Key Insights
Essential data points from our research
The garment industry accounts for approximately 84% of Bangladesh's total export earnings
There are over 4,000 garment factories in Bangladesh
Bangladesh is the second-largest apparel exporter in the world after China
The industry employs over 4 million workers
Around 60% of the garment workforce in Bangladesh are women
Exports of ready-made garments (RMG) totaled $45.7 billion in FY 2022-23
Knitwear exports accounted for $25.73 billion of total garment exports in FY 2022-23
Woven garment exports totaled $19.98 billion in FY 2022-23
The RMG sector comprises 83% of national export earnings
USA is one of the top destinations for Bangladeshi garments, importing $9.75 billion in 2022
European Union accounts for over 50% of Bangladesh’s RMG exports
Garment workers in Bangladesh earn an average minimum wage of $95 per month (as of December 2023)
Bangladesh’s apparel industry contributes about 11% to national GDP
Employment and Workforce Demographics
- The industry employs over 4 million workers
- Around 60% of the garment workforce in Bangladesh are women
- Garment workers in Bangladesh earn an average minimum wage of $95 per month (as of December 2023)
- Over 92% of Bangladesh’s total textile and garment workforce are employed in small to medium-sized factories
- Over 300,000 managers and workers in the RMG sector were trained in fire and building safety by 2020
- Garment sector accounts for 38% of manufacturing employment
- 2% of RMG factories are owned by women entrepreneurs
- The sector faces a shortage of 250,000 skilled workers annually
- Up to 80% of garment workers lack formal job contracts
- Bangladesh's RMG sector has a 12.3% female ratio in mid- to senior-level managerial roles
- Average hourly wage of a garment worker is below $1 in Bangladesh
- Woven garments contribute about 63% of total employment in RMG factories
Interpretation
In an industry powered by over 4 million workers—most of them women—who stitch the global fashion narrative for less than a dollar an hour, Bangladesh’s garment sector is both an economic backbone and a tight seam away from unraveling under the weight of inequality, informality, and a pressing skills gap.
Export Performance and Trade Partners
- The garment industry accounts for approximately 84% of Bangladesh's total export earnings
- Bangladesh is the second-largest apparel exporter in the world after China
- Exports of ready-made garments (RMG) totaled $45.7 billion in FY 2022-23
- Knitwear exports accounted for $25.73 billion of total garment exports in FY 2022-23
- Woven garment exports totaled $19.98 billion in FY 2022-23
- The RMG sector comprises 83% of national export earnings
- USA is one of the top destinations for Bangladeshi garments, importing $9.75 billion in 2022
- European Union accounts for over 50% of Bangladesh’s RMG exports
- Bangladesh exports garments to over 160 countries
- Germany imports $6.4 billion worth of apparel from Bangladesh
- Bangladesh’s RMG exports to Canada crossed $1.72 billion in 2022
- Over 85% of RMG exports are reported to be under the GSP or duty-free schemes
- Bangladesh exported garments worth over $40 billion in FY 2021-22
- Bangladesh is targeting $100 billion in garment exports by 2030
- China provides 49% of Bangladesh’s woven fabric imports
- The average export value per garment piece is about $3.5
- Over 170 countries import garments from Bangladesh
- Bangladesh lost $6 billion in RMG export orders during COVID-19 lockdowns
- Bangladesh exported garments worth $1.2 billion under the UK’s GSP rules in 2022
- Exports to non-traditional markets contributed $7.64 billion in FY 2022-23
- Bangladesh garment exports to Japan reached $1.42 billion in FY 2021-22
- The country exports garments primarily made of cotton (74%)
- Port congestion causes delays of 10–12 days in shipping exported RMG
- Bangladesh’s apparel exports to India reached $950 million in FY 2022-23
- Export earnings from RMG increased by 14.67% in FY 2021–22
- RMG exports to Russia declined by over 20% in 2022 due to the Ukraine war
Interpretation
With nearly every stitch sewn into shirts from Berlin to Boston, Bangladesh’s garment industry isn’t just a global fashion powerhouse—it’s the economic lifeblood of a nation betting $100 billion on cotton, containers, and connections by 2030.
Financial Inclusion and Worker Benefits
- 7% of garment workers have bank accounts
- The Bangladesh RMG sector benefited from over $12 billion in government stimulus after COVID-19
Interpretation
Despite receiving over $12 billion in COVID-era government stimulus, the Bangladesh garment industry has stitched prosperity for factories while leaving 93% of its workers without so much as a bank account to show for it.
Foreign Investment and Growth Initiatives
- The sector's growth rate averaged 6–8% annually over the past decade
- The RMG industry recovered from COVID-19 shock with a 35% growth in FY 2021-22
- Over 500 factories have been certified as green by the US Green Building Council (LEED)
- 13 of the world's top 20 green garment factories are in Bangladesh
- Bangladesh has the highest number of LEED-certified green garment factories in the world
- Fire and building safety standards were enforced in over 1,600 garment factories by Accord and Alliance initiatives
Interpretation
From resilient post-pandemic growth to leading the world in eco-friendly factories, Bangladesh’s garment industry is not just stitching shirts—it’s tailoring a sustainable and safety-conscious blueprint for global manufacturing.
Industry Size and Structure
- There are over 4,000 garment factories in Bangladesh
- Bangladesh’s apparel industry contributes about 11% to national GDP
- 95% of factories in the export-oriented garments industry are located in Dhaka, Gazipur, Narayanganj, and Chittagong
- Garment sector consumes around 1,500 million liters of groundwater daily
- Industry’s energy demand is about 1,000 MW
- Over 7,000 liters of water are used to produce one pair of jeans in the garment industry
- Over 90% of garments are made using imported raw materials, especially cotton
- Around 1,500 textile dyeing factories are operating across the country
- 80% of textile dyes used in the industry are azo dyes, harmful for the environment
- Garment sector productivity is 77% lower than in China
- 500 million meters of woven fabric are locally produced versus an annual demand of 6 billion meters
- Only 10% of synthetic fabric is produced locally
- Bangladesh’s RMG recycling potential is estimated at $5 billion per year
- Textile waste in Bangladesh is estimated at 400,000 tons annually
- 30% of orders are sourced from buying houses based in Dhaka
- Around 29% of greenhouse gas emissions from Bangladesh’s manufacturing sector come from textiles
- Only 10–15% of garment factories have effluent treatment plants that function properly
- RMG production capacity is about 8 billion pieces annually
- 70% of RMG factory owners are registered with BGMEA
- Around 80% of factories in the RMG sector now comply with international fire and building codes
- Local value addition in knitwear sub-sector stands at about 75%
- Bangladesh's textile industry is the second-largest water polluter after agriculture
- Wastewater from the textile industry pollutes four major rivers near Dhaka
- Bangladesh is among the least mechanized garment-producing countries
- Bangladesh imported 9 million tons of raw cotton in 2022
- Over 200 export-oriented garment factories have shut down since 2020
Interpretation
Bangladesh’s booming garment industry may stitch together 11% of the national GDP and billions in exports, but beneath the seams lies a patchwork of unsustainable water use, imported raw materials, environmental neglect, and productivity gaps that threaten to unravel its long-term viability.