The global textile dyes market was valued at $9.4 billion in 2018 and is projected to reach $15.5 billion by 2026, growing at a CAGR of 6.3% from 2019 to 2026. Textile dyes are substances used to color fabrics. The dyes soak into the fabric and change it chemically, resulting in color that stays permanently through repeated use. Today, more than 10,000 substances are classified as textile dyes, and different kinds of dyes work better on specific kinds of fabric. Most of our clothing and home furnishings are colored with synthetic, or man-made, dyes.
China is a critical part of any discussion about the global supply chain because it is “the world’s factory.” Currently, COVID-19’s impact on global supply chain processes is very visible—it’s disrupting China’s ability to produce and export due to insufficient labor, lack of raw material or components, and reduced logistics capacity. In order to stop the spread of the COVID-19 outbreak, countries and world capital have been put under strict lockdown, bringing a total halt to major industrial production chains. It has caused supply chain disruptions for nearly three-quarters of U.S. companies, and in the second quarter, domestic consumption is likely to be hit even harder. As the unexpected COVID-19 outbreak continues to spread not only through China but through a number of other countries
even harder. As the unexpected COVID-19 outbreak continues to spread not only through China but through a number of other countries(including but not limited to South Korea, Singapore, Iran, Italy, Japan, and the U.S.), the demand and supply disruption that began in China is starting to replay across the globe. The bullwhip effect then leads to significant uncertainties across supply chains of industries that are global in nature.
With global market share of Indian dyes industry lying between 5 – 7% (continuously increasing year by year), some of the major challenges that are faced by the Global Dyestuff Industry include:
Environmental Impact:Today, the thrust has shifted towards using environment friendly natural dyes. With many countries laying curbs against harmful dyes, the industry can prosper only if dyes are not hazardous and are environment friendly in nature. A welcome step taken in this direction is banning of Azo dyes in Europe along with closure of units.
Backing of the Government and Trade Association:It is a widely acknowledged fact that any industry that moves ahead requires back-end support of government as well as trade associations. This aids in promoting the industry in other countries in terms of allocation of investments as well as other supports. Hence, these associations should be active participants in promoting technology institutes that are engaged in research activities so that a better range of products can be made available in the market.
Problem of Over Capacity But Falling Margins:With both China and India having high potential in terms of dye production capacity, the shifting of manufacturing bases from Europe and other industrialized nations to this new market is the cause for volatility in the market that in turn is affecting prices.
Fierce competition:Because of the shift of companies from West to East, it has resulted in the concentration of all companies in Asian region that has created intense competition in the global market.
Research & Development:These have been a regular market demand of going for a higher spending for bringing much needed and desired innovation in products like natural dyes.
Product quality vs competitive prices:Manufacturers need to focus on the quality of products as well as its availability at competitive prices. Here, with the production share of developed countries in the market going down from 65% to around 50% is further expected to reduce in future.
Classification of products and services:Decline in growth for products has also prompted manufacturers to move to the specialty product sector.
High cost of energy and interest:The high cost of interest can lower investment in R&D that acts as the core of product development. With desired work yet to be done in the areas of service innovation, the high energy cost has indeed adversely impacted manufacturing units.
Availability of World Class Infrastructure:As ports and roads are primary sources of transport, Governments require improving clearances of goods at a quicker rate so as to facilitate trade practices.