Bangladesh’s $39B Garment Industry Faces Next Test: Moving Beyond Low Cost-Manufacturing

InnovationSustainabilityBangladesh’s $39B Garment Industry Faces Next Test: Moving Beyond Low Cost-ManufacturingByBrooke Roberts-Islam,Senior Contributor.Forbes contributors publish independent expert analyses and insights. Brooke Roberts-Islam is a London-based writer covering sustainability.Follow AuthorApr 23, 2026, 01:33pm EDTApr 23, 2026, 01:36pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Harnest Oceansafe biodegradable garment labelsHarnestFour decades ago, Bangladesh’s garment industry consisted of small sewing workshops assembling pre-cut garments from Korea. Today, Bangladesh is the world’s second-largest garment exporter, with exports climbing from $31 million in 1983 to $39 billion by 2025. That 1,000× increase was powered by abundant, low-cost labor and expertise in producing cotton-rich knitted garments and woven shirts and trousers.But Bangladesh’s garment industry is now reaching the limits of a low-cost manufacturing model and must move into more sophisticated, value-added production, according to World Bank analysis. The country knocks on the door of graduation from ‘least developed country’ status, meaning it will lose some duty-free trade benefits; and rising wages already mean countries like Ethiopia and Cambodia can offer lower cost production. Can Bangladesh transcend its cornerstone ‘basic, low price cotton garments’ reputation? Is its manufacturing infrastructure evolving, and are brands’ sourcing strategies in Bangladesh changing with it?Why Bangladesh’s Garment Industry Must Move Beyond Low CostFour years ago, UK-based Equip Outdoor Technologies began sourcing from Bangladesh, following 18 months of due diligence with support from partner FairWear. Matthew Bingham, buying and sourcing director, says, “We make cotton t-shirts [there] like everyone, through to synthetic insulation jackets, taped rainwear, wovens, knits and fleeces.” Their three suppliers, one Chine...