Lyocell Fiber Market

Market Overview

The global lyocell fiber market size was valued at USD 1.1 billion in 2022 and is projected to reach USD 1.9 billion by 2031, registering a CAGR of 6.1% during the forecast period (2023-2031). Rising consumer awareness regarding synthetic fibers' environmental impact and technological improvements are some of the primary reasons driving the growth of the lyocell fiber market.

Lyocell fiber is a cellulose-based fabric noted for its environmentally friendly and sustainable manufacturing technique. It is a type of rayon made by dissolving wood pulp, often from eucalyptus trees, in a solvent and then regenerating it into fibers. Lyocell is produced in a closed-loop system, which means that the solvents and chemicals used in the process are recycled, reducing the environmental impact. Dissolution, spinning, and solvent recovery are the major phases in manufacturing Lyocell fiber.

Rising demand and ongoing textile production advances will drive the worldwide lyocell fiber market over the next few years. Furthermore, the country's customers' disposable income has improved. Therefore, they are spending more on household textiles and personal clothes. Consumers' rising preference for biodegradable and sustainable fibers has boosted demand for lyocell fiber. As a result, the lyocell fiber market share is expected to expand faster than anticipated.

Market Dynamics

Lyocell Fiber Market Drivers

Rising Awareness of environmental Concerns

Consumers' growing knowledge of environmental issues, such as deforestation and pollution caused by traditional textile manufacturing, has resulted in a trend toward ecologically conscious alternatives. The fashion business, which consumes many textiles, has seen the growth of sustainable fashion movements. Influencers, celebrities, and environmentally concerned corporations have promoted sustainable practices, influencing customer decisions. Furthermore, the textile sector has responded to customer demand by launching sustainability initiatives and forming partnerships with eco-friendly fiber suppliers. Zara collaborated with textile recycler Evrnu in 2022 to produce a capsule collection made of NuCycl lyocell. NuCycl is a cotton textile waste-derived recovered waste material. Numerous eco-friendly fashion brands focus on sustainable and sustainably sourced materials, such as Lyocell fibers. Lyocell is used in the clothing lines of "Reformation," a popular sustainable fashion business emphasizing transparency and eco-friendly procedures.

According to a Nielsen global poll, many customers consider environmental sustainability when purchasing. According to the survey, 81% of global respondents strongly believe businesses should improve the environment. Environmental sustainability is increasingly included in corporate social responsibility (CSR) business activities. As part of their CSR obligations, textile producers and fashion labels implement sustainable practices, such as using eco-friendly fibers like Lyocell. According to a McKinsey poll, sustainability substantially impacts customer purchase decisions. According to the survey, around 67% of respondents considered sustainability essential when purchasing.

Rising environmental awareness has resulted in a paradigm shift in consumer behavior, influencing shopping decisions and industry practices. As customers seek ecologically friendly options, fibers such as Lyocell are gaining traction in the global textile market with their environmentally conscious manufacturing procedures. The collaboration of industry players, the creation of sustainable fashion movements, and the incorporation of eco-friendly fibers into product lines all demonstrate the tangible influence of the lyocell fiber market trend.

Lyocell Fiber Market Restraints

Cost Consideration

Lyocell manufacturing requires advanced technology and a closed-loop system, which may contribute to increased production costs when compared to some conventional fibers. Lyocell fibers' relatively higher cost can be a limiting factor, particularly in price-sensitive sectors where cost considerations are critical in product selection.

Lyocell's closed-loop production process comprises advanced technology and a mechanism for recycling solvents and chemicals, contributing to increased production costs compared to standard fiber manufacturing processes. Lyocell manufacturing facilities, such as those using the TENCELTM Lyocell brand by Lenzing AG, employ innovative technology and methods to maintain a closed-loop system. Lyocell fibers may have a higher market price than some ordinary fibers due to the specific manufacturing method and the costs associated with meeting environmental sustainability criteria. The more significant production costs may impact the final consumer pricing of Lyocell-made products, influencing the material's acceptance in mass-market or budget-conscious areas. According to Alibaba, 8,000 kilograms of 100% green cellulose lyocell staple fiber for medical material costs between USD 1.50 and USD 2.00.

Lyocell Fiber Market Opportunity

Growing Sustainability Trends

Due to its environmentally benign manufacturing process, the growing global emphasis on sustainability in several industries, particularly textiles, makes Lyocell a preferred choice. Consumers increasingly seek products with fewer environmental footprints, and Lyocell's closed-loop manufacturing aligns with sustainability aspirations. According to a Nielsen survey, many worldwide customers consider ecological sustainability when purchasing. According to the poll, 81% of global respondents strongly believe that businesses should contribute to environmental improvement.

The fashion business has seen the emergence of sustainable fashion initiatives, with customers seeking ecologically responsible options. The "Fashion Revolution" campaign and projects such as the "Higg Index" promote sustainability in fashion and textiles. Textile and fashion industry leaders are also committing to sustainability goals and tasks. The Global Fashion Agenda's "2030 Circular Fashion System Commitment" stresses a circular fashion economy that aligns with sustainability standards.

Furthermore, influencers, celebrities, and media sources campaigning for sustainable fashion contribute to the general acceptance of eco-friendly fibers. Positive endorsements and presence in popular media can substantially impact consumer perceptions and choices. The market has expanded the availability of eco-friendly options to meet the growing demand for sustainable products, with Lyocell positioned as a significant participant in this arena.

Regional Analysis

Asia-Pacific Dominates the Global Market

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

Asia-Pacific is the most significant global lyocell fiber market shareholder and is estimated to grow at a CAGR of 6.3% over the forecast period. Asia-Pacific has the largest market share due to fast industrialization, a growing middle-class population, and a greater emphasis on sustainability. The Asia-Pacific region, one of the world's most significant textile production hubs, offers a substantial market for Lyocell, particularly in China, India, and Bangladesh. China boasts one of the world's major textile industries. The country's thriving textile sector offers a substantial market for lyocell fiber because of domestic and international demand. Chinese textile makers are increasingly adopting Lyocell as a versatile and sustainable fiber for various applications, including garments, home textiles, and technical textiles.

Furthermore, as environmental restrictions and consumer awareness about sustainability become more stringent, the adoption of eco-friendly fibers will increase. Companies in the Asia-Pacific region are extensively investing in R&D to improve the quality and production efficiency of Lyocell fibers, cutting costs and making them more accessible to a broader client base. Furthermore, the region's extensive supply chain infrastructure facilitates the rapid scaling of lyocell production, establishing Asia-Pacific as the largest regional market for lyocell fiber.

Europe is anticipated to exhibit a CAGR of 6.6% over the forecast period. According to lyocell fiber market insights, Europe is the fastest-growing region. Various textile factories in France, Germany, and the United Kingdom will likely increase demand for lyocell fiber in Europe. France has a well-known fashion and textile sector with a long history and global clout. The country is famous for its high-quality textiles and fashion firms. The French fashion industry's quest for novel and sustainable fibers pushes the use of lyocell fibers. France's penchant for high-end, eco-friendly textiles results in a substantial market share for lyocell fibers.

Additionally, France is home to well-known lyocell fiber manufacturers who have been in business for a long time. These companies have gained expertise in lyocell fiber production and have a substantial market presence. France's considerable market share in the worldwide lyocell fiber market is due to its experience, technical know-how, and high-quality production. France places a significant emphasis on environmentally friendly and sustainable textiles. The French textile industry, including fiber makers, is taking the lead in adopting environmentally friendly processes and products. Lyocell fibers, noted for their environmentally benign manufacturing process and biodegradability, perfectly align with the French market's sustainability aims. In France, the desire for ecological textiles drives the adoption and market share of lyocell fibers.

North America holds a significant market share. The increased demand for lyocell fiber in automobile filters will drive market expansion in North America, with the United States and Canada leading the way. In addition, U.S. manufacturers have developed new ways to compete in the industry in response to increased garment exports. Mexico is a significant textile market. Several garment firms have expanded their operations in Mexico, increasing product demand.

Segmental Analysis

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

The market is further segmented by type into staple fibers and filament fibers.

Staple fibers generate the most revenue in the market.

Staple Fibers

Staple fibers are short, finite-length fibers commonly measured in inches or centimeters. These fibers can be spun into yarns, which results in more textured and varied clothing. Lyocell staple fibers are used in various textile items, such as apparel, household textiles, and non-woven materials. The short length of staple fibers makes them appropriate for spinning into yarns that may be used to make various textile items. Regarding revenue, the staple fibers segment dominated the worldwide lyocell fibers market in 2022. Lyocell staple fibers are used in denim, chino, undergarments, casual wear, and towels, among other things. These are also widely employed in producing heavy-duty items such as coats, blankets, carpets, and wrap threads. Demand for jackets, blankets, rugs, and wrap threads is expected to rise as demand for housing products rises. This, in turn, is expected to drive staple fiber sector growth throughout the forecast period.

Filament Fibers

Filament fibers are long, continuous strands of fiber that can be utilized directly in fabric manufacturing without spinning. These fibers help to create fabrics that are smooth and elegant. Lyocell filament fibers are utilized in applications that require a soft, shiny look. They are used to manufacture materials for various applications, including garments, bed linens, and other high-quality textiles.

The market can be bifurcated by application into Apparel, Home Textile, Medical and Hygiene, Filtration, and Footwear.

Medical and hygiene hold a significant market share.

Medical and Hygiene

The features of Lyocell make it suited for specific medical and hygiene applications. Lyocell fibers may be used in wound dressings, medical textiles, and hygiene goods such as wipes and diapers. In 2022, the medical and hygiene category led the worldwide lyocell fiber market. Lyocell fibers are widely employed in the manufacture of infant diapers as well as surgical coats for doctors and nurses. It has been shown to have increased antibacterial action against various bacteria and fungi, implying that it could be employed in therapeutic or hygienic products. The rising demand for lyocell fibers in medical and sanitary applications is expected to propel the market throughout the forecast period.

Apparel

Lyocell is widely utilized in the apparel sector to make clothing and fashion goods. It is appropriate for a wide range of clothes, including shirts, dresses, and activewear, because of its softness, breathability, and adaptability. Lyocell's comfort and sustainability qualities make it popular in the garment industry, where it meets the demand for eco-friendly and pleasant clothes.

Recent Developments

• June 2023: Acegreen Eco-Material Technology Co., Ltd., a Taiwan-based Acelon Chemicals and Fiber Corporation subsidiary, announced a strategic cooperation with Circ to produce filament lyocell using Circ's cotton pulp. Cotton pulp is widely regarded as an environmentally favorable raw material. Therefore, this move is significant in developing and commercializing sustainable fibers. Filament lyocell manufactured from cotton pulp may provide a unique combination of resilience, moisture-wicking properties, and a softer texture, thus broadening its application in various sectors.
• October 2023: Lenzing Group, a global leader in wood-based specialty fibers, and Kaihara, a world-renowned Japanese denim manufacturer, celebrated three decades of collaboration. The latest collaboration is expected to bring Kaihara's time-tested craftsmanship to foreign markets as part of its overseas expansion strategy, leveraging the various applications of TENCELTM trademarked fibers.