Bangladesh’s position in the European Union’s apparel export market has weakened significantly in early 2026. According to Eurostat data, from January to May 2026, Bangladesh recorded the steepest decline among the EU’s top ten garment suppliers. The country’s apparel exports to the EU fell by 18.89 percent to 7.28 billion euros, with export volume down 10.46 percent and average unit price dropping 9.41 percent. In May alone, export earnings declined 17.12 percent, reflecting both lower demand and falling prices.

The overall EU apparel import market contracted by 9.96 percent year-on-year to 33.84 billion euros, driven by a 6.46 percent drop in import volume and a 3.74 percent fall in average prices. While Bangladesh suffered the most, competitors such as China and Vietnam showed more resilience. China’s export value fell only 4.20 percent while its shipment volume rose 1.96 percent, and Vietnam maintained higher income through increased unit prices.

Analysts cited in the report view Bangladesh’s simultaneous decline in both export volume and price as a sign of deeper structural challenges in competitiveness, product diversification, and market strategy. They warned that prolonged weakness in the EU market could negatively affect the country’s overall economy unless efficiency and product value are improved.