Bangladesh
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Country Overview
TEXTILE WASTE
881,600
Post consumer textile waste
100% Cotton
100% Viscose
100% Polyester
Poly-Rich Blends
Cotton-Poly Blends
Cotton-Elastane Blends
65% Viscose, 35% Cotton
Other fibres and blends
Cotton-Rich Blends (>80%)
Other Pure Natural Fibres
pre consumer textile waste
Post Industrial textile waste
881,600
100% Cotton
22.59%
100% Viscose
0.80%
100% Polyester
3.25%
Poly-Rich Blends
2.13%
Cotton-Poly Blends
15.00%
Cotton-Elastane Blends
15.57%
65% Viscose, 35% Cotton
0.93%
Other fibres and blends
34.57%
Cotton-Rich Blends (>80%)
3.85%
Other Pure Natural Fibres
0.29%
Imported textile waste
100% Cotton
100% Viscose
100% Polyester
Poly-Rich Blends
Cotton-Poly Blends
Cotton-Elastane Blends
65% Viscose, 35% Cotton
Other fibres and blends
Cotton-Rich Blends (>80%)
Other Pure Natural Fibres
*This data is from Circular Fashion Partnership Bangladesh
KEY POINTS ON T&a LANDSCAPE
Export dominance and policy support driving RMG competitiveness
$50 BN
Exports
$48 BN
RMG contribution
Bangladesh, world’s second-largest garment exporter, relies on RMG for over 84% of its exports. Government policies like bonded warehouses and LCs enhance competitiveness. As an LDC ( Least Developed Country ) status holder , it enjoys Generalized System of Preferences based duty-free access to 38 countries including the UK and 27 EU nations. H&M, Inditex, Primark, Uniqlo, and Bestseller source a significant portion of their apparel requirements from Bangladesh.
Import-driven cotton supply and strengthening of knits capabilities
Bangladesh’s fibre and yarn industry remains heavily import-reliant, with domestic cotton production meeting less than 2% of annual demand. While it has a strong fabric base for knits, the woven segment is comparatively weaker and more dependent on imports. Limited spinning, dyeing, and MMF capacity keep the sector cotton-heavy, though vertical integration in knitwear is gradually improving.
SME dominance and rise as a sustainable garment producer
49%
LEED-certified green garment factories
While SMEs make up the majority of firms, large enterprises contribute 40% of the industry’s revenue. Over the past decade, the sector has made significant strides toward sustainability, with Bangladesh hosting 9 of the world’s top 10 green readymade garment (RMG) factories. Some manufacturers use recycled yarns, though those are mostly imported due to limited local supply.
Underutilization of cotton waste despite high-value potential
41%
Domestically Treated Waste
59%
Exported Waste
Despite the domestic presence of good quality feedstock the waste recycling system is underdeveloped due to outdated machinery, informal operations and manual sorting. Only 30-35% of the waste is repurposed to craft children's clothing for the domestic market and to make quilts, mattresses, and pillows for local consumptions and the rest is exported out.
waste cost
waste Type
waste Type
waste Type
waste Type
Post-industrial
Cotton
$0.19 - 0.47/kg
100% knit in other single solid color
Post-industrial
Cotton
$0.80/kg
100% knit white
Other Notes
- A VAT of 7.5% applies when purchasing textile waste and 15% when selling it. This high taxation discourages recycling, as businesses often prefer disposing of waste over engaging in costlier recycling processes.
- The bonded warehouse system, designed to boost exports, complicates textile waste transactions. Since bonded imports are intended solely for export, diverting textile waste to the domestic market incurs duty liabilities unless strict procedures are followed—creating additional barriers to circularity within Bangladesh’s textile value chain.
production clusters
Key regions with fibre production:
Moulvibazarᴬ, Sylhet Cityᴮ, Bhaluka Dhaka Cityᶜ, Gazipurᴰ, Narayanganjᴱ, Tangailᶠ, Manikganjᴳ, Munshi Ganjᴴ, Chattogram cityᴵ, Cox’s Bazarᴶ
Key regions with apparel production:
Chowgachaᴬ, Maguraᴮ, Pabnaᶜ, Chapaiᴰ, Nawabganjᴱ, Gazipurᶠ, Narayanganjᴳ, Savarᴴ, Chattogram Cityᴵ, Kotwaliᴶ, Pahartaliᴷ
Other Notes
- FDI is a driving force in Bangladesh RMG sector where it strategically presents itself as a destination for businesses to relocate their low-end readymade garments manufacturing units.
- Soughting China’s cooperation to transition from RMG sector cotton-based manufacturing to producing high-value non-cotton items
- Import of raw cotton is duty free but there is a refundable import duty on MMF of upto 59% upon export
- Few major apparel manufacturers include- Fakir Apparels, Ananta, Viyellatex and DBL group and fibre producers like Crorie Sasco, Chand Group of Industries and Echo Cotton Mills Limited
Waste regulation
The National Environmental Policy 2018
It is a significant step in aligning Bangladesh with global legal standards on waste management, environmental protection, and sustainable development. It emphasizes tackling climate change, strengthening environmental conservation, and advancing the circular economy and Sustainable Development Goals (SDGs) in the national context. The policy lays down a supportive framework for embedding circularity into garment production and managing jhut ( textile waste ) in line with circular economy principles.
The Environmental Conservation Rules 2023
Sets clear standards for industrial waste disposal, requiring all jhut processing and recycling industries to obtain an Environmental Clearance Certificate (ECC) from the Department of Environment. "Orange" and "Red" category industries must also submit an Environmental Management Plan (EMP), with "Red" ones needing an Environmental Impact Assessment (EIA) unless producing recycled fiber. Small, family-run enterprises with investments under BDT 5 lakh are exempt from ECC. However,there are still ambiguity around EIA requirements for jhut-specific operations, raising concerns over the regulation of hazardous waste in the largely informal and unorganized jhut supply chain.
The National Industrial Policy 2016
Emphasizes eco-friendly waste management through Environmental Impact Assessments, awareness campaigns, Effluent Treatment Plants (ETP) setup, and adoption of the 3R strategy (Reduce, Reuse, Recycle). Building on this, the 2022 policy promotes circularity by offering incentives for ETPs and Common Effluent Treatment Plants CETPs, establishing solid waste dumping yards, and encouraging the 5Rs (Refuse, Reduce, Reuse, Repurpose, Recycle). It also supports importing eco-friendly technology and exporting sustainable products, reinforcing industrial environmental responsibility.
The SWITCH2CE initiative
Aims to accelerate the shift to a circular economy in the textile and garment sector by piloting scalable, traceable systems for recycling post-industrial and blended textile waste. The project builds local capacity, supports policy development, and brings together brands, manufacturers, and recyclers to reduce dependency on virgin materials and advance climate-neutral, just, and pollution-free growth. By 2025, SWITCH2CE targets large-scale waste sorting and recycling pilots, positioning Bangladesh’s industry to meet global circularity and recycled-content standards.
Waste trade
No Data Yet
Other Notes
- The demand for recycled yarns within the country are satiated by exports as the domestically recycled ones are low quality due to outdated technology.
- Bangladesh holds significant untapped potential for circularity. Large brands and Bangladesh Garment Manufacturers and Exporters Association ( BGMEA )have initiated circular fashion efforts and waste to textile recycling pilots to leverage this untapped potential.
green energy
0.31%
Share of modern renewables in final energy consumption (2021)
Renewable electricity generation by sources - Hydro ( 47.5% ), wind ( 0.3 % ), solar PV (52.2 % )
Other Notes
Some of the regulatory mechanisms around green energy are as follows:
- Net Metering Policy 2018: This policy enables RMG factories to generate solar power and feed excess electricity into the national grid for billing credits. Companies adopting clean energy also benefit from a 2% tax incentive.
- Integrated Energy and Power Master Plan (IEPMP) 2023: Bangladesh aims to generate 40% of its energy from renewables by 2041 and become decarbonization-ready by 2050. The plan targets carbon neutrality by 2070 with an estimated investment of US$29 billion.
- The Green Transformation Fund (GTF): Launched by Bangladesh Bank in 2016, the GTF offers long-term, low-cost foreign currency loans for green investments across export sectors. It supports over 77 projects in areas like energy efficiency, waste management, and pollution control.
