The cost of raw materials is rising. But that isn’t the only concern we’re dealing with as RMG manufacturers.

Currently, over 92 millions of textile waste is produced around the world. As one of the leading garments exporters in the world, Bangladesh is contributing to a staggering 5.77 lakh tons of textile waste to this total. The impact of fashion on the environment can not be overlooked anymore.

Be it for resource efficiency, environmental impact, business opportunity, or market demand, RMG manufacturing needs to transition towards a circular model. The European Union’s legislative push is another stark reminder that we need a strategic roadmap if we want to keep our strong foothold in the apparel market share and create a competitive advantage.

While the factories are churning out half a million tonnes of material waste everyday, only 5% is being recycled. The recycling is still mostly limited within using recycled fibers to produce yarn and fabrics. Yet, this alone holds a huge potential!

According to recent projection, circular using recycled yarns for garment manufacturing could potentially unlock a 6 billion dollars business opportunity. In addition, enhancing our recycling infrastructure and capabilities could unlock another 3 billion dollars more to our GDP by slashing raw materials import and product diversification.

At the moment, Bangladesh has the recycling capacity of 18,000~24,000 tonnes of apparel grade yarns. With the ‘jhoot’ market still being informal, and the policy support necessary not being in place, the potential loss of 5 billion dollars in export revenues.
To put it into perspective as to how lucrative the recycling business can be, weavers from Bogura use waste fabric – a by-product of the RMG sector to produce yarns and clothes worth 200 crore taka annually.

With Bangladesh adopting the SCP-SDG12 and brands now wanting to transition under a more eco-conscious label to appeal to the conscious consumer market, now is the right time for manufacturers in Bangladesh to become the first movers and align themselves with the changing market. Yes, a lot of support and incentives are needed, and there are many challenges and barriers. But with proper mindset, awareness building, public-private collaboration and support from buyers, Bangladesh may be looking into a circular future that is not only prosperous but also less impactful on the environment.