Lyocell Fiber Market Forecasts to 2030 - Global Analysis By Type (Staple Fiber and Filament Fiber), Type, Application and By Geography

According to Stratistics MRC, the Global Lyocell Fiber Market is accounted for $1.57 billion in 2023 and is expected to reach $3.11 billion by 2030 growing at a CAGR of 10.2% during the forecast period. Lyocell fiber is a sustainable and eco-friendly cellulose-based material. Produced from wood pulp, typically sourced from eucalyptus trees, it involves a closed-loop process using a non-toxic solvent. Known for its softness, breathability, and moisture absorption, lyocell is a versatile textile used in clothing, bedding, and other applications. Its production minimizes environmental impact, as it requires less water and energy compared to traditional textiles. Lyocell's popularity is growing as consumers seek sustainable alternatives, contributing to a more environmentally conscious and responsible textile industry.

According to the India Brand Equity Foundation, textile and apparel exports in India valued at US$ 29.8 billion in 2021, and are expected to reach US$ 209.billion in 2021.

Market Dynamics:

Driver:

Growing environmental awareness

Consumers' increased concern about sustainability and environmental impact drives the demand for eco-friendly alternatives. Lyocell, produced through a closed-loop process using wood pulp, aligns with these values. As environmental consciousness rises, the market for lyocell expands, with manufacturers and retailers prioritizing sustainable practices. This heightened demand stimulates innovation in lyocell production and encourages the textile industry to adopt more eco-friendly materials.

Restraint:

High production costs

The sophisticated closed-loop manufacturing process and specific solvents contribute to elevated production expenses, making lyocell less cost-competitive compared to some conventional fibers. This cost factor may limit its widespread adoption, especially in price-sensitive markets. Manufacturers face the dilemma of balancing sustainability with affordability. Thus, the high production costs also impact the final product prices, potentially reducing lyocell's attractiveness to budget-conscious consumers and industries.

Opportunity:

Reduced environmental footprint

As consumers and industries increasingly prioritize sustainability, lyocell's eco-friendly production process, which involves minimal water usage, efficient resource utilization, and a closed-loop system, becomes a significant selling point. This reduced environmental impact aligns with global efforts to mitigate climate change and reduce pollution. Consequently, the lyocell fiber market experiences heightened demand, as more consumers and businesses seek sustainable alternatives.

Threat:

Limited market recognition

Despite its sustainable attributes, the lower awareness and familiarity among consumers and industries hinder widespread adoption. This lack of recognition may result in a slower market growth rate, as consumers tend to stick with familiar and well-established fibers. Manufacturers face challenges in differentiating lyocell from other fibers in the market, impacting its market share.

Covid-19 Impact

Lockdowns and restrictions on global trade further exacerbated the challenges faced by manufacturers. However, the heightened awareness of sustainable and eco-friendly materials in post-pandemic recovery has spurred a renewed interest in Lyocell fibers. The market is gradually recovering as industries adapt to changing consumer preferences, with a growing emphasis on sustainable, versatile, and breathable textiles, positioning Lyocell fibers for increased demand in the evolving post-Covid textile landscape.

The staple fiber segment is expected to be the largest during the forecast period

The staple fiber segment is estimated to have a lucrative growth, due to enhanced fabric properties, providing increased strength, durability, and texture. This blending improves the overall performance and versatility of Lyocell textiles, making them suitable for various applications, including apparel, home textiles, and industrial uses. The combination of Lyocell's sustainability and staple fibers' favorable characteristics creates a market synergy, meeting consumer demands for eco-friendly products with enhanced functionality.

The apparel segment is expected to have the highest CAGR during the forecast period

The apparel segment is anticipated to witness the highest CAGR growth during the forecast period, as the apparel industry increasingly emphasizes sustainability; Lyocell fibers gain traction as a preferred material for eco-conscious consumers. The market witnesses growth driven by a shift towards sustainable fashion practices, with Lyocell being utilized in various clothing items. Its versatility, coupled with the rising consumer awareness about eco-friendly choices, contributes to the expansion of the market within the global apparel sector.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period Due to the abundant raw materials available, China exports goods in large numbers. As a result of a growing population worldwide, the apparel industry is growing rapidly, which motivates the sales of these fibers. This makes the country one of the world's largest clothing and sporting goods manufacturers. In the region, many prominent footwear manufacturers manufacture their products. Countries like Vietnam, Thailand and Indonesia are opening many new footwear factories, and the use of lyocell fiber in footwear is increasing, increasing demand for lyocell fiber.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period, owing to rising environmental consciousness and a shift towards sustainable fashion contribute to the market expansion. Key applications include apparel, home textiles, and medical textiles and favourable regulatory initiatives promoting sustainable practices further boost market dynamics. Major industry players are investing in research and development to enhance product offerings.

Key players in the market

Some of the key players in the Lyocell Fiber Market include Acegreen Eco-Green Material Technology Co.Ltd, Acelon Chemicals and Fibre Corporation, Aditya Birla Yarn, Baoding Swan Fibre Co. Ltd, China Populas Textile Ltd., Chonbang Co.Ltd, CityVictor Corp, Duksan Company, Grasim Industrial Ltd., Great Duskan Corporation, Lenzing Group, Nien Foun Fiber C, Qingdoa Textile Group Fiber, Sateri Corporation, Shanghai Lyocell Fiber, Smart Fibre AG, Tamay Fiber Co., Ltd., Weiqiao Textile Company Limited and Zhejiang Province Yaojiang Industry Group Co.,

Key Developments:

In February 2024, Lenzing Group, has partnered with leather alternative expert Recyc Leather to introduce Pelinova(R), an innovative material that fuses TENCEL(TM) Lyocell fibers and recycled leather fibers for high-end fashion applications.

In January 2024, Lenzing unveils the new potential of TENCEL(TM) Lyocell fibers as alternative material for stretch fabrics. Stretch fabrics using TENCEL(TM) Lyocell fibers are easy to care for, offering enhanced comfort and endless design possibilities for lightweight apparel

In October 2023, Birla Cellulose has unveiled its Circular Yarn Blend, which boosts the amount of mechanically recycled fibre to 50 per cent while retaining high-strength yarn. The blend is endorsed by sustainability standards including Global Recycle Standard and FSC certification.

Types Covered:

• Staple Fiber
• Filament Fiber

Applications Covered:

• Apparel
• Home Textiles
• Nonwoven Fabrics
• Automotive Interiors
• Footwear
• Medical & Hygiene
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances