Cellulosic fiber production is set to grow rapidly in the next few years. Cellulosic fiber production worldwide rose by 11 per cent in 2011. Over 85 per cent of the increase in global cellulosic fiber capacity between March 2013 and December 2014 will take place in China and India alone. Chinese capacity will represent 64.2 per cent of the global total while India will account for 9.9 per cent.

Faced with soaring raw cotton prices in 2011, many textile and apparel producers switched to manmade fibers. Demand for cotton fell by 7 per cent in the 2011-12 season and rose by only 2.3 per cent in the 2012-13 season. In China alone, cotton demand is forecast to fall by 0.6 per cent as the industry continues to switch to alternative fibers because domestic cotton prices remain high relative to world cotton prices.

Demand for cotton will be hindered because of higher prices compared to substitute fibers. Cellulose is a fibrous material of plant origin and the basis of all natural and manmade cellulosic fibers. Natural cellulosic fibers include cotton, flax, hemp, jute, and ramie. The major manmade cellulosic fiber is rayon, a fiber produced by regeneration of dissolved forms of cellulose.