China Textile Chemicals Market By Product (Coating & Sizing Chemicals, Colorants & Auxiliaries, Finishing Agents, Surfactants, Others), By Application (Apparel, Home Furnishing, Technical Textiles, Others), By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 3.01 BIllion
CAGR (2026-2031)	3.82%
Fastest Growing Segment	Coating & Sizing Chemicals
Largest Market	South-Central
Market Size (2031)	USD 3.77 BIllion

Market Overview

The China Textile Chemicals Market will grow from USD 3.01 BIllion in 2025 to USD 3.77 BIllion by 2031 at a 3.82% CAGR. Textile chemicals consist of specialized compounds and auxiliaries applied during fiber processing, dyeing, and finishing to enhance the functional and aesthetic properties of fabrics. The market is primarily supported by the immense manufacturing scale of the domestic apparel sector and resilient demand from international supply chains. According to the China National Textile and Apparel Council, in 2024, the revenue of large-scale textile enterprises increased by 4% year-on-year, indicating a sustained industrial requirement for chemical inputs to support this production volume.

However, the sector faces a significant challenge regarding stringent environmental compliance. The enforcement of rigorous government mandates concerning wastewater discharge and hazardous substance control compels manufacturers to invest heavily in waste treatment technologies. This regulatory pressure increases operational costs and creates substantial barriers to entry, potentially impeding expansion for smaller enterprises that lack the capital to meet these elevated ecological standards.

Key Market Drivers

Sustained global leadership in textile manufacturing acts as the primary volume driver for the China Textile Chemicals Market, necessitating vast quantities of process agents. As the world’s largest garment producer, China requires a continuous supply of pre-treatment auxiliaries, dyes, and finishing compounds to convert raw fiber into finished goods. According to the National Bureau of Statistics, February 2025, in the 'Economic Operation of China's Garment Industry in 2024' report, the apparel output of enterprises above designated size reached 20.46 billion pieces in 2024, indicating the sheer manufacturing scale chemical suppliers must service. This export-oriented production ensures chemical inputs must meet global standards. According to China Customs, in 2024, cumulative exports of apparel and accessories totaled US$ 159.14 billion, underscoring the sector's reliance on high-quality chemical inputs.

The accelerated growth of the technical and industrial textiles sector is expanding the market for specialized chemical formulations. As manufacturers pivot to high-value applications, there is rising demand for functional finishes like flame retardants and bonding agents which command higher margins. This diversification drives innovation in chemical engineering beyond commodity products. According to the China Nonwovens & Industrial Textiles Association, September 2024, in the 'Economic Operation of China's Technical Textile Industry in H1' report, the sector exported US$ 20.59 billion worth of products in the first half of 2024, reflecting the robust expansion of this segment and its increasing demand for advanced chemical solutions.

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Key Market Challenges

The stringent enforcement of environmental compliance mandates regarding wastewater discharge and hazardous substance control significantly constrains the financial flexibility of the China Textile Chemicals Market. Manufacturers are legally obligated to integrate complex waste treatment infrastructures to neutralize toxic by-products generated during chemical synthesis and dyeing processes. This mandatory capital expenditure diverts substantial financial resources away from capacity expansion and research initiatives, effectively raising the operational breakeven point. As regulatory bodies tighten permissible limits for pollutants, the recurring costs associated with compliance monitoring and sludge disposal further inflate the overall cost structure, making it difficult for companies to maintain competitive pricing without eroding their margins.

These elevated operational thresholds create a severe barrier to survival for small and medium-sized enterprises that lack the liquidity to absorb non-revenue-generating environmental costs. This dynamic forces market consolidation and stifles the sector's ability to capitalize on the demand mentioned in the overview. The financial strain resulting from these regulatory pressures is evident in recent industrial performance metrics. According to the China National Textile and Apparel Council, in the first half of 2024, the operating profit margin for textile enterprises above the designated size was restricted to approximately 3.9%, illustrating how rising compliance-related overheads are actively eroding the sector’s bottom line despite the growth in revenue.

Key Market Trends

The adoption of bio-based and biodegradable chemical formulations is accelerating as the market aligns with rigorous decarbonization goals. Manufacturers are actively integrating green inputs, such as enzymatic solutions and plant-derived agents, to reduce the ecological footprint of finishing processes. This transition is becoming a core competitive metric for entering premium supply chains, driving the replacement of fossil-fuel-based synthetics. According to the China National Textile and Apparel Council, July 2025, in the 'Textiles Weaving Green Prospects with High-Tech' report, the carbon emissions intensity of leading domestic enterprises declined by 14% over the past two years, a reduction directly supported by the increased utilization of low-carbon bio-manufacturing technologies and eco-friendly chemical alternatives.

Concurrently, the acceleration of import substitution for high-end specialty chemicals is reshaping the sector's competitive dynamics. Domestic producers are upgrading their technical capabilities to synthesize complex functional auxiliaries, such as durable water repellents, thereby displacing international incumbents. This localization drive is fueled by the downstream industry's imperative to secure supply chains and reduce procurement costs while maintaining global quality standards. The success of this structural shift is evident in trade volumes. According to the China National Textile and Apparel Council, February 2025, in the 'Foreign Trade Performance of China's Textile Industry in 2024' report, the value of textile imports declined by 7.8% year-on-year to US$ 10.83 billion, a contraction explicitly linked to the sector's industrial upgrading and diminished reliance on foreign raw materials and intermediate inputs.

Segmental Insights

Based on recent industry analysis, the Coating & Sizing Chemicals segment is emerging as the fastest-growing category within the China Textile Chemicals Market. This accelerated expansion is primarily driven by the rapid development of China’s technical textiles sector, which demands high-performance functional attributes for applications in automotive, medical, and industrial construction. As manufacturers increasingly prioritize value-added synthetic fabrics, there is a surging requirement for specialized sizing agents to ensure weaving efficiency and advanced coatings that provide durability and specific utility. Furthermore, stringent environmental mandates are compelling the adoption of innovative, eco-compliant chemical solutions, thereby fueling substantial investment and value growth in this segment.

Regional Insights

The South Central region leads the China textile chemicals market, primarily driven by the dense concentration of garment manufacturing and textile processing units in provinces such as Guangdong. This area commands significant demand for dyeing auxiliaries and finishing agents to support its massive export-oriented apparel industry. The market position is strengthened by established industrial clusters that align with development goals outlined by the China National Textile and Apparel Council, ensuring efficient supply chain integration. Consequently, the availability of robust infrastructure and raw materials consolidates South Central China as the principal region for textile chemical consumption.

Recent Developments

• In June 2025, DyStar announced its transition to full ownership by the Zhejiang Longsheng Group, resolving a longstanding shareholder dispute. The acquisition, valued at approximately USD 696.5 million for the remaining stake, allowed the China-based Zhejiang Longsheng Group to integrate DyStar as a wholly-owned subsidiary. This strategic move was expected to streamline operations and strengthen the company's position in the global and Chinese textile chemicals market. The consolidation marked a significant milestone for the specialty chemical company, enabling it to focus on future growth and sustainable innovation under unified leadership.
• In April 2025, Archroma presented its latest sustainable solutions at the China Interdye exhibition in Shanghai, reinforcing its "Planet Conscious+" vision. The company showcased its "High IQ Lasting Color" assurance program and the "Phobotex" range of durable water-repellent finishes, which include fluorine-free and bio-based options. These innovations were designed to meet the increasing demand for high-performance, low-impact garments in the Chinese market. The showcase emphasized the company's dedication to helping brands and mills achieve their sustainability goals while maintaining superior product quality and durability.
• In March 2025, Transfar Chemicals announced a strategic partnership with the global fashion retailer SHEIN to advance textile dyeing and finishing technologies. The collaboration aimed to accelerate the commercialization of sustainable production processes, focusing on digitalization to reduce energy and water consumption, the development of functional fabrics, and the establishment of new testing methods. This agreement highlighted the industry's shift towards greener manufacturing practices and leveraged Transfar's expertise in functional chemistry alongside SHEIN's digital supply chain capabilities to foster innovation in the China textile market.
• In April 2024, Fineotex Chemical Ltd (FCL) showcased its diverse range of sustainable and innovative solutions at the China Interdye exhibition in Shanghai. During the event, the company highlighted its specialty chemicals and enzymes designed for the textile and garment industries, emphasizing its commitment to environmental responsibility. The exhibition provided a platform for the company to interact with international stakeholders and demonstrate its capabilities in providing customized, eco-friendly chemical solutions. This participation underscored the growing importance of sustainability in the Chinese textile chemicals sector.

Key Market Players

• Zhejiang Runtu Co. Ltd.
• Dymatic Chemicals Corporation Limited
• Hangzhou Meigao Huayi Chemical Co. Ltd.
• Zhejiang Hongda Chemical Co. Ltd.
• BASF China Co. Limited
• Archroma Chemicals (China) Limited

By Product	By Application	By Region
Coating & Sizing Chemicals Colorants & Auxiliaries Finishing Agents Surfactants Others	Apparel Home Furnishing Technical Textiles Others	North North-East East North-West South-Central South-West

Report Scope:

In this report, the China Textile Chemicals Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• China Textile Chemicals Market, By Product:

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

• China Textile Chemicals Market, By Application:

• Apparel
• Home Furnishing
• Technical Textiles
• Others

• China Textile Chemicals Market, By Region:

• North
• North-East
• East
• North-West
• South-Central
• South-West