LATAM Textile Chemicals Market Overview
The LATAM textile chemicals market size is estimated to reach US$2.5 billion by 2027 after growing at a CAGR of around 6% from 2022 to 2027. Textile chemicals are the chemicals that are used during the processing of polymer fibers for the production of essential textile items in different industrial sectors. Hence, textile chemicals consist of specialized chemicals such as sodium hydroxide and peracetic acid which are used in during the scouring or bleaching of textile. LATAM or Latin America is home to some of the major textile producers across as Brazil, Columbia, Peru and Mexico. These countries are also hub to automotive sector. Factors like growing production of automotive, increase in textile exports and the government initiative to promote textile sector are driving the growth of LATAM textile chemicals market. However, the negative impact of textile chemicals on health and environment can create obstacle in the growth of LATAM textile chemicals industry.
COVID-19 pandemic negatively impacted the textile sector in Latin America due to lockdown, and the output level of textile sector decreased. For instance, according to reports of Indian Embassy in Argentina, in 2020, total turnover of textile sector in Argentina was US$1.55 billion compared to US$2.02 billion in 2019, showing a 23% decrease. Further, according to National Institute of Statistics and Geography in 2020, textile manufacturing in Mexico fell 13% in March, 78% in April, 57% in June, and 35% in August, compared to 2019. Such a decrease in textile manufacturing output reduced the usage of textile chemicals in Latin American countries like Mexico and Argentina, which negatively impacted growth of LATAM textile chemicals industry.
The “LATAM Textile Chemicals Market Report – Forecast (2022 – 2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the LATAM textile chemicals industry
- Brazil dominates the LATAM textile chemicals industry as the country is one of the major producers of cotton in Latin America and uses natural fibres for making clothing and apparels items.
- The growing demand for Peruvian fibres due to its high quality and integrated production process will create more usage of textile chemicals in Peru, thereby boosting growth of LATAM textile chemicals market.
- Trade agreement of Latin American country like Mexico with major economies like US and Canada will increase Mexico’s textile exports, resulting in more usage of textile chemicals during the manufacturing process.
Figure: Brazil Textile Chemicals Market Revenue, 2021-2027 (US$ Billion)
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LATAM Textile Chemicals Market Segment Analysis – By Fibre
Natural fibre accounted for approximately 34% of LATAM textile chemicals market share in 2021. Countries like Brazil and Mexico and some major producers of natural fibres like cotton in Latin America, and such natural fibres is mainly used in such countries for manufacturing of textile products. Hence, with the increase in demand of textile items like clothing apparel, the volume of cotton consumption has increased in such Latin American countries. For instance, according to United States Department of Agriculture, in 2021, cotton consumption of Mexico increased by 6% to 2.02 million bales. Hence, such an increase in cotton consumption for textile production will create more usage of textile chemicals such as sodium hydroxide and peracetic acid in Mexico. This will provide a positive impact on the growth of LATAM textile chemicals industry.
LATAM Textile Chemicals Market Segment Analysis – By Application
Clothing & apparel accounted for approximately 27% of LATAM textile chemicals market share in 2021. Textile chemicals such as peracetic acid is mainly used as bleaching agent during the processing of clothing & apparel items, as it helps in removing undesired inherent coloring components. The rapid development in textile sector on account of the growing consumption of clothing & apparels items has increased the value of textile sector in Latin America. For instance, according to International Trade Administration, in 2020, total market size of textile and apparels sector in Peru was US$907.7 million compared to US$677.5 million in 2019, showing a 33.9% increase. Hence, such increase in market size on account of growing consumption of apparels textile items will create more usage of textile chemicals in Latin American country like Peru during manufacturing and processing of clothing & apparel items. This will positively impact growth of LATAM textile chemicals industry.
LATAM Textile Chemicals Market Segment Analysis – By Geography
Brazil accounted for approximately 62% of LATAM textile chemicals market share in 2021. The county is one of the major producers of textiles in Latin America besides being largest automotive producer. The economic development of Brazil has increased the industrial productivity of the Latin American country. For instance, according to Brazilian Textile and Apparel Industry Association, there was an increase of 36% in Brazil’s textile production between January and May 2021, compared to the same period in 2020. Further, according to International Organization of Motor Vehicle Manufacturer, in 2021, motor vehicle production increased to 2.24 million units from 2 million produced in 2020, showing a 12% increase. Textile chemicals are used in producing qualitative textile items that are used as apparel and for seat covers in cars. The increase in the production level of textile and automotive sector will create more usage of textile chemicals like sodium hydroxide in Latin America, resulting a positive growth of LATAM textile chemicals industry.
LATAM Textile Chemicals Market Drivers
Increase in Automotive Production
Textile materials in automotive are used for interior trim and for exterior comfort in seat covers, carpets, roof liners. Hence, automotive sector in Latin American countries like Brazil and Mexico is rapidly developing on account of which the production output of such countries has increased. For instance, according to International Organization of Motor Vehicle Manufacturer, in 2021, total vehicle production of Brazil and Mexico was 5.38 million units compared to 5.14 million produced in 2020, showing 4% increase. Hence, such increase in automotive production in Mexico and Brazil will create more demand for seat covers, resulting in more usage of textile chemicals like sodium hydroxide during manufacturing of such textile items. This will boost the growth of LATAM textile chemicals industry.
Government Initiative to Promote Textile Sector
In order to achieve strong domestic growth of textile sector, Latin American countries are taking various initiatives. For instance, according to Government of Brazil, in 2022, as a part of National Integration Routes, the government is building Fashion City in Acari, state of Rio Grande do Norte which aims to integrate local productive arrangements in the Seridó region, known for its clothing, weaving and commodity trade. Hence, such initiatives by the Brazilian government will create more demand for clothing and apparel items on domestic level, which will lead to increase in usage of textile chemicals during manufacturing and processing of such textile items. This will boost LATAM textile chemicals industry growth.
LATAM Textile Chemicals Market Challenge
Negative Impact on Health and Environment
Production of textile includes usage of various harmful chemicals which when released in environment as waste, causes pollution problems. Moreover, exposure to such chemicals can cause serious allergic reaction, skin diseases and irritation to respiratory track. Hence, such negative impact of textile waste can limit the quantity of textile manufacturing and processing in Latin American country like Chile which is considered a dumping ground for fast fashion leftovers from the world. Hence, this can have negative impact on the growth of LATAM textile chemicals industry.
LATAM Textile Chemical Industry Outlook
The companies to develop a strong regional presence and strengthen their market position, continuously engage in mergers and acquisitions. In LATAM textile chemicals market report, the LATAM textile chemicals top 10 companies are:
- Braskem SA
- Evora SA
- Kaltex SA
- Vicunha Textil SA
- Coteminas SA
- Alpargatas SAIC
- Santista Argentina SA
- Santana Textiles SA
- Fabricato SA
Report Code – CMR 0077
Report Code – CMR 0671
Report Code – CMR 11899
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