TEXTILES.ORG
The global lyocell fiber market is poised for significant growth in the coming years, according to a report from Credence Research Inc. In 2022, the market was valued at $1.3 billion, and with a projected compound annual growth rate (CAGR) of 10.20%, the market is expected to reach a valuation of $3.43 billion by 2032.
This substantial growth is driven by the rising adoption of lyocell fiber in applications such as clothing, home textiles and industrial products, owing to its sustainability, biodegradability and performance characteristics. As the industry expands, lyocell fiber is expected to play a crucial role in meeting the global demand for eco-friendly and high-quality textile materials.
Lyocell fiber market drivers
Increasing demand for sustainable and eco-friendly textiles
The rising awareness of environmental sustainability among consumers and industries is driving the demand for lyocell fiber. Made from cellulose derived from wood pulp, lyocell fiber is biodegradable and produced using eco-friendly processes, including a closed-loop system that minimizes water and chemical waste. Companies like Lenzing AG have developed advanced production technologies, such as their TENCEL™ Lyocell fibers, which recycle more than 99% of the solvent and water used. Birla Cellulose’s Pulp and Fiber Innovation Center has introduced the Nullarbor fiber, which is finer than silk and significantly stronger than traditional lyocell.
Expanding applications in apparel and home textiles
Lyocell is increasingly adopted in various applications due to its superior qualities, such as high tensile strength, moisture management, breathability and softness. In the apparel segment, it is widely used in activewear, casual wear and intimate wear. Its hypoallergenic and skin-friendly properties make it ideal for sensitive skin, further boosting its popularity in clothing. Additionally, the growing demand for luxurious yet sustainable home textiles, including bed linens, curtains and upholstery, is driving the adoption of lyocell fiber in the home décor industry.
Growing demand in the health care and hygiene sectors
The health care and hygiene sectors are increasingly utilizing lyocell, particularly from Lenzing, due to its biodegradable nature and suitability for single-use products. In 2023, Lenzing introduced LENZING™ Lyocell Dry, a hydrophobic fiber that enhances moisture management in hygiene applications, allowing for innovative product solutions previously achievable only with plastic fibers. This fiber can degrade in marine environments within 30 days, as confirmed by research from the Scripps Institution of Oceanography, contrasting sharply with synthetic alternatives that remain unchanged for over 200 days. Additionally, recent advancements include the development of antibacterial lyocell fibers that maintain efficacy against pathogens like Staphylococcus aureus even after 50 washes, showcasing their potential for medical and hygiene applications.
Manufacturing technology innovations and advancements
Continuous advancements in production technologies are enhancing the efficiency, quality and cost-effectiveness of lyocell. Innovations in fiber engineering are expanding its application scope, allowing manufacturers to develop specialized products with improved performance characteristics, such as better dye absorption and durability. Additionally, investments in research and development are leading to new blends and composites, making lyocell fiber an attractive option for various industries, including automotive, industrial and technical textiles.
Lyocell fiber market restraints
High production costs and limited availability of raw materials
The production of lyocell fiber involves advanced technology and high-quality wood pulp, making the manufacturing process capital-intensive. The cost of setting up and operating lyocell fiber production facilities is significantly higher compared to conventional fibers, which restricts its widespread adoption, particularly in price-sensitive markets. Additionally, the availability of sustainably sourced wood pulp is limited, as it depends on responsible forestry practices.
Competition from alternative fibers
Lyocell fiber faces competition from other fibers such as cotton, polyester and viscose, which are more established and often more affordable. While lyocell offers sustainability and performance benefits, the higher price point can deter cost-conscious consumers and manufacturers from switching. Furthermore, the well-established supply chains and economies of scale for these alternative fibers make it challenging for lyocell to capture a larger global textile and apparel market.
Challenges in dyeing and finishing processes
Lyocell poses challenges during the dyeing and finishing processes. The fiber’s high absorbency can result in uneven dye uptake, leading to inconsistent coloration in the final product. These technical challenges require specialized expertise and equipment, which can increase production costs and limit the appeal of lyocell fiber to textile manufacturers.
Environmental concerns in non-certified production
While lyocell fiber is generally marketed as an eco-friendly alternative, its sustainability credentials can be compromised in the absence of strict adherence to environmental standards. Non-certified production processes may involve chemical treatments or unsustainable sourcing of raw materials, raising concerns among environmentally conscious consumers. Such practices can undermine the fiber’s reputation and hinder market growth, especially in regions with stringent sustainability regulations.
Click here to access the full report: https://www.credenceresearch.com/report/lyocell-fiber-market