Bangladesh: EU buyers promote sustainability while exerting price pressure on manufacturers amid rising production costs & US tariffs
"Sustainability vs price pressure: Why Bangladesh’s garment industry is feeling the squeeze", 7 December 2025
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Europe is currently going through a silent recession, in the opinion of several international economists and economic research firms...
...this has resulted in slower clothing sales...To entice consumers back into shops, apparel brands and retailers are continuously lowering their retail prices. The steep 5.86% decline in EU apparel import prices from Bangladesh between January and September 2025 is a reflection of buyers' tendency to increase sales by lowering prices.
...buyers are exerting downward pressure on manufacturers to reduce prices. Meanwhile, apparel manufacturers are facing the double whammy of EU buyers' price pressure and the United States' reciprocal tariff. The heightened competition among global apparel-producing countries to navigate the US market while withstanding the reciprocal tariff is compelling Bangladeshi manufacturers to submit to EU buyers' price compression in order to maintain the country's position as the second-largest apparel exporter in the region...
Promoting sustainability has been the most talked-about doctrine in the fashion industry over the past decade or more. But environmental and social sustainability can never be truly practised while ignoring the economic aspect of sustainability...
The citadel of sustainability is built upon the foundation of partnership between buyers and manufacturers...
Due to higher wages, rising energy costs and a notable surge in raw material prices, the cost of production in Bangladesh's apparel industry has increased by about 50% over the last five years. Apparel prices are declining while production costs are increasing manifold. Without addressing the crux of this problem, any aspiration for a sustainable fashion industry will remain a chimera. All stakeholders in the fashion industry must work together to ensure that sustainability prevails over price pressure.