Global retailers upbeat about Bangladesh’s denim

International clothing retailers and brands are optimistic about denim products made in Bangladesh due to their promising business prospects.

These companies are either expanding their existing businesses or establishing new offices in Bangladesh, as the response from local manufacturers is growing.

The global supply chain of denim and garments has been rebounding from the severe impact of Covid-19 and the Russia-Ukraine war.

Additionally, traders of chemical products are thriving here as local dyers and washers are importing a significant amount of chemicals from them.

These views were expressed at the two-day Bangladesh Denim Expo that began at the International Convention City Bashundhara in Dhaka today.

Photo: Star

Monowar Shikder, director of sales and marketing at Soko Chemicals, an Italian company, said they have been selling washing chemicals to Bangladesh denim makers for the past 17 years, and the demand has been growing.

He also said his business has grown by 20 percent over the last few years and he anticipates further growth in 2024.

Muhammad Wahidul Alam, general manager of RNT (BD) Ltd, another chemical company, said the denim market in Bangladesh is growing because of three factors: low price, better quality, and high production capacity.

Local millers are adopting new washing and dyeing technologies to reduce water consumption in the manufacturing processes. For instance, many denim millers now use seven to eight litres of water to wash a kilogramme of fabric, a significant reduction from nearly 350 litres needed in the past.

Carmina Ferri, founder and CEO of Care Applications, a Spanish device and equipment manufacturing company, said her business has been growing as Bangladeshi denim makers are using new devices and technologies to meet the increasing demand.

"The response from local millers has been very positive," she said.

Bangladesh has conquered the global denim market by becoming the top supplier of the popular garment item to both the EU and US, with local investors continuing to pour in funds to capitalise on further growth in global markets.

Bangladesh has been the top denim exporter to the EU since 2017, with one out of three people in the continent donning denim pants produced in the country.

Given that worldwide demand is growing, businesses are looking to enhance their capacity in order to grab a bigger slice of the $64.5 billion global denim market. Local exporters currently supply denim products worth nearly $5 billion worldwide.

The global denim market is projected to rise to $76.1 billion by 2026, growing at a rate of 4.8 percent annually, according to various estimates.

As such, local entrepreneurs have invested nearly Tk 25,000 crore in the denim segment of the primary textile sector, which already has 42 modern mills capable of supplying over 900 million metres of denim fabrics each year.

Currently, Bangladesh's 40 mills can produce 80 million yards of denim fabrics a month and the investment in the sector is Tk 16,000 crore so far.