The Bangladesh apparel market will grow by more than 14 percent annually over the next four years, according to a market research.
The study said apparel products in Bangladesh would see a compound annual growth rate, or CAGR, of 14.3 percent to 2014 driven by an expansion in apparel manufacturing capacity amid increasing export orders.
The research was carried out by RNCOS, an India based market research and information analysis company with a global presence, and the findings were released on Friday.
The study identified Bangladesh's low-cost manpower, competitive energy cost and a proven track record in production and exports as an edge over other competing countries like China, India, Vietnam and Thailand.
CAGR means the year-over-year growth rate of an investment over a specified period of time.
The study revealed that factors, such as new plant set-ups, capacity expansion in the existing ones along with favourable policies by the government, will enable the industry to register an impressive 14.3 percent CAGR during fiscal years 2011-14.
The report acknowledged that availability of cheap manpower and low energy costs have propelled apparel production in the country and positioned Bangladesh as a competitive exporter of the apparel items in the global trade arena.
The country's export leadership is evident from the fact that the country ranked fourth in exports followed by China, EU-27 countries, and Turkey in 2009," said RNCOS in its report.
The major export segments -- knitwear, woven wear and sweaters -- have registered stupendous export growth during the past few years and it is anticipated that in the coming years, the export growth will further intensify, said the report.
"The impact of improving buying power is quite visible on the domestic market as consumers are now buying branded apparels and spending a considerable part of their disposable income on textile and clothing," it added.
Bangladesh's apparel industry has grown manifold in the last decade. The country's recognition as low-cost and high-quality apparel production base resulted in apparel production boom. Both small and large-sized firms have been booking huge orders from the US and EU buyers and expanding their production capacities.
Latest export data also show that the apparel sector in Bangladesh is booming.
Bangladesh has exported a total of $16.2 billion worth of goods and services in the first nine months till March of the current fiscal year, of which, over $12.5 billion came from knitwear and woven exports. The growth rate is more than 40 percent over the July-March period of 2009-10.