Bangladesh has the potential to grab a bigger market share in the European Union (EU), even in case of garments, on the condition that there is product diversification.

For instance, Bangladesh's share of cotton fibre garments sold in the EU is 34.7 percent while China's share is only 14.9 percent.

On the other hand, China's share of non-cotton garments sold in the EU is 41.2 percent whereas Bangladesh accounts for only 12.2 percent.

So, Bangladesh can explore its potential here, said Mohammad Abdur Razzaque, chairman of Research and Policy Integration for Development (RAPID) Bangladesh, a private think tank.

He was presenting a study titled "Exploring Export Diversification Opportunities in the European Union" at a seminar organised by RAPID in collaboration with Friedrich-Ebert-Stiftung Bangladesh at the Six Seasons Hotel in Dhaka.

Bangladesh's apparel exports to the EU are projected to rise from $25 billion to $60 billion by 2030, said the study.

Diversification of sourcing away from China may help Bangladesh's garment export growth.

Moving towards manmade fibres can be greatly facilitated through the extension of the EU preferences beyond Bangladesh's status graduation from a least developed country (LDC) to a developing nation.

Estimates are based on current supply-side capacities and market access conditions.

Non-apparel products with high export potential include footwear, leather goods, home textiles and fish and shrimp.

With LDC graduation imminent, the urgency for export diversification has never been more pronounced, the study said.

The EU market, with its vast consumer base and historical trade ties with Bangladesh, can act as a catalyst.

However, along with the dominant role of the garment sector in Bangladesh's exports, its potential for expansion remains vast, especially as China's share in the global market, including in the EU, dwindles, said the study.

Bangladesh is diversifying its exports but the garment sector still dominates, said Senior Commerce Secretary Tapan Kanti Ghosh. Bangladesh has already done a lot regarding compliance at the factory level, he added.

EU Ambassador to Bangladesh Charles Whitely also spoke at the event.