India Textile Chemicals Market Research Report: Forecast (2023-2028)

Market Definition

At various stages of the manufacturing process, from fiber pre-treatment to textile finishing, textile chemicals are utilized to treat textile material. There are several steps in producing textile chemicals, such as washing, scouring, mercerizing, dyeing, printing, and finishing.

Market Insights

The India Textile Chemicals Market is projected to grow at a CAGR of around 11% during the forecast period, i.e., 2023-28. A robust domestic consumption and export growth coupled with an increase in import substitution drive the market across various end-user industries. From June 2017 to May 2018, the textile industry received nearly $4 billion in investments, according to the India Brand Equity Foundation with continuous partnerships, investments, and mergers, key players like Archroma, Croda, Huntsman, Rossari, and others are expanding their portfolios to cater to the emerging needs of the textile market. Besides, through internal investments in R&D, manufacturing and service capabilities, and innovative chemicals, these companies are all set to put a strong foothold in the Indian market. For instance,

An India-based company, Cosmo Speciality Chemicals, has launched Silky SF, a cationic softener that exhibits excellent softening effects on all kinds of textiles. Apart from offering a smooth touch, the latest product is pocket-friendly. In order to manufacture products at such a molecular level, the companies' R&D facility is equipped with sophisticated analytical instrumentations that include DMA, FTIR & imaging IR, SEM-EDS, TGA-MS, DSC & optical microscope, etc.

Moreover, with the advent and expansion of industries in India, the demand for Technical Textiles has been on the rise. Technical textiles generally require high-performance chemicals such as auxiliaries to function efficiently, and the automotive industry being the major end-user, further facilitates the industry ascension. As such, the increasing production of vehicles in the automotive sector is anticipated to boost the demand for textile auxiliaries in the years to come.

On the other hand, due to the fragmented nature of the industry, The Apparel Industry in India needs more significant fabric makers compared with major fabric producers like China and USA. Besides, inadequate weaving units in the country emerge as lucrative prospects for the market players willing to set up such units. In fact, introducing innovative chemicals suiting various fabrics' needs seems opportunistic. For instance,

Sarex, during the pandemic, launched two specialty chemicals, SARAGUARD 5700 and SARAGUARD FL, specifically engineered to fight the Coronavirus. SARAGURD FL is the first entirely 'Made in India' anti-bacterial and anti-viral agent for all textiles as well as their blends. With their enhanced durability in multiple home laundry washes, two chemicals are best suited for masks and PPE kits for medical personnel.

However, the ongoing fluctuations in crude oil prices and changing economic cycles remained challenging for cotton yarn and synthetic fiber manufacturers in maximizing their profit margins. It is primarily because synthetic textiles' raw materials are mainly derived from crude oil. These aspects pose risks to market growth in the coming years.

Market Dynamics

Key Driver: A Swift Surge in The Technical Textile Demand

With the comprehensive utility in automotive applications and healthcare setups, technical textiles in India have witnessed a sudden demand explosion. Other than these, their role as geotextiles, agro textiles, and protective clothing has also intensified the competition among Indian manufacturers. The surge in demand is primarily due to their superior physical and functional properties. Textile chemicals, especially auxiliaries, are crucial for technical textiles as they provide the required specific properties to the fabric, such as enhanced desired color during manufacturing. Further, the ever-increasing demand for supreme quality textile products presented by Western markets like North America and Europe enables India to fold its export in the coming years.

Possible Restraints: Raw Material Scarcity and Low Labor Productivity

Raw materials are responsible for 35% of the total cost of production. However, there is a need for more cotton in the country, particularly long-staple cotton imported from Pakistan, Kenya, Uganda, Sudan, Egypt, Tanzania, the United States of America, and Peru. The fact that the country only contributes 9% to world cotton production could be better, given that it has the most cotton cultivated. However, fluctuating prices and the unpredictable supply of raw materials are the leading causes of low productivity and illnesses in the mills. Additionally, the frequent strikes, layoffs, and retrenchments in cotton mills in the country also impede industry development.

Growth Opportunity: Growing Affinity for Innovative and Environmentally Sustainable Dyes or Chemicals

The stringent laws enforced by the government and rigorous efforts of the NGOs have compelled the industry players to turn to sustainably produced and hazardous chemical-free textiles. It is for this purpose that restricted substance lists (RSLs) are created indicating prohibited chemicals and their limit values. Another factor emphasizing the adoption of low VOC and biodegradable materials for textile manufacturing is the shift in consumers’ buying behavior towards eco-friendly clothing and garments. Thus, low-VOC products are emerging as an opportunistic area for several clothing manufacturers in the coming years.

Market Segmentation

Based On Application,

• Apparel
• Home Textile
• Technical Textile

In the historical period, the Home Textile segment captured a significant share of the textile chemicals market in India. The increased construction activities in the residential and commercial sectors can further escalate the requirement for home textiles, such as home and floor furnishing products, thereby boosting the demand for textile chemicals in the years to come. On the other hand, the technical textile sector is anticipated to proliferate in the coming years. It owes principally to the advent of a large number of industries, resulting in augmenting awareness regarding technical textiles. Due to their superior physical and functional properties and the ability to get customized as per the requirements of the end-users, such types are gaining traction. In addition, the adequate availability of raw materials required for producing such fabrics positively influenced the market ascension in recent years.

Based on Type,

• Coating & Sizing Agents
• Colorants & Auxiliaries
• Finishing Agents
• Surfactants
• Desizing Agents
• Others

Here, Colorants and Auxiliaries accounted for the highest share of the India Textile Chemicals market in the historical period. The stretching demand for technical textiles in the country has projected the need for high-performance chemicals in order to function efficiently, in turn boosting the demand for auxiliary textile chemicals. Moreover, with their distinguished utility in washing & dyeing yarns & fabrics, dyeing auxiliaries are gaining traction. The most frequently used auxiliaries include sequestering agents, peroxide killers, dispersing agents, carriers, anti-foaming, and anti-pilling agents, among others. These chemicals predominantly aid in the preparation and modification of substrate for coloration and stabilize the application medium to fasten dyeing properties. Backed by these properties, the demand for colorants and auxiliaries would likely elevate in the coming years.

Recent Developments in the India Textile Chemicals Market

• In August 2022, Archroma, a global leader in sustainable specialty chemicals and solutions, announced its acquisition plan to acquire the Textile Effects business from Huntsman Corporation.
• The Technology Upgradation Fund Scheme[TUFS] and the Scheme for Integrated Textile Parks (SITP) both involve sizable expenditures. The government included approximately US$ 97 million for the Amended Technology Upgradation Fund Scheme (ATUFS), in the Union Budget 2019–20.

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