Global Lyocell Fiber Market is segmented By Application type (Medical, Electrical, Apparels, Automotives, Other), By Fabric Type (Woven Fabric, Non-Woven Fabric), and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031.
Lyocell Fiber Market Overview
Global lyocell fiber market reached USD 1.4 billion in 2022 and is expected to reach USD 2.3 billion by 2031, growing with a CAGR of 8.1% during the forecast period 2024-2031. The global lyocell fiber market has witnessed remarkable growth in the past decade, with increasing consumer awareness and demand for sustainable and biodegradable textile materials.
The market's expansion is fueled by various factors, including growing environmental concerns, shifting consumer preferences toward eco-friendly products, and innovations in lyocell production technology.
The woven fabric segment drive leads the product segment in the lyocell fiber market, accounting for almost ¾ th of the market share. Similarly, the Asia-Pacific region dominates the lyocell fiber market, capturing the largest market share of over 1/3rd. As people in the region became more environmentally conscious, the demand for sustainable clothing and textiles, including lyocell-based products, surged in urban areas in the region.
Lyocell Fiber Market Scope
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Metrics |
Details |
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CAGR |
8.1% |
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Size Available for Years |
2022-2031 |
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Forecast Period |
2024-2031 |
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Data Availability |
Value (US$) |
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Segments Covered |
Fabric, Application, and Region |
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Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
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Fastest Growing Region |
Asia-Pacific |
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Largest Region |
Asia-Pacific |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Lyocell Fiber Market Dynamics
Growing Awareness of Sustainable and Eco-Friendly Products
The global emphasis on sustainability and environmental consciousness has been a pivotal driver behind the surge in lyocell fiber demand. As consumers become more aware of the detrimental effects of conventional textiles on the environment, they seek alternatives like lyocell that are derived from renewable resources and produced using environmentally friendly processes.
Government initiatives promoting sustainable textile production, such as eco-labeling schemes and grants for eco-friendly industries, have played a crucial role in augmenting the adoption of lyocell fibers. For instance, according to the United Nations Framework Convention on Climate Change the number of countries implementing policies aimed at promoting sustainable textiles increased by 20%, further supporting the demand for lyocell fibers.
Favorable Regulatory Policies and Incentives
Government support through favorable regulatory policies has significantly contributed to the growth of the lyocell fiber market. Various countries have implemented strict regulations against hazardous chemicals and restricted the usage of certain synthetic fibers in the textile industry, favoring the adoption of eco-friendly alternatives like lyocell.
In addition, tax incentives, subsidies, and grants offered to manufacturers of sustainable fibers have accelerated the development and production of lyocell fibers. According to the World Trade Organization (WTO), as of 2022, over 30 countries have introduced tax incentives and grants for companies involved in the production and export of eco-friendly fibers like lyocell.
Regulatory Challenges and Technological Limitations
The lyocell fiber production heavily relies on a consistent supply of raw materials, mainly wood pulp. Any disruptions in the supply chain, such as natural disasters, logistical issues, or fluctuations in demand, can adversely affect the lyocell fiber market. Further, the global demand for wood pulp, not only from the textile industry but also from other sectors could strain the availability of raw materials, leading to potential price increases and production constraints.
Moreover, despite its eco-friendly attributes, the lyocell fiber market faces regulatory hurdles in some regions. The industry must comply with stringent environmental regulations regarding water usage, chemical emissions, and waste disposal, which can increase production costs and limit market expansion.
Lyocell Fiber Market Segmentation
The global lyocell fiber market is segmented based on fiber, application and region.
The Versatility of Lyocell Fiber in Woven Fabrics
The versatility of lyocell fiber in woven fabrics is another contributing factor to its remarkable growth. Lyocell's softness, breathability, and ability to blend with other natural or synthetic fibers make it ideal for various apparel applications. From casual wear to high-end fashion, lyocell-based woven fabrics have found their way into dresses, shirts, blouses, trousers, and more. The versatility allows designers and manufacturers to cater to a broader audience, further boosting the segment's expansion.
Further, lyocell fiber, known for its eco-friendly production process and biodegradable nature, has gained significant attention as an ethical and sustainable alternative to conventional fibers such as cotton and polyester. The woven fabric segment has capitalized on this sustainable aspect, attracting eco-conscious consumers and responsible brands alike.
Lyocell Fiber Market Geographical Share
Awareness of Sustainable Textiles
The lyocell fiber market has experienced rapid growth worldwide, with Asia-Pacific emerging as a pivotal player in this flourishing industry. Lyocell, a biodegradable and eco-friendly fiber, has gained significant popularity due to its sustainable production process and versatile applications. The Asia-Pacific has been an industrial powerhouse, with the textile industry playing a critical role in its economic growth.
As awareness of sustainable textiles surged after 2020, the demand for lyocell fiber witnessed substantial growth in countries such China, India, South Korea, and Indonesia. Such nations' flourishing textile industries embraced lyocell as an environmentally responsible alternative to conventional fibers, contributing to the regional market's expansion.
Major Key Players
The major global players in the market include Lenzing AG, Acegreen Eco-Material Technology Co., Ltd., Weiqiao Textile Company Limited, Smartfiber AG, Chonbang Co., Ltd., Aditya Birla Group, Baoding Swan Fiber Co. Ltd., Nien Foun Fiber, Zhejiang Yaojiang Industrial Group and China Populus Textile Ltd.
COVID-19 Impact Analysis
The COVID-19 outbreak caused widespread disruptions in international trade and supply chains. Many lyocell fiber manufacturers relied on raw material imports, especially from Asian countries heavily affected by the pandemic. The closure of borders, strict lockdown measures, and reduced production capacity led to delays and shortages in the supply of lyocell fiber.
Further, the pandemic led to a significant drop in consumer demand for lyocell fiber products as people focused on essential purchases and postponed non-essential ones. Industries like fashion and textiles, which heavily rely on lyocell fiber, suffered from reduced demand as clothing sales declined during the pandemic.
Key Developments
- On March 10. 2022, Birla Cellulose, an Indian Fiber segment of Grasim Industries Ltd. announced its completion of its pilot scale spin of lyocell fiber that contain 20% nanollose microbial cellulose.
- On April 11, 2023, Lenzing Group announced an upgraded version of lyocell shortcut fiber for flushable market. The product offers high dispersibility required for flushable wipes.
- On July 1, 2022, Sateri, a major viscose fiber player launched three zero-carbon fiber products named EcoCosy, FINEX and Lyocell.
Why Purchase the Report?
- To visualize the global lyocell fiber market segmentation based on fiber, application and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of lyocell fiber market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as excel consisting of key products of all the major players.
The global lyocell fiber market report would provide approximately 53 tables, 47 figures and 180 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
