Bangladesh holds no. 2 position in US apparel market despite export decline

Bangladesh retained its position as the second-largest apparel supplier to the United States during the first five months of 2026, despite an 8.1% year-on-year decline in garment exports to US$3.25 billion, according to data from the US Office of Textiles and Apparel (OTEXA).
The overall US apparel import market contracted by 9.3% during the January–May period, while Vietnam strengthened its lead as the largest supplier with exports rising 1.5% to US$6.39 billion. Meanwhile, China’s shipments to the US plunged 42.8% to US$2.80 billion, reflecting the continued impact of US tariffs and global sourcing diversification.
Although Bangladesh maintained its market position, the data indicate that the country has yet to secure a significant share of orders shifting away from China. Competitors such as Cambodia and Indonesia posted stronger export growth of 14.9% and 5.5%, respectively.
There was, however, a positive sign in May, when Bangladesh’s apparel exports to the US increased 6%, outperforming the 2.8% growth in total US apparel imports, suggesting improving demand after a slow start to the year.
In volume terms, Bangladesh exported 1.09 billion square metre equivalents (SME) during January–May, down 6.2%, while the average unit price edged down 2% to US$2.99 per SME, indicating exporters largely maintained pricing despite softer demand.
The latest figures highlight Bangladesh’s continued importance in the US apparel market but also underscore the need to enhance competitiveness and capture a larger share of global sourcing shifts as international buyers continue diversifying away from China.
