International clothing retailers and brands are showing increasing optimism toward denim products manufactured in Bangladesh, citing promising business prospects. Many are expanding their operations or establishing new offices in the country, encouraged by growing responses from local manufacturers. The rebound of the global supply chain from the impacts of COVID-19 and the Russia-Ukraine war further adds to this optimism.

At the recently ended Bangladesh Denim Expo in Dhaka, stakeholders expressed confidence in Bangladesh’s denim sector. European retailers, preferring anonymity, have increased sourcing from Bangladesh due to its expanding production capacity and redirecting orders from Myanmar amidst political turmoil. Confidence in Bangladesh’s denim sector is notably high among international retailers.

Chemical traders are also thriving as local dyers and washers import significant amounts of chemicals. Italian and Bangladeshi chemical companies report growing demand, attributing it to factors like low prices, better quality, and increased production capacity. Local millers are adopting new technologies to reduce water consumption in manufacturing processes, enhancing sustainability. Currently, many denim millers use seven to eight liters of water to wash a kilogram of fabric, a significant reduction from the nearly 350 liters needed in the past.

Spanish equipment manufacturers are experiencing growth in Bangladesh, as local denim makers embrace new technologies to meet rising demand. Bangladesh, already the top denim supplier to the EU and the US, is positioned to capitalize on the growing global denim market, projected to reach $76.1 billion by 2026.

Despite being the top denim exporter to the EU since 2017, prices for denim remain low in Bangladesh. However, the country’s capacity and market preference indicate significant potential for growth. Local entrepreneurs have invested heavily in the denim segment, with 42 modern mills capable of supplying over 900 million meters of denim fabrics annually. This investment aims to capture a larger share of the global denim market, currently valued at $64.5 billion.

Source: The Daily Star