Cap exports rise as buyers look beyond China, Korea

• Bangladesh cap exports surge amid diversification
• Global buyers shift sourcing from China
• Factories in EPZs drive foreign investment
• Sustainability, technology reshape headwear industry

Once an overlooked corner of the accessories market, caps are now a growing contributor to Bangladesh's export portfolio, reflecting both shifting global trends and the country's ability to adapt and scale.

According to data from the Export Promotion Bureau (EPB), Bangladesh exported $89.98 million worth of headgear in the first quarter of FY 2024-25.

This was a 12 percent year-on-year increase from the same period last fiscal year.

The goods fetched $364.46 million last fiscal year.

The figures reflect the increasing importance of non-traditional exports like caps and headwear in Bangladesh's broader apparel diversification efforts, said exporters.

Industry insiders attribute this remarkable rise to a shift in global sourcing patterns, with international buyers increasingly moving away from traditional suppliers such as China and Korea, many of whose factories are scaling down or shutting operations.

"Earlier, global buyers didn't know that Bangladesh had the capability to manufacture such high-quality headwear," said Md Mahbubur Rahman Masum, managing director of Jalal Hats & Apparels Ltd.

"Now they're discovering us," he said.

Founded with a vision to deliver premium-quality, globally competitive headwear, Jalal Hats & Apparels Ltd has emerged as a premier manufacturer, producing a range of stylish, durable, and customizable caps for international brands, retailers, and wholesalers.

"Currently, we export to countries like Italy, Denmark, Germany, France, the UAE, and the USA," Masum shared.

"The growth is happening fast—even if the export volume is still smaller than garments, the rate of expansion is impressive," he said.

Masum believes the sector holds strong potential and could play a role in Bangladesh's export diversification strategy.

However, he said, greater policy support—particularly in the form of higher cash incentives and easier access to bonded warehouse facilities—could accelerate the industry's development.

"Caps currently fall under the RMG incentive structure, but the percentage is not uniform. We believe caps deserve a higher incentive rate as this is a newer, promising export sector," he added.

"We often talk about garments, but the cap industry deserves its spotlight too. It's time to recognise this growing segment," said Masum.

Jessi Yiu, deputy managing director of Actor Sporting Ltd, sees a transformative future for Bangladesh's cap and headwear industry, as shifting global consumption patterns and sustainable practices reshape how fashion is made—and where.

Operating out of the Dhaka Export Processing Zone since 1995, Actor Sporting Ltd is a wholly export-oriented manufacturer catering primarily to clients in the US and EU.

But as the global fashion industry evolves, so too do expectations from buyers.

"We've observed a clear shift in our customers' buying practices—from mass production to smaller, more tailored orders," said Yiu.

"This reflects the rise of ethical fashion, where consumers value style alongside environmental and social responsibility," she said.

The shift aligns with global trends in athleisure and streetwear, which require fast adaptation to changing styles, shorter production cycles, and reduced inventory risk, she said.

"Tools like 3D design and automated sewing machinery allow us to reduce fabric waste and shorten lead times," Yiu explained.

"This makes our products more competitive in a global market increasingly focused on sustainability and efficiency," she said.

With over two decades of experience, Actor Sporting Ltd stands as a model of resilience and innovation in Bangladesh's growing apparel diversification journey.

"The future is bright. By staying ahead of trends in technology and sustainability, Bangladesh can become a global leader in ethical headwear and sports fashion," said Yiu.

ASM Anwar Parvez, executive director (public relations) of the Bangladesh Export Processing Zones Authority (Bepza), highlighted the growing role of EPZ-based cap manufacturers in the country's export landscape.

According to Bepza data, there are four cap factories operating inside the Dhaka and Chattogram EPZs. They collectively exported $64 million worth of headwear products in fiscal year 2024-25.

In the Chattogram EPZ, two factories—Young An Hat (BD) Ltd and Young An International (BD) Limited—are both based on South Korean investments.

Meanwhile, Dhaka EPZ hosts Actor Sporting Ltd, a Hong Kong-based company, and Dhakarea Ltd, another South Korean venture.

These factories represent the growing presence of foreign direct investment in Bangladesh's headwear manufacturing sector, driven by global demand and export diversification.

As of August 2025, these four companies have brought in a cumulative investment of $54 million, and together they employ 4,130 Bangladeshi nationals.

"The sector is expanding steadily, and the potential for future growth is strong, especially as global buyers diversify sourcing destinations," said Parvez.