Bangladesh experienced the steepest year-on-year decline in apparel exports to the European Union in May 2025 among key suppliers, despite maintaining its position as the bloc’s second-largest apparel source.

Export earnings fell to €1.43 billion in May, down 10.5 per cent from €1.59 billion in the same month of 2024, marking the country’s first monthly contraction this year, according to Eurostat data.

This drop contrasts with the robust growth seen earlier in the year, including a remarkable 60.8 per cent surge in January.

Analysts suggest that the decline may be due to inventory adjustments or a softening in demand for Bangladeshi garments across EU markets.

Despite the May setback, Bangladesh’s cumulative exports during the January–May 2025 period rose by 17.8 per cent to €8.97 billion, up from €7.61 billion in the same period a year earlier.

Knitwear remained the country’s leading product category, increasing 20.2 per cent to €5.18 billion, while woven exports grew by 14.9 per cent to €3.79 billion.

During this five-month stretch, Bangladesh also outperformed China in knitwear shipments to the EU.

In March, Bangladesh exported €1.16 billion worth of knitwear to the EU, compared to China’s €966 million.

The gap widened in April, with Bangladesh reaching over €1.06 billion against China’s €738 million.

Even as both countries saw a decline in May, Bangladesh remained ahead at €866 million, while China shipped approximately €751 million in knitwear.

China, the EU’s largest apparel supplier, continued its recovery, with total exports rising 17.1 per cent year-on-year to €9.04 billion in the January–May period. Knitwear exports led the growth, increasing by 24.3 per cent to €4.67 billion, while woven exports rose by 10.4 per cent to €4.37 billion.

India, meanwhile, posted the highest growth among top suppliers. Its apparel exports rose 19.1 per cent year-on-year to €2.38 billion in the first five months of 2025.

Knitwear exports grew by 24.1 per cent, surpassing €1 billion, while woven exports expanded by 15.2 per cent. This consistent monthly performance underscores India’s growing appeal as a diversified sourcing destination for EU buyers.

EU apparel imports overall showed a strong upward trend in the first five months of 2025. Total imports climbed 12.3 per cent to €36.82 billion, up from €32.79 billion in the same period of 2024. Knitwear imports increased by 14.7 per cent to €18.44 billion, while woven apparel grew by 10 per cent to €18.38 billion.

However, the monthly data reveals signs of market cooling. After a strong start to the year—marked by a 32.5 per cent rise in January and continued double-digit growth in February (14.7 per cent) and March (15.9 per cent)—import growth slowed sharply in April, rising just 1.6 per cent.

In May, imports declined 2.3 per cent year-on-year to €6.36 billion, down from €6.51 billion in May 2024, suggesting stabilisation or weakening in demand.

Among other major suppliers, Vietnam’s apparel exports to the EU increased 15.7 per cent to €1.69 billion during the January–May period.

Pakistan posted a 20 per cent rise in exports, reaching €1.63 billion, with knitwear and woven apparel growing by 20.5 per cent and 19.6 per cent respectively.

Cambodia saw the fastest growth, with exports soaring 30.3 per cent to €1.77 billion.

In contrast, Turkey was the only major supplier to register a decline in the first five months of the year.

Its apparel exports to the EU fell by 5.8 per cent to €3.59 billion, reflecting possible supply-side constraints or weakening demand for Turkish garments in the European market.