Current Challenges in the Global Textile and Apparel Industry

Last Updated: June 14, 2026

Current Challenges in the Global Textile and Apparel Industry

Noor Ahmed Raaz
Head of Dept, Textile Engineering,
Atish Dipankar University of Science & Technology
Email: [email protected]

Introduction:

The global textile and apparel industry is undergoing a very challenging period since the beginning of this century. Several structural changes have led to a new business environment that the global textile industry needed to adapt to and still do. That pressure is now even higher because buyers expect shorter lead times, lower carbon footprints and better traceability across the supply chain. In 2001 China joined the World Trade Organization (WTO) and thus a country with approx. 1.3 billion people was suddenly having easier access to markets around the world and was thus becoming an important player in the global trade arena. In 2004 the traditional quota system for textiles and clothing finally phased out. This provided new opportunities to countries that were so far restricted by the quota system and posed challenges to those countries that had benefited from the quota system.

Of course the global financial and economic crisis in 2008/2009 (also referred to as the Great Recession), the worst since the Great Depression in the 1930s, had a negative effect on the global economy in general and the global textile industry in particular.

Since the coronavirus (Covid-19) outbreak began in China at the end of 2019, its impact has been felt across the global apparel and textile sector. The impact of the coronavirus pandemic on Asia’s textile manufacturers has been unprecedented. The shock also exposed how dependent many factories were on a small number of buyers, transport routes and working-capital access.

Bangladesh’s market share in global RMG trading is roughly 6.9% in 2023, according to the WTO World Trade Statistical Review 2024, and the country consistently remained the second largest exporter after the People’s Republic of China. Bangladesh primarily exports to the European Union (roughly 50%) and the United States of America and Canada (roughly 20%), according to BGMEA, 2024. Over the last three decades, the RMG exports have registered a cumulative average growth of 14.8%per annum reaching more than US$38 billion in FY2023-24, according to BGMEA, 2024, which is still around 84% of the country’s total exports. Below graph shows the growth of the RMG industry since 1990 defying all regional and international crises, however, the industry is now at the crossroads due to COVID–19 fallouts.

Challenges in the textile industry

One very important factor is how innovative the textile industry is, together with the research community serving it, and how innovative it is going to be in future. Historically, strong and innovative materials, chemicals and machinery/component manufacturers have made vital contributions towards helping the textile and clothing industry in their efforts to be sustainable. For mills and garment factories, the quickest gains usually come from lean production, better process control, digital sampling and worker upskilling, because these reduce waste before large capital spending is needed.

The growth of the technical textiles sector in recent decades has been remarkable. Innovation, mainly originating in the industrialized world, has benefited all stages of the supply chain in textiles, especially advanced and technical textiles. This shift matters because value-added categories such as medical textiles, sportswear, workwear and protective fabrics generally offer better margins than basic garments.

In order to make better use of the ideas generated in the research community of textile research institutes and universities, the innovation-driven research and development work in these institutions needs to be strongly prioritized. The transfer of knowledge to the industry should be made much more effective than it is today; introducing the right environment in academic research establishments would facilitate interaction with textile and clothing companies. In order to attract top-class scientists and technologists, academic and industrial partners in the value chain of the textile and clothing industry must encourage and reward innovative experimentation, from ideas to applications. Because the textile industry is becoming more and more interdisciplinary in the nature of materials and production processes, the current undergraduate and postgraduate textile education systems must be redefined and redesigned in order to better suit the future needs of scientists, engineers and technicians, both in the industrial and academic spheres. A practical way to improve technology transfer is to run joint pilot projects with factories, dye houses and brands, so that research is tested under real production conditions. Automation, computer-aided design and data analytics also need a place in the curriculum, because they are now part of day-to-day textile manufacturing.

It is important to look at the current structure of the global textile industry, especially as the result of the ongoing process of globalization. Various types of textile supply chains and customer interactions with the industry are significantly affecting company strategies as regards design, product development, manufacturing and marketing of textiles and textile products. This also means diversifying suppliers, shortening lead times where possible and using demand forecasting tools, because a single-country sourcing model is now riskier than it was a decade ago.

Trends in textile markets have major implications for textile products and processes. Because of ever-increasing environmental awareness and the possible impact of environmental regulations on the whole textile supply chain, the industry will face many challenges in the future. In practice, buyers increasingly look for wastewater treatment, chemical traceability, energy monitoring and credible third-party certification before they approve long-term volume orders. Social compliance is equally important, because safe workplaces, fair working hours and grievance systems are now part of commercial competitiveness as well as social responsibility.

At the World Textile Summit, held for the first time in connection with ITMA 2011 trade-fair in Barcelona, the agenda was designed to offer a global perspective on the opportunities and challenges likely to face the textile industry in the years ahead. The importance of cooperation across the supply chain to drive sustainability and innovation, sustainable programmes incorporating reduction of energy and water consumption, the growing influence of technical textiles, China’s increasing challenges and the growing opportunities for India were some of the key points of discussions at this Summit. The contents of the present book were designed and planned a long time prior to the World Textile Summit and the issues discussed in this book include many of those which were discussed at the World Textile Summit in September 2011. If this discussion were updated today, decarbonization, circularity, digital traceability and factory automation would also be central topics alongside water and energy reduction.

For clear concept we highlight some statistics:

Top 20 exporting countries of fashion goods* (share in global exports), estimated TEU 2019 (Source: MDS Transmodal, March 2020)

Conclusion:

Textile and clothing trade in the global market is fast changing with the scaling up of uses of textiles in diverse areas. But now the global textile and apparel industry is grappling with numerous challenges that impact its growth, sustainability, and profitability. Asian countries including India play a dominant role in the international trade of the global market. China has the major share in textile and clothing trade in the international market etc. Both Bangladesh and Hong Kong have a significant share. However, India is still on the back seat. It is reported that Asian counties export most of textile and apparel to Europe and North America and USA etc. For exporters, the most practical response is to combine compliance, product diversification, digital planning and cleaner production.

Frequently Asked Questions (FAQs)

Q1. What are the main challenges in the global textile and apparel industry?

Ans: The biggest challenges are rising compliance costs, sustainability rules, volatile demand, freight disruption, and pressure to shorten lead times. Many suppliers are also competing with automation and low-cost rivals in Asia.

Q2. How can textile factories reduce water and energy consumption?

Ans: Start with machine-level utility tracking, heat recovery, low-liquor dyeing, wastewater recycling and preventive maintenance. Factories usually save more when they measure water and power by process instead of only by monthly bills.

Q3. Why is sustainability important in the textile and apparel industry?

Ans: Sustainability now affects access to buyers, financing and export markets. Brands want lower emissions, cleaner chemistry and traceable supply chains before they commit to large orders.

Q4. What are technical textiles and why are they growing?

Ans: Technical textiles are performance fabrics used in medical, industrial, protective and sports applications. They are growing because they have higher value and are less dependent on seasonal fashion demand.

Q5. What is the biggest challenge for Bangladesh garment exporters today?

Ans: The biggest challenge is moving from low-margin basic garments to higher-value, compliant and traceable products. Exporters also need to control energy costs, meet buyer audits and keep lead times competitive.

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Mazharul Islam Kiron

Founder & Editor of Textile Learner. He is a Textile Consultant, Blogger & Entrepreneur. Mr. Kiron is working as a textile consultant in several local and international companies. He is also a contributor to Wikipedia.