India Textile Chemicals Market By Type (Coating & Sizing Agents, Colorants & Auxiliaries, Finishing Agents, Surfactants, Desizing Agents, Bleaching Agents, Others), By Process Type (Pre-treatment, Dyeing & Printing and Finishing), By Fiber Type (Natural and Synthetic), By Application (Apparel, Home Textile, Technical Textile, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Textile Chemicals Market By Type (Coating & Sizing Agents, Colorants & Auxiliaries, Finishing Agents, Surfactants, Desizing Agents, Bleaching Agents, Others), By Process Type (Pre-treatment, Dyeing & Printing and Finishing), By Fiber Type (Natural and Synthetic), By Application (Apparel, Home Textile, Technical Textile, Others), By Region, Competition, Forecast and Opportunities, 2020-2030F
| 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
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.
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.
According to IBEF, India has approximately 936.16 million internet subscribers, with about 350 million mature online users actively engaged in transactions.
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
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 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
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.
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.
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.
, 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.
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.
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.
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.
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.
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
- InJuly 2024, JAY Chemical Industries Private Limited inaugurated a cutting-edgefacility in Saykha, near Dahej, focused on the production of ethylene oxide andpropylene oxide derivatives, as well as formulated products. This facility willserve applications in textile auxiliaries, providing essential raw materials.Its design aims to enhance the stability of various chemicals by reducingsurface and interfacial tension, which will improve product performance acrossa range of industries.
- InJuly 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. NeochemTechnologies is a manufacturer of specialty chemicals based in Ahmedabad,serving a diverse array of industries, including textile processing, garmentwashing, home care, personal care, paints, paper, water treatment, andconstruction.
- InFebruary 2024, Birla Cellulose launched its patented innovation, Birla Viscose- Intellicolor, at the prestigious Bharat Tex event. Intellicolor represents asignificant advancement in the dyeing process, utilizing cationic or basic dyeswith a remarkable dye exhaustion rate exceeding 95%, outperforming traditionalmethods. This innovation eliminates the need for salt and soda ash in dyeing,simplifying operations and minimizing environmental impact. It achievesbrighter shades with higher tinctorial value and color depth compared toreactive dyes, offering enhanced color vibrancy while using lower dyeconcentrations. This leads to reduced chemical consumption, lower utilitycosts, shorter processing times, and decreased dye quantities, thereby supportingsustainable dyeing practices.
- InFebruary 2024, H&M Group partnered with Arvind Ltd. to trial DevenSupercriticals' SUPRAUNO technology for fabric dyeing, which employssupercritical CO2 to minimize energy, water, and chemical consumption. Thiscollaboration supports H&M's objectives to decrease greenhouse gasemissions by 56% and reduce freshwater usage by 30% in its supply chain by2030.
Key Market Players
- AnshikaPolysurf Limited
- CrodaIndia Company Private Limited
- FineotexChemical Limited
- NICCAINDIA PRIVATE LTD.
- BodalChemicals Ltd.
- FibroOrganic India Pvt. Ltd.
- RossariBiotech Limited
- KiriIndustries Limited
- JaysynthDyestuff India Ltd.
- SudhaSpeciality Chemicals Private Limited
| By Type | By Process Type | By Fiber Type | By Application | By Region |
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