Highlights:
Bangladesh retained its position as the second-largest apparel supplier to the United States in the first five months of 2026, despite a dip in shipments, as American buyers continued to pivot away from China, official data showed.
According to the US Office of Textiles and Apparel (OTEXA), Bangladesh's garment exports to the US fell 8.1% year-on-year to $3.25 billion during the January-May period. However, the drop outperformed the overall US apparel import market, which contracted by 9.3%.
Vietnam extended its lead as the top supplier to the US, with exports rising 1.5% to $6.39 billion. Meanwhile, shipments from China plunged 42.8% to $2.80 billion, signaling an accelerating shift in global retail supply chains driven by US tariffs and diversification strategies. In volume terms, China's shipments sank nearly 30%.
Indonesia and Cambodia were among the biggest beneficiaries, recording growth of 5.5% and 14.9%, respectively, while India's shipments dropped 26.4%.
Although Bangladesh maintained its market ranking, the figures indicate the country has yet to capture a significant share of the orders shifting away from China, with regional competitors expanding faster.
The latest monthly data, however, showed a more encouraging sign. Bangladesh's exports to the US increased 6.0% in May from a year earlier, compared with a 2.8% rise in total US apparel imports, indicating demand may be recovering after a weak start to the year.
In volume terms, Bangladesh shipped 1.09 billion square metre equivalents (SME) during the January-May period, down 6.2%, while its average unit price slipped 2% to $2.99 per SME, suggesting exporters largely maintained pricing amid softer demand.
China suffered a dramatic collapse, both in value and volume. China saw nearly a 43% drop in value and nearly 30% in volume as the country continues to lose market share rapidly, largely because of US tariffs and sourcing diversification.
Indonesia rose as a big challenger as the country recorded 5.49% growth in value and over 13% in volume. While Cambodia emerged as the fastest-growing apparel exporter to the US as the country achieved nearly 15% in value growth and over 18% in volume growth.
Price comparison:
Bangladesh's garment export prices to the US market remained stable despite weaker demand, hinting exporters largely avoided deep discounting to retain orders.
The average unit price of Bangladesh-made apparel slipped 2% year-on-year to $2.99 per square metre equivalent (SME) during January-May 2026, compared with the global average of $3.14.
OTEXA data shows Bangladesh continued to command higher prices than China ($1.43), Pakistan ($2.59) and Cambodia ($2.91), but trailed Vietnam ($3.39), India ($3.41), Honduras ($3.64), Indonesia ($3.77) and Mexico ($4.45).
China recorded the lowest unit value among major suppliers, reflecting its focus on lower-priced, high-volume products, while Mexico maintained the highest average price, supported by its proximity to the US market and a greater share of value-added apparel. Bangladesh's relatively stable pricing indicates that the decline in exports was driven more by lower shipment volumes than by price erosion.
US apparel market / China / Bangladesh
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