Lyocell Fiber Global Market Report 2026

Lyocell fiber is a sustainable and biodegradable man-made fiber produced from wood pulp obtained primarily from eucalyptus, beech, or spruce trees. Its key purpose is to offer a soft, breathable, and durable textile that is appreciated for its moisture absorption, comfort, and environmentally friendly production process with minimal chemical usage.

The key fiber types of lyocell fiber include lyocell staple fiber, lyocell filament fiber, and blended lyocell fiber. Staple fibers are short-length fibers used in yarn spinning and nonwoven fabric manufacturing. The primary product types are staple fiber and filament fiber, distributed through online retail, offline retail, direct sales, and wholesale distributors. Its applications cover apparel, home textiles, medical and hygiene, automotive filters, and others, serving end users such as the textile industry, healthcare, automotive, and others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs are influencing the lyocell fiber market by increasing costs of imported wood pulp, specialty chemicals, and fiber processing equipment. Textile producers in Europe and Asia-Pacific are most affected due to cross-border raw material sourcing, while North America faces higher input costs for sustainable fibers. These tariffs are impacting fiber pricing and downstream textile margins. However, they are also promoting regional pulp sourcing, local fiber production, and investment in vertically integrated lyocell manufacturing facilities.

The lyocell fiber market research report is one of a series of new reports from The Business Research Company that provides lyocell fiber market statistics, including lyocell fiber industry global market size, regional shares, competitors with a lyocell fiber market share, detailed lyocell fiber market segments, market trends and opportunities, and any further data you may need to thrive in the lyocell fiber industry. This lyocell fiber market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The lyocell fiber market size has grown strongly in recent years. It will grow from $1.57 billion in 2025 to $1.72 billion in 2026 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to rising consumer preference for eco-friendly textiles, expansion of apparel manufacturing, increasing use of cellulosic fibers, improvements in fiber production technology, availability of certified wood pulp sources.

The lyocell fiber market size is expected to see strong growth in the next few years. It will grow to $2.45 billion in 2030 at a compound annual growth rate (CAGR) of 9.3%. The growth in the forecast period can be attributed to increasing demand for sustainable fashion materials, rising adoption of lyocell in technical textiles, expansion of hygiene and medical textile applications, growing investments in circular textile production, innovation in fiber blending technologies. Major trends in the forecast period include growing use of sustainable and biodegradable fibers, rising demand for lyocell in apparel applications, expansion of blended lyocell textile products, increased adoption in medical and hygiene products, enhanced focus on closed-loop manufacturing processes.

The growing demand for textiles and apparel is expected to drive the growth of the lyocell fiber market in the coming years. Textiles and apparel refer to the broad sector that includes the production, design, and distribution of fabrics, clothing, and accessories for personal, commercial, or industrial use. The rising demand in this sector is driven by increasing consumer preference for high-quality, durable, and innovative fabrics, as consumers seek comfortable, long-lasting, and stylish clothing with improved performance and sustainability. Lyocell fiber enhances textile and apparel products by providing soft, breathable, and durable fabrics, making it ideal for clothing, home textiles, and activewear. It improves comfort and moisture regulation while supporting sustainability through eco-friendly manufacturing processes. For instance, in June 2024, according to the International Trade Administration, a United States-based government agency, textile and apparel imports for the year-to-date period ending in April 2024 reached 30,095.1 million square meter equivalents, representing a 9.5% increase compared to the same period in 2023. Therefore, the growing demand for textiles and apparel is fueling the growth of the lyocell fiber market.

Key companies operating in the lyocell fiber market are focusing on developing innovative products such as fiber crimps to enhance fabric texture, durability, and versatility for sustainable textile applications. Fiber crimps refer to the natural or engineered waviness or bends in fibers that increase bulk, elasticity, and air retention, improving fabric softness, resilience, and insulation performance. For instance, in January 2024, Lenzing AG, an Austria-based chemical industry company, introduced advancements in its Tencel Lyocell fibers, focusing on innovation in natural aesthetics and sustainability. The fibers feature a natural, textured appearance inspired by nature, achieved through variations in staple length and a matte finish for an authentic fabric look. They offer sustainability benefits with at least 50% lower water and carbon footprints compared to generic lyocell, while maintaining softness, moisture management, and exceptional durability. The crimped fibers also improve bulk and resilience, expanding design possibilities for premium denim and apparel and meeting growing demand for eco-friendly, high-quality fabrics.

In October 2024, Birla Cellulose Limited, an India-based manufacturing company, partnered with Circ to promote circular economy practices by advancing the use of recycled and sustainably sourced fibers in textile production. This collaboration aims to accelerate textile recycling by purchasing Circ's recycled pulp to produce lyocell fiber, thereby increasing access to sustainable recycled materials and supporting circular economy initiatives within the textile industry. Circ is a United States-based textile-to-textile recycling company that provides lyocell fiber.

Major companies operating in the lyocell fiber market are Lenzing AG, Aditya Birla Group, Sateri, Acelon Chemicals & Fiber Corporation, Smartfiber AG, Qingdao Textiles Group Fiber Technology Co Ltd, Baoding Swan Fiber Co Ltd, Great Duksan, Zhejiang Yibin Grace Group Co Ltd, Tangshan Sanyou Group Xingda Chemical Fibre Co Ltd, Shandong Yingli Industrial Co Ltd, Nien Foun Fiber Co Ltd, Acegreen Eco-Material Technology Co Ltd, Chonbang Co Ltd, Hubang Lyocell, Grecell, Hi-Tech Fiber Group Corporation, Chengdu Huaming Cellulose Co Ltd, Xinxiang Bailu Chemical Fiber Co Ltd, Shandong Silver Hawk Chemical Fibre Co Ltd

Asia-Pacific was the largest region in the lyocell fiber market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the lyocell fiber market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the lyocell fiber market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The lyocell fiber market consists of sales of fashion accessories, luxury fabrics, yarns, and finished textile products. Values in this market are 'factory gate' values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Lyocell Fiber Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses lyocell fiber market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for lyocell fiber ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The lyocell fiber market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Fiber Type: Lyocell Staple Fiber; Lyocell Filament Fiber; Blended Lyocell Fiber
• 2) By Product Type: Staple Fiber; Filament Fiber
• 3) By Distribution Channel: Online Retail; Offline Retail; Direct Sales; Wholesale Distributors
• 4) By Application: Apparel; Home Textiles; Medical And Hygiene; Automotive Filters; Other Applications
• 5) By End User: Textile Industry; Healthcare; Automotive; Other End-Users
• Subsegments:
• 1) By Lyocell Staple Fiber: Short Fibers Used In Spinning Yarns; Fibers For Nonwoven Fabrics; Fibers For Blended Textiles
• 2) By Lyocell Filament Fiber: Continuous Filament Yarns; High-Strength Textile Applications; Technical Textiles
• 3) By Blended Lyocell Fiber: Cotton-Lyocell Blends; Wool-Lyocell Blends; Synthetic-Lyocell Blends
• Companies Mentioned: Lenzing AG; Aditya Birla Group; Sateri; Acelon Chemicals & Fiber Corporation; Smartfiber AG; Qingdao Textiles Group Fiber Technology Co Ltd; Baoding Swan Fiber Co Ltd; Great Duksan; Zhejiang Yibin Grace Group Co Ltd; Tangshan Sanyou Group Xingda Chemical Fibre Co Ltd; Shandong Yingli Industrial Co Ltd; Nien Foun Fiber Co Ltd; Acegreen Eco-Material Technology Co Ltd; Chonbang Co Ltd; Hubang Lyocell; Grecell; Hi-Tech Fiber Group Corporation; Chengdu Huaming Cellulose Co Ltd; Xinxiang Bailu Chemical Fiber Co Ltd; Shandong Silver Hawk Chemical Fibre Co Ltd
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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