Bangladesh’s home textile share is

rising in global market

September 22, 2018
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Bangladesh is emerging as one of the leaders in global home textile production
and export arena.

Abir Basak
Home textile is one of the first line export sector in Bangladesh also known as
decorative textile. Due to quality and diversified range of products, the country’s
production of the home textile is being increased day by day. In the mid-nineties, local
industry entrepreneurs concentrated in making home textiles, while Bangladesh entered
the export market in the 1980s with knit items. This sector, initially has seen losses, has
gradually started to return to the growth trend over time. In this fiscal year, the export
revenues of this sector can touch billions of dollars – that is the expectation from the
concerned people.

Figure 1: Home textile items are displayed at Zaber & Zubair Fabrics Ltd.
Home textile factories in Bangladesh are very less compared to woven or knit garments.
25-30 companies in Dhaka, Gazipur and Chittagong arena are producing home textile
items. However, Zaber & Zubair Fabrics, Mosharraf Group, Saad Musa Group, Alltex,
ACS Textile, Apex Weaving, Regent, JK Group, Classical Home etc. have established
as strong exporters. Among them, Noman Group’s Zaber & Zubair Fabrics is the
pioneer home textile marketer in Bangladesh.

In recent times, many entrepreneurs are showing keen interest to invest in this sector
and they are coming forward. Big groups are extending their manufacturing plants for
home textile. Bangladesh exports different types of home textile products including bed
sheet, bedspreads, pillow, pillow covers, cotton table napkins, furnishing fabrics,
curtains, window and door curtains, cushion, cushion covers, carpets, table covers,
kitchen accessories, mattress covers, bath linen, and other home furnishings etc.

Global home textile market

The home textile market registers a robust growth and experts say the demand is
expected to reach 160+ billion dollars by 2025. The United States and EU countries
import lion’s share of home textile products, which is 60 to 70 percent of the global
market. In addition, the exporters of these products are China, India, Pakistan, Turkey
and Bangladeshi entrepreneurs mainly. In 2016, global textile and apparel trade stood
at US$ 743 billion, while the share of other categories such as fiber, yarn and fabric has
decreased. Home textile has maintained its share of 6% over the past five years.
Figure 2: Home textile items are displayed at Mosharraf Group.
According to Technavio, a research firm, the global home textiles trade is valued at US$
118 billion in 2017 and will reach US$ 131.5 billion by 2020 and US$ 180 billion by the
end of 2025, growing at a CAGR of 3.5% or more during 2018-2025. Carpets were the
top traded category valued at US$ 14 billion. While table linen, furnishing and carpets
have been growing at a negative CAGR of 5%, 2% and 1% respectively, bath/kitchen
linen has shown the maximum positive CAGR of 3% and an increase in the share of 1%
too.

The top 10 importing nations contribute to about 80% of the home textiles market. EU-
28 is the largest market for home textiles with a share of 36% and import value of $17
billion. This is followed by the US with an import value of $11 billion and a share of 24%.
Japan, Canada, Australia, UAE, Saudi Arabia, Russia and Thailand constitute the top
markets for global home textiles.

Thailand has emerged as a market for home textiles in the last five years with a CAGR
of 22% but at a small base value. Japan is the third largest market for home textiles is
declining with a CAGR of 6% over a period of five years due to the economic downturn
and demographic issues. Russia, facing similar issues, has shown a downfall of 18%,
thus losing ranks in the list of major markets but is expecting some growth going
forward.
The booming Bangladeshi trade
Just a decade ago, buyers thought that home textile products are only produced in
China, India, Pakistan and Turkey. However, the situation has been changed; the name
of Bangladesh has been added with these countries. The growth of home textiles is
inevitable in the Bangladeshi market as customers look out to have a unique showcase
at their home and office, and do not hesitate to spend the same. Bed and bath linen are
the most popular segments and contribute to two-thirds of the total home textiles market
while kitchen linen, curtains, upholstery and carpets/rugs make up for the rest of the
share.

Figure 3: Mosharraf Group also has a range of unique and exclusive home textile
products.
According to the Bangladesh Terry Towel & Linen Manufacturers Exporters Association
(BTTLMEA) and Export Promotion Bureau (EPB), Bangladesh earned US$ 150 million
by exporting home textile products in the FY 2004-05. In addition, this export income
has been increased to about US$ 753.01 million in the FY 2015-2016. In the middle
years, the export growth had fluctuated, also indicated to earn better revenue as well.
Exports of Bangladesh touched the highest revenue of US$ 906.07 million in the 2011-
12 fiscal years. EPB has set an export target of US$ 900 million for the home textile
sector in the current fiscal year.
Figure 4: Bangladesh home textile exports in million US$. (source: BTTLMEA)
The scenario of Bangladesh’s rival countries  
China, Pakistan, India and Turkey are the main competitors of Bangladesh in this case
where the country is in the 5th position. Vietnam, Taiwan, Cambodia or other
manufacturers cannot reach at the level of Bangladesh yet but their gains are
remarkable. In 2016, more than $26.86 billion worth of home textiles were imported
from outside the EU, according to the data from the European Apparel and Textile
Confederation, Euratex. Of the sum, China accounted for 33%, Pakistan 25%, India
16%, and Turkey 11%. Bangladesh’s share was 7-8%.
 Figure 5:
Contribution (%) of different countries in the global home textile market. (source:
Euratex)
According to the South China Morning Post & China Home Textile Association, China
exports now around US$ 18bn valued home textile item in the world and expects to
grow minimum US$ 32bn within next four years.

Cotton cultivator the Indian domestic consumption of home textiles contribute US$ 4.8
bn according to statistics, a research firm. Considering the advantages of raw material
base, design content, skilled manpower-the home textile industry can achieve higher
levels of growth than the present.

Pakistan already remains apex in this sector than Bangladesh due to having its own
cotton and GSP+ facilities. Besides Pakistan government gives some extra subsidy
packages for lifting up the industry. Technological advancement brings the country’s
revenue up to US$ 6.2 billion in 2016-17 according to hometextiletoday.com. On the
other hand, the implementation of the China-Pakistan Economic Corridor, the Chinese
industrial zone Xinjiang is going to join the Arabian Sea through Pakistan. This means a
China-Pakistan export trade is going to be more dynamic.
The Turkish home textile industry is the world’s fourth-largest supplier and the EU’s
second largest supplier. As a result, at the end of 2017, the total exports of home textile
is recorded as 3.6 billion USD out of 25 billion USD of their apparels & RMG, according
to Turkey Economy Ministry. To accelerate their business every year Turkey arranges
trade fair on home textiles named ‘Evteks’ & ‘Hometex’.

The reasons behind the upcoming lead of Bangladesh

Experts believe that Bangladesh’s position in this sector will reach in the top soon.

Investments in research
New investments in fabrics and garments manufacturing are playing a key role in
establishing Bangladesh’s dominance in the US and EU markets. However,
manufacturers are also investing in research and development of high-end products,
helping them get a better price. Meanwhile, improvement of the safety standard in the
apparel industry has also drawn the attention of more global buyers.
Quality and latest technology
Today the Bangladeshi home textile industry is aware of the trend in international
markets towards the increasing demand for healthier and more environmentally friendly
products and quickly adapts itself to developments in legal and technical regulations.
Many manufacturers in the sector are able to produce with quality and environment
management systems. Buyers always want quality fabrics when it comes to home
textiles products. To manufacture quality fabrics, the latest technology is must for any
company.
Some renowned world manufacturers have also started making home
textile products in natural fabrics such as soya and bamboo along with
silk, polyester, and many others. We should also give more focus on the
production of diversified products rather than traditional quality and
design.
NAZRUL ISLAM, LAB & PRODUCT DEVELOPMENT OFFICER, ZABER & ZUBAIR FABRICS LTD

In addition, the country’s many factories have already established that and other are
establishing. Bangladesh still cannot reach in China or Pakistan level in this sector, but
the buyers keep confidence on Bangladesh so much.

Nazrul Islam, Lab & Product Development Officer of Zaber & Zubair Fabrics Ltd (Noman
Group) said, “Some renowned world manufacturers have also started making home
textile products in natural fabrics such as soya and bamboo along with silk, polyester,
and many others. We should also give more focus on the production of diversified
products rather than traditional quality and design.”
Designing and Invention
In a rapidly changing world, the home decoration field is very sensitive to all changes.
That is why the creation of collections with innovative and modern designs and motifs is
essential. Bangladeshi home textile manufacturers are very conscious about fashion
creation and design, which enables them to gain a special place in international
markets. New and modern designs and unique motifs in this specialized sector, created
by Bangladeshi intellectual designers, keep a finger on the pulse of world home
decoration fashion and meet tastes and preferences.
Figure 6: To cope up with the sensitive nature of the home decorative market,
Bangladeshi entrepreneur’s has come up with creativity and innovation.
Although Bangladesh depends on more buyers’ provided design since earlier, some
houses have created their own design studios to develop this lagged site. Industry
insiders say, buyers are choosing manufacturer’s design gradually such as 2 or 3 own
designs are being selected out of 10 which was stood at zero in previous. Hopefully, it’s
a positive sign to uplift the sector and earn growth as well. If Bangladesh can make its
footing stronger more in developing design and innovation, then the sky is the limit for
the local home textile industry.

Sustainable growth
It has to be believed that Bangladesh now considers the maximum sustainable
environment to make products. Factories are working to produce num