LYOCELL FABRIC MARKET ANALYSIS

Market Size and Trends:

The Lyocell Fabric Market is estimated to be valued at USD 1.34 Bn in 2024 and is expected to reach USD 2.14 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.9% from 2024 to 2031.

Lyocell fibers are created by a solvent spinning technique, and cellulose undergoes no significant chemical change. Lyocell is an extremely sturdy fabric that is used for automotive filters, abrasive materials, ropes, bandages, and protective suiting material. It is primarily found in the garment industry, particularly in women’s clothing.

Figure 1. Global Lyocell Fabric Market Value Share (%), By Product Type, 2024

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Increasing preference towards use of bio-based resources in various end-use industries such as healthcare and textile is expected to drive demand for lyocell fabric during the forecast period. Lyocell is 100% biodegradable in nature and its production does not produce any harmful by-products. Lyocell is produced from eucalyptus trees, and growth and cultivation of eucalyptus trees requires less water and pesticides, which makes it environment friendly. The amine oxide solvent which is used during production process of lyocell fabric is non-toxic in nature and it is mostly recycled during production. These advantages of lyocell fabric are expected to increase its demand from end-use industries.

Increasing preference for organic clothing among the populace is one of the major factors that is expected to propel growth of market over the forecast period. Lyocell fabric, also known as dissolving pulp, is a type of rayon which contains cellulose and is produced from bleached wood pulp. The fabric was first developed in 1972 by using dry-jet wet spinning process. Lyocell is a breathable, lightweight, wrinkle-resistant, absorbent, and durable fabric. This fabric is capable of imitating a range of textures such as leather, silk, and suede and can also be dyed in various colors. Producers of lyocell fabric are focusing on adopting natural practices for manufacturing lyocell by eliminating, or reducing, the use of chemicals to obtain organic certifications.

In terms of revenue, Asia Pacific is expected to hold a dominant position and account for a market share of around 51.7% in the global lyocell fabric market. Lyocell fabric has application in several end-use industries such as healthcare, hygiene, apparels, home textiles, automotive, etc. Growing textiles market in emerging economies such as India, China, and Thailand among others is expected to drive growth of the global lyocell fabric market over the forecast period. For instance, 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.

Figure 2. Global Lyocell Fabric Market Value Share (%), By Region, 2024

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Market Restraints

Lyocell fabric has relatively low surface energy, which makes it difficult for dyes to bind to it. Moreover, dyes required for binding in lyocell fabric are relatively more expensive, which has led to a shift in consumer preference towards substitutes such as synthetic fabric, natural fabric, and cellulose fabric. These factors are expected to hamper growth of the lyocell fabric market over the forecast period.

Market Trends

Rising access to the internet in emerging & underdeveloped countries, emerging middle class population with disposable incomes, and the expansion of the clothing & footwear industry are main trends in the global Lyocell fabric market. Additionally, discounted rates, combined packages, and variety in product range have influenced consumers to buy products from e-commerce websites, thereby driving market growth.

On the basis of applications, the apparel segment is expected to witness significant market share in the market over the forecast period. Lyocell fabric is soft, lightweight, comfortable, and breathable in nature and has a very smooth surface. Due its high elasticity and strength, it is widely used for producing sportswear. Moreover, lyocell fabric has excellent moisture absorption properties, which makes it a preferred choice for people with sweating problems or those living in rainy weather regions. 

Key Developments:

• In January 2024, Lenzing Group announced a new processing technique for TENCEL Lyocell fibers that creates stretch fabrics that are comfortable and easy to care for. The new technique is a fossil-free alternative to synthetic materials and involves: Re-engineering woven fabric, Fabric pre-treatment, Swelling in diameter during the wet process, and Increased yarn crimps in the width wise direction.
• In 2022, Evrnu Launch Recyclable Lyocell Material Made from Cotton Textile Waste
• In October 2021, Austria-based fibre manufacturer Lenzing group announced the expansion of its ‘sustainable offering’ for the denim industry with the introduction of matte Tencel-branded lyocell fibres. Lenzing Group is a manufacturer of wood-based fibers used in the textile industry. The new fiber type is specially designed to scatter light and permanently diminish sheen in denim applications.
• In August 2020, Lenzing Group announced the introduction of the new LENZING Lyocell Fine Skin and LENZING Lyocell Micro Skin fibers under its specialty nonwoven ingredient brand VEOCEL. These fibers, introduced under the VEOCEL Beauty segment, the product provides properties such as softness and translucency which are ideal for beauty applications.

*Definition: Lyocell fabric, also known as Tencel, is a type of cellulose-based textile derived from wood pulp. It falls under the category of regenerated cellulosic fibers and is considered a form of rayon. Lyocell is produced by dissolving wood pulp using a solvent and then extruding the solution through fine holes to create fibers. These fibers are then spun into yarns and woven or knitted into fabric.

Competitive Section

Major players operating in the global lyocell fabric market include Lenzing A.G., Aditya Birla Group, AkzoNobel N.V., Smartfiber AG, Nien Foun Fiber Co., Ltd., Invista , Baoding Swan Fiber Co. Ltd., Qingdao Textiles Group Fiber Technology Co., Ltd., China Bambro Textile (Group) Co., Ltd., Acegreen Eco-Material Technology Co. Ltd., China Populus Textile Ltd., and Acelon Chemicals & Fiber Corp.

Market Segmentation:

• Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Staple
  • Filament
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Healthcare
  • Hygiene
  • Apparel
  • Home Textile
  • Automotive
  • Others (Cigarette Filters, etc.)
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Lenzing A.G.
  • Aditya Birla Group
  • AkzoNobel N.V.
  • Smartfiber AG
  • Nien Foun Fiber Co., Ltd.
  • Invista
  • Baoding Swan Fiber Co. Ltd.
  • Qingdao Textiles Group Fiber Technology Co., Ltd.
  • China Bambro Textile (Group) Co., Ltd.
  • Acegreen Eco-Material Technology Co. Ltd.
  • China Populus Textile Ltd.
  • Acelon Chemicals & Fiber Corp.
  • TENCEL
  • HerMin
  • DAKS India
  • Jcrafteco
  • Balavigna Mills Pvt. Ltd.