An In-Depth Analysis with Data Insights by Team PERFECT SOURCING
In July 2024, U.S. apparel and textile imports surged despite looming economic uncertainties, highlighting the shifting dynamics in global sourcing strategies. According to the U.S. Office of Textiles and Apparel (OTEXA), overall apparel imports increased by 7% compared to the same period last year, reaching a substantial 2.5 billion square meter equivalents (SME).
This rise reflects key changes in the supply chain, geopolitical tensions, and the industry’s ongoing recovery from pandemic-related disruptions.
This article dives into detailed data, providing a clearer picture of the factors shaping U.S. apparel imports, the countries leading the charge, and future sourcing trends with a close examination of price fluctuations, country-specific data, and emerging challenges.
Global Sourcing Dynamics in 2024: Key Players and Trends
As the world’s largest apparel consumer, the U.S. sources garments from a diverse array of countries. However, the data shows that post-pandemic sourcing strategies have been realigned.
China: Still the Dominant Player; But Facing Pressure
China remains the largest apparel supplier to the U.S., accounting for 41.4% of total SME and 24.6% of the total import value. However, the average unit price for Chinese apparel imports has plummeted to $1.76 per SME, a 4% drop compared to 2023 and 37% cheaper than the next most affordable country, El Salvador.
Year-over-Year China Import Data:
- 2023 (July): 1.02 billion SME
- 2024 (July): 1.1 billion SME (up 9.2%)
- Price per SME: $1.76 (lowest among top suppliers)
Despite increasing shipment volumes, Chinese manufacturers face rising competition from other Asian nations and nearshoring partners due to concerns around tariffs, geopolitical tensions, and U.S. companies’ pursuit of diversifying risk.
Vietnam: Growing Second in Line
Vietnam, a key alternative to China, maintained its position as the second-largest apparel supplier to the U.S., contributing 385 million SME, a 4.7% year-over-year increase. While it trails behind China, Vietnam has shown consistent growth thanks to its competitive pricing, labour efficiency, and robust trade relationships with the U.S. forged through agreements like the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).
Vietnam’s Import Data:
- 2023 (July): 367 million SME
- 2024 (July): 385 million SME (up 4.7%)
- Price per SME: $2.15 (relatively stable compared to 2023)
Vietnam’s continued rise suggests that U.S. brands view it as a reliable sourcing destination, with strong labour force quality and solid infrastructure for apparel production.
Bangladesh: Declining Amid Unrest
Bangladesh saw a rare decline in U.S. imports, with a 2.2% drop in shipments, bringing the total down to 275 million SME in July 2024. The decline is attributed to internal disruptions, including factory closures driven by widespread labour strikes and wage protests. Moreover, the resignation of Prime Minister Sheikh Hasina in August 2024 added political instability to an already tense economic environment.
Bangladesh’s Import Data:
- 2023 (July): 281 million SME
- 2024 (July): 275 million SME (down 2.2%)
- Price per SME: $2.10
Despite these challenges, Bangladesh remains a key player in the apparel sector, particularly in categories like denim and knitwear, where it holds competitive advantages. Brands continue to watch the situation closely, though many have shifted orders to alternative sourcing destinations due to the instability.
Nearshoring: The Rise of Mexico and Central America
A key trend emerging in 2024 is the increased interest in nearshoring to Mexico and Central American countries. This shift is driven by several factors, including the demand for faster lead times, reduced freight costs, and political and trade uncertainties in Asia.
Mexico: Slower Growth Amid Competitive Pressures
While Mexico has seen an increase in U.S. imports over the years, it experienced a decline of 5.4% in July 2024. This is largely due to competition from more cost-efficient suppliers in Asia, particularly China, which has been offering lower prices despite global shipping disruptions.
Mexico’s Import Data:
- 2023 (July): 140 million SME
- 2024 (July): 132 million SME (down 5.4%)
- Price per SME: $2.76 (higher compared to most Asian suppliers)
Mexico’s nearshoring advantage lies in its proximity to the U.S., offering shorter lead times and reduced risks in shipping delays. This benefit continues to attract brands focused on agility and speed to market, especially in premium and custom-made apparel categories.
Central America: Growth Driven by U.S. Trade Policies
Central American countries, including El Salvador and Honduras, have experienced strong growth. Honduras led the pack in July 2024 with a 20.3% year-over-year increase, buoyed by the U.S. administration’s focus on strengthening trade relationships in the Western Hemisphere.
Honduras’ Import Data:
- 2023 (July): 91 million SME
- 2024 (July): 109 million SME (up 20.3%)
- Price per SME: $2.80
El Salvador, another Central American supplier, saw an increase of 7.5% to 63 million SME in July, positioning itself as a viable nearshoring destination, particularly for categories like knit apparel.
Chart: U.S. Apparel Imports by Country (July 2024)
| Country | July 2023 SME (million) | July 2024 SME (million) | % Change | Price per SME (2024) |
| China | 1,022 | 1,116 | +9.2% | $1.76 |
| Vietnam | 367 | 385 | +4.7% | $2.15 |
| Bangladesh | 281 | 275 | -2.2% | $2.10 |
| Mexico | 140 | 132 | -5.4% | $2.76 |
| Honduras | 91 | 109 | +20.3% | $2.80 |
| El Salvador | 59 | 63 | +7.5% | $2.65 |
Evolving Sourcing Strategies in 2024
U.S. apparel brands and retailers are continuing to recalibrate their sourcing strategies in 2024, focusing on diversification and risk mitigation. While China remains a dominant player, rising costs and trade concerns are prompting brands to look to alternatives in Asia, such as Vietnam and Cambodia, as well as closer to home in Central America and Mexico.
The July 2024 data highlights a global sourcing landscape that is shifting towards greater flexibility, speed to market, and sustainability. Brands are no longer solely driven by cost but are seeking partners that can offer shorter lead times, ethical labour practices, and stability in an unpredictable world. As these trends evolve, U.S. apparel imports are likely to reflect these strategic shifts in the months and years to come.
U.S. Apparel Imports from India: A Steady Growth Amid Strategic Shifts
India has long been a significant player in the U.S. apparel import market, known for its wide range of high-quality garments, including textiles, cotton apparel, and home textiles. In 2024, India has continued to strengthen its position as a key supplier to the U.S., focusing on sustainability, craftsmanship, and competitive pricing. Despite global supply chain challenges and rising competition from countries like Vietnam and Bangladesh, India’s apparel exports to the U.S. showed steady growth.
India’s Rising Share in U.S. Apparel Imports
In July 2024, India exported 210 million SME (Square Meter Equivalents) of apparel to the U.S., marking a 6.8% increase from the previous year. This growth can be attributed to India’s robust manufacturing infrastructure, its push towards sustainable and eco-friendly production, and its ability to offer competitive pricing for a variety of garment categories, including cotton apparel, denim, and ready-made garments (RMG).
India’s Apparel Import Data:
- 2023 (July): 196 million SME
- 2024 (July): 210 million SME (up 6.8%)
- Price per SME: $2.35 (below average compared to other Asian suppliers)
India’s pricing remains competitive, especially in cotton and textile-based categories, where it holds a natural advantage due to its domestic cotton production and textile expertise. However, India is facing pressure from other countries in the region, such as Vietnam and Bangladesh, which offer lower labour costs and more extensive trade agreements with the U.S.
Key Factors Driving U.S. Apparel Imports from India
Sustainability Initiatives
India has made substantial progress in positioning itself as a sustainable sourcing destination, a key factor driving its increased exports to the U.S. With growing consumer demand for eco-friendly and ethically produced apparel, U.S. brands are increasingly turning to India, which has embraced green manufacturing practices, organic cotton farming, and water-saving technologies in textile production.
Several Indian manufacturers have adopted certifications like Global Organic Textile Standard (GOTS) and Fair Trade Certified, making Indian apparel more attractive to U.S. brands focusing on sustainability.
Growth in Ready-Made Garments (RMG)
Ready-made garments, including t-shirts, denim, knitwear, and formal wear, remain India’s top export categories to the U.S. The country is renowned for its craftsmanship in producing high-quality apparel with intricate detailing, which is in high demand in the U.S. market, particularly in mid-range and premium segments.
India’s Push for Digital Integration
Another key factor boosting India’s appeal is its growing use of digital integration in manufacturing processes. With the adoption of advanced technologies like automation, AI-driven production management, and cloud-based inventory systems, Indian manufacturers are increasing efficiency and reducing lead times, making India a more viable option for U.S. brands focused on quick turnaround times.
Challenges India Faces in the U.S. Apparel Market
Despite its growth, India faces several challenges in expanding its U.S. market share further:
- Higher Labour Costs: Compared to countries like Bangladesh and Cambodia, India’s labour costs are relatively higher, which can affect its competitiveness, particularly for basic, low-cost apparel items.
- Trade Agreements: India lacks comprehensive trade agreements with the U.S. like Vietnam’s CPTPP membership or Bangladesh’s duty-free access for certain products under the Generalized System of Preferences (GSP). This puts Indian apparel at a slight disadvantage in terms of pricing.
- Political and Geopolitical Risks: While India remains politically stable, any disruptions in global trade dynamics or geopolitical tensions (such as its relationship with neighbouring China) could affect its standing as a reliable supplier to the U.S.
Future Outlook for U.S. Imports from India
With U.S. brands continuing to prioritize sustainability and reliability in their supply chains, India’s focus on eco-friendly production and technological advancements will likely help it maintain and grow its share of the U.S. market. However, to further capitalize on this, India may need to seek out or renegotiate trade agreements that would make its exports more price-competitive.
India’s traditional strength in textiles and the premium garment segment will remain key factors driving growth, but diversifying into new categories like technical textiles and performance wear could further bolster its appeal to U.S. retailers. Moreover, India’s active participation in international forums on labour standards and sustainability could enhance its reputation as a responsible sourcing destination in the long term.
Chart: U.S. Apparel Imports from India (July 2023 vs. July 2024)
| Category | July 2023 SME (million) | July 2024 SME (million) | % Change | Price per SME (2024) |
| Ready-Made Garments (RMG) | 120 | 128 | +6.7% | $2.40 |
| Knitwear | 50 | 53 | +6.0% | $2.30 |
| Denim | 26 | 28 | +7.7% | $2.50 |
| Cotton Apparel | 40 | 42 | +5.0% | $2.35 |
| Technical Textiles | 14 | 16 | +14.3% | $2.65 |
India’s Competitive Edge in U.S. Apparel Imports
India’s ability to combine quality craftsmanship with sustainable practices has helped it maintain a steady growth in U.S. apparel imports. Although it faces challenges from lower-cost competitors and the lack of comprehensive trade agreements, India’s focus on eco-friendly manufacturing and digital innovation positions it well for future growth.
The steady rise in U.S. imports from India, particularly in categories like ready-made garments and cotton apparel, indicates that the country remains a key sourcing destination for American brands. Going forward, India’s focus on strengthening its apparel ecosystem, adopting more sustainable practices, and negotiating favourable trade deals will be critical to enhancing its position in the global apparel market.
