Fewer Orders, Bigger Shifts In Global Apparel Trade

Trade & Policy

Fewer Orders, Bigger Shifts In Global Apparel Trade

Global apparel sourcing patterns are undergoing a sharp reset in 2026 as weak consumer demand, inventory corrections and changing trade dynamics reshape import markets across North America. Both the United States and Canada reported lower apparel imports in the first quarter of 2026, reflecting softer retail demand and cautious buying by brands and retailers. However, beneath the overall slowdown, sourcing patterns are shifting rapidly.

China continues to lose ground in both markets, while suppliers in Southeast Asia such as Vietnam and Cambodia are strengthening their position. South Asian exporters showed mixed performance, with Bangladesh holding relatively stable market share in the U.S. despite lower imports, while India recorded a steep decline. The data also highlights the growing dominance of man-made fibre (MMF)-based apparel in global trade, an area where countries like Vietnam have built significant scale advantages.

The latest import trends underline how global buyers are increasingly balancing cost, supply chain reliability, fibre mix and geopolitical risks while diversifying sourcing bases beyond China.

U.S. Apparel Import In Q1 2026

Demand contracted, prices edged up marginally

o Total apparel value ↓ 11.6% YoY, volume ↓ 12.3%, while unit value (UV) ↑ 0.8%—pointing to price/mix inflation despite softer physical demand.

Fibre mix: MMF vs. Cotton

o MMF: value ↓ 11.6%, volume ↓ 12.8%, UV ↑ 1.4%.

o Cotton: value ↓ 11.8%, volume ↓ 10.9%, UV ↓ 1.1%. Implication: the price uptick is concentrated in MMF;

Supplier rebalancing accelerated

o Vietnam is #1 (share 22.5%) with value ↑ 2.8% YoY—gaining +3.1 pp of US share.

o China slumped (value ↓ 52.9%, ≈ $1908 Mn drop), with share falling 8.4 pp to 9.6%—the biggest single shift in the stack.

o Bangladesh declined (value ↓ 8.4%) but share up marginally to 11.5% (+0.4 pp) as overall US imports shrank.

o Import volume of MMF based apparel from Vietnam is ~10× India’s volume in Q1-2026 despite higher unit value.

o MMF is the dominant category in U.S. apparel imports, but India’s export basket to the U.S. remains heavily cotton-led, resulting in structurally lower share and relevance in the U.S. market.

Movers & drags (absolute $ change)

o Top gainers: Cambodia (+$163 Mn, value ↑ 17.6%, share +1.5 pp), Vietnam (+$107 Mn, +2.8%, +3.1 pp), Egypt (+59 Mn, +19.3%, +0.5 pp)).

o Top decliners: China (−$1908 Mn), India (−$407 Mn, −27%), Bangladesh (−$186 Mn, −8.4%).

Regional Shifts

o South Asia (Bangladesh, India, Pakistan, Sri Lanka) mostly declined.

o Southeast Asia (Vietnam, Cambodia, Indonesia) showed mixed but relatively stronger performance.

o Overall CAFTA sourcing declined in value and volume, mirroring the global slowdown.

Conclusion

o The U.S. is diversifying away from China, with Vietnam and Cambodia gaining ground.

o Overall demand for apparel imports is contracting, likely due to softer consumer spending and inventory adjustments.

China continues to lose ground in both markets, while suppliers in Southeast Asia such as Vietnam and Cambodia are strengthening their position. South Asian exporters showed mixed performance, with Bangladesh holding relatively stable market share in the U.S. despite lower imports, while India recorded a steep decline. The data also highlights the growing dominance of man-made fibre (MMF)-based apparel in global trade, an area where countries like Vietnam have built significant scale advantages. The latest import trends underline how global buyers are increasingly balancing cost, supply chain reliability, fibre mix and geopolitical risks while diversifying sourcing bases beyond China.

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