Worldwide denim fabric products created the opportunity for the denim sector of Bangladesh. The sales of the global denim market are predicted to reach 9,130.1 million meters in 2023, with CAGR of 4.7 percent, said the Market Insights Reports.
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 annual growth rate has been increased to 4.77 percent between 2012 and 2016 because of a significant rise in its uses, said the Market Insights Reports.
According to the report, the consumption was 6,618.1 million meters in 2016 against 5,493.7 million in 2012.
It indicates a bright future for Bangladesh. At present, Bangladesh has 30 denim mills with a capacity to produce 150 million yards of fabric a month, which 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.
At present, the major manufacturers of denim fabrics are concentrated in India and China. Now Bangladesh denim products are also dominating the global markets by beating its competitors in the European markets as well as in the United States by occupying of proverbial denim pieces.
Globally the denim fabric market was mainly driven by growing demand for clothing, household items and many other fields, said the report.
With fashion effect of denim, the downstream application industries will need more denim fabrics. So, denim has huge market potential in the future.
“It is true that the uses of denim fabrics increased manifold. We are not suffering from a crisis of work orders but from low prices,” said Kutubuddin Ahmed, Chairman of Envoy Textiles, which produces 4.5 million yards of fabric per month.
Two years ago, Ahmed used to produce three million yards and increased the output to cope with demand.
Like Envoy Textile, many other domestic producers also increased their production capacity. So, there are many suppliers in the market and prices are going down. The uses of denim products increased as the fabric is used for many purposes as for household usage, apart from traditional trousers and shirt making.
“Now the denim fabric is used for almost all fashions both for male and female customers. With the change of fashion worldwide, denim fabrics is used for making jackets as well,” he said.