Bangladesh’s apparel exporters are facing renewed pricing pressure in their largest export destination, the European Union, as average unit prices declined by nearly 4% in 2025 amid weak consumer demand and intensified competition from rival suppliers.
According to Eurostat data analyzed by the Bangladesh Apparel Exchange, EU apparel imports increased by 2.10% to €90 billion last year. The growth was driven primarily by a 13.78% rise in import volumes, while average unit prices dropped sharply by 10.27%, indicating a price-driven market adjustment.
In this challenging environment, Bangladesh’s apparel exports to the EU rose 6% year-on-year to €19.41 billion from €18.32 billion in 2024. However, unit prices declined by 3.84% as shipment volumes grew faster than export value. In December alone, unit prices fell by 12% compared to the same month a year earlier.
Industry insiders attribute the price erosion to subdued European demand and a redirection of exports toward Europe due to higher tariff barriers in the United States. Fazlul Haque, Managing Director of Plummy Fashions, said demand in Europe has remained sluggish, while exporters such as China are diverting shipments from the US market to Europe to offset losses caused by elevated US tariffs. “As a result, prices are falling, and we are also forced to sell at lower prices,” he said.
China’s apparel exports to the EU increased by 1.17% in value to €26.58 billion, despite a 9.38% decline in unit prices. Mohammad Abdur Razzaque, Chairman of Research and Policy Integration for Development (RAPID), noted that economic pressures in several European countries have restrained demand growth. At the same time, shifting trade flows triggered by US tariff measures are intensifying competition in the EU market.
He cautioned that while prices may see a short-term recovery, medium-term pressure could persist as India and Vietnam benefit from zero-tariff access under EU free trade agreements. Eurostat data shows that unit prices declined for most major exporting countries except Vietnam, whose exports to the EU rose by 10%, accompanied by a 4.51% increase in unit prices.
Europe accounts for nearly half of Bangladesh’s total apparel exports. In FY2024–25, the country exported approximately $40 billion worth of ready-made garments to global markets, underlining the critical importance of price stability and competitiveness in the EU market for the sector’s overall performance.
