Cellulose Fiber Market

Market Overview

The global cellulose fiber market size was valued at USD 24.2 billion in 2022 and is projected to reach a value of USD 56.6 billion by 2031, registering a CAGR of 9.9% during the forecast period (2023-2031). The global demand for environmentally friendly, versatile, biodegradable, and cost-effective fibers is expected to drive significant growth in the cellulose fiber market share.

Cellulose fiber is a natural fiber derived from cellulose, the main component of plant cell walls. It is most commonly obtained from wood pulp but can also be obtained from cotton, flax, and hemp. Cellulose fibers are well-known for their biodegradability, renewability, and environmental friendliness.

The cellulose fiber market is being driven by rising demand for technical textiles and the use of cellulose fibers in medical applications. Technical textiles are designed to serve a specific purpose and include physical properties. Protective textiles, sports textiles, transportation textiles, and medical and industrial textiles are the four categories of technical textiles. Emerging environmental concerns have shifted toward more sustainable practices throughout the technological textile supply chain. However, the growth of the cellulose fiber market is constrained by the volatility of raw material prices.

Highlights

• Synthetic generates the most revenue by product type.
• Textile is the most common application in the market.
• North America dominates the global market.

Market Dynamics

Market Drivers

Rising Demand in Textile Industry

The textile industry has been a significant driver of cellulose fibers, especially in producing fabrics such as rayon, lyocell, and modal. The fashion industry's demand for comfortable, breathable, and sustainable textiles has increased the use of cellulose fibers. According to the Apparel Export Promotion Council (AEPC), textile exports from India will grow from USD 45 billion to USD 50 billion in fiscal year 2023-45. This expansion is due to strong demand from the United States and Europe and government initiatives such as the Production Linked Incentive (PLI) Scheme. Furthermore, according to the ITMF's Global Textile Industry Survey (GTIS) conducted in July 2023, global business conditions improved on average in July 2023.

Additionally, Fashion labels are increasingly incorporating cellulose fibers into their clothing lines, such as Tencel (a brand of lyocell). Tencel is well-known for its softness, breathability, and environmentally friendly manufacturing process. Lyocell has been embraced by brands such as H&M, Levi's, and Patagonia. For example, Eastman is made from wood that has been sustainably sourced. The versatile, eco-conscious material choice for sustainable fashion is NaiaTM cellulosic fiber. Several well-known clothing companies have recently committed to sustainability by incorporating NaiaTM into their collections.

Furthermore, the popularity of cellulose fibers has been boosted by the demand for comfortable and functional fabrics, particularly in the athleisure wear segment. These fibers are suitable for activewear and performance textiles because of their moisture absorption, breathability, and softness. Athleisure brands such as Adidas and Nike have introduced cellulose fiber-infused clothing lines. Fabrics made from modal, lyocell, or other cellulose fibers have a natural feel and improved performance characteristics, satisfying the needs of consumers who want comfort and sustainability. The textile industry's increasing demand for cellulose fibers can be seen in various segments, from athleisure and performance wear to casual and home textiles. Consumer preferences for sustainability, comfort, and natural materials drive the cellulose fiber market trend.

Market Restraints

Limited Raw Material Availability

Wood pulp is the primary raw material for cellulose fibers, and the availability of sustainably sourced wood pulp can be a constraint. Changes in forestry practices, climate-related issues, or increased demand for wood pulp in other industries can all impact the supply chain. Global demand for wood pulp has increased recently for cellulose fibers and other applications such as paper and packaging. Increased competition for wood resources may strain the supply of sustainable raw materials for cellulose fibers. 

Furthermore, wood pulp prices have been volatile in recent years, with prices dropping sharply in May 2023 before gradually recovering. The average wood pulp export price in 2022 was USD 817 per ton, a 13.3% decrease from the previous year. However, the average annual rate of increase from 2012 to 2022 was 2.1%. Wood pulp is in high demand for applications other than cellulose fibers, such as paper and packaging. According to the United Nations Food and Agriculture Organization (FAO), global paper and paperboard production has increased over the years, contributing to the demand for wood pulp.

On the other hand, sustainable forestry practices are critical for ensuring a long-term and environmentally responsible supply of wood pulp. To achieve global sustainable forestry practices, however, coordinated efforts and adherence to certification standards such as those provided by the Forest Stewardship Council (FSC) are required.

Market Opportunity

Rising Awareness of Biodegradability

The growing global awareness of environmental issues, combined with growing concern about the impact of non-biodegradable materials, presents cellulose fibers with a significant opportunity. Consumers actively seek products with lower environmental footprints, and the biodegradability of cellulose fibers aligns well with these sustainability preferences. According to a Nielsen global survey, 81% of respondents strongly believe that businesses should help improve the environment. Consumer preferences reflect the demand for sustainability, driving the popularity of biodegradable materials such as cellulose fibers.

Additionally, the United Nations Environment Programme (UNEP) will launch a new "Medium-Term Strategy" with seven action subprograms in 2022. The UNEP also led World Environment Day 2022, the most significant international environmental day. According to the Environmental Protection Agency, textiles account for about 9% of urban solid waste produced in the United States. The Ellen MacArthur Foundation's "Make Fashion Circular" initiative emphasizes shifting to a circular fashion economy in which products are designed with end-of-life considerations such as biodegradability in mind. This circular fashion model is made possible by cellulose fibers.

As a result, governments and regulatory bodies are becoming more aware of the importance of biodegradable materials. Regulations and standards promoting environmentally friendly practices encourage industries to use materials such as cellulose fibers. For example, the European Union's Single-Use Plastics Directive emphasizes reducing the impact of single-use plastics and promoting biodegradable alternatives.

Regional Analysis

The global cellulose fiber market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global cellulose fiber market shareholder and is estimated to grow at a CAGR of 9.7% over the forecast period, owing to strong demand in the textile and industrial sectors. The area is expected to exhibit the same growth trend over the forecasted period due to increased demand from the region's industrial, textile, and other application segments. The region's primary markets are China, India, Japan, South Korea, Pakistan, Taiwan, and Indonesia. These countries produce and trade fibers used in various end-use industries. Furthermore, this growth is being driven by increased demand in the textile and industrial sectors. The region is expected to grow at a similar rate during the forecast period due to increased demand from the region's textile, industrial, and other application segments. China is the world's largest textile exporter, accounting for more than 41% of total global textile exports in 2021. The country's textile industry is the world's largest in production, exports, and retail. China's textile industry produces 58 million tons of fiber annually, accounting for more than half of the global total. The country's textile and garment exports are valued at USD 316 billion.

Furthermore, the product's potential future markets are Vietnam and Bangladesh. In 2022, Vietnam's textile and garment exports increased by 14.7% yearly, reaching around USD 44 billion. As a result of this expansion, Vietnam has emerged as a significant global garment exporter. Vietnam's textile sector is expected to grow 9.89% by 2021, but its garment exports are only USD 32.75 billion, compared to Bangladesh's USD 35.81 billion. However, Vietnam's apparel exports to global markets increased by 20.41% in the first quarter of 2022, while Bangladesh's increased by 45.14%. This is expected to drive the regional market. However, strict forestry regulations are expected to hamper the product's growth over the next nine years.

North America is anticipated to exhibit a CAGR of 10.0% over the forecast period. The region includes significant economies such as the United States and Canada, where applications in textiles, nonwovens, and other industrial sectors drive the cellulose fiber market. North America is constantly involved in researching and developing cellulose fiber advancement. As a result, North America is expected to proliferate over the forecast period. Tencel, a branded lyocell cellulose fiber, is becoming increasingly popular in the North American textile market. Tencel is a sought-after material in fashion and apparel due to its sustainable manufacturing process, soft feel, and versatility. TENCELTM and Calvin Klein will launch Calvin Klein's first-ever trainer in 2023, with a knitted upper made of PIAYARN® blended with TENCELTM Lyocell fibers. Tencel's use by North American fashion brands and retailers reflects the region's preference for sustainable and eco-friendly textile materials.

Europe will account for roughly 25% of the global market, according to Cellulose Fiber Market insights. During the forecast period, this region is expected to grow steadily. Europe is expected to grow moderately in the worldwide cellulose market due to abundant raw materials for cellulose fiber production. A growing population and rising living standards drive demand for textiles in this sector. Natural and synthetic cellulose fibers are widely used in the production of textiles.

Additionally, the primary applications expected to drive market growth in the European region in the coming years are apparel and home textiles. The two most common types of cellulose fibers are natural cellulose fibers and artificial cellulose fibers. Organic cellulose fibers include cotton, jute, and other natural cellulose fibers, whereas synthetic cellulose fibers include viscose, lyocell, modal, and others. The increased demand for various cellulose fibers is aiding regional market growth.

Segmental Analysis

The global cellulose fiber market is segmented based on type, application, and region.

The market is further segmented by type into Natural and synthetic.

Synthetic generates the most revenue in the market. Synthetic fibers are materials manufactured by chemical methods. Polyester, nylon, and acrylic are examples of standard synthetic fibers. These fibers are designed with specific features in mind, such as durability, strength, and resistance to environmental influences. Synthetic fibers are frequently employed in various applications, such as apparel, industrial items, and packaging. While they lack the natural feel of organic fibers, their adaptability, cost-effectiveness, and performance qualities make them indispensable in modern manufacturing processes and technological breakthroughs.

Natural fibers are minimally processed from plant, animal, or mineral sources. Cotton, flax, and hemp are plant-based natural fibers, whereas wool and silk are animal-based. The biodegradability, sustainability, and breathability of these fibers are highly valued. Natural fibers are frequently soft and comforting to the touch, making them ideal for textiles. They help promote environmentally friendly and renewable methods in various industries, including fashion and construction.

The market can be bifurcated by application into textiles, hygiene, and industrials.

Textile is the most common application in the market. Textile was the most critical segment in 2022. The segment accounts for roughly 45% of total revenue. The cellulose fiber market's textile application segment includes cellulose fibers in the textile and apparel industries. Cotton, modal, and lyocell cellulose fibers are commonly used to make fabrics for clothing, home textiles, and accessories. Cellulose fibers, known for their comfort, breathability, and versatility, play an important role in the fashion and textile industries. These fibers are valued for their natural feel and eco-friendly characteristics, contributing to sustainable and comfortable textile products ranging from casual wear to high-end fashion.

The hygiene application segment includes cellulose fibers in personal and medical hygiene products. Cellulose fibers, particularly in nonwoven materials, are used in diapers, sanitary napkins, wipes, and medical textiles. Cellulose fibers are ideal for applications that require moisture management and disposability because of their absorbent and biodegradable properties. Cellulose fibers improve comfort, absorbency, and overall performance in hygiene products, meeting the demands of consumers seeking dependable and sustainable solutions for personal and healthcare needs.

Recent Developments

• November 2023- Lenzing relies on wind power to diversify its green energy mix in the fiber and pulp industry.
• August 2023- Sateri (Nantong) Fibre Co., Ltd. has successfully begun Lyocell fiber production, adding 10,000 tonnes to Sateri's annual production capacity, bringing the company's total current capacity to 250,000. Sateri Nantong is Sateri's second lyocell mill in Jiangsu province, and it is part of the Group's strategy to increase annual Lyocell capacity to 500,000 tons by 2025.
• September 2023- MagnoLab and Kelheim Fibres join forces for textile innovation and sustainability.