Why Understanding Global Apparel Trade Matters
The global apparel trade connects farms, mills, factories, freight routes and retail shelves. For buyers, exporters and students, understanding these flows is not optional — it shapes sourcing costs, delivery times, margins and reputational risk.
In 2025 the global apparel market was valued at roughly US $1.84 trillion. That headline number captures a vast ecosystem: mills and dyehouses, garment factories, retail brands, and the millions of people employed across the value chain. Buyers who understand where value is created and captured are better able to make resilient sourcing decisions. (UniformMarket)
This first part of the article explains the current scale of the market, who the major players are, and what regional strengths look like in 2025–2026. Where possible I give explicit, recent figures and name the source — because numbers without dates are misleading in trade analysis.
1. The Current Size and Shape of the Market
Market value and short-term outlook
As noted, the apparel market in 2025 sits at about US $1.84 trillion and analysts model steady but not runaway growth towards 2030. Some forecasts expect global apparel retail to approach US $2.2–2.3 trillion by 2030, depending on consumption, inflation and supply-chain shifts. The key point for buyers is that growth is returning to pre-pandemic patterns but with much stronger pressure from sustainability and digitisation than a decade ago. (UniformMarket)
Trade volumes and geography
Apparel trade remains heavily concentrated in Asia. Supply chains are regionalised: yarn and fabric often originate in one country, processing occurs in another, and final assembly in a third. Asia-Pacific’s dominance reflects years of investment in textile clusters, competitive labour rates and dense supporting industries. This structure is why small policy or logistical shocks in one hub can ripple across global sourcing networks.
2. Major Exporting Countries — who ships what
Understanding each exporting country’s specialisation helps buyers match product to partner.
China — the full-spectrum supplier
China remains the largest exporter of textiles and garments by value. It offers everything from commodity T-shirts to technical performance wear and finished luxury items, supported by strong upstream capabilities (spinning, weaving, dyeing) and advanced finishing. China’s value of clothing exports is large — estimates place clothing export values in the high hundreds of billions of USD in recent years — and it continues to account for a significant share of world apparel shipments. (shenglufashion.com, Customs.gov.cn)
Bangladesh — second-largest exporter, knitwear powerhouse
Bangladesh is the world’s second-largest apparel exporter, with a heavy focus on knitwear and bulk ready-made garments. In calendar year 2024, Bangladesh’s ready-made garment (RMG) exports were reported at US $38.48 billion, with knitwear and woven garments sharing that total across product lines. Recent fiscal-year reporting shows modest variation in totals depending on methodology, but the market position is clear: Bangladesh is a cost-competitive, high-volume supplier for global retailers. (The Financial Express, bgmea.com.bd)
Vietnam — fast-growing, flexible production
Vietnam has grown rapidly, expanding capacity in both knitwear and woven garments and attracting investment thanks to trade agreements and an improving supplier ecosystem. In 2024 Vietnam’s textile and apparel export totals were reported near US $44 billion, reflecting its competitive position for both fashion and performance wear production. Buyers prize Vietnam for agility and for the breadth of factories that can shift between price tiers. (Vietnam Briefing)
India, Turkey and others
India offers scale and growing value-added production, though it still lags in ease of doing business relative to East and Southeast Asia in some respects. Turkey’s proximity to Europe gives it a nearshoring advantage for fast replenishment and lower transit time. Indonesia, Cambodia and Pakistan remain important for particular product niches and competitive cost points. Together, these countries make up most of the top exporting group, each with distinct strengths.
3. Major Importing Markets — who buys most
European Union — the design and sustainability leader
The EU is the largest apparel import market by value in Europe, with apparel imports valued at about €176.9 billion in 2023. The bloc’s purchasing power and strong regulatory agenda make it a trendsetter on sustainability, traceability and product standards. A growing share of EU buyers demand documented supply-chain credentials and lower environmental impact. (CBI)
United States — scale plus diversification
The United States imported about US $79.3 billion in apparel in 2023 (HS chapters covering garments), the majority sourced from Asia. US sourcing strategies increasingly balance price sensitivity with resilience — the tariff environment on some Chinese goods and the search for diversification have pushed brands into Bangladesh, Vietnam, Mexico and India in recent years. (U.S. International Trade Commission)
United Kingdom, Japan, Canada, Australia
The UK remains an important European buyer (imports around US$30bn in apparel annually), and Japan is a quality-focused market (imports ~US$25bn). Canada and Australia are smaller but premium markets, leaning towards ethical and higher-quality suppliers. Buyers targeting these markets must balance price, lead time and compliance credentials to win business.
4. Trade Blocs, Agreements and Policy Drivers
Trade agreements and preferential programmes still shape sourcing economics.
EU GSP+ and EBA: Preferential access for eligible developing countries reduces duties and improves competitiveness for exporters that meet the rules of origin.
RCEP has strengthened Asia-Pacific regional trade flows and favoured intra-regional sourcing. (PMC, shenglufashion.com)
Of particular note to Bangladeshi exporters: the country’s LDC (Least Developed Country) graduation pathway has implications for duty-free access as rules evolve. Buyers should track how post-graduation trade arrangements and bilateral negotiations affect duties in priority markets.
5. Regional Specialisations and Sourcing Strategies
Different regions have become known for particular capabilities; savvy buyers exploit this.
South Asia — volume and cost efficiency
Bangladesh and India are major players for high-volume basic garments and large orders. Bangladesh’s value proposition is particularly strong for knitwear and bulk supply, while India is moving up the value chain in certain segments.
Southeast Asia — agility and value-added
Vietnam, Cambodia and Indonesia offer flexible production and an expanding upstream base. Vietnam’s investments in yarn and fabric, plus improving logistics, make it a go-to for buyers needing a balance of cost and responsiveness.
Nearshoring to Europe and North Africa
Turkey and Morocco serve European buyers seeking shorter lead times and easier logistics. Nearshoring helps with rapid replenishment and lower freight risk for seasonal or fashion-sensitive items.
6. Factors Driving Changes in Apparel Trade (2024–2026)
Several forces are rearranging where and how garments are sourced.
Sustainability and regulation
Regulatory pressure — from the EU’s product and sustainability rules to buyer ESG requirements — is shifting procurement priorities towards suppliers that can document impacts and show traceability.
Supply-chain resilience and diversification
The Covid-19 dislocations and subsequent geopolitical tensions (including trade frictions and shipping-route vulnerabilities) nudged many brands to adopt China+1 strategies: keeping China for scale but diversifying to Bangladesh, Vietnam, India and nearshore partners to spread risk.
Cost pressures and freight dynamics
Freight costs have fluctuated since 2020. Although rates have moderated from pandemic peaks, port congestion (for example at Chattogram), container availability and red-sea disruptions can still create sudden cost spikes. Buyers now factor these risks more explicitly in sourcing plans.
Technology and digital sourcing
The rise of digital tools (3D sampling, PLM systems, traceability platforms) is realigning supplier selection. Buyers with robust digital capabilities can accelerate development, reducing samples and shortening time-to-market.
7. Bangladesh in Context — strengths and vulnerabilities
Bangladesh’s position in the global apparel trade is durable but complex.
Strengths:
Volume and cost competitiveness, especially in knitwear. Bangladesh produces millions of garments annually at scale and can meet the large order sizes of global retailers. (bgmea.com.bd, rmgbd.net)
Vertical clusters in and around Dhaka, Gazipur and Chattogram that support fabrics, trims and finishing.
Improving compliance frameworks and strengthened factory safety measures since 2013.
Vulnerabilities:
Dependency on a narrow product mix (knitwear-heavy) can make the sector sensitive to demand shifts.
Infrastructure limitations — port congestion and logistical bottlenecks sometimes lengthen lead times.
Graduation from LDC status, which could affect duty preferences unless new agreements or transitional arrangements are secured.
8. What Buyers Should Do Now (Practical Sourcing Notes)
Diversify but maintain relationships. Build multi-country sourcing strategies while keeping reliable partners in Bangladesh for high-volume basics.
Audit for traceability and sustainability. Ask for certifications and concrete proof; some buyers now expect GOTS, OEKO-TEX, and social-audit reports as baseline.
Plan for transport volatility. Allow buffer time for shipments out of Chattogram during peak seasons (monsoon and Eid) and build contingency plans for unexpected route disruptions.
Use digital tools where possible. 3D sampling and PLM systems reduce waste and speed approvals.
9. Bangladesh’s Export Performance in 2024–2025: Growth and Market Diversification
Bangladesh remains a powerhouse in the global apparel industry, holding firmly as the world’s second-largest exporter of ready-made garments (RMG). The latest data for calendar year 2024 reveals impressive growth despite ongoing challenges in the global supply chain and geopolitical tensions.
In 2024, Bangladesh’s RMG exports reached US $38.48 billion, marking a solid 7.23% increase from 2023’s total of US $35.89 billion (Dhaka Tribune, Bangladesh Textile Journal). This increase is driven mainly by strong demand from major markets such as the European Union and the United States.
Breaking down the exports by product type, knitwear remains the leading segment with around US $20.52 billion, while woven garments account for roughly US $17.95 billion (BGMEA). These figures highlight Bangladesh’s continued dominance in producing large volumes of cost-competitive knitwear and woven apparel.
The European Union stands as Bangladesh’s largest buyer, taking in approximately 50.34% of total exports, equivalent to US $19.37 billion (Bangladesh Textile Journal). The United States follows with about 18.7% or US $7.2 billion, while the United Kingdom accounts for around 11.3% or US $4.3 billion of the total exports. A noteworthy trend is the growing importance of non-traditional markets like Japan, Australia, India, Turkey, and Russia, which collectively took about 16.5% of exports or US $6.33 billion in 2024 (The Business Standard).
On the fiscal year side (July 2024–March 2025), Bangladesh’s RMG exports continued their upward trajectory, hitting US $30.25 billion, which is a 10.8% year-on-year growth. Specifically, in the third quarter of the fiscal year (January–March 2025), exports reached US $10.34 billion, with a domestic value addition rate of around 58.9% (Textile Focus, MKMA).
Despite this growth, Bangladesh’s value addition rate remains relatively modest. The country imports large volumes of raw materials like cotton, yarn, and trims, which means the full value of the apparel product is not captured domestically. This represents both a challenge and an opportunity for Bangladesh’s garment sector, as increasing upstream textile capabilities could significantly boost margins and competitiveness.
Strategic Outlook for Bangladesh
Bangladesh’s strong export performance is underpinned by several factors: a vast skilled labour force, cost competitiveness, an extensive network of knitwear and woven factories, and improving compliance with international labour and environmental standards. However, exporters face ongoing challenges related to port congestion at Chattogram, energy supply consistency, and the looming impact of Bangladesh’s graduation from Least Developed Country (LDC) status, scheduled for 2026.
Graduation from LDC status will have important implications for trade preferences. Currently, Bangladesh enjoys duty-free access to key markets like the EU under schemes such as Everything But Arms (EBA) and Generalised Scheme of Preferences Plus (GSP+). Post-graduation, unless new trade agreements are negotiated, Bangladesh could face up to 12% tariffs on exports to the EU, which could impact competitiveness (International Growth Centre, UN ESCAP).
On the bright side, Bangladesh secured a reduced U.S. apparel tariff rate of 20% in early 2025, a major relief compared to the initially proposed 37%. This aligns Bangladesh’s tariff levels with competitors like Vietnam, helping to maintain access to the lucrative U.S. market (Reuters).
10. Vietnam’s Apparel Export Profile: Growth and Strengths
Vietnam continues to strengthen its position as a key global apparel exporter, known for its flexibility, quality production, and improved upstream integration in textiles.
While exact 2024 export figures vary among sources, the garment and textile sector in Vietnam is broadly reported to have achieved significant growth, with an estimated export value of around US $40+ billion in 2024, marking an increase of approximately 10–12% from the previous year (Vietnam Briefing).
The United States remains Vietnam’s largest apparel market, accounting for about 43–45% of total apparel exports. Other important export destinations include the European Free Trade Association (EFTA), Japan, and Canada. Vietnam’s membership in trade agreements such as RCEP and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) enhances its access to multiple markets with preferential tariffs (Vietnam Trade Promotion Agency).
Vietnam’s garment industry benefits from relatively better upstream integration compared to Bangladesh, with growing local production of fabrics and yarns. This reduces reliance on imports and improves value addition. The country’s agile manufacturing base makes it a popular destination for fast-fashion brands and buyers seeking quicker lead times and product variety.
11. Global Apparel Market Outlook: 2025–2030
The global apparel market is expected to grow steadily over the next five years.
In 2025, the market value is approximately US $1.84 trillion, up from about US $1.79 trillion in 2024 (UniformMarket).
According to Grand View Research, the market could reach US $2.26 trillion by 2030, growing at a compound annual growth rate (CAGR) of around 4.2% (Grand View Research).
Other reports such as Mordor Intelligence forecast a more conservative CAGR of about 2.5%, reaching around US $1.66 trillion by 2030 (Mordor Intelligence).
More aggressive projections from Straits Research suggest a CAGR of 8%, potentially pushing the market towards US $2.97 trillion by 2033 (Straits Research).
Regionally, the United States apparel market alone is valued at roughly US $365.7 billion in 2025, with steady growth expected but varying by product type and retail channel. Categories such as streetwear, essential basics, and technical performance wear show stronger demand compared to classic apparel lines (UniformMarket).
12. Key Implications for Buyers and Exporters
Prepare for Moderate Growth
Buyers should plan sourcing strategies around mid-single-digit growth in the global apparel market. Understanding the range of forecasts helps avoid overreliance on overly optimistic or pessimistic projections.
Bangladesh Must Boost Value Addition
With domestic value addition hovering around 59%, Bangladesh needs to invest in upstream textile production such as spinning, weaving, dyeing, and finishing to improve margins and sustainability. Increased local fabric production could reduce import dependency and strengthen resilience.
Vietnam’s Rising Profile
Vietnam’s steady export growth and better upstream integration position it as a strong alternative or complement to Bangladesh, especially for fast fashion segments requiring agility and shorter lead times.
Tariff and Trade Policy Awareness
Recent tariff developments show that Bangladesh’s reduced US tariff (20%) levels the playing field with competitors. However, the approaching LDC graduation and its impact on EU market access remain critical considerations. Buyers and exporters must monitor evolving trade policies closely.
13. Emerging Exporters and Trade Policy Dynamics: The New Players and Shifting Rules
Ethiopia and Other Emerging Apparel Exporters
In recent years, countries like Ethiopia, Kenya, and Rwanda in East Africa have started to emerge as new apparel exporters, attracting attention due to low labour costs and improving infrastructure. Ethiopia, in particular, has invested heavily in industrial parks dedicated to textile and garment manufacturing, aiming to reach US $1 billion in apparel exports by 2026 (Ethiopian Ministry of Trade).
While still small in global scale, these emerging exporters offer buyers alternatives for diversification, often with access to EU’s Everything But Arms (EBA) scheme, allowing duty-free exports. However, challenges remain in infrastructure reliability, supply-chain maturity, and quality consistency.
Trade Policy Shifts: FTAs and LDC Graduation
Trade policies continue to shape sourcing economics decisively:
- LDC graduation impact for Bangladesh is a major consideration. With graduation expected in 2026, Bangladesh must negotiate new trade deals to maintain duty-free access or face tariffs in key markets like the EU.
- The Regional Comprehensive Economic Partnership (RCEP), which includes Vietnam but not Bangladesh or India, strengthens regional trade in Asia-Pacific and encourages intra-regional sourcing. Buyers sourcing from RCEP countries benefit from reduced tariffs and streamlined customs processes.
- Meanwhile, the EU is expanding sustainability requirements, such as due diligence laws that will require brands and importers to monitor labour and environmental practices throughout their supply chains by 2025–2026.
- The U.S. is also enhancing enforcement of trade rules and is considering changes to tariffs on garments from certain countries, making monitoring of trade policy critical for exporters and buyers alike.
14. Sustainability 2.0 — From Box-Ticking to Business Advantage
Sustainability has moved far beyond being just a compliance checkbox. In 2026, it is a decisive factor in winning contracts and commanding premium pricing, especially in key markets such as the EU, UK, and North America.
What is Changing?
Buyers now expect full transparency and verified proof of environmental and social performance from every supplier. This means moving past vague claims to hard evidence such as:
- Chain-of-custody certification for fibres (organic cotton, recycled polyester, etc.)
- Wastewater treatment and chemical management documentation
- Carbon and water footprint disclosures per shipment or SKU
This shift is driven by new regulations like the EU’s proposed Digital Product Passport and extended producer responsibility laws that hold brands accountable for the entire lifecycle of their products.
What Buyers Should Demand Now
- Mill-to-garment traceability: Request transactional records such as invoices from mills and dyehouses to verify fibre origins.
- Chemical management: Ensure your suppliers keep updated Restricted Substances Lists (RSL) and provide test certificates.
- Durability and repairability standards: For premium lines, require clear specifications on garment lifetime and repair policies.
What Suppliers Should Invest In
- Basic but effective wastewater treatment plants and documented chemical handling processes, which are becoming deal-breakers.
- Implementing simple traceability systems — even barcode batch tracking is better than none.
- Tracking energy and water use, with ballpark CO₂ emissions data ready for buyer queries.
Why This Matters: Sustainability-ready suppliers reduce buyer risk, build trust, and increasingly capture more business — turning compliance into a competitive edge.
15. Circularity — Designing for Second Lives
Circularity, or designing clothes with a second life in mind, is transitioning from a buzzword to practical sourcing reality. For 2026, buyers and suppliers can take simple but impactful steps toward circular systems.
Practical Circular Moves
- Mono-fibre capsules: Design collections with single-fibre composition (e.g., 100% recycled polyester or pure organic cotton) to simplify recycling streams.
- Modular design: Introduce replaceable components and clear repair instructions to extend garment lifespans.
- Pilot take-back programmes: Launch small direct-to-consumer (DTC) capsules with take-back logistics to test customer behaviour and recycling feasibility.
Supplier Actions
- Accurately document fibre blends and maintain separate inventory for mono-fibre batches.
- Explore partnerships with local recyclers or third parties for take-back and recycling solutions.
Benefits: Circular initiatives improve brand image, unlock retailer programmes, and can reduce regulatory burdens tied to waste management.
16. Digital Acceleration — 3D Sampling, PLM, and AI
Digital tools are revolutionising garment sourcing by cutting costs, speeding approval cycles, and reducing physical waste.
3D Sampling and Virtual Proofing
- Require a 3D digital prototype (via CLO, Browzwear, etc.) before physical samples. This cuts down sample runs and approval times.
- Conduct virtual fittings with buyer teams to finalise fit, drape, and measurements without waiting for physical garments.
Product Lifecycle Management (PLM)
- Use a centralised PLM system to keep specs, colours, trims, and tolerances in one place — avoiding costly miscommunications.
- Encourage suppliers to adopt PLM to synchronise workflows and maintain version control.
AI and Demand Sensing
- Pilot AI-driven forecasting tools on top SKUs to reduce overproduction and inventory waste.
- Use data-driven replenishment models to avoid stockouts or excess.
Starting Point: Ask your main suppliers if they can work from 3D files and have PLM capabilities. If not, consider digital readiness as a key sourcing criterion moving forward.
17. Nearshoring and Hybrid Sourcing — The Balanced Approach
Purely offshore or purely nearshore sourcing rarely meets all buyer needs. A hybrid model offers cost efficiency alongside speed and flexibility.
SKU Mapping for Sourcing
- High-volume basics: Offshore hubs like Bangladesh, Vietnam, and India remain best for scale and low unit costs.
- Fast replenishment SKUs: Nearshore partners in Turkey, Morocco, or Eastern Europe provide shorter lead times for seasonal or trend-driven products.
- Technical and small-batch: Specialist factories in Portugal, Italy, or advanced Asian suppliers handle high-tech finishes and niche orders.
How to Decide
Evaluate each SKU based on:
- Margin sensitivity: How price-driven is the product?
- Lead-time sensitivity: Does it need rapid replenishment?
- Risk sensitivity: How costly is a stockout or delay?
This matrix makes sourcing decisions clear and defensible.
18. Tech Textiles & Performance Wear — A Growth Frontier
Performance textiles (activewear, outdoor gear, medical apparel) are expanding fast, offering higher margins and differentiation opportunities.
Exporter Opportunities (Including Bangladesh)
- Invest in capabilities like durable water repellent (DWR) coatings, bonded seams, PU laminates, and seam sealing.
- Establish or partner with labs offering tests for water resistance, breathability, and abrasion.
- Explore medical textile niches where certifications and consistent quality win long-term contracts.
Buyer Tips
- Ask suppliers for recent test certificates.
- Request samples or case studies of technical products they’ve made.
- Check references with buyers in performance segments.
19. Long-Term Partnerships — Beyond Transactional Buying
Sourcing resilience grows from partnerships, not price wars.
Partnership Models
- Long-term framework agreements with flexible volume bands.
- Co-investment: Buyers fund upgrades (e.g., wastewater plants, dye lines) in exchange for pricing or capacity guarantees.
- Transparent costing: Sharing detailed cost breakdowns builds trust and smooths negotiations.
Contract Elements
- KPIs for quality and delivery, with monthly reviews.
- Shared sustainability investment plans.
- Flexible minimum order quantities (MOQs) for trend trials paired with reserved minimums.
20. Risks and Mitigation — Preparing for Known Challenges
Common Risks
- Port congestion: Especially at Chattogram, causing delays.
- Tariff shifts: Impact of Bangladesh’s LDC graduation and evolving trade agreements.
- Skills shortages: Technical processes require trained labour.
Mitigation Strategies
- Build buffer stocks and lead times, especially in risk periods.
- Use dual sourcing to spread risk.
- Invest in supplier training as part of multi-year plans.
Buyer Checklist — Practical Steps for 2026
- SKU Mapping: Categorise products by margin, lead time, and risk.
- Digital Adoption: Require 3D files and use PLM systems for specs.
- Sustainability Audit: Request verified mill invoices and chemical test reports.
- Circular Pilot: Launch mono-fibre capsules and take-back programmes.
- Nearshore Trials: Test nearshore sourcing for speed-critical SKUs.
- Technical Focus: Identify and develop 3 suppliers for performance textiles.
- Partnership Plans: Start framework agreements with co-investment clauses.
Final Thoughts — Why 2026 Is a Strategic Advantage Window
Regulatory pressures, consumer demands, and digital tools are converging. Buyers who move early to digitise, invest in sustainability, balance sourcing regions, and build partnerships will gain competitive edges in speed, margin, and reputation.
Bangladesh and other major hubs remain critical but must evolve alongside buyers’ needs.
