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

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

The global textile chemicals market was valued at USD 24,308.38 million in 2020, and it is projected to register a CAGR of around 4% during the forecast period (2021-2026).

The COVID-19 has a huge impact on the apparel industry globally due to the lockdown in various countries, impacting the textile chemicals industry. The global textile and apparel industry is hugely dependent on China as a manufacturing base, where the novel COVID-19 first struck and the subsequent spread of the virus to other countries. This led to store closures and dwindling demand for textiles, which impacted the industry overall. The viability of the textile, clothing, leather, and footwear industries is unraveling as workers are instructed to stay at home, as factories were closed, and the global supply chains came to a halt. The cancelation of orders hit thousands of firms and millions of workers very hard. Moreover, with the focus shifting toward health, hygiene, and essential supplies, the fashion and textile industries were paused. There are fewer to no walk-ins at stores, and online orders slowed down, which affected the apparel industry. Additionally, the home textile sector is widely considered a luxury sector and is sensitive to economic cycles. This crisis left a serious impact on the demand for such products, especially in the mid, high, and premium segments. Even after the situation is expected to recover, the industry may take some time to recover in the coming years, further impacting the demand for textile chemicals significantly.

Key Highlights

• One of the major factors driving the market studied is the robust growth of the apparel market in developing economies.
• However, pollution problems caused by the textile dyeing and finishing industry are likely to restrain the market.
• Asia-Pacific is likely to dominate the market during the forecast period.

Key Market TrendsApparel Application to Dominate the Market

• Apparel is one of the fundamental needs of a human being and is also one of the fastest-growing businesses globally. Textiles and clothing are key exports, especially for low- to middle-income countries. Bangladesh has the highest total dependence on textiles and clothing as a total share of merchandise exports (83%), followed by Pakistan (66%) and Sri Lanka (45%). The top textile apparel exporters are China, India, Bangladesh, Turkey, Indonesia, and Vietnam, accounting for over 70% of the total global textile apparel exports.​
• Increasing demand for textiles and apparel is expected to drive the demand for textile chemicals in these applications. As the largest market for woven fabrics, Asia-Pacific is witnessing healthy growth due to the increasing demand in countries like India and China.
• China’s textile and apparel industry is one of the major industries, and the country is the largest clothing exporter across the world.
• In India, the demand for apparel has increased with growing consumer preference in response to the growing foreign textile brands. The demand has been augmented by digitalization, social networking sites, and apps, which help in increasing the sale of garments. Some apparel manufacturers in India state that the growth rate in menswear brands is at 7-10%, while the growth rate of women and kids apparel is around 15-20%. Also, the growing number of working women has increased the demand for women's apparel.
• Small regions, such as Bangladesh, witnessed an increase in population and living standards, driving the demand for knitted fabrics.
• However, the COVID-19 has a huge impact on the apparel industry globally due to the lockdown in various countries. Moreover, the slowing down of manufacturing activities due to the economic slowdown and lockdowns due to the COVID-19 outbreak are expected to have a negative impact on the growth of the market studied, but it is likely to recover by the end of 2021.
• The COVID-19 crisis is an unprecedented shock to this supply chain, creating a dramatic domino effect of revenue losses. In Germany, offline fashion retail sales in the first three weeks of March 2020 dropped by 42%, compared to the same period the year before. In Bangladesh, orders were canceled in the first few days of May 2020, representing a value of over EUR 2 billion.​
• Overall, the demand for textile chemicals is likely to rebound and grow substantially globally during the forecast period, owing to the demand from the apparel segment.​​

China to Dominate the Asia-Pacific Market

• In the Asia-Pacific region, China is the largest economy in terms of GDP. The country witnessed about 6.1% growth in its GDP during 2019, even after the trade disturbance caused due to its trade war with the United States. The economic growth rate of China in 2020 was increased by 2.3% compared to the previous year.
• The Chinese textile industry is the largest in the world, both in terms of production and exports. The textile industry in China is also booming with increasing investments and government support from the 13th Five Year Plan.
• Investment in the country’s textile industry increased due to cheaper electricity rates, transportation subsidies, and lower raw cotton prices.
• Through the Belt & Road initiative, the country saw an in-flow of huge investments, both domestic and foreign, mainly focusing on increasing production capacity in the country and further increase exports of textiles and apparel.
• Moreover, amid the recent COVID-19 outbreak, there was an exponential increase in the production of masks and PPE kits, both domestically and internationally, which enhanced the usage of textile chemicals significantly. As of May 2020, China produced around 116 million medical masks and millions of PPE kits daily.
• China is the largest market for the automotive textile industry. The largest automobile maker General Motors (GM), said that it had delivered 771,400 vehicles in China in the third quarter of 2020 that followed a second-quarter fall of 5%. According to the GM report, with the rapid advancements in the field and the growing need for technologically developed high-performing fabrics, many players will emerge to benefit from it. It is estimated that the growth of the automobile textile industry in the next few years will be seen at 15% in China.
• Hence, from the above-mentioned factors, the demand for textile chemicals in China is likely to be affected in the short run, and it is estimated to recover and grow potentially over the forecast period.

Competitive Landscape

The global textile chemicals market is fragmented, with the presence of both multi-nationals and regional players. The top 5 players account for a noticeable share of the global market demand. Key players in the market studied include Archroma, Huntsman International LLC, Dow, Wacker Chemie AG, and Evonik Industries AG.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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