Lyocell Fiber Market

ID: MRFR/CnM/38950-HCR

111 Pages

Chitranshi Jaiswal

October 2025

Lyocell Fiber Market Research Report: By Fiber Type (Regular Lyocell Fiber, High Tenacity Lyocell Fiber, Micro Lyocell Fiber), By End-Use Industry (Textiles & Apparel, Nonwovens, Medical & Hygiene Products, Automotive), By Application (Clothing & Accessories, Home Textiles, Medical & Surgical Products, Automotive Interiors, Filtration), By Production Process (Dry-Jet Wet Spinning, Lyocell Fiber Extrusion, Wet Spinning) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2...

Summary Table of Contents Segmentation Download PDF

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Lyocell Fiber Market Summary

The Global Lyocell Fiber Market is projected to grow from 2.67 USD Billion in 2024 to 5.49 USD Billion by 2035.

Key Market Trends & Highlights

Lyocell Fiber Key Trends and Highlights

The market is expected to achieve a compound annual growth rate (CAGR) of 6.77 percent from 2025 to 2035.
By 2035, the market valuation is anticipated to reach 5.49 USD Billion, indicating robust growth potential.
In 2024, the market is valued at 2.67 USD Billion, reflecting a strong foundation for future expansion.
Growing adoption of sustainable textiles due to increasing environmental awareness is a major market driver.

Lyocell Fiber Market

CAGR

6.77%

Market Size & Forecast

2024 Market Size	2.67 (USD Billion)
2035 Market Size	5.49 (USD Billion)
CAGR (2025-2035)	6.77%

Major Players

Lenzing AG, Sateri, Birla Cellulose, Aditya Birla Group, Kelheim Fibres

Lyocell Fiber Market Trends

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

The Global Lyocell Fiber Market is poised for growth, driven by increasing consumer demand for sustainable textiles and eco-friendly production processes, which align with global environmental initiatives.

U.S. Department of Agriculture

Lyocell Fiber Market Drivers

Sustainable Production Practices

The Global Lyocell Fiber Market Industry is increasingly driven by the demand for sustainable production practices. Lyocell fibers are derived from sustainably sourced wood pulp, which undergoes a closed-loop process that minimizes environmental impact. This eco-friendly approach resonates with consumers who are becoming more environmentally conscious. As a result, brands are adopting lyocell fibers to enhance their sustainability credentials, potentially leading to a market value of 2.67 USD Billion in 2024. The shift towards sustainable textiles is likely to continue, as more manufacturers seek to align with global sustainability goals.

Market Segment Insights

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.

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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. Lyocell Fiber Market Regional

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

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 market include

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 TENCEL™ branded lyocell fibers with REFIBRA™ technology in China Lenzing introduced its TENCEL™ lyocell fibers with REFIBRA™ 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.

Future Outlook

Lyocell Fiber Market Future Outlook

The Global Lyocell Fiber Market is projected to grow at a 6.77% CAGR from 2024 to 2035, driven by sustainable practices, rising demand for eco-friendly textiles, and technological advancements in fiber production.

New opportunities lie in:

Develop innovative blends of lyocell with other sustainable fibers to enhance product offerings.
Invest in advanced manufacturing technologies to reduce production costs and improve efficiency.
Expand into emerging markets with tailored marketing strategies for eco-conscious consumers.

By 2035, the Lyocell Fiber Market is expected to solidify its position as a leader in sustainable textiles.

Market Segmentation

Lyocell Fiber Market Regional Outlook

North America
Europe
South America
Asia Pacific
Middle East and Africa

Lyocell Fiber Market Fiber Type Outlook

Regular Lyocell Fiber
High Tenacity Lyocell Fiber
Micro Lyocell Fiber

Lyocell Fiber Market Application Outlook

Clothing Accessories
Home Textiles
Medical Surgical Products
Automotive Interiors
Filtration

Lyocell Fiber Market End-Use Industry Outlook

Textiles Apparel
Nonwovens
Medical Hygiene Products
Automotive

Lyocell Fiber Market Production Process Outlook

Dry-Jet Wet Spinning
Lyocell Fiber Extrusion
Wet Spinning

Report Scope

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

FAQs

What is the expected market size of the Lyocell Fiber Market in 2024?

The Lyocell Fiber Market is expected to have an overall valuation of 2.48 Billion USD in 2023.

What is the expected market size of the Lyocell Fiber Market in 2035?

The Lyocell Fiber Market is expected to have an overall valuation of 4.5 Billion USD in 2035.

What is the expected CAGR of the Lyocell Fiber Market between 2024 and 2035?

The Lyocell Fiber Market is expected to have a CAGR of 6.86% between 2025 and 2035.

Which region is expected to have the largest market share in the Lyocell Fiber Market in 2024?

The Asia-Pacific region is expected to have the largest market share in the Lyocell Fiber Market in 2023.

Which application segment was expected to have the largest market share in the Lyocell Fiber Market in 2024?

The apparel segment was expected to have the largest market share in the Lyocell Fiber Market in 2023.

Who are some of the key competitors in the Lyocell Fiber Market?

Some of the key competitors in the Lyocell Fiber Market include Lenzing AG, Sateri, Birla Cellulose and Fulida.

What are the key growth drivers of the Lyocell Fiber Market?

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.

What are the key challenges facing the Lyocell Fiber Market?

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.

What are the key trends in the Lyocell Fiber Market?

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.

What is the future outlook for the Lyocell Fiber Market?

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.

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