|
Forecast
Period
|
2026-2030
|
|
Market
Size (2024)
|
USD 2.93 Billion
|
|
CAGR
(2025-2030)
|
3.63%
|
|
Fastest
Growing Segment
|
Technical
Textile
|
|
Largest
Market
|
South
India
|
|
Market
Size (2030)
|
USD
3.59 Billion
|
Market Overview
India
Textile Chemicals Market was valued at USD
2.93 Billion in 2024 and is expected to reach USD 3.59 Billion by 2030
with a CAGR of 3.63% during the forecast period. The India textile chemicals market is a
significant component of the country's extensive textile industry, which is one
of the largest in the world. This market includes a wide array of chemicals
utilized in textile production, such as dyes, finishing agents, surfactants,
and specialty chemicals. Increasing demand for textiles, fueled by both
domestic and international markets, has led to substantial advancements in
textile chemicals. Key drivers include rising disposable incomes, urbanization,
and shifting consumer preferences for high-quality products.
The
demand for premium textiles is growing, particularly in the apparel and home
textile sectors, along with progress in textile processing technologies.
Additionally, there is a growing focus on sustainable manufacturing practices,
prompting the adoption of eco-friendly and biodegradable chemicals. Innovations
in chemical formulations are enhancing the efficiency and quality of textile
goods. As a major exporter of textiles, India benefits from a rising global
demand for high-quality textile chemicals, creating significant opportunities
for local manufacturers. Challenges such as stringent environmental regulations
and fluctuating raw material prices can impact production costs and profit
margins. The market is characterized by a diverse range of players, from large
multinational corporations to smaller enterprises.
The
India textile chemicals market is well-positioned for significant growth in the
coming years, driven by the expanding textile sector, sustainability
initiatives, and technological progress. While challenges exist, the potential
for development and investment makes this market an appealing opportunity for
stakeholders.
Key Market Drivers
Urbanization and Changing
Lifestyles
Urbanization
is resulting in larger city populations, which is increasing the demand for a
wide variety of clothing styles. This trend motivates textile manufacturers to
develop innovative dyes, finishes, and functional chemicals. As lifestyles
evolve, consumers are showing a greater preference for fashionable,
high-quality textiles. There is a growing demand for garments with features
like moisture-wicking, wrinkle resistance, and antimicrobial properties, all of
which require specialized textile chemicals.
Urban
residents are also investing in home furnishings, such as curtains, upholstery,
and bed linens, further driving the demand for textile chemicals used in dyeing
and finishing to enhance both aesthetic appeal and durability. The rise of
online shopping has facilitated access to a broad range of textile products. According
to IBEF, India has approximately 936.16 million internet subscribers, with
about 350 million mature online users actively engaged in transactions. This
accessibility compels manufacturers to produce a wider array of textiles,
necessitating innovative chemical solutions for effective branding and
differentiation.
Additionally,
urban consumers are becoming more environmentally conscious, increasing the
demand for sustainable and eco-friendly textile products. This shift encourages
manufacturers to invest in textile chemicals that support green practices.
Rapid fashion cycles, influenced by urban lifestyles, result in higher turnover
rates for clothing styles, requiring manufacturers to implement efficient
chemical processes for dyeing and finishing to meet fast production timelines.
Moreover, the heightened focus on health and wellness has led to increased
demand for textiles with functional properties, such as moisture control and
odor resistance, driving the need for specialized chemicals that provide these
attributes.
Urbanization
and changing lifestyles are creating a dynamic environment for the textile
chemicals market in India, driving the need for innovation, sustainability, and
responsiveness to evolving consumer trends.
Growing Textile Industry
The
Indian textile industry has experienced substantial investments in the
expansion of production facilities, including spinning mills, weaving units,
and garment factories. This growth has led to increased output, resulting in a
heightened demand for textile chemicals across various processes. India is a
major global player in textile production, being one of the largest producers
of cotton and jute, the second-largest producer of silk, and accounting for 95%
of the world's hand-woven fabrics. According to an Invest India report,
India’s textile exports currently stand at USD 34.43 billion and are expected
to reach USD 100 billion by 2030.
With
enhanced production capacity, manufacturers can achieve economies of scale,
lowering per-unit costs and encouraging the use of textile chemicals to improve
efficiency and quality. The industry encompasses a wide range of products, from
traditional handlooms to technical textiles, necessitating specialized
chemicals for different applications such as specific dyes, finishing agents
for performance enhancement, and specialty chemicals for technical textiles.
The
Indian government has introduced various initiatives, including the Textile
Policy and Make in India, to support the textile sector. These policies offer
financial incentives and promote modernization and skill development. For
example, the government has launched the Production Linked Incentive (PLI)
Scheme with an approved budget of USD 1272.31 Million to boost the production
of MMF apparel, MMF fabrics, and technical textiles, enabling the industry
to scale up and enhance competitiveness.
As
manufacturers seek to differentiate their products, there is a continuous drive
for innovation in textile chemicals to meet the specific needs of various
textile categories. Advances in manufacturing technology, such as automation
and digitalization, lead to more efficient production processes, which in turn
necessitate advanced textile chemicals that enhance operational efficiency and
product performance. Investment in R&D facilitates the creation of new
chemical formulations that improve dyeing, finishing, and treatment processes.
For instance, in June 2023, the government approved R&D projects worth USD
7.4 million in the textile sector.
Compliance
with international certifications and regulations, such as Oeko-Tex and REACH,
further increases the demand for specialized textile chemicals that ensure
product safety and environmental sustainability. The rise of fast fashion has
also transformed the textile landscape, necessitating rapid production cycles
and a wide range of styles, which drives the demand for diverse textile
chemicals to swiftly respond to changing trends. The combination of expanded
production capacities, product diversity, technological advancements, and
global market opportunities fosters a robust demand for innovative and
specialized chemical solutions.
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Key Market Challenges
Environmental concerns
The
textile chemicals industry is often linked to the discharge of hazardous
substances into water bodies, resulting in pollution that affects ecosystems
and poses health risks to surrounding communities. The production processes can
generate significant amounts of solid waste, which must be managed effectively
to reduce environmental impact. Textile processing, especially dyeing and
finishing, requires considerable water resources, contributing to water
scarcity, particularly in areas already experiencing water stress. While
treating wastewater to eliminate harmful chemicals is crucial, many facilities
lack the necessary treatment infrastructure, leading to environmental
degradation.
Manufacturers
face increasingly stringent environmental regulations that mandate compliance
with laws related to emissions, effluents, and waste management. Failure to
comply can result in legal penalties and operational disruptions. Rising
consumer awareness of environmental issues has heightened demand for
sustainable and eco-friendly textiles, pressuring manufacturers to adopt
greener practices and materials. Transitioning to these sustainable methods,
such as utilizing eco-friendly dyes and improving waste management systems,
often necessitates significant investment, posing a challenge for smaller
manufacturers with limited resources. By emphasizing environmental
responsibility, industry can improve its reputation, comply with regulatory
requirements, and contribute to a more sustainable future.
Fluctuating Raw Material Costs
Raw
materials for textile chemicals, including dyes, pigments, and synthetic
fibers, are often subject to fluctuations in the global market. Factors such as
changes in supply and demand, geopolitical tensions, and trade policies can
result in sudden price increases or decreases. Additionally, speculative
trading in the commodities market can exacerbate price volatility. When raw
material costs rise, manufacturers can find it difficult to absorb these
increases, especially in a highly competitive environment where price
sensitivity is pronounced. This situation can lead to diminished profit
margins. Since many raw materials are imported, the industry is also vulnerable
to disruptions in global supply chains. Events like natural disasters,
pandemics, or geopolitical conflicts can impact both the availability and
pricing of these materials.
Fluctuations
in prices complicate inventory management, as companies must navigate the need
to maintain adequate stock while mitigating the risk of price declines.
Unpredictable raw material costs make it challenging for firms to accurately
budget and forecast expenses, hindering long-term planning and investments in
growth initiatives. Sudden spikes in material costs can also strain cash flow,
particularly for smaller manufacturers with limited financial resources.
To
manage costs, manufacturers may turn to cheaper alternatives for raw materials,
which could jeopardize the quality of the final products and damage brand
reputation. Variability in sourcing can lead to fluctuations in quality,
resulting in inconsistencies in the performance of textile chemicals and
negatively affecting customer satisfaction and reliability. Adapting to this
volatility is essential for sustaining profitability and competitiveness in a
dynamic market.
Key Market Trends
Adoption of Eco-Friendly
Products
As
consumers grow more conscious of environmental issues, the demand for
sustainable textiles is increasing. Buyers are increasingly favoring brands
that show a commitment to eco-friendly practices and materials. Many consumers
are willing to pay a premium for environmentally friendly products, prompting
manufacturers to adapt their offerings accordingly.
There
is a strong focus on developing eco-friendly dyes, finishing agents, and other
textile chemicals that reduce environmental impact, including innovations in
biodegradable and non-toxic options. For example, in October 2023,
researchers in Assam, India, known for its tea and silk, discovered that
mulberry silk fabrics dyed with green tea extract exhibit a wide range of color
variations, showcasing the potential of green tea extract as a natural dye in
the textile industry. This research was published in the journal Industrial
Crops and Products. New formulations aim not only for sustainability but
also to enhance textile functionality, improving durability and performance
while remaining eco-friendly.
Governments
and regulatory bodies are enforcing stringent laws related to emissions, waste
management, and chemical use in the textile industry. Compliance with these
regulations is driving manufacturers to seek eco-friendly alternatives.
Certifications such as GOTS (Global Organic Textile Standard) and Oeko-Tex are
becoming crucial for manufacturers, motivating the development of sustainable
chemical solutions. For instance, in October 2023, Vipul Organics Limited, a
specialty chemicals company focusing on pigments and dyes for textiles,
achieved the prestigious OEKO-TEX ECO PASSPORT certification. This
certification covers its full range of Pigment Dispersions and Reactive Dyes,
marketed under the brands SunPrint and SunActive, ensuring compliance with ZDHC
(Zero Discharge of Hazardous Chemicals) Level 3 standards.
Manufacturers
are increasingly adopting circular economy principles, focusing on recycling
waste materials, and incorporating recycled inputs in textile chemical
production. Investments in improved waste management and treatment processes
are being prioritized to minimize the environmental footprint of production. As
sustainability becomes a central concern for consumers, manufacturers are
leveraging eco-friendly practices as a competitive advantage to enhance brand
loyalty and increase market share. This trend towards sustainability in the
Indian textile chemicals market reflects a broader movement toward responsible
consumption and production. By embracing eco-friendly practices, manufacturers
can meet consumer demand, comply with regulations, strengthen their market
position, and contribute positively to environmental sustainability.
Segmental Insights
Process Type Insights
Based
on Process Type, the Dyeing & Printing emerged as
the dominating segment in the Indian market for Textile Chemicals during the
forecast period. The
primary function of dyeing and printing is to add color and design to textiles,
which is essential for attracting consumers. As fashion trends evolve, there is
a growing demand for unique, vibrant, and diverse colors in clothing and home
textiles. The variety of dyes available enables manufacturers to cater to
different consumer preferences, further increasing demand in this area. The
rise of fast fashion has created a need for rapid production turnaround,
necessitating efficient dyeing and printing processes, which boosts growth in
this segment. Frequent updates in fashion collections also require regular
dyeing and printing activities, driving further engagement.
Advancements
in digital printing technology enable more intricate designs and customization
options, making these processes more appealing to manufacturers. Digital
methods also help reduce water and chemical usage, aligning with sustainability
objectives. For example, in July 2024, Orange O Tec Pvt. Ltd., a leader in
digital textile printing, showcased its impact at the Gartex New Delhi
exhibition by launching the Made in Bharat digital textile printing machine,
the Fabpro 1i. This machine features a Ricoh 8-head production system,
achieving an impressive speed of 2,200 linear meters per day while maintaining
exceptional precision in a compact design. Additionally, Orange O Tec provides
a comprehensive range of custom digital inkjet printing solutions, software,
inks, accessories, and professional services to meet various customer needs.
The
dyeing and printing processes typically offer higher profit margins compared to
pre-treatment and finishing processes, creating a financial incentive for
manufacturers to invest more in this segment. As production scales up to meet
demand, this segment benefits from economies of scale, which helps reduce costs
and enhance competitiveness.
The
growth of technical textiles, which often require specialized dyeing and
printing, also contributes to overall demand in this segment. Industries such
as automotive, healthcare, and sportswear increasingly rely on textiles that
necessitate advanced dyeing techniques. Together, these factors enhance the
growth and significance of the dyeing and printing segment within the textile
production process. As manufacturers adapt to evolving market demands, this
segment is likely to remain a focal point for innovation and investment.
Application Insights
Based
on Application, Technical Textile emerged as the fastest growing segment in the
Indian market for Textile Chemicals in 2024. Technical textiles are designed
for specific functions, such as providing strength, durability, and resistance
to environmental factors like moisture and heat. As industries increasingly
seek textiles that fulfill these specialized requirements, demand continues to
rise. Various sectors, including automotive and healthcare, utilize technical
textiles for applications such as protective clothing, medical textiles, and
insulation materials, contributing to market growth. India's technical textiles
market shows substantial potential, with a robust growth rate of 10%,
positioning it as the fifth largest technical textiles market globally. The
Indian government acknowledges the sector's potential to enhance the economy
and generate jobs. Initiatives such as the Production Linked Incentive (PLI)
scheme offer financial incentives for manufacturers to invest in this area,
fostering growth.
Ongoing
advancements in textile technology, including innovations in smart textiles and
nanotechnology, are leading to the development of cutting-edge products. This
attracts investments and interest from manufacturers looking to differentiate
themselves. Additionally, the adoption of advanced manufacturing processes
improves efficiency and quality in the production of technical textiles, making
this segment increasingly appealing to manufacturers. The global emphasis on
health and hygiene, particularly in the wake of the pandemic, has amplified the
demand for medical textiles. Applications such as surgical gowns, masks, and
bandages require high-performance, specialized textiles. Similarly, the
automotive industry's shift toward lightweight, high-performance materials
drives demand for technical textiles used in vehicle interiors, insulation, and
safety applications.
There
is also a growing focus on sustainability within the textile industry, with
increasing attention to recycled materials and environmentally friendly
production methods. Technical textiles often meet these sustainability
criteria, attracting eco-conscious consumers and businesses. As India seeks to
bolster its position in the global textile market, the demand for high-quality
technical textiles presents significant export opportunities, particularly in
sectors like automotive and healthcare, where India can capitalize on its
manufacturing capabilities. With a focus on innovation and sustainability, the
technical textiles segment is well-positioned for continued expansion, making
it a critical area of growth in the Indian textile chemicals market.
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Regional Insights
Based
on Region, South India emerged as the dominant region in the Indian market for Textile Chemicals in 2024. The Southern region
of India boasts a rich textile heritage, particularly in states like Tamil
Nadu, which are historically recognized for their textile production. This
legacy has cultivated a strong ecosystem of manufacturers, suppliers, and
service providers in the textile sector. The region is known for producing a
diverse array of textiles, including cotton, silk, and technical textiles,
generating significant demand for various textile chemicals. Southern states
have made substantial investments in infrastructure, including spinning mills,
weaving units, and dyeing and finishing facilities. This well-developed network
enhances production efficiency and drives the need for specialized textile
chemicals. Additionally, the proximity to major ports facilitates the smooth
transportation of raw materials and finished products, bolstering both domestic
and international trade opportunities.
State
governments in the South have enacted supportive policies and incentives aimed
at promoting the textile industry, such as subsidies, tax breaks, and
investments in research and development. For example, in February 2024, the
Tamil Nadu government announced the development of the PM MITRA Park in
Virudhunagar, a textile park in Salem, which includes higher capital subsidies
for investments in technical textiles and support for technology upgrades in
spinning mills as part of the 2024 budget. Various government initiatives
also focus on skill development within the textile sector, ensuring a
consistent supply of trained labor to meet industry demands. The region hosts
numerous research institutions and innovation centers dedicated to advancing
textile technology and chemicals, fostering the creation of new,
high-performance chemical solutions.
With
its established manufacturing capabilities and robust infrastructure, the South
enjoys easy access to international markets, positioning the region favorably
for the export of textiles and textile chemicals, thus contributing to its
growth. The presence of many textile exporters further stimulates demand for
quality textile chemicals, enhancing market expansion. These combined factors
create a vibrant environment that promotes growth and establishes the Southern
region as a leader in the textile chemicals industry in India.
Recent Development
- In
July 2024, JAY Chemical Industries Private Limited inaugurated a cutting-edge
facility in Saykha, near Dahej, focused on the production of ethylene oxide and
propylene oxide derivatives, as well as formulated products. This facility will
serve applications in textile auxiliaries, providing essential raw materials.
Its design aims to enhance the stability of various chemicals by reducing
surface and interfacial tension, which will improve product performance across
a range of industries.
- In
July 2024, Lamoral Coatings Netherlands and Neochem Technologies Pvt. Ltd. of Ahmedabad,
India, announced a strategic partnership focused on fostering innovation,
sustainability, and growth by leveraging their combined strengths. Neochem
Technologies is a manufacturer of specialty chemicals based in Ahmedabad,
serving a diverse array of industries, including textile processing, garment
washing, home care, personal care, paints, paper, water treatment, and
construction.
- In
February 2024, Birla Cellulose launched its patented innovation, Birla Viscose
- Intellicolor, at the prestigious Bharat Tex event. Intellicolor represents a
significant advancement in the dyeing process, utilizing cationic or basic dyes
with a remarkable dye exhaustion rate exceeding 95%, outperforming traditional
methods. This innovation eliminates the need for salt and soda ash in dyeing,
simplifying operations and minimizing environmental impact. It achieves
brighter shades with higher tinctorial value and color depth compared to
reactive dyes, offering enhanced color vibrancy while using lower dye
concentrations. This leads to reduced chemical consumption, lower utility
costs, shorter processing times, and decreased dye quantities, thereby supporting
sustainable dyeing practices.
- In
February 2024, H&M Group partnered with Arvind Ltd. to trial Deven
Supercriticals' SUPRAUNO technology for fabric dyeing, which employs
supercritical CO2 to minimize energy, water, and chemical consumption. This
collaboration supports H&M's objectives to decrease greenhouse gas
emissions by 56% and reduce freshwater usage by 30% in its supply chain by
2030.
Key Market Players
- Anshika
Polysurf Limited
- Croda
India Company Private Limited
- Fineotex
Chemical Limited
- NICCA
INDIA PRIVATE LTD.
- Bodal
Chemicals Ltd.
- Fibro
Organic India Pvt. Ltd.
- Rossari
Biotech Limited
- Kiri
Industries Limited
- Jaysynth
Dyestuff India Ltd.
- Sudha
Speciality Chemicals Private Limited
|
By
Type
|
By
Process Type
|
By
Fiber Type
|
By
Application
|
By Region
|
- Coating &
Sizing Agents
- Colorants &
Auxiliaries
- Finishing Agents
- Surfactants
- Desizing Agents
- Bleaching Agents
- Others
|
- Pre-treatment
- Dyeing &
Printing
- Finishing
|
|
- Apparel
- Home Textile
- Technical Textile
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Textile Chemicals Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- India Textile Chemicals Market, By Type:
o Coating & Sizing Agents
o Colorants & Auxiliaries
o Finishing Agents
o Surfactants
o Desizing Agents
o Bleaching Agents
o Others
- India Textile Chemicals Market, By Process Type:
o Pre-treatment
o Dyeing & Printing
o Finishing
·
India Textile
Chemicals Market, By
Fiber Type:
o Natural
o Synthetic
·
India
Textile Chemicals Market, By
Application:
o Apparel
o Home Textile
o Technical Textile
o Others
- India Textile Chemicals Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Textile
Chemicals Market.
Available Customizations:
India Textile Chemicals Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
India Textile Chemicals Market is an upcoming
report to be released soon. If you wish an early delivery of this report or
want to confirm the date of release, please contact us at [email protected]