China is the world’s largest producer and consumer of dyes, accounting for 70 percent of the world’s output and 55 percent of the world’s consumption. In recent two years, the production and consumption of dyes in China declined due to environmental protection and pandemic situation. In 2020, China’s dye output was 769,000 tons, 223,000 tons less in three years. In 2020, the consumption of dyes industry picked up to 596,600 tons, 156,600 tons less than in 2017.
In 2020, the sales revenue of the dye industry was 60.9 billion yuan, down 11.52 percent year-on-year. It is expected that in 2021, the dye industry will recover quickly to the pre-pandemic level, and the sales revenue of the industry is expected to exceed 70 billion yuan.
Environmental protection pressure increased, dye production decreased
Since 2010, traditional giants in the global dye industry have faced difficulties in operations, and the market share has gradually shrunk. Some large dye companies have transformed into comprehensive textile dyeing and printing chemical companies through mergers and reorganizations. Meanwhile, the dye industry in developing countries such as China and India has risen rapidly, becoming the global dye industry production base.
With the completion of the migration of the dye industry from developed countries in Europe and the United States to developing countries in Asia, China’s dye production currently accounts for more than 70 percent of the world’s total output.
With the increasingly severe domestic environmental protection situation, the dye industry is facing the pressure of fluctuations in the supply of upstream raw materials, upgrading of dye production equipment, and increasing investment in environmental protection technology, which have affected the production capacity of some enterprises in the industry, and many small dye manufacturers have withdrawn from the market, and the supply of dyes has shrunk in the market.
Affected by this, China’s dye production has declined for three consecutive years from 2018 to 2020. In 2017, the output of China’s dye industry was 992,000 tons, 812,000 tons in 2018, a year-on-year decrease of 18.15 percent, and by 2020 it was 769,000 tons, a year-on-year decrease of 2.66 percent, a three-year decrease of 223,000 tons.
Dye demand has declined
China is not only a major producer of dyes, but also the world’s largest consumer of dyes. China’s consumption accounts for 55 percent of the world’s total, ranking first in the world. India is next, with 20 percent of global consumption. The apparent consumption of China’s dye industry fluctuated from 2015 to 2020.
In 2015, the apparent consumption of China’s dye industry was 699,900 tons; affected by environmental factors, China’s apparent consumption of dyes experienced two years of growth from 2015 to 753,200 tons in 2017, after a significant decrease, China’s consumption of dyes in 2019 is 584,900 tons. In 2020, the consumption of dyes industry picked up, with apparent consumption of 596,600 tons, up 2 percent year-on-year.
In terms of sales revenue, from 2016 to 2019, the sales revenue of China’s dye industry showed a growth trend. In 2019, the sales revenue of China’s dye industry was 68.83 billion yuan, an increase of 1 percent year-on-year. Affected by the pandemic in 2020, the sales revenue of China’s dye industry dropped sharply to 60.9 billion yuan, down 11.52 percent year-on-year.
The pandemic is gradually recovering, and the dye industry is expected to pick up
Due to the outbreak of the worldwide pandemic in 2020, China’s dye industry has been hit hard. Although the industry economy faces many difficulties and challenges, the dye industry has great potential for development, coupled with the improvement of the industry’s technological innovation, management, and ability to go global, providing good conditions for the industry to continue to grow.
Therefore, it is predicted that the dye industry will quickly recover in 2021 and return to the pre-pandemic level. The sales revenue of the industry is expected to exceed 70 billion yuan. The sales revenue of the dye industry will continue to grow steadily in the next few years, and the average annual growth rate is expected to remain at about 8 percent, the sales revenue of China’s dye industry is expected to reach 102.9 billion yuan by 2026.