"$180 bn apparel glut deepens as Asian mills sit on unsold stock", 31 March 2026

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While global attention remains focused on excess retail inventory estimated at nearly $180 billion in apparel overhang globally, the deeper stress lies within the manufacturing layer, where yarn, fabric, and finished goods are failing to move at expected pace. Across key production hubs such as India, Bangladesh, and Pakistan, mills are grappling with a widening mismatch between production and demand, resulting in what industry insiders describe as ‘invisible inventory’...

In Bangladesh, for instance, total textile capacity is estimated at ~3.2–3.3 million tons, while actual consumption has dropped to around 1.8 million tons, implying utilisation levels of just ~55 per cent...In India and Pakistan, industry feedback suggests mills are running at 60–70 per cent capacity, with yarn inventories building up due to slower offtake from downstream buyers. Cotton dynamics are adding to the pressure, with global inventories exceeding 100 million bales...

Fabric manufacturers, particularly in Bangladesh, are facing delayed or reduced orders from garment exporters, leading to a build-up of greige and processed fabric stocks. At the same time, exporters themselves are holding finished goods as shipment cycles lengthen...

In major Western markets, apparel demand has softened by an estimated 5–10 per cent, with buyers placing smaller, more cautious orders and avoiding long-term commitments. This has left mills with limited forward visibility. Yet, due to high fixed costs especially energy...many manufacturers continue to produce, leading to a “produce now, sell later” dynamic that exacerbates inventory accumulation...