Bangladesh retained its position as the European Union’s largest denim supplier in the first eight months of 2026, with exports showing signs of recovery in August after a prolonged slowdown in the key market.
The country’s denim exports to the EU rose 12.71 percent year-on-year to €134.1 million in August, exceeding the 11.23 percent growth in the bloc’s overall denim imports during the month, according to EU data.
However, shipments from Bangladesh during January-August fell 5.85 percent year-on-year to €869.1 million, slightly underperforming the overall market, where denim imports declined 4.40 percent to €2.96 billion.
Despite the decline, Bangladesh accounted for 29.40 percent of the EU’s total denim imports during the eight-month period, well ahead of its closest competitors, Pakistan and Türkiye.
Pakistan supplied denim worth €525.4 million, while Türkiye’s exports stood at €438.2 million during the period.
Bangladesh’s market share slipped from 29.85 percent a year earlier, but its performance in August offered a positive signal for the country’s denim industry.
The country’s share of the EU market rose to 31.17 percent in August, up from 30.76 percent a year earlier. The strong monthly performance also helped narrow the cumulative export decline from 8.59 percent in January-July to 5.85 percent in January-August.
The EU’s total denim imports reached €430.1 million in August, marking a turnaround after a contraction during much of the year.
Mohiuddin Rubel, managing director of BAV and a former director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said Bangladesh continued to perform strongly in the European and US denim markets despite the challenging global environment.
“Bangladesh has retained nearly 30 percent of the European denim market and remains in the top position, which is a very positive sign,” he said.
He said the sector had shown some improvement over the past one to two months despite various challenges.
The performance of competing suppliers, however, indicates that Bangladesh has yet to fully capitalise on shifts in the European market.
Türkiye suffered the steepest decline among major suppliers, with its exports to the EU falling by €117 million, or 21.08 percent, during January-August. Shipments from Morocco dropped 14.48 percent, Pakistan 7.88 percent, Cambodia 6.47 percent and Tunisia 6.44 percent.
In contrast, denim imports from Egypt rose 31.46 percent, China 17.70 percent and Vietnam 45.38 percent, highlighting intensifying competition in the market.
Although Bangladesh outperformed several traditional rivals, it could not capture a substantial share of the market lost by Türkiye.
Rubel said upgrading product quality and technological capabilities would be crucial to sustaining growth and expanding exports.
“If the industry can maintain its capacity while moving towards higher-value denim and improving technological capabilities, Bangladesh’s denim exports can increase further,” he said.
He added that rising demand for higher-quality products in international markets could create new opportunities for Bangladeshi manufacturers.
Rubel also cautioned that domestic challenges, particularly energy shortages and political instability, could weigh on the sector’s prospects.
He said the industry’s recent improvement could gather momentum if these constraints did not intensify.