Material Insights · Understanding the Material World

Dyes: Overview

Why polyester and cotton each need a different dye family

What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.

Dyes are coloured organic molecules that dissolve or disperse in a dye bath and bond to fibres. They are built from benzene and naphthalene intermediates such as H acid and vinyl sulphone through nitration, sulphonation, reduction and diazo coupling. Disperse dyes colour polyester; reactive dyes colour cotton. China made 983 kt in 2025, over 70% of world output, and India about 16-18%. Dye making and dyeing are among the most polluting chemical activities, generating large volumes of coloured, salty and toxic wastewater, which is why environmental policy in China and Gujarat sets the industry's cycle.

Volume about 1.35 Mt a year (2025, derived: China 983 kt at just over 70% of world output) Market value about $4-5.5 billion at producer prices (indicative, basis: 1.35 Mt x $3,000-4,000/t at 2025 Chinese reactive and disperse prices); China's whole dyes and pigments sector output value is about RMB 190 billion Growth low single digits, tracking textile output (indicative); Indian market forecast 9-10% a year China Dyestuff Industry Association via broker report (Aug 2026); Faxian Gongchang, China dyes and pigments 2026 report; Indian Chemical News, Aug 2025; value indicative

Key uses

UseShareAnnual volumeWhy this commodityAlternatives
Disperse dyes for polyester and other synthetics40%about 0.54 Mtbasis Polyester is hydrophobic, so only small, non-ionic dye molecules that diffuse into the fibre at 130 C work. Polyester is the largest fibre by volume, so disperse dyes are the largest class. China made 460 kt in 2025 from 580 kt/yr of capacity, most of world supply. China Dyestuff Industry Association via broker report (Aug 2026) (China disperse output 460 kt, capacity 580 kt/yr); share indicative Dope (mass) dyeing of polyester with pigments
Waterless supercritical CO2 dyeing (niche)
Reactive dyes for cotton, viscose and other cellulosics33%about 0.45 Mtbasis Reactive dyes form a covalent bond with cellulose, giving bright colours with good wash fastness. They need large amounts of salt and alkali, and 10-30% of dye washes off unfixed (indicative). Indian industry claims over 40% of the world market (probably by trade value; not verified). China Dyestuff Industry Association via broker report (Aug 2026) (China reactive output 308 kt); Indian Chemical News Aug 2025 (India claim); share indicative Vat and sulphur dyes
Pigment printing
Cationised cotton (salt-free dyeing)
Vat, sulphur and direct dyes (denim indigo, workwear, cheap cotton)12%about 0.16 Mtbasis Indigo (a vat dye) colours almost all denim; sulphur blacks are the cheapest dark shades for cotton. Vat dyes need reduction with sodium hydrosulphite. Prices range from about RMB 8,000-15,000/t (direct, sulphur) to RMB 35,000-45,000/t (vat). Faxian Gongchang 2026 (prices); share indicative Reactive dyes
Electrochemical and pre-reduced indigo
Acid and metal-complex dyes for nylon, wool, silk and leather7%about 0.09 Mtbasis Anionic acid dyes bond to the amine groups in protein and polyamide fibres. Leather tanneries use acid and metal-complex dyes. Faxian Gongchang 2026; share indicative Reactive dyes for wool
Pigment finishes on leather
Paper and packaging5%about 0.07 Mtbasis Direct and basic dyes colour tissue, board and specialty papers cheaply. indicative Pigment colouring
Unbleached and undyed board
Other: inks and digital textile printing, plastics, food, cosmetics, hair dyes3%about 0.04 Mtbasis Digital inkjet printing is about 8% of textile printing (2025), forecast 15% by 2030; it uses high-purity dye inks and wastes less dye and water. Faxian Gongchang 2026 (digital share); share indicative Pigment inks
Class shares are indicative, built on Chinese output by class (disperse 460 kt, reactive 308 kt, others about 215 kt in 2025, China Dyestuff Industry Association) and an about 1.35 Mt world total. Some Chinese market reports give much larger capacity and global consumption figures (disperse capacity 1.1 Mt, global disperse consumption 1.6 Mt and reactive 2.1 Mt); these do not match the association's output data and probably count diluted commercial product, so they are not used here. In India textiles use about 70% of dye output (Indian Chemical News).

From raw material to user

  1. Aromatics Benzene, toluene and naphthalene from refineries and coke ovens supply the rings (see benzene and toluene tiles).
  2. Intermediates Nitration, sulphonation, reduction and amination give H acid, vinyl sulphone, para-base ester and other intermediates; China has about 160 kt/yr of H acid capacity and about 220 kt/yr of para-base ester.
  3. Dye synthesis Diazotisation and coupling build azo dyes in batch reactors; H acid generates about 30 t of phenol-laden wastewater per t of product.
  4. Standardisation Dye presscake is dried and blended with salts and dispersants to commercial strength.
  5. Dyeing and finishing Textile mills dye fibre, yarn or fabric in hot water baths; this step uses most of the water and energy in the textile colour chain (indicative).

Made from (commodity table)

Oil Crude oil

Three things to know

  • China made 983 kt of dyes in 2025, over 70% of world output; disperse dyes were 460 kt from 580 kt/yr of capacity (China Dyestuff Industry Association via broker report, Aug 2026).
  • India makes about 16-18% of world dyes, about 75% of it in Gujarat, and exported about $3.5 billion of dyes and dyestuffs in FY2023-24 (Indian Chemical News).
  • Chinese disperse dye prices fell from a 2021 peak of about RMB 35,000/t to about RMB 18,000/t in December 2025 (Faxian Gongchang 2026).

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