Bangladesh stays top denim supplier to Europe as growth returns in August

Bangladesh has retained its position as the top supplier in the European Union's denim market. In the first eight months of this year, the EU imported denim worth 869.13 million euros from Bangladesh, accounting for 29.40 percent of the market's total imports.

Yet despite holding the top spot, the picture is not entirely positive. The value of Bangladesh's denim exports to the EU fell 5.85 percent compared with the same period last year — more than the 4.40 percent decline in Europe's overall denim imports. Bangladesh's market share also slipped from 29.85 percent last year to 29.40 percent.

According to the figures, EU countries imported denim worth a total of 2,956.21 million euros from January to August, down from 3,092.27 million euros in the same period last year.

The encouraging news came in August, when EU denim imports from Bangladesh rose 12.71 percent to 134.08 million euros. Overall EU denim imports rose 11.23 percent in the same month, lifting Bangladesh's share in August to 31.17 percent, from 30.76 percent in August last year.

About 35 percent of the additional growth in the EU's total denim imports in August came from increased imports from Bangladesh. That one month of growth also reduced Bangladesh's overall rate of decline — from 8.59 percent at the end of July to 5.85 percent at the end of August.

Pakistan, in second place among supplier countries, accounted for 525.49 million euros of EU imports, while third-placed Turkey accounted for 438.25 million euros worth of denim.

Turkey's weakening position also affected overall imports: imports from Turkey fell 21.08 percent year-on-year, a drop of about 117 million euros. Imports also fell from Morocco by 14.48 percent, Pakistan by 7.88 percent, Cambodia by 6.47 percent and Tunisia by 6.44 percent.

Several countries, meanwhile, strengthened their position in the European market. Imports from Egypt rose 31.46 percent, or about 45 million euros; from China by 17.70 percent, or about 30 million euros; and from Vietnam by 45.38 percent, worth about 17 million euros.

The analysis suggests Bangladesh could not fully exploit the opportunity created by Turkey's reduced supply, while competitors such as Egypt, China and Vietnam increased their supplies to the European market.

To hold the top position in the long term, Bangladesh needs to raise its competitiveness — relying not only on production capacity and comparatively low prices, but also on faster delivery, design and production flexibility to match buyer demand, and the ability to deliver orders on schedule.

Countries geographically closer to Europe can enjoy the advantage of faster delivery, so adapting quickly to changing European buyer demand would increase Bangladesh's chances of winning new orders.

Overall, August's growth points to a possible turnaround in denim demand in the European market. It remains to be seen whether this pace continues in the coming months, and whether Bangladesh can expand its market share alongside holding the top spot.