Bangladesh stays ahead of China in US apparel race
According to the latest Office of Textiles and Apparel (OTEXA) data, Bangladesh exported $4.66 billion worth of apparel to the US during the period, down 6.50% year over year. China’s exports fell 34.21% to $4.55 billion, putting Bangladesh $110 million ahead.
The shift is notable because Bangladesh did not gain the position through export growth. China’s faster decline created the gap. Bangladesh first moved ahead of China in January-February 2026, and the latest seven-month data shows that it has maintained the position.
The wider US apparel market also contracted. Total apparel imports fell 8.65% year over year to $41.83 billion during January-July, according to OTEXA.
Sourcing is shifting beyond Bangladesh
The data shows that China’s lost business is being distributed across several competing suppliers rather than moving directly to Bangladesh.
This makes the competitive picture clear. US buyers are diversifying sourcing, but Bangladesh is not the only beneficiary. Vietnam is protecting its dominant position, while Cambodia and Indonesia are gaining share in a shrinking market.
Volume and price show different pressures
Bangladesh’s apparel shipment volume to the US declined 4.34% during January-July, compared with a 24.17% fall for China.
The difference becomes sharper when prices are considered. Bangladesh’s average unit price declined 2.26%, while China’s fell 13.24%.
China is therefore facing pressure from both lower volumes and lower prices. Bangladesh has shown greater price stability, even though its shipment volume has also declined.
Vietnam, Indonesia and Cambodia recorded increases in unit prices. Their performance suggests that gaining US business is not solely a matter of offering lower prices. Product mix and the ability to supply categories with stronger value are also becoming important.
July signals continued demand pressure
Bangladesh’s apparel exports to the US fell 10.73% in July alone, according to OTEXA. The monthly decline indicates that retaining the No. 2 position does not mean demand has recovered.
In fact, Bangladesh’s exports were about $324 million lower than the estimated January-July 2025 level, while China’s were about $2.37 billion lower.
The contrast is important. China has lost far more business, but Bangladesh has not captured the equivalent value.
For Bangladesh, the opportunity therefore lies beyond replacing China in the ranking. The country needs to capture a larger share of the orders being redistributed across the US sourcing base.
Expanding man-made-fiber and higher-value apparel, improving lead times and increasing supply-chain flexibility could help convert the current sourcing shift into sustainable growth.
The latest OTEXA data shows that Bangladesh has secured an important position. The next challenge is turning that position into stronger export value.
