Global Lyocell Fiber Market Overview
The Lyocell Fiber Market Size was estimated at 2.32 (USD Billion) in 2022.The Lyocell Fiber Industry is expected to grow from 2.48(USD Billion) in 2023 to 4.5 (USD Billion) by 2032. The Lyocell Fiber Market CAGR (growth rate) is expected to be around 6.86% during the forecast period (2024 - 2032).
Key Lyocell Fiber Market Trends Highlighted
Key market drivers for Lyocell fiber include the growing demand for sustainable textiles, rising awareness of its environmental benefits, and increasing adoption in various end-use industries. Lyocell is biodegradable, moisture-absorbent, and breathable, making it an attractive alternative to traditional synthetic fibers.Opportunities for market growth lie in the expansion of the nonwovens and biocomposites industries. Lyocell's unique properties make it suitable for applications in medical textiles, hygiene products, and packaging, driving demand in these sectors.
Additionally, the development of new technologies and processes for Lyocell production presents opportunities for cost reduction and improved sustainability.Recent trends in the market indicate a shift towards eco-friendly and high-performance textiles. Consumers are increasingly seeking sustainable options that minimize environmental impact. Lyocell Fiber meets this demand, offering manufacturers a solution that aligns with evolving consumer preferences. Furthermore, there is a growing focus on innovation in yarn and fabric development, creating opportunities for the integration of Lyocell with other materials to enhance its properties and meet specific application requirements.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Lyocell Fiber Market Drivers
Rising Demand for Sustainable Materials
Lyocell fiber, derived from cellulose, has gained significant traction due to its eco-friendly nature. As consumers become increasingly conscious of their environmental impact, the demand for sustainable materials like lyocell fiber is witnessing a steady rise. Its biodegradable and renewable properties make it an ideal choice for various industries, particularly the textile and apparel sectors. This growing preference for sustainable materials is expected to remain a key driver propelling the growth of the Lyocell Fiber Market Industry.
Technological Advancements and Innovations
The Lyocell Fiber Market Industry has witnessed continuous technological advancements, leading to improved production processes and enhanced fiber properties. Innovations in spinning and processing techniques have resulted in the development of high-quality, durable and versatile lyocell fibers. These advancements have expanded the application scope of lyocell fiber, making it suitable for a wider range of products, including clothing, home textiles and medical applications.Ongoing research and development efforts are anticipated to further drive market growth.
Growing Applications in Diverse Industries
Lyocell fiber's unique properties have led to its increasing adoption across a diverse range of industries. In the textile industry, it is utilized for the production of high-performance fabrics that are soft, breathable and moisture-wicking. The automotive industry employs lyocell fiber for interior applications due to its flame-retardant and acoustic insulation properties. Additionally, the medical sector leverages lyocell fiber in wound dressings and hygiene products owing to its biocompatibility and antimicrobial characteristics.The versatility and performance attributes of lyocell fiber are fuelling its demand in various industries, thus contributing to the overall growth of the market.
Lyocell Fiber Market Segment Insights
Lyocell Fiber Market Fiber Type Insights
The Lyocell Fiber Market is segmented by Fiber Type into Regular Lyocell Fiber, High Tenacity Lyocell Fiber and Micro Lyocell Fiber. Among these, the Regular Lyocell Fiber segment held the largest market share in 2023 and is expected to continue its dominance during the forecast period. This growth is attributed to its versatility, softness and comfort, making it suitable for a wide range of applications in the textile industry.
High Tenacity Lyocell Fiber is expected to witness the highest CAGR during the forecast period, owing to its superior strength and durability compared to regular lyocell fiber.It is increasingly being used in the production of high-performance textiles for applications such as protective clothing, automotive interiors and medical textiles. Micro Lyocell Fiber is gaining popularity due to its unique properties, including its exceptionally fine fibers and high moisture absorption capacity. It is often blended with other fibers to create lightweight, breathable and moisture-wicking fabrics for applications in sportswear, activewear and intimate apparel.
The Lyocell Fiber Market is expected to grow significantly over the next decade, driven by rising demand for sustainable and eco-friendly textiles.Lyocell fiber is biodegradable, renewable, and produced using a closed-loop process, making it an attractive choice for environmentally conscious consumers and manufacturers alike. The increasing adoption of lyocell fiber in various end-use industries, including fashion, home textiles and nonwovens, is expected to further fuel market growth in the coming years.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Lyocell Fiber Market End-Use Industry Insights
The Lyocell Fiber Market segmentation by End-Use Industry provides insights into the various applications of lyocell fibers across different industries. The key end-use industries for lyocell fibers include Textiles Apparel, Nonwovens, Medical Hygiene Products and Automotive. In the Textiles Apparel industry, lyocell fibers are gaining popularity due to their soft and silky texture, breathability and moisture-wicking properties. The increasing demand for sustainable and eco-friendly textiles is driving the growth of lyocell fibers in this segment.The Nonwovens industry utilizes lyocell fibers for their absorbency, strength, and softness. Lyocell fibers are commonly used in wipes, diapers and other nonwoven products.
The growing hygiene consciousness and increasing disposable income are contributing to the growth of this segment. Lyocell fibers find applications in Medical Hygiene Products due to their biodegradability, low irritation potential and antimicrobial properties. Their use in wound care, surgical gowns and other medical products is increasing. The rising healthcare expenditure and focus on infection control are driving the demand for lyocell fibers in this segment.The Automotive industry is exploring lyocell fibers for their lightweight, durability and soundproofing properties. Lyocell fibers are used in car interiors, seat covers and other automotive components.
Lyocell Fiber Market Application Insights
The Lyocell Fiber Market segmentation by application includes Clothing Accessories, Home Textiles, Medical Surgical Products, Automotive Interiors and Filtration. The Clothing Accessories segment held the largest share of the market in 2023, and it is expected to continue to grow at a CAGR of 6.86% during the forecast period. The growth of this segment is attributed to the increasing demand for sustainable and eco-friendly clothing.
The Home Textiles segment is also expected to witness significant growth, owing to the rising demand for sustainable home furnishing products.The Medical Surgical Products segment is expected to grow at a steady pace, driven by the increasing demand for Lyocell-based medical textiles. The Automotive Interiors segment is also expected to grow, as Lyocell fibers are increasingly used in automotive interiors due to their durability and comfort. The Filtration segment is expected to witness moderate growth, owing to the increasing demand for Lyocell-based filter media.
Lyocell Fiber Market Production Process Insights
The market is segmented into three main production processes: Dry-Jet Wet Spinning, Lyocell Fiber Extrusion and Wet Spinning. Dry-Jet Wet Spinning accounted for the largest market share in 2023 and is expected to continue to dominate the market over the forecast period. This process involves extruding cellulose solution through a spinneret into a coagulating bath, resulting in the formation of lyocell fibers.It is a relatively efficient process that produces high-quality fibers with good strength and absorbency. Lyocell Fiber Extrusion is a newer process that is gaining popularity due to its environmental advantages.
This process does not require the use of harmful chemicals, and it produces fibers with a soft, silky feel. The Lyocell Fiber Market revenue for Lyocell Fiber Extrusion is expected to grow at a CAGR of 7.5% from 2023 to 2032. Wet Spinning is a traditional process that has been used to produce lyocell fibers for many years. This process involves dissolving cellulose in a solvent and then extruding the solution through a spinneret into a coagulating bath.The resulting fibers are strong and durable, but they can be more expensive to produce than fibers produced by other methods.
The Lyocell Fiber Market revenue for Wet Spinning is expected to grow at a CAGR of 6.2% from 2023 to 2032.
Lyocell Fiber Market Regional Insights
Regionally, Asia-Pacific held the largest market share in 2023 due to the presence of major textile and apparel manufacturing hubs in countries such as China, India and Bangladesh. North America and Europe are also significant markets for lyocell fibers, driven by the growing demand for sustainable and eco-friendly textiles. South America ,the Middle East and Africa (MEA) are emerging markets for lyocell fibers, with increasing demand from the fashion and home textiles industries. 
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Lyocell Fiber Market Key Players And Competitive Insights
The Lyocell Fiber Market industry is highly competitive, with a number of leading players vying for market share. Major players in Lyocell Fiber Market include Lenzing AG, Sateri, Birla Cellulose, Aditya Birla Group and Kelheim Fibres. These companies have a strong presence in the market and offer a wide range of lyocell fibers to meet the needs of various end-use industries. The Lyocell Fiber Market Competitive Landscape is constantly evolving, with new players entering the market and existing players expanding their operations.
To stay ahead of the competition, leading Lyocell Fiber Market players are investing in research and development to innovate new products and processes. They are also focusing on expanding their production capacity to meet the growing demand for lyocell fibers.One of the key competitors in the Lyocell Fiber Market is Lenzing AG. The company is a leading producer of lyocell fibers and has a presence. Lenzing AG offers a wide range of lyocell fibers under the Tencel brand name, which are used in a variety of applications, including textiles, nonwovens and hygiene products.
The company has a strong focus on sustainability and is committed to producing lyocell fibers in an environmentally friendly way.Another major competitor in the Lyocell Fiber Market is Sateri. The company is a leading producer of viscose and lyocell fibers in China. Sateri offers a wide range of lyocell fibers under the EcoVero brand name, which are known for their softness, drape, and sustainability. The company has a strong presence in the Asian market and is expanding its operations globally.
Key Companies in the Lyocell Fiber Market Include
Lyocell Fiber Market Industry Developments
-
Q1 2024: Lenzing expands lyocell fiber production with new Thailand facility Lenzing Group announced the opening of its new lyocell fiber production plant in Prachinburi, Thailand, with an annual capacity of 100,000 tons, marking a significant expansion of its global lyocell manufacturing footprint.
-
Q2 2024: Lenzing and Södra extend partnership to scale up circular textile production Lenzing and Swedish pulp producer Södra announced an extension of their partnership to increase the production of pulp from recycled textiles, supporting the scaling of circular lyocell fiber production.
-
Q2 2024: Lenzing launches TENCELâ„¢ branded lyocell fibers with REFIBRAâ„¢ technology in China Lenzing introduced its TENCELâ„¢ lyocell fibers with REFIBRAâ„¢ technology to the Chinese market, utilizing recycled cotton scraps and wood pulp to produce more sustainable fibers.
-
Q2 2024: Sateri announces new lyocell production line in Jiangxi, China Sateri, a major Chinese fiber producer, announced the commissioning of a new lyocell fiber production line in Jiangxi province, increasing its total lyocell capacity to 200,000 tons per year.
-
Q2 2024: Birla Cellulose launches eco-friendly Liva Reviva lyocell fiber Birla Cellulose, part of Aditya Birla Group, launched Liva Reviva, a new lyocell fiber made with a high proportion of recycled content, targeting sustainable fashion brands.
-
Q3 2024: Lenzing and HeiQ partner to develop lyocell-based functional textiles Lenzing announced a partnership with Swiss textile innovator HeiQ to co-develop lyocell-based fabrics with enhanced performance features for sportswear and outdoor apparel.
-
Q3 2024: Sateri partners with China National Textile and Apparel Council to promote lyocell innovation Sateri entered a strategic partnership with the China National Textile and Apparel Council to accelerate research and development of new lyocell fiber applications in the Chinese textile industry.
-
Q4 2024: Lenzing appoints Stephan Sielaff as new CEO Lenzing Group announced the appointment of Stephan Sielaff as its new Chief Executive Officer, effective December 2024, to lead the company’s global lyocell fiber expansion strategy.
-
Q4 2024: Birla Cellulose receives EU Ecolabel for lyocell fiber products Birla Cellulose announced that its lyocell fiber products have been awarded the EU Ecolabel, recognizing their environmental performance and sustainability credentials.
-
Q1 2025: Lenzing secures €200 million green financing for lyocell capacity expansion Lenzing Group secured €200 million in green financing to support the expansion of its lyocell fiber production capacity and further its sustainability initiatives.
-
Q2 2025: Sateri launches pilot project for fully bio-based lyocell fiber Sateri announced the launch of a pilot project to produce lyocell fiber entirely from bio-based feedstocks, aiming to further reduce the environmental impact of its fiber production.
-
Q2 2025: Lenzing and Inditex collaborate on closed-loop lyocell collection Lenzing and global fashion retailer Inditex announced a collaboration to launch a closed-loop lyocell fiber collection, using post-consumer textile waste as raw material for new garments.
Lyocell Fiber Market Segmentation Insights
Lyocell Fiber Market Fiber Type Outlook
Lyocell Fiber Market End-Use Industry Outlook
Lyocell Fiber Market Application Outlook
Lyocell Fiber Market Production Process Outlook
Lyocell Fiber Market Regional Outlook
| Report Attribute/Metric |
Details |
| Market Size 2022 |
2.32(USD Billion) |
| Market Size 2023 |
2.48(USD Billion) |
| Market Size 2032 |
4.5(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.86% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Jiangxi Wellsun, Naia, China HiTech Group Corporation, Sateri Group, Zhejiang Jiacheng Group, Fulida Group, Lenzing AG, Birla Cellulose Ltd., Hubei Xingye Group, Rizhao Hualu Textile Co., Ltd, Grasim Industries Ltd., Kelheim Fibres GmbH, Indorama Ventures, Zijing Group |
| Segments Covered |
Fiber Type, End-Use Industry, Application, Production Process, Regional |
| Key Market Opportunities |
Rising consumer preference for sustainable textiles Growing demand from automotive and nonwoven industries Technological advancements and product innovation Increased application in medical and healthcare sectors Expansion in emerging markets |
| Key Market Dynamics |
Rising demand for sustainable textiles Technological advancements in production processes Increasing consumer awareness of environmental impact Growing adoption in various end use industries Fluctuating raw material prices |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ):
The Lyocell Fiber Market is expected to have an overall valuation of 2.48 Billion USD in 2023.
The Lyocell Fiber Market is expected to have an overall valuation of 4.5 Billion USD in 2032.
The Lyocell Fiber Market is expected to have a CAGR of 6.86% between 2024 and 2032.
The Asia-Pacific region is expected to have the largest market share in the Lyocell Fiber Market in 2023.
The apparel segment was expected to have the largest market share in the Lyocell Fiber Market in 2023.
Some of the key competitors in the Lyocell Fiber Market include Lenzing AG, Sateri, Birla Cellulose and Fulida.
The key growth drivers of the Lyocell Fiber Market include the increasing demand for sustainable and eco-friendly fabrics, the growing popularity of athleisure and sportswear, and the rising disposable income in developing countries.
The key challenges facing the Lyocell Fiber Market include the high production costs of lyocell fibers, the limited availability of sustainable raw materials, and the competition from other sustainable fibers such as cotton and bamboo.
The key trends in the Lyocell Fiber Market include the increasing adoption of lyocell fibers in the production of high-performance fabrics, the development of new lyocell-based blends, and the growing use of lyocell fibers in the automotive industry.
The future outlook for the Lyocell Fiber Market is positive. The market is expected to continue to grow in the coming years, driven by the increasing demand for sustainable and eco-friendly fabrics.
