Market analysis and development trend research of China's dye industry in 2024_Industry News_Hubei Hongchen New Material Technology Co., Ltd.

·Chen Guanqiu, May 13, 2024 Source: China Dyestuff Industry Association, ChemChina News Network, Baidu

With the continuous strengthening of environmental awareness and the increasingly strict environmental policies, the dye industry will accelerate the development and research of green and environmentally friendly new products, adjust product structure, and achieve sustainable development. Industry leading enterprises will strengthen the integration layout of the industrial chain to further enhance market concentration and competitiveness.

In 2023, seven ministries and commissions of the country jointly issued the "Work Plan for Stable Growth in the Petrochemical Industry", which clarified the main goals of maintaining stable growth in the petrochemical industry. While implementing the 'Plan', the dye industry will actively lead industry enterprises to expand effective investment, enrich high-quality supply, stabilize foreign investment and trade, and promote the industry towards high-end, green and intelligent development, in accordance with the requirements of the National Development and Reform Commission's' Guiding Catalogue for Industrial Structure Adjustment (2023 version, draft for comments) '.

Dyes refer to a type of organic compound that can give other substances a bright and firm color. As the pigments used today are all artificially synthesized, they are also known as synthetic dyes. Dyes and pigments are generally compounds that have their own color and can give other substances a bright and firm color in a molecular or dispersed state.

The upstream of the dye industry chain is the supply of raw materials, mainly including aromatic hydrocarbons in petrochemical industry, basic chemical industry, and middling coal tar in coal chemical industry. The midstream is the production of dyes. The basic chemical industry is used to make dye intermediates, and the vats are added to make dyes. The downstream is the application field and sales channels. First, the printing materials are processed, and finally flow to the textile and clothing field.

Market analysis of dye industry

At the beginning of the founding of the People's Republic of China, China's dye industry had a certain scale, with an annual output of 5200 tons. The products were mainly sulfurized dyes, as well as a small amount of acid dyes and direct dyes. After 70 years of arduous struggle, China's dye industry has shifted from being dominated by state-owned enterprises to a new situation dominated by private enterprises. Both production level and scale have reached the top of the world and are moving towards becoming a strong dye industry country.

In 2022, the number of enterprises above designated size in the national dye industry was 277, an increase of 9 compared to 2021. The total output value of the industry reached 76.482 billion yuan, with total assets of 120.37 billion yuan, sales revenue of 66.932 billion yuan, and total profit of 5.835 billion yuan. With the transfer of the global clothing, textile, fiber, and printing and dyeing industries, China's dye industry has developed rapidly and gradually become one of the largest dye producing countries in the world. According to data from the China Dyestuff Industry Association, the national output of the dye industry in 2022 was 864000 tons, a year-on-year increase of 3.47%.

At present, India has become the biggest competitor of China's dye industry in the international market, especially in the traditional Southeast Asian market. It is an undeniable fact that some domestic product categories have lost to India in international market competition. Due to geopolitical influences, major textile printing and dyeing enterprises in Southeast Asia are required not to use products produced in China as raw materials for the first three processes. Therefore, Indian companies' products have quickly occupied the Southeast Asian textile printing and dyeing market.

To this end, China's dye industry is striving to save itself, turning challenges into opportunities, and doing its best to curb the downward trend of dye production, providing favorable support for the revitalization and development of the textile printing and dyeing industry. However, in 2023, due to multiple unfavorable factors, the domestic and international sales of Chinese dye products will face numerous difficulties, and the market share in the international market will further decline. In order to cope with the international trade crisis and maintain the market share of Chinese dyes in the international market, the China Dyestuff Industry Association, on behalf of the vast number of dye production enterprises, earnestly hopes that the country will provide support for export tax rebates to promote the stable development of the dye industry.

According to the "Market Analysis and Development Prospects Forecast Report of China's Dyestuff Industry from 2024 to 2029" by China Research Institute of Industry:

From the perspective of market competition, there is fierce competition in the dye manufacturing market. The main dye manufacturers are fiercely competitive and have dispersed market shares. Some large multinational chemical companies dominate the market with their strong research and development capabilities and supply chain advantages. At the same time, some emerging local enterprises are also flourishing, constantly improving their technological level and product quality.

In terms of regional distribution, Zhejiang Province has gathered numerous leading enterprises in the dye industry, while Jiangsu, Shandong, Hubei and other places have concentrated numerous intermediate and small-scale dye enterprises, forming distinctive industrial clusters. At present, the main production companies in China's dye industry include Zhejiang Longsheng, Runtu Shares, Annoch, etc. The total production capacity and output of these enterprises have remained stable at around 50% nationwide.

Research on the Development Trends of the Dye Industry

According to the requirements of ecological textiles and the ban on 118 types of dyes, environmentally friendly dyes have become a key focus of development in the dye and printing and dyeing industries. Environmentally friendly dyes are an extremely important condition for ensuring the ecological sustainability of textiles. Environmentally friendly dyes not only need to have the necessary dyeing performance, applicability of the use process, application performance, and fastness performance, but also need to meet the requirements of environmental quality.

Technological innovation is an important driving force for upgrading the dye industry. The development of digital dye printing and printing technology will change the pattern of the dye market, achieving personalized dyeing, short-term production, and reducing waste. Manufacturers will invest more in digital dye printing equipment and technology to meet market demand. With the rapid development of global and domestic textile, clothing and other industries, the market demand for dye products will continue to grow. This will provide more development opportunities for the dye industry.

On the basis of summarizing the development process of China's dye industry and combining various factors in the new era, the report provides a detailed and cautious prediction and demonstration of the development trend of China's dye industry. The report is detailed in information and rich in charts, with both in-depth analysis and intuitive comparisons, providing dye companies with insights into opportunities in fierce market competition and enabling them to accurately and timely adjust their business strategies based on their own environment.

China Dyestuff Industry Association: Accelerating the pace of innovation to ensure the safe and stable development of the industrial chain

Release time: July 24, 2024 08:54

The Ministry of Industry and Information Technology and other departments jointly issued the "Implementation Plan for Innovative Development of Fine Chemical Industry (2024-2027)" (hereinafter referred to as the "Action Plan"). The release and implementation of the Action Plan can guide industrial and information management institutions and production enterprises in various regions to promote project implementation with goals and effectiveness, which is conducive to consolidating the strength of all parties, helping manufacturing enterprises accelerate their innovation pace, improve the green and safe production level of fine chemicals, and thus solve key technical problems in the short term, increase the supply of high-end products, and ensure the safe and stable development of the industrial chain.

The high-quality development of the pigment industry requires a wide variety of fine chemical products with high added value, directly serving various high-tech fields. With the development of economy and technology, the application fields of fine chemicals are still expanding. Developed countries around the world have elevated the development of fine chemicals to the level of national strategy and provided strong support in terms of funding and policies. It can be said that the level of development of fine chemicals directly reflects the level of chemical industry development in a country.

The release and implementation of the Action Plan can guide industrial and information management institutions and production enterprises in various regions to promote project implementation with goals and effectiveness, which is conducive to consolidating the strength of all parties, helping manufacturing enterprises accelerate their innovation pace, improve the green and safe production level of fine chemicals, and thus solve key technical problems in the short term, increase the supply of high-end products, and ensure the safe and stable development of the industrial chain.

The dye industry plays an important supporting and supportive role in various fields of the national economy. The 14th Five Year Plan period is a critical period for the development of China's strategic emerging industries. At this time, the dye industry is no longer just a traditional textile dyeing raw material, but a supporting product for various application fields. It urgently needs to develop towards high-end and keep up with the rapid development needs of various application fields. Therefore, the innovative development of the pigment industry is imperative.

Dyeing pigments involve more than 90% of the application areas of the national economy, especially in emerging industries such as new functional dyeing pigments for solar cells, liquid crystals, inkjet, photoresist, differentiated and functionalized new fibers, and original liquid coloring. New fiber coloring and technological innovation of high-performance eco-friendly dyes and pigment products with low free aromatic amines, low free polychlorinated biphenyls, no heavy metal elements, and meeting the ecological safety of textiles have a profound impact on the innovation and development of the entire industry. The introduction of the Action Plan will promote the rapid development of China's pigment industry.

Persist in innovative development and strengthen the supply of key technologies

At present, the expansion of production capacity in the pigment industry has reached a temporary peak, with some products experiencing overcapacity. Long term accumulation has led to dye pigment products being in the mid-range and some products being in the low-end. There is a lack of self-developed products, technology or equipment, and a shortage of high-end products. The industry has entered a channel of structural adjustment. On the other hand, the overall homogenization competition in the industry is severe, and the development of high added value, differentiation, and functionality is relatively weak.

To this end, the Action Plan focuses on the development of the dyeing pigment industry, adheres to innovation driven development, emphasizes technological innovation, and proposes the task of breaking through key technologies, promoting the development of fine chemicals with a focus on high-end extension of traditional industries, and creating a specialized, refined, and distinctive product system.

One is to focus on the entire industry chain of dyeing pigments, new materials, emerging fields, and carry out a batch of key technological breakthroughs such as functional dyeing pigments and environmentally friendly dyeing pigments. Secondly, in response to the requirements of national defense security and anti-counterfeiting, we will promote the upgrading and industrialization of process technology. The third is to promote the scaling up and demonstration of technologies such as continuous nitrification, continuous hydrogenation, continuous diazotization, microchannels, and pipeline reactions in order to enhance safety technology, green technology, and intelligent technology, and promote the green development of the pigment industry.

The China Dyestuff Industry Association will implement an innovation driven development strategy, focusing on the deployment of the industrial chain, innovation chain, and complementary chain, vigorously promoting technological innovation in dyeing pigments urgently needed in new fields and materials. One is to break through a batch of key technologies and equipment, and strengthen technical support. The second is to select qualified enterprises and research institutes within the industry to establish cooperation, continuously enhance industry innovation capabilities, and promote industrialization implementation process. The third is to carry out the identification and evaluation of key technologies for dyeing pigments. For innovative pigment production technologies, provide results appraisal and evaluation services based on the research and industrialization stage. The fourth is to do a good job in technology transfer, actively seek technical cooperation units for enterprises that have technology and intend to carry out technology transfer, promote new dyeing and pigment technologies, and meet the dyeing and pigment needs of new processes, new fibers, and new dyeing and finishing technologies in the textile printing and dyeing industry.

Promote integrated development and expand downstream application cooperation

The China Dyestuff Industry Association will adhere to a demand-oriented approach and vigorously promote the integration of upstream and downstream industries. One is to actively explore new models and establish platforms for communication between pigment production enterprises and emerging fields, such as solar cells, liquid crystal displays, color filters, photoresist and other optoelectronic materials, as well as high-tech fields such as medical diagnosis and targeted drugs, to promote deep integration of industry, academia, research and application. The second is to promote the establishment of upstream and downstream cooperation mechanisms between dyeing and pigment enterprises and users, provide supporting dyeing and finishing processes and related technical solutions, and improve the level of product application technology development and service. The third is to recommend new dye and pigment products that have achieved industrialization but have not yet been promoted in the market to be included in the first batch of application demonstration guidance catalog for key new materials by the Ministry of Industry and Information Technology.

The China Dyestuff Industry Association will adhere to the concept of continuous innovation, promote the upgrading and transformation of traditional industries in accordance with the encouraged directions in the national "Guiding Catalogue for Industrial Structure Adjustment (2024 Edition)", improve the supply quality of dyes and pigments in high-end and green aspects, enrich the variety of supply, cultivate and create brands, continuously enhance market comprehensive competitiveness, and ensure the living needs of 1.4 billion people. Make due contributions to the carbon peak, carbon neutrality, and high-quality development of the petrochemical industry. Practicing green development and supporting carbon peak and carbon neutrality, the China Dyestuff Industry Association will deeply implement the major strategic decisions and deployments of the Party Central Committee and the State Council on carbon peak and carbon neutrality, and solidly promote the action of carbon peak and carbon neutrality. Firstly, under the guidance of the Ministry of Industry and Information Technology and other departments, we will explore the establishment of an industry statistical system that is suitable for the characteristics of China's industries, including standards for the quality of dye and pigment products, energy consumption quotas, and carbon emission accounting, in order to lay a solid statistical foundation for carbon reduction work. The second is to promote the establishment of evaluation methods, product standards, and technical standards for carbon emissions from dyeing pigments, and gradually establish a sound standard system. Make due contributions to the carbon peak, carbon neutrality, and high-quality development of the petrochemical industry.