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Report Overview

The global lyocell fibre market value reached around USD 1423.20 Million in 2024 due to the increasing demand for sustainable and eco-friendly textile material. Lyocell fibres, made from sustainably sourced wood pulp, are biodegradable, and their production process uses non-toxic solvents, making them a suitable alternative to cotton and polyester. Major brands like H&M and Zara have started incorporating lyocell into their collections, aligning with the sustainability trend. As a result, the industry is expected to grow at a CAGR of 19.70% during the forecast period of 2025-2034 to attain a value of USD 8594.24 Million by 2034. Additionally, the rise in demand for high-quality, breathable, and comfortable fabrics is further boosting the adoption of lyocell fibres across various applications.

2024

Base Year

2018-2024

Historical Year

2025-2034

Forecast Year

  • The manufacturing process of lyocell fibre is widely recognised for its eco-friendly nature. Unlike conventional fibres that often involve harmful chemicals and generate large amounts of waste, lyocell is produced using a closed-loop process that recycles almost all the solvents and water used in production. This results in minimal environmental impact, with waste being almost negligible. Additionally, the raw material for lyocell, wood pulp from sustainably managed forests, further enhances its appeal as a renewable and biodegradable fibre. As sustainability becomes a central concern for both consumers and manufacturers, the demand for lyocell fibre market, known for its reduced carbon footprint and minimal waste, is increasing rapidly in the global textile industry.
  • India is one of the largest textile producers in the world, with its textile exports valued at USD 36 billion. As India continues to be a major hub for textile production and exports, the lyocell fibre market has ample opportunities to grow. The increasing demand for eco-friendly fabrics in both domestic and international markets is driving textile manufacturers in India to explore alternatives to traditional fibres. Lyocell's soft texture, durability, and biodegradability align with the growing trend towards sustainable textiles.
  • In 2021, the United States invested approximately USD 2.27 billion in the manufacture of yarn, fabric, apparel, and sewn products. This substantial investment in the textile sector is set to create new opportunities for the lyocell fibre market, particularly as companies seek to meet the growing consumer demand for sustainable and eco-friendly materials.

Compound Annual Growth Rate

Value in USD Million

19.7%

2025-2034


Lyocell Fibre Market Outlook

*this image is indicative*

Lyocell Fibre Market Growth

Lyocell fibres are known for its characteristics such as being strong but soft, wrinkle-resistant, highly absorbent, and capable of replicating an array of textures like suede, leather, and silk. The global market is driven by the extensive use of the product in the apparel and home textile industries. This can be attributed to the fact that they have tenacity and absorption efficiency, which is why these are preferred over other types of fibres, like cotton and rayon. In addition to this, due to the increasing demand for eco-friendly and biodegradable cellulose fibres, the use of lyocell fibre has gained popularity among manufacturers.

The growth of the lyocell fibre industry is further aided by several factors, such as being easily disposable by landfilling, sewage digestion, or burning after usage. Moreover, as lyocell fibres does not contain any toxic compounds, they are ideal for the manufacture of medical-grade non-woven products.

Key Trends and Developments

Lyocell Fibre Market Trends

An emerging trend of lyocell fibre market is the growing use of lyocell fibre in automotive filtration systems. As the demand for eco-friendly materials rises, manufacturers are exploring lyocell fibres for automotive filters due to their biodegradable characteristics and enhanced strength. This trend is particularly noticeable in Europe and North America, where there are many stringent regulations promoting the use of sustainable materials. Moreover, the EU Circular Economy Action Plan (2020), which is part of the European Green Deal, aims to improve product sustainability across all sectors and can enhance lyocell fibre market expansion. In the automotive sector, it emphasises the significance of using recycled materials, adopting eco-friendly designs, and extending the lifespan of products.

The EU End-of-Life Vehicles (ELV) Directive encourages the recycling and reusing of automotive materials, requiring that 85% of a vehicle's components be reusable or recyclable, with a goal of achieving 95% recoverability by weight. This regulation supports the use of sustainable materials and aims to reduce the presence of hazardous substances in vehicle production.

Opportunities in Lyocell Fibre Market 

Advancements in the manufacturing of lyocell fibres, especially in the production of cross-linked fibres for automotive filtration, are increasing the adaptability of this material. These innovations ensure that lyocell fibres maintain their durability and efficiency across a wide range of applications such as apparel and filtration systems, among others, increasing the lyocell fibre market value. Birla Cellulose, the pulp and fibre provider in India, successfully completed its first pilot-scale spinning of an eco-friendly next-generation lyocell fibre, which contains 20 per cent microbial cellulose sourced from Nanollose Limited. This pilot spin, which produced 250 kg of this sustainable lyocell fibre, marks a significant step in the company’s efforts to commercialise this technology that uses sustainable biomass derived from food industry waste fermentation.

VEOCEL™, a producer of biodegradable, plant-based fibres, introduced its improved lyocell shortcut fibres specifically designed for the flushable wipes market. These upgraded fibres can be easily processed and have high machine efficiency, significantly reducing the chances of mechanical blockages and product defects.

Lyocell Fibre Market Restraints

Lyocell fibre is produced from cellulose, which is obtained from wood pulp. However, the availability of sustainably sourced wood pulp is limited and the increasing demand for eco-friendly fibres increases pressure on these resources. This issue further becomes prominent with the demand for sustainable forestry practices, which can increase material costs and affect the lyocell fibre demand forecast. As per the Textile Exchange, global production of manmade cellulosic fibre (MMCF), including lyocell, increased from 7.4 million tonnes in 2022 to 7.9 million tonnes in 2023 but challenges persist in sustainably increasing this supply.

Additionally, the market faces higher production costs compared to other fibres such as polyester or cotton. The lyocell manufacturing process, which uses non-toxic solvents in a closed-loop system, is more costly than conventional methods and can hinder its widespread adoption, especially in markets that are sensitive to cost.

Global Lyocell Fibre Market By Application

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Lyocell Fibre Industry Segmentation

“Lyocell Fibre Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

The market is segmented on the basis of product into:

  • Staple Fibre
  • Cross-Linked Fibre

On the basis of application, the market is divided into:

  • Apparel
  • Home Textiles
  • Medical and Hygiene
  • Automotive Filters
  • Others

The report also covers the regional markets of the product like:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Lyocell Fibre Market Share

Market Insights by Product

Among products, staple fibres are largely preferred due to their longer than average fibre length, which makes it easier to process and produce even yarns, contributing to the lyocell fibre market revenue. These fibres are commonly used in the fashion sector to produce fabrics that are soft, breathable, and durable. This fibre is often blended with other materials such as cotton to improve the texture and sustainability of clothing. It is popular in high-quality garments, including activewear, casual wear, and undergarments, due to its moisture-wicking and hypoallergenic properties.

The market is seeing growth in cross-linked fibres due to their enhanced strength, durability, and environmental benefits. These fibres are more resistant to stress and are used in textiles, automotive, and medical fabrics. Companies like Lenzing AG are leading innovations in this area. Government reports, including those from the European Commission and U.S. Department of Energy, support the shift to sustainable materials like cross-linked lyocell, highlighting its biodegradability and lower environmental impact. This trend aligns with global efforts to promote eco-friendly textile production, driven by regulatory policies aiming to reduce synthetic fibre use and promote circular economy practices. 

Market Insights by Application

Out of these, apparel holds the majority of the lyocell fibre market share, demonstrating the largest segment. This can be ascribed to the wet strength, softness, and high absorbent properties of lyocell fibre. Lyocell fabric is ideal for garments that offer comfort such as casual wear, activewear, and undergarments as its silky smooth texture feels gentle against the skin. One of the prominent features of lyocell is its excellent moisture-wicking ability, which enhances its appeal in activewear and sportswear by efficiently absorbing and dispersing moisture, keeping the wearer dry and comfortable.

Lyocell fibres are used in home textiles like bedding, curtains, and upholstery due to their soft texture, moisture-wicking properties, and environmental benefits. Brands like IKEA have started incorporating lyocell into their home textile collections, aligning with the European Union’s sustainability goals. Lyocell is gaining traction in the medical and hygiene sectors due to its biodegradability and high absorbency.

It is used in wound dressings, diapers, and feminine hygiene products. Companies such as Lenzing AG have developed lyocell-based products for medical applications, benefiting from regulatory support under initiatives like the U.S. Food and Drug Administration (FDA) guidelines on sustainable medical materials. The World Health Organization (WHO) encourages the use of environmentally friendly materials in hygiene products to improve waste management globally. In the automotive industry, lyocell fibres are used in air and fuel filters due to their excellent filtration capabilities and strength.

Global Lyocell Fibre Market By Region

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Lyocell Fibre Market Regional Analysis

North America Lyocell Fibre Market Outlook

Lyocell fabric is renowned for its remarkable softness, making it ideal for clothing. The market in North America is driven by a growing demand for sustainable and eco-friendly textiles, particularly in the apparel and home textiles sectors. The United States is leading the way in adopting sustainable fashion trends, with both brands and consumers increasingly choosing biodegradable materials, which further boosts the demand of lyocell fibre market. Additionally, the rising awareness of the environmental impact of the textile sector has resulted in a significant increase in the demand for lyocell fibres throughout the region. In 2023, the demand for lyocell in sustainable fashion in the region saw a steady rise, owing to rising environmental concerns.

Europe Lyocell Fibre Market Drivers

Europe has adopted a leading role in sustainability regulations, especially through the EU’s Circular Economy Action Plan and the Sustainable Textile Strategy. These initiatives focus on minimising waste, enhancing recyclability, and encouraging the use of eco-friendly materials such as lyocell.

As per the lyocell fibre industry analysis, the European Commission's objective of achieving a carbon-neutral textile sector by 2050 has encouraged manufacturers to incorporate lyocell into their production processes. The upcoming Eco-Design for Sustainable Products Regulation, set to take effect in 2024, is expected to further increase the demand for lyocell by advocating for the use of recyclable and biodegradable materials.

Asia Pacific Lyocell Fibre Market Growth

The Asia Pacific is currently the leading market for lyocell fibre owing to the thriving textile industry and enhancing standards of living. The global lyocell fibre market is driven by the increasing demand for biodegradable cellulose fibre across the globe. With the increasing environmental concerns, the demand for the product is increasing across the world and consequently boosting the lyocell fibre demand. 

China and India are key contributors to both the production and consumption of textiles, with rising demand for eco-friendly fibres as global brands shift their manufacturing to these countries. This region's significant role in the market makes it essential for the expansion of lyocell, especially as more manufacturers in Asia adopt sustainable practices.

Middle East and Africa Lyocell Fibre Market Overview

The Middle East and Africa are emerging markets for lyocell fibre, driven by growing urbanisation and industrial development. Furthermore, there is an increased awareness of sustainable textiles, especially in the home textiles and medical textiles sectors, which contributes to the lyocell fibre industry revenue. The National Renewable Energy Program focuses on energy while encouraging a shift towards sustainable energy sources in multiple sectors, including textiles, to reduce emissions. This initiative aligns with the Kingdom's goal of sourcing 50% of its energy from renewable sources by 2030, thereby indirectly impacting textile manufacturing practices.

Latin America Lyocell Fibre Market Dynamics

The lyocell fibre market in Latin America is growing as the region focuses on sustainable manufacturing practices. Countries such as Brazil and Argentina are experiencing an increase in the adoption of eco-friendly materials in the fashion and home textiles sectors, largely influenced by global export standards. Moreover, international brands operating in Latin America are increasingly seeking sustainable textile alternatives, which is further driving the demand for lyocell.

Innovative Startups in Lyocell Fibre Market

Several startups are increasingly relying on digital technologies, including blockchain and digital product passports, to enhance transparency in their sustainability claims. These innovations facilitate improved monitoring of the supply chain, from the sourcing of fibres to the final products, enabling consumers to confirm the environmental sustainability of their purchases, which can enhance lyocell fibre market opportunities. This approach aligns with regulatory frameworks such as the EU’s Circular Economy Action Plan, which encourages transparency and accountability.

Sateri Holdings Limited (China)

Sateri, headquartered in China, focuses on the production of sustainable fibres, such as lyocell, viscose, and other environmentally friendly options. The company has gained recognition for its innovative sourcing and manufacturing techniques, making itself an emerging competitor in the textile sector. The company is committed to increasing the application of lyocell across diverse sectors such as fashion, home textiles, and non-woven materials.

Lenzing AG's TENCEL™ Division (Austria)

Lenzing AG, though not a typical startup, has a division focused on the production and marketing of TENCEL™, a brand name which offers lyocell fibre. TENCEL™ has become one of the most highly regarded sustainable materials in the textile sector, widely adopted by brands in both fashion and home textiles.

Competitive Landscape

The report gives a detailed analysis of the following key players in the global lyocell fibre market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds. Several companies are leading the way in the development of biodegradable and sustainable fibres. They are using eco-friendly materials such as SeaCell™ and plant-based alternatives, which help reduce reliance on synthetic fibres and boost lyocell fibre demand growth. These innovative companies are promoting more sustainable options, including biodegradable polymers, that can be applied in both the fashion sector and industrial textiles.

Denka Corporation Limited

Denka Corporation is a prominent Japanese chemical company that offers a wide range of products such as industrial materials, electronic goods, and healthcare solutions, among others.

Smartfiber AG

Located in Germany, Smartfiber AG is recognised for its production of high-performance natural and f...

Acegreen Eco-Material Technology Co., Ltd.

This China-based company focuses on the development of sustainable and eco-friendly materials. It al...

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

The comprehensive EMR report provides an in-depth assessment of the lyocell fibre market based on the Porter's five forces model along with giving a SWOT analysis.

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Lyocell Fibre Market Report Snapshots

Lyocell Fibre Market Size

Lyocell Fibre Market Analysis

Lyocell Fibre Companies

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

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Key Questions Answered in the Report

In 2024, the market reached an approximate value of USD 1423.20 Million.

The lyocell fibre market is assessed to grow at a CAGR of 19.70% between 2025 and 2034.

The market is estimated to witness healthy growth in the forecast period of 2025-2034 to reach a value of around USD 8594.24 Million by 2034.

The major drivers of the market include the flourishing textile sector, increasing utilisation of lyocell fibre in the preparation of medical-grade non-woven products, growing technological advancements, the increasing demand for biodegradable cellulose fibres, and surging environmental consciousness.

The growing use of lyocell fibre in home textiles and apparel and the rising awareness regarding the benefits of lyocell fibre are the key trends guiding the market.

The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.

Staple fibre and cross-linked fibre are the various products considered in the market report.

The major applications of lyocell fibre are apparel, home textiles, medical and hygiene, and automotive filters, among others.

The major players in the market are Lenzing AG, Acegreen Eco-Material Technology Co., Ltd., and Smartfiber AG, among others.

Report Summary

Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.

Key Highlights of the Report

Please note that the figures mentioned in the description serve as estimates and may vary from the actual figures presented in the final report.

REPORT FEATURES DETAILS
Base Year 2024
Historical Period 2018-2024
Forecast Period 2025-2034
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Product
  • Application
  • Region
Breakup by Product
  • Staple Fibre
  • Cross-Linked Fibre
Breakup by Application
  • Apparel
  • Home Textiles
  • Medical and Hygiene
  • Automotive Filters
  • Others
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Denka Corporation Limited
  • Acegreen Eco-Material Technology Co., Ltd. 
  • Smartfiber AG
  • Others
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Delivery Format Delivered as an attached PDF and Excel through email, with an option of receiving an editable PPT, according to the purchase option.

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