPB) for July 2024-February 2025 reveals an overall positive trajectory for the industry, with RMG exports reaching $26.80 billion, reflecting a 10.64% growth. However, a deeper look into the data highlights an interesting trend: while knitwear exports continue to surge, woven exports saw a slight decline in February 2025.
This article examines Bangladesh’s RMG export performance over the past eight months, with a focus on the contrasting growth trends between knitwear and woven garments. We’ll also explore the potential implications for industry players and what they need to do to stay ahead in the evolving market landscape.

1. Bangladesh’s RMG Export Performance: A Positive Outlook

Key Highlights from July 2024-February 2025:

• Total RMG exports: $26.80 billion (+10.64%)
• Knitwear exports: $14.34 billion (+11.01%)
• Woven exports: $12.46 billion (+10.22%)

Despite global economic challenges, Bangladesh’s RMG sector remains resilient. The 10.64% year-on-year growth signals strong demand from international markets. Several factors have contributed to this positive trend:

• Diversification of export destinations: Growth in non-traditional markets such as Japan, South Korea, and the Middle East.
• Sustainability initiatives: Increased investment in green factories, making Bangladesh an attractive sourcing hub.
• Competitive pricing: Ability to offer cost-effective production compared to competitors like Vietnam and India.

2. Knitwear’s Continued Dominance

Why is Knitwear Outperforming Woven?

• Consumer preference shift: Global demand for casual, comfortable clothing has surged post-pandemic. Knitwear fits perfectly into this trend.
• Strong market demand: The U.S. and EU markets have seen increased orders for knitted apparel.
• Lower production costs: Knitwear production requires less processing compared to woven garments, making it more cost-efficient.
• Supply chain advantages: Easier access to raw materials like yarn within Bangladesh reduces lead times.

The numbers reflect this dominance: knitwear exports reached $14.34 billion, with an impressive 11.01% growth. This growth is expected to continue, reinforcing Bangladesh’s position as a key player in the global knitwear market.

3. Woven Exports: A Closer Look at the February 2025 Dip

While woven exports grew 10.22% over the eight-month period, February 2025 saw a -0.44% decline. This unexpected dip raises several questions about the segment’s long-term competitiveness.

Potential Reasons for the Decline:

• Shifting fashion trends: The global market is moving towards more casual wear, affecting demand for woven garments like formal shirts and trousers.
• Increased competition: Countries like Vietnam and China continue to dominate the woven garment segment.
• Higher production costs: Woven garments typically require more complex manufacturing processes and raw materials.
• Trade barriers and logistical challenges: Rising freight costs and geopolitical uncertainties may have impacted February’s export numbers.

Comparing Knitwear vs. Woven Growth:

• Knitwear: $1.65 billion in February 2025 (+3.77% growth)
• Woven: $1.59 billion in February 2025 (-0.44% decline)

The contrasting performance suggests that woven manufacturers may need to reconsider their strategies to align with shifting market trends.

4. February 2025 RMG Export Analysis: Breaking Down the Monthly Figures

A closer look at the February 2025 data helps us understand industry dynamics:

• Overall RMG exports: $3.24 billion (+1.66%)
• Knitwear exports: $1.65 billion (+3.77%)
• Woven exports: $1.59 billion (-0.44%)

While overall growth remained positive, the relatively modest 1.66% increase in RMG exports suggests a seasonal slowdown or shifting global trade conditions. It is crucial for industry stakeholders to analyze this data and prepare accordingly for upcoming months.

5. Implications and Future Outlook

Key Takeaways for Industry Players:

1. Knitwear is the Future: Manufacturers should consider expanding knitwear production to align with global market trends.
2. Innovation in Woven Segment: Woven garment producers need to explore product diversification, such as performance fabrics or hybrid styles.
3. Investment in Technology: Advanced manufacturing processes can enhance productivity and reduce costs in the woven sector.
4. Market Diversification: Expanding beyond traditional markets (U.S. and EU) to emerging regions like Africa and Latin America could boost export volumes.
5. Sustainable Production: With increasing global emphasis on sustainability, investing in eco-friendly production methods can enhance Bangladesh’s competitive edge.

What’s Next for Bangladesh’s RMG Industry?

• The industry must adapt to evolving consumer preferences by focusing on athleisure and smart textiles.
• Government support and policy reforms can help improve infrastructure and ease trade barriers.
• Collaboration between manufacturers, exporters, and policymakers will be crucial for sustaining long-term growth.

Conclusion

Bangladesh’s RMG sector continues to show impressive resilience and growth, driven largely by the knitwear boom. However, the February 2025 dip in woven exports signals a potential challenge that industry players must address.

The future of Bangladesh’s apparel industry depends on strategic innovation, diversification, and adaptability. Manufacturers and exporters must stay ahead of market trends, invest in technology, and explore sustainable solutions to maintain the country’s competitive position in the global apparel trade.