USA Textile Chemicals Market Outlook to 2030

USA Textile Chemicals Market Overview

• The USA Textile Chemicals Market was valued at USD 3.10 billion in 2023, driven by the growing demand for eco-friendly and sustainable textile production, advancements in chemical technology, and increasing regulatory pressures for environmentally safe chemicals. The market includes a wide range of chemical solutions used in textile production, such as dyes, finishing agents, coatings, and auxiliaries.

• Major players in the USA Textile Chemicals Market include companies such as Huntsman Corporation, Dow Inc., Archroma, BASF, and Solvay. These companies are leading innovation in the market by providing sustainable and eco-friendly chemical solutions for textile processing and finishing.
• The U.S. market is significantly influenced by growing consumer demand for sustainable textiles and stringent regulations from agencies like the Environmental Protection Agency (EPA) for chemical waste management and emissions control. Moreover, the rise in technical textiles, which include applications in medical, automotive, and protective clothing, is also fueling market growth.
• In February 2023, Huntsman Corporation completed the sale of its Textile Effects division to Archroma for USD 593 million, marking Huntsman's exit from the textile chemicals market. This acquisition allows Archroma to enhance its position in sustainable specialty chemicals and integrate Huntsman's expertise into its operations, creating a leading entity in textile solutions.

USA Textile Chemicals Market Segmentation

The USA Textile Chemicals Market is segmented by type, application, and region.

By Type: The market is segmented by type into Coating & Sizing Chemicals, Colorants & Auxiliaries, Finishing Agents. In 2023, Coating & Sizing Chemicals accounted for the largest market share due to their critical role in enhancing the durability and quality of textiles. Major companies like BASF and Archroma are leading in providing innovative coating solutions that enhance textile performance and sustainability.

By Application: The market is segmented by application into Apparel, Home Textiles & Technical Textiles. In 2023, the Apparel segment dominated the market owing to rising demand for sustainable fashion and eco-friendly textiles. Technical textiles, used in industries such as healthcare and automotive, also show promising growth due to the specialized properties required in these applications.

By Region: The market is segmented by region into north, east, west and south. In 2023, the West region led the market, driven by high demand for sustainable textile production and the presence of large-scale textile manufacturing facilities. The region benefits from robust regulatory frameworks and significant investment in eco-friendly chemical solutions.

USA Textile Chemicals Market Competitive Landscape

• BASF: In February 2023, At the Techtextil 2024 trade fair, BASF showcased innovative solutions such as loopamid, a circular polyamide made entirely from textile waste, and Ultramid Ccycled, which utilizes recycled raw materials. These initiatives reflect BASF's commitment to promoting a circular economy and reducing the environmental impact of textile production
• Solvay: In July 2021, Solvay completed the acquisition of Bayer's global seed coatings business, including facilities in France and tolling operations in the U.S. and Brazil. This acquisition strengthened Solvay's existing seed care portfolio in bio-based, seed-applied solutions.

USA Textile Chemicals Market Analysis

Growth Drivers

• Increasing Demand for Sustainable and Eco-Friendly Textile Chemicals: In 2024, the trend towards eco-friendly and organic textiles has surged, with large fashion brands committing to sustainable production practices. There is a notable shift in consumer consciousness, with many willing to pay a premium for eco-friendly clothing. This trend is prompting manufacturers to adopt low-VOC (volatile organic compounds) and biodegradable materials. This shift is driving the demand for biodegradable and non-toxic textile chemicals, enabling textile manufacturers to reduce their environmental impact.
• Growing Technical Textile Industry in the U.S.: The U.S. technical textile industry, which includes textiles used in healthcare, automotive, and protective gear, has seen significant growth, increasing the demand for specialized textile chemicals. By 2023, technical textiles accounted for one third of total textile production in the U.S., supported by federal investments in advanced textile manufacturing. In 2024, the U.S. Department of Defense allocated substantial amount towards the production of advanced protective textiles, further driving the demand for high-performance chemicals that enhance textile durability and resistance.
• Government Regulations Encouraging the Use of Safe Chemicals: In 2024, the U.S. government, through the EPA, continued its efforts to enforce stricter regulations on harmful chemical emissions, targeting industries like textile manufacturing. The EPAs Toxic Substances Control Act of 2023 implemented a cap on the emission of hazardous air pollutants (HAPs) in the textile industry, pushing companies to adopt safer alternatives.

Challenges

• High Costs Associated with Eco-Friendly Textile Chemicals: Despite the demand for eco-friendly textile chemicals, their higher costs remain a significant challenge for small and medium-sized manufacturers. This cost disparity has slowed down the widespread adoption of these chemicals, especially among manufacturers operating on tight budgets, limiting their ability to switch to greener alternatives.
• Fluctuations in Raw Material Prices: The supply chain for raw materials used in textile chemicals, such as solvents and resins, faced disruptions in 2023 due to global geopolitical tensions and trade restrictions. These supply chain issues led to increased costs and delays in the delivery of key materials, with some manufacturers reporting a 15% increase in production costs.

Government Initiatives

• EPA Textile Chemical Regulations 2023: In 2023, the Environmental Protection Agency (EPA) focused on regulating per- and polyfluoroalkyl substances (PFAS) in the textile industry, recognizing their widespread use in imparting water and stain resistance to textiles. The EPA issued an Information Collection Request (ICR) to gather data from over 2,200 textile manufacturing facilities to assess the need for more stringent effluent limitation guidelines for wastewater discharges containing PFAS.
• Bipartisan Infrastructure Law Supporting Chemical Waste Management: The Bipartisan Infrastructure Law has made significant contributions to chemical waste management in the U.S., particularly through the Environmental Protection Agency (EPA). The EPA announced USD 375 million in funding from the Bipartisan Infrastructure Law to support new recycling, reuse, and waste prevention programs.

USA Textile Chemicals Market Future Outlook

The USA Textile Chemicals Market is expected to experience steady growth over the forecast period, driven by the rise in sustainable textile production, government regulations, and technological advancements in chemical processing.

Future Market Trends

• Adoption of Bio-Based Textile Chemicals: By 2028, bio-based chemicals are expected to dominate the market, as they provide a sustainable alternative to conventional synthetic chemicals. These chemicals are derived from renewable sources and are biodegradable, offering significant environmental benefits.
• Expansion of Technical Textiles: The demand for technical textiles, especially in sectors like healthcare, automotive, and industrial applications, is expected to grow significantly. This will drive the development of specialized chemicals that offer enhanced performance characteristics such as water resistance, fire retardancy, and durability.