Textile Colorant Market Size, Share & COVID-19 Impact Analysis, By Source (Natural and Synthetic), By Type (Azoic Dyes, Direct Dyes, Basic Dyes, Disperse Dyes, Reactive Dyes, Sulfur Dyes, VAT Dyes, and Others), By Application (Clothing, Technical Textiles, Home Textiles & Carpets, and Automotive Textiles) and Regional Forecasts, 2021-2028

The global textile colorant market size was USD 9.16 billion in 2020 and is projected to grow from USD 9.42 billion in 2021 to USD 13.24 billion in 2028 at a CAGR of 5.0% during the 2021-2028 period. The sudden decline in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with these products witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 5.8% in 2020 as compared to the average year-on-year growth during 2017-2019.

Textile colorants are specialty coloring chemicals that can easily fasten on various fabrics manufactured across the globe. These colorants improve the look of the fabric by changing its shade. They also impart strength and durability to the material. With the global textile manufacturing industry gaining impetus in recent years, the demand for textile dyes and pigments is also surging. Research & development of dyes that could provide hydrophobic and oleo-phobic nature to textiles shall help in boosting the market growth during the forecast period.

For instance, in February 2021, Dow introduced Dowsil IE-8749 emulsion, a new generation of durable hydrophobic compounds for fabrics based on silicone chemistry. Studies conducted by the company on a plethora of substrates based on Dowsil IE-8749 Emulsion treatment exhibit enhanced fabric retention compared to ordinary silicone finishes – thus providing persistent water repellency even after multiple washes.

COVID-19: Reduced Consumer Spending on Clothes Amid Lockdowns to Impact Market Growth

The COVID-19 impact was discernible across the entire textiles industry, which penetrated down to the textile dyes and pigments market. The announcement of lockdowns in key textile manufacturing countries, such as China, India, Brazil, and Bangladesh, has led to a halt in the production activities of textile manufacturers. Also, garment manufacturers are suffering as buyers are canceling orders, delaying payment confirmation deadlines, and big brands are going bankrupt. The situation is further aggravated by international logistics restrictions and an interrupted revenue stream as consumers have reduced their spending on new apparel purchases.

According to the UN Conference on Trade and Development data, the pandemic has led to a 3% drop in the global trade value in the first quarter of 2020. The global textiles industry largely depends on Asian nations for their dyes and pigment demand, most notably in China, which has faced a severe downturn due to the pandemic. Global fashion brands are continually canceling their orders owing to the piling up of stocks.

Recent reports from textile associations estimate that the value of unsold clothing in stores and warehouses ranges between USD 160 – 190 billion, double that of pre-COVID levels. Textile exports from Asian nations also declined by around 17%. Exports in July, as per BGMEA, accounted for USD 3.24 billion in apparel shipments, around 2% lower than the previous year. It also reported that orders of around USD 2 billion were on hold, and USD 1.5 billion were canceled. Thus, it could be observed that the impact of COVID was staggering on the textile industries, including dyes and pigment verticals.

TEXTILE COLORANT MARKET TRENDS

Rising Usage of Natural Dyes and Pigments to Ensure Product Quality is a Vital Trend

Historically, natural dyes were employed for the coloring of textiles. However, with the industrial revolution, the production of consumer textiles improved, thus providing a push to the demand for synthetic colorants for the dyeing of a large number of fabrics manufactured. However, synthetic colorants are related to many disadvantages, such as itching, loss of color, and high demand for water for dye manufacturing and application. On the other hand, natural dyes have special advantages, namely, being renewable, itch-resistant, absence of toxic and carcinogenic chemicals, and high UV absorption capacity. Owing to these factors, many fashion houses and boutiques have reiterated the usage of natural pigments for their products. It is expected to further drive the textile colorant industry.

TEXTILE COLORANT MARKET GROWTH FACTORS

Expanding Demand for Technical Textiles to Drive the Market Growth

Technical textiles are a specialty grade of textiles made up of specific chemical and physical characteristics designed for a particular end-use. These textiles are primarily used in healthcare, sports, engineering, and specific-purpose consumer product industries, such as raincoats and body warmers. The demand for these textiles has expanded on account of the changing consumer preference, increasing adaptability, and raising awareness about the effectiveness of these products. Furthermore, geotextiles, a type of technical textile used in topographical engineering application is experiencing immense traction owing to the increasing environmental concerns, such as soil quality destruction. This factor is expected to further provide a push to the demand for technical textiles.

Colorants added to these products not only improve their look but also help to support the purpose served. For instance, dark colorants used in raincoats help the consumer understand the hydrophobicity of the material. On the other hand, neon colorants used in sportswear provide high reflective properties, adding a supplemental measure for the safety of athletes participating in cross country runs and marathons. Owing to these features, the demand for colorants for manufacturing these technical textiles is experiencing solid growth in this market.

Increasing Demand for Colorants in Home Textiles to Boost the Market Growth

The growing population across the globe has increased the demand for living space. To fulfill this demand, many governments have introduced housing benefits for their citizens. Also, the reduction in home loan rates has pushed many consumers to buy and decorate their homes. Most of them employ the services of architects and interior designers to decorate and form a unique identity for their houses. Products such as curtains, cradles, sofas, bedsheets, and carpets are used to decorate these houses. The demand for these products has experienced stable growth in the past few years, with the spending capacity of people expanding considerably. With textile colorant being the primary product that creates the differentiation between similar fabrics, their demand is experiencing growth in this market.

RESTRAINING FACTORS

Stringent Environmental Regulations on Dye Manufacturing to Impede Market Growth

A critical factor that restrains the growth of the market for textile colorant is the low sustainability of these products. The manufacturing of 1 kg of dye requires about 4,400 liters of water. Further, the dyeing process also consumes a large amount of water, making the industry very environmentally intensive. Moreover, a large amount of dye enters the waste stream during the dyeing process, which leads to the coloration of natural water sources. Owing to these factors, environmental agencies and governments have placed heavy regulations on manufacturing dyes and the entire textile dyeing process.

For instance, REACH restricts the usage of certain dyes in consumer products which can prove dangerous to the consumer's health. It restricts the usage of azo dyes, which break down into amines during processes, such as hydrolysis. Appendix 8 of REACH lists around 25 such aromatic amine compounds that are harmful to humans.

TEXTILE COLORANT MARKET SEGMENTATION ANALYSIS

By Source Analysis

Higher Sustainability of Natural Colorants Shall Help the Segment Gain Considerable Market Share

On the basis of source, the textile colorant market is bifurcated into natural and synthetic. Natural colorants are obtained from natural products, such as fruits, flowers, animals, and even insects. For instance, the natural indigo dye is obtained from Indigofera tinctoria and gives a shade of blue. Also, lac dye is made from a particular insect, Coccus Lacca. It is mainly used to replicate the shades of scarlet to crimson red. These natural colorants have properties, such as renewability, mild dying condition, harmlessness, and non-toxicity, resulting in faster segment growth. However, natural dyes have very low fastness to the fabrics; therefore, the share held by the segment is minimal.

On the other hand, synthetic dyes are primarily employed for the coloring of textiles. The increasing mass production of clothes and home textiles has expanded the demand for synthetic colorants, as they can be easily manufactured. They also have higher fastness and can replicate many colors, making them the dominant segment in the market.

By Type Analysis

High Fastness Property to Propel the Reactive Dyes Segment

Based on type, the textile colorant industry is categorized into azoic dyes, direct dyes, basic dyes, disperse dyes, reactive dyes, sulfur dyes, VAT dyes, and others. These types are categorized depending on the chemistry of production and the dyeing process involved. Out of these types, reactive dyes form an ionic bond with the material's fibers and, therefore, provide excellent fastness. Owing to this factor, the segment is projected to expand at the fastest rate.

On the other hand, the azo dyes segment holds the dominant share in the market, primarily due to lower costs and ease in the production process. However, increasing concerns regarding the ecological harm caused by these colorants have attracted the attention of regulatory bodies. Hence, leading fashion houses have started searching for alternative dyes, thus staggeringly impacting the segment's growth.

By Application Analysis

Evolving Fashion Trends to Drive Growth of the Clothing Segment

The colorant market is segmented into clothing, technical textiles, home textiles & carpets, and automotive textiles, based on application. Amongst these, the clothing segment is expected to remain the primary application during the forecast period. Evolving trends in fashion have led to the development of many clothing patterns for either gender. Furthermore, the improvement in living conditions in emerging economies has attracted multinational brands' attention, resulting in them expanding their presence via shops in malls and shopping centers. These trends are expected to further consolidate the dominant share held by the clothing segment.  

On the other hand, the technical textiles segment is gaining impetus on account of the increasing focus of the young generation on healthy living. The demand for sportswear and trekking clothes has expanded considerably in recent years and is further estimated to proliferate during the forecast period. The changing climatic behavior has further pushed the demand for geotextiles, resulting in sharp growth of the technical textiles segment.

REGIONAL TEXTILE COLORANT MARKET ANALYSIS

The textile colorant market size in Asia Pacific stood at USD 4.24 billion in 2020. The region is expected to be the largest shareholder in this market throughout the forecast period. China is the largest dye-producing country on account of cheap raw material and labor availability. Moreover, the textile manufacturing industry is concentrated in South Asia. These factors have resulted in Asia Pacific holding the leading position in the market.

On the other hand, the market in North America is driven by the presence of leading clothing manufacturing brands, such as GAP, Nike, Calvin Klein, Adidas, Hanes, and Reebok in the U.S. Furthermore, the demand for technical textiles is expanding in the region on account of the increasing sports enthusiasm. Obesity rates have been the highest in the region in the past few years. Hence, many consumers are taking up sportswear and activewear to support their body movements during workout sessions.

On the other hand, infrastructural renovation activities have gained momentum in Europe. Along with infrastructural development, consumers are also searching for home textiles, such as carpets, cushion covers, and sofa mats to give a modern, chic look to their residences. This factor is expected to push the demand for textile dyes and pigments in the region. Also, automotive production in the region has increased considerably in the past five years, with luxury-laden cars being in heavy demand. These cars are decorated with upholstery with a range of earthly and woody colors, which would drive the market for textile colorant for automotive textile applications.

The textile industry in the rest of the world is expanding on account of the increasing population and efforts of government and organizations, such as the UN, to improve the living conditions of people. Also, countries in the Middle East have been the key center for shopping for tourists, which would drive the market for clothing and apparel in the region, thus also expanding the demand for textile colorant in the region.

KEY INDUSTRY PLAYERS

Key Players Are Focusing On Product Development & Expansion to Strengthen Their Positions

There are over 10,000 variants of textile colorants being used in the market. A few large corporations hold monopolies over some variants, while some dyes are manufactured in local in-situ production units. Owing to this factor, the market is analyzed to be reasonably diversified. Some of the key regional players working in the market are BASF SE, Huntsman Corporation, Sumitomo Chemicals, and Archroma. The key growth strategies employed by these major players for gaining high market share are product development and collaboration with crucial textile manufacturing companies. For instance, Huntsman Corporation, a publicly-traded global manufacturer and supplier of specialty chemicals, introduced the HIGH IQ Black Eco Program in September 2020. HIGH IQ Lasting Black Eco is a unique combination of the world’s leading color-retention program with Huntsman’s revolutionary AVITERA Black SE reactive dye.

Another key company operating in the market is Archroma. The company has a presence in over 30 countries and serves multiple end-use industries via its 26 production and distribution sites located across the globe. It was also the founding member of the newly formed association, Sustainable Chemistry for the Textile Industry (SCTI), in October 2020. The association was formed to advance sustainability in textile manufacturing and develop a globally accepted ‘sustainability standard’ for textile chemicals and colorants.

LIST OF KEY COMPANIES PROFILED IN TEXTILE COLORANT MARKET:

• Huntsman Corporation (U.S.)


• Kiri Industries Ltd. (India)


• DuPont (U.S.)


• Sumitomo Chemical Co. Ltd. (Japan)


• BASF SE (Germany)


• Allied Industrial Corp., Ltd. (Taiwan)


• Dystar Group (Singapore)


• Zhejiang Longsheng Group Co., Ltd. (China)


• LANXESS AG (Germany)


• Archroma International (Switzerland)


• Colorant Limited (India)


• Jay Chemical Industries Limited (India)


• Jiangsu Yabang Dyestuff Co., Ltd. (China)


• Other Key Players

KEY INDUSTRY DEVELOPMENTS

• March 2021: Ralph Lauren introduced Color-On-Demand, an innovative dyeing platform that will change the textile industry to dye cotton. The new system is composed of a set of techniques that enables recycling and reuse of water from the dyeing process, establishing the system to be the first scalable zero wastewater cotton dyeing system.

• September 2020: Browzwear, a 3D digital solutions provider for the fashion industry, announced a partnership with Archroma for provisioning designers’ access to the company’s entire online color library, Color Atlas. Using the technology, apparel manufacturers can make an accurate and informed decision before purchasing and using dye, thus reducing the number of reiterations and waste generated.

REPORT COVERAGE

The textile colorant market research report covers qualitative and quantitative insights into this industry and a detailed analysis of market size & growth rates for all possible market segments. A growing trend is observed in this industry for various applications, such as clothing, home textiles, and technical textiles. Along with this, it provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are Porter’s five forces, recent industry developments in the market, the regulatory scenario in crucial countries, macro & microeconomic factors, SWOT analysis, key industry trends, competitive landscape, and company profiles.

Report Scope & Segmentation