Global consumption of denim fabric increased at a compound annual growth rate of 4.77 percent between 2012 and 2016 because of a significant rise in its uses, indicating a brighter future for Bangladesh, says a global market research firm.
The consumption was 6,618.1 million metres in 2016 against 5,493.7 million metres in 2012, said the firm, Market Insights Reports, in a report launched of late.
Globally the denim fabric market was mainly driven by growing demand for clothing, household items and many other fields, it said.
In 2016, the market was led by China, India, Europe and North America. At present, the major manufacturers of denim fabric are concentrated in China and India.
“It is true that the uses of denim fabrics increased manifold. We are not suffering from crisis of work orders but from low prices,” said Kutubuddin Ahmed, chairman of Envoy Textiles, which produces 4.5 million yards of the fabric per month.
Two years ago Ahmed used to produce three million yards and increased the output to cope with demand.
“Like me, many other domestic producers also increased their production capacity. So, there are many suppliers in the market and prices are going down,” he said.
Sayeed Ahmad Chowdhury, general manager of Square Denims, echoed Ahmed. His company produces 2.5 million yards per month.
“The uses of denim products increased as the fabric is used for many purposes like for household usage, apart from traditional trousers and shirt-making,” he said.
“Now denim fabric is used for almost all fashions both for male and female customers,” Chowdhury told The Daily Star over the phone yesterday.
With the change of fashion worldwide, denim fabrics is used for making jackets as well, he said.
Fully booked with work orders, Square Denims is under pressure to go for more production due to higher demand from buyers, added Chowdhury.
The sales of the global denim fabric market are predicted to reach 9,130.1 million metres in 2023, with a CAGR of 4.7 percent, Market Insights Reports said.
The global denim fabric market was valued at $19.70 billion in 2018 and will reach $25.40 billion by 2025, growing at a CAGR of 3.2 percent.
The report was based on a study, whose objectives were to define, segment and project the size of the denim fabric market based on company, product type, end user and key regions.
The report studied the global market size of denim fabric in key regions like North America, Europe, Asia-Pacific, Central and South America and the Middle East and Africa alongside focusing on their consumption.
Currently, Bangladesh has 30 denim mills with a capacity to produce 150 million yards of fabric a month.
Local suppliers can meet only 40 percent of Bangladesh’s annual demand for denim fabric and the rest is met through imports from China, India and Pakistan. Last fiscal year, Bangladesh exported denim goods worth $3 billion.
Bangladeshi entrepreneurs supply denim products to major global retailers, including Levi’s, Diesel, G-Star RAW, H&M, Uniqlo, Tesco, Wrangler, s.Oliver, Hugo Boss, Walmart and Gap.