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Report Overview
The global lyocell fibre market value reached around USD 1703.57 Million in 2025 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 2026-2035 to attain a value of USD 10287.30 Million by 2035. Additionally, the rise in demand for high-quality, breathable, and comfortable fabrics is further boosting the adoption of lyocell fibres across various applications.
2025
Base Year
2019-2025
Historical Period
2026-2035
Forecast Period
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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.
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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.
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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.
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.
Key Industry Players
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 functional fibres tailored for the textile sector. The company offers eco-friendly materials, particularly its speciality fibres such as SeaCell™, which are derived from seaweed and lyocell.
Acegreen Eco-Material Technology Co., Ltd.
This China-based company focuses on the development of sustainable and eco-friendly materials. It also promotes the production of innovative, biodegradable, and recyclable fibres and polymers for multiple sectors, including textiles.
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.
Lyocell Fibre Market Report Snapshots
*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 2025, the market reached an approximate value of USD 1703.57 Million.
The lyocell fibre market is assessed to grow at a CAGR of 19.70% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 10287.30 Million by 2035.
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.
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