Bangladesh suffered the largest decline among major apparel-exporting nations supplying the European Union during the first four months of 2026, as weakening demand and intensifying competition reshaped sourcing patterns in the bloc’s garment market.

According to data released by Eurostat, the statistical office of the European Union, on June 15, total EU apparel imports fell by 10.4 per cent year-on-year between January and April, declining from approximately €31 billion to €27.8 billion.

However, Bangladesh’s exports contracted at nearly twice the market rate, resulting in a sharp loss of market share and raising concerns about the competitiveness of the country’s largest export industry.

During the January-April period, Bangladesh exported apparel worth €6.09 billion to the EU, down from €7.55 billion in the corresponding period of 2025. The decline of €1.47 billion represented a contraction of 19.4 per cent.

As a consequence, Bangladesh’s share of total EU apparel imports fell from 24.4 per cent to 21.9 per cent, marking the largest market-share loss among the bloc’s leading suppliers.

The country remained the EU’s second-largest apparel source after China, but the gap between the two suppliers widened considerably during the period.

The decline was evident across both major product categories. Knitwear exports dropped by 20.1 per cent to €3.45 billion from €4.32 billion a year earlier, while woven garment shipments fell by 18.4 per cent to €2.64 billion from €3.23 billion.

Industry observers said that Bangladesh alone accounted for nearly half of the total decline in EU apparel imports during the first four months of the year.

China, by contrast, strengthened its position despite the broader market slowdown.

Chinese apparel exports to the EU fell by only 4.6 per cent, from €8.34 billion to €7.95 billion.

Because the decline was significantly smaller than the overall market contraction, China’s share of EU apparel imports increased from 26.9 per cent to 28.6 per cent.

Vietnam emerged as the strongest-performing major supplier in the European market.

The country’s apparel exports remained virtually unchanged, declining by just 0.7 per cent from €1.38 billion to €1.37 billion.

More notably, Vietnamese knitwear exports rose by 2.3 per cent during the period.

As competitors lost ground, Vietnam expanded its share of EU apparel imports from 4.4 per cent to 4.9 per cent.

Turkey, traditionally regarded as one of Europe’s most strategically located sourcing hubs, also experienced a significant setback.

Apparel exports to the EU declined by 16.9 per cent to €2.42 billion from €2.90 billion in the previous year. Knitwear shipments fell by 17.4 per cent while woven garment exports declined by 16.2 per cent.

Turkey’s share of EU apparel imports dropped from 9.4 per cent to 8.7 per cent despite the country’s geographical proximity to European markets and relatively short delivery times.

The figures suggested that near-shoring advantages alone were insufficient to offset weak demand and heightened competition.

India demonstrated comparatively stable performance. Its apparel exports to the EU fell by 12.1 per cent, broadly in line with the overall market contraction, declining from €1.87 billion to €1.64 billion.

Knitwear exports decreased by 13.2 per cent while woven garments fell by 11.1 per cent.

Although export earnings declined, India’s market share remained largely unchanged at around six per cent, indicating that Indian suppliers were able to maintain their competitive position despite softer European demand.

Pakistan recorded one of the sharpest contractions among major suppliers. Apparel exports to the EU fell by 17.9 per cent to €1.09 billion from €1.33 billion.

The country’s knitwear sector was particularly affected, with exports declining by 22.1 per cent, while woven garments fell by 14.2 per cent.

Pakistan’s market share slipped from 4.3 per cent to 3.9 per cent, reflecting broad-based weakness across its apparel industry.

Cambodia experienced a mixed performance. Overall apparel exports declined by 12.1 per cent to €1.28 billion from €1.45 billion.

However, the decline was uneven across product categories. Knitwear exports fell by 15.8 per cent, while woven garments declined by a more moderate 8.1 per cent.

Despite lower export earnings, Cambodia largely maintained its position in the European market, with its share of EU apparel imports edging down only slightly from 4.7 per cent to 4.6 per cent.

The latest data revealed a shifting competitive landscape within the global apparel trade.

China and Vietnam emerged as the principal beneficiaries of changing sourcing patterns, both increasing their market share despite the downturn in overall demand.

Their ability to maintain or improve their position suggested that European buyers were increasingly favouring suppliers capable of offering greater reliability, product diversity, manufacturing flexibility and supply-chain resilience.

Bangladesh, meanwhile, experienced the steepest decline in both export value and market share among the major apparel-exporting nations.

The country’s exports contracted almost twice as fast as the overall EU market, prompting concerns that buyers might be diversifying sourcing away from traditional suppliers or placing greater emphasis on speed, innovation and value-added manufacturing.

The figures come at a time when Bangladesh’s garment sector is already facing rising production costs, higher wages, sustainability-related investments and increasing compliance requirements from international brands.

Combined with weaker consumer spending across Europe, these factors have created a challenging environment for exporters.

Industry stakeholders are expected to monitor export trends closely over the coming months to determine whether the decline represents a temporary correction linked to subdued European demand or a more fundamental shift in sourcing strategies.

For Bangladesh, the data serve as a warning that maintaining competitiveness in its most important export market will require greater focus on product diversification, productivity improvements, innovation and supply-chain responsiveness as global competition intensifies.