Bangladesh has the potential to increase its woolen sweater exports to $1 billion by 2030, up from the current $100 million, as the global market for such items is expanding rapidly due to product diversity, according to Mostafa Q Sobhan, Managing Director of Dragon Group.

The rising use of woolen yarn worldwide is driving this growth, thanks to the production of diversified yarn from wool. Sobhan highlighted this trend during a discussion with two Uruguayan wool exporters at Pan Pacific Sonargaon in Dhaka.

Currently, the global market for woolen garments is valued at nearly $20 billion annually and is predicted to grow at a rate of 5.5 percent each year. If these predictions hold true, the market could reach nearly $30 billion by 2027.

In the global markets, China, Turkey, Italy, Vietnam, and the UK are leading exporters of woolen wear. Meanwhile, Uruguay, one of South America’s largest wool processors, primarily exports to European markets and China. Sobhan, who is also the honorary consul of Uruguay to Bangladesh, underscored Uruguay’s significant role in the wool supply chain.

Bangladesh’s spinning mills have a significant capacity to produce cotton yarns and other manmade yarns such as acrylic and viscose. Sobhan suggested that blending wool with cotton, acrylic, and viscose would enhance return on investment and add value to Bangladesh’s product offerings.

Wool, being a premium fibre, can help Bangladesh achieve higher export value and create opportunities for local garment makers. This, in turn, could attract high-end brands and retailers to consider Bangladesh as a potential supplier of woollen wears.

Improving the visa processing system for South American countries, including Uruguay, would benefit Bangladeshi entrepreneurs. This could enhance access to natural resources like wool and open markets with over 500 million people, according to Masudul Alam, Director General of the foreign ministry.

During their visit, the Uruguayan delegation, which met with top representatives of Labib Group, Union Group, and TK Group, found numerous positive aspects for mutual collaboration. Such collaboration could significantly boost Bangladesh’s woolen-wear exports.

Moreover, the Uruguayan delegates expressed their willingness to provide comprehensive cooperation to foster the potential of wool processing in Bangladesh. Gustavo Blanco, Director of Lanastrinidad Uruguay, emphasized that Uruguay can ship any quantity of sustainable woolen tops made from sheep wool, merino wool, alpaca, and cashmere to Bangladesh within 55 days.

Source: The Daily Star