Valued at $1.3B in 2023, global lyocell fiber market is likely to hit $3.42B by 2032. Explore Credence Report insights on growth drivers, Lenzing AG, Birla Cellulose, and more!
Valued at $1.3 billion in 2023, the global lyocell fiber market is expected to grow at a robust CAGR of 10.20 per cent, reaching $3.42 billion by 2032. According to a report by Credence Report Inc, this growth is being driven by lyocell’s increasing adoption in clothing, home textiles, and industrial products, thanks to its sustainability, biodegradability, and superior performance.
Growing environmental awareness among consumers and industries is fueling demand for lyocell fiber. Leading innovation in this sector are companies like Lenzing AG and Birla Cellulose. Lenzing’s Tencel™ Lyocell fibers recycle over 99 per cent of solvents and water, while their Lenzing™ Lyocell Dry fiber enhances moisture management in hygiene applications, reducing reliance on plastic fibers.
Birla Cellulose has developed Nullarbor fiber, which is finer than silk and significantly stronger than conventional lyocell. Lenzing also sources wood from certified sustainable forests and plans to increase its production capacity to over 100,000 tons annually by 2025. These advancements underscore the industry’s commitment to eco-friendly innovation.
Lyocell’s high tensile strength, moisture management, breathability, and softness make it a preferred material in various applications. In apparel, lyocell is being widely used in activewear, casual wear, and intimate wear, thanks to its hypoallergenic and skin-friendly properties. The growing demand for luxurious yet sustainable home textiles, such as bed linens and curtains, is also boosting the fiber’s adoption in home décor.
The healthcare and hygiene sectors are leveraging lyocell fiber’s biodegradability for single-use products. Lenzing’s recent developments allow for innovative, sustainable alternatives to plastic-based materials, further broadening its market appeal.
Rapid urbanization and rising disposable incomes in Asia-Pacific and Latin America present significant growth opportunities for the lyocell fiber market. E-commerce platforms are also enhancing visibility and accessibility for lyocell-based products in these regions.
Sustainability-focused regulations and industry policies are creating favorable market conditions. Companies adopting zero-waste production and carbon-neutral operations are gaining a competitive edge. Moreover, blending lyocell with other fibers, such as cotton and polyester, is enabling manufacturers to create unique, high-performance textiles for fashion, technical, and medical applications.
