The global denim retail market is expected to rise by 4.9% in the next five years
Mar 27, 2019 ｜ by CT
Demand for the global denim market is growing steadily, especially in developing countries. The global denim retail market is expected to rise by 4.9% in the next five years.
Bangladesh has become a hot spot area of global denim export. Denim and diversified denim products are the main export products. Bangladesh is the second largest denim producer after China, and about 250 million denim products are exported to the U.S. and European markets every year. The average monthly production of denim fabrics is 73 million meters, which can meet the domestic demand of Bangladesh of 50% - 60%, and the insufficient denim fabrics need to be imported.
According to statistics from the Bangladesh Textile Mills Association (BTMA), there are currently 31 denim factories in Bangladesh, producing 400 million meters of denim fabric annually. In addition, there are about 400 denim production enterprises.
At present, the main global retailers of Bangladesh denim manufacturers are H&M, Uniqlo, Tesco, Walmart, Levi's, Diesel, Wrangler, G-Star, s. Oliver, Hugo Boss, Gap and so on.
Bangladesh is currently the third largest importer of denim products in the United States, accounting for 14.2% of the U.S. market share, after China and Mexico.
According to OTEXA data, from January to September 2018, Bangladesh grew by 14.2%, export earnings by 419 million US dollars, and earnings by 367 million US dollars in 2017; China grew by 13% and earned 683 million US dollars; Mexico grew by 1.08% and earned 595 million US dollars.
According to Eurostat data, from January to August 2018, Bangladeshi denim exports to Europe amounted to 917 million euros, an increase of 4.23% over the same period last year.
Reasons for Growth in Bangladesh: Improve the quality of products, China's labor costs continue to rise, Sino-US Textile Trade Friction, and some factories in China are closed due to environmental protection.
The Bangladeshi government has strengthened its investment in denim enterprises, but it is still unable to meet the full demand for denim fabrics and products. They are facing the challenges that is lack of raw materials, inadequate technological innovation, inefficient ports and lack of skilled workers at present. This is also a new opportunity for China.
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