Textile Dye Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The global textile dye market is projected to register a CAGR of over 4% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Considering the pandemic scenario, the clothing and apparel manufacturing activities were stopped temporarily during the government-imposed lockdown to curb the spread of COVID-19 cases, which decreased the production of wearing apparel. For example, according to Eurostat, between January 2021 and January 2020, the production of wearing apparel dropped by 24.4%, which decreased the demand for the textile dye market. However, the demand for home and healthcare textiles increased significantly during the current situation, owing to the increased demand from hospital textiles, including bed sheets and gowns, with an increase in people's preference to stay at home, stimulating the demand for the market studied.

Key Highlights

• Over the short term, the growing demand for textile dye from the apparel industry is expected to drive the market's growth.
• The stringent environmental regulations and the unfavorable conditions arising due to the impact of COVID-19 are expected to hinder the growth of the market studied.
• Asia-Pacific is expected to dominate the global market, with the largest consumption being registered in countries such as India and China.

Key Market Trends

Increasing Demand from the Apparel Segment

• Textile dyes are widely used as colorants in the apparel industry and are expected to be the fastest-growing segment in the market during the forecast period.
• Dyes are used for coloring fabrics. Dyes absorb and reflect light at a specific wavelength which gives the human eye a sense of color. Dyes impart beauty to the fabrics.
• With the increase in penetration of the internet, consumers are now looking for easy shopping, better offers, and easy return policies. The growth in online sales has contributed to the growth of the apparel industry.
• Nowadays, clothing has become a symbol of aspiration, personality, and status. Consumers have shifted from need-based to aspiration-based clothing. The demand for aspiration clothing has increased, which is expected to drive the textile dyes market.
• However, synthetic dyes are harmful to the environment as they are not biodegradable and require plenty of water during their manufacturing. Stringent environmental regulations are impacting the manufacturing of synthetic dyes.
• The global apparel market has been growing at a rapid pace in the past few years. According to the Statista market forecast, the apparel market generated USD 445 billion in 2020 from USD 343 billion in 2019. Additionally, the market revenue is expected to reach USD 681 billion in 2025, witnessing a CAGR of 7.31% during the period 2021-2025.
• Therefore, the aforementioned factors are expected to show a significant impact on the textile dye market in the coming years.

Asia-Pacific to Dominate the Market

• Asia-Pacific is expected to dominate the market for textile dyes during the forecast period due to increased demand from countries like India and China.
• Textile dyes are mainly used as colorants for fabric in apparel and household textiles. The population in India and China, combined, is about 40% of the global population. The growing population is expected to drive the demand for clothing, which propels the market for textile dyes during the forecast period.
• As stated by the National Development and Reform Commission, the domestic sales of apparel and knitwear in China were around USD 172.4 billion for the first 11 months of 2019, representing a 3% increase year-on-year.
• Furthermore, the Chinese textile and apparel exports were amounted to about USD 291.21 billion in 2020, with a growth rate of 9.5% year-on-year, which enhanced the demand for textile dye within the country.
• According to the Ministry of Textiles of India, the Indian Textile Industry generated a revenue of about USD 148 million from operations during FY2019, with a growth rate of about 3% compared to the previous year, which enhanced the demand for the market studied.
• According to the Statistics Bureau of Japan, the sales value of textile wholesale in Japan was about USD 27 billion in 2019, with a decline rate of about 3.5%, which negatively impacted the demand for the textile dye market.
• Therefore, the aforementioned factors are expected to show a significant impact on the textile dye market in the coming years.

Competitive Landscape

The global textile dye market is partially fragmented in nature, with the players accounting for only a marginal share. Some of the key players operating in the market include Vipul Organics Ltd, DEV COLOURS, DyStar Singapore Pte Ltd, Archroma, and Huntsman International LLC.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support