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  • Published On : Jul 2022
  • Code : CMI2765
  • Industry : Consumer Goods
  • Pages : 180
  • Formats :

Lyocell fibers are created by a solvent spinning technique, and cellulose undergoes no significant chemical change. Lyocell is an extremely sturdy fabric that is used for automotive filters, abrasive materials, ropes, bandages, and protective suiting material. It is primarily found in the garment industry, particularly in women’s clothing.

Global Lyocell fabric market was valued at US$ 1.1 Billion in 2021 in terms of revenue, exhibiting a CAGR of  6.9% during the forecast period (2022 to 2030).

Drivers

Increasing preference towards use of bio-based resources in various end-use industries such as healthcare and textile is expected to drive demand for lyocell fabric during the forecast period. Lyocell is 100% biodegradable in nature and its production does not produce any harmful by-products. Lyocell is produced from eucalyptus trees, and growth and cultivation of eucalyptus trees requires less water and pesticides, which makes it environment friendly. The amine oxide solvent which is used during production process of lyocell fabric is non-toxic in nature and it is mostly recycled during production. These advantages of lyocell fabric are expected to increase its demand from end-use industries.

Increasing preference for organic clothing among the populace is one of the major factors that is expected to propel growth of market over the forecast period. Lyocell fabric, also known as dissolving pulp, is a type of rayon which contains cellulose and is produced from bleached wood pulp. The fabric was first developed in 1972 by using dry-jet wet spinning process. Lyocell is a breathable, lightweight, wrinkle-resistant, absorbent, and durable fabric. This fabric is capable of imitating a range of textures such as leather, silk, and suede and can also be dyed in various colors. Producers of lyocell fabric are focusing on adopting natural practices for manufacturing lyocell by eliminating, or reducing, the use of chemicals to obtain organic certifications.

In terms of revenue, Asia Pacific is expected to hold a dominant position and account for a market share of around 51.7% in the global lyocell fabric market. Lyocell fabric has application in several end-use industries such as healthcare, hygiene, apparels, home textiles, automotive, etc. Growing textiles market in emerging economies such as India, China, and Thailand among others is expected to drive growth of the global lyocell fabric market over the forecast period. For instance, according to the India Brand Equity Foundation, textile and apparel exports in India valued at US$ 29.8 billion in 2021, and are expected to reach US$ 209.billion in 2021.

Figure 1. Global Lyocell Fabric Market Value Share (%), By Region, 2021

Lyocell Fabric  | Coherent Market Insights

Market Restraints

Lyocell fabric has relatively low surface energy, which makes it difficult for dyes to bind to it. Moreover, dyes required for binding in lyocell fabric are relatively more expensive, which has led to a shift in consumer preference towards substitutes such as synthetic fabric, natural fabric, and cellulose fabric. These factors are expected to hamper growth of the lyocell fabric market over the forecast period.

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Lyocell Fabric Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 1.1 Bn 
Historical Data for: 2017 to 2021 Estimated Year: 2022
Forecast Period 2022 to 2030 CAGR: 6.9% Forecast Period: 2022 to 2030
Geographies covered:
  • Region: North America, Latin America, Europe, Asia Pacific, and Middle East & Africa
Segments covered:
  • By Product Type: Staple, Filament
  • By Application: Healthcare, Hygiene, Apparels, Home Textiles, Automotive, Other (Cigarette Filters, etc.)
Companies covered:

Lenzing A.G., Aditya Birla Group, AkzoNobel N.V., Smartfiber AG, Nien Foun Fiber Co., Ltd., Invista , Baoding Swan Fiber Co. Ltd., Qingdao Textiles Group Fiber Technology Co., Ltd., China Bambro Textile (Group) Co., Ltd., Acegreen Eco-Material Technology Co. Ltd., China Populus Textile Ltd., and Acelon Chemicals & Fiber Corp.

Growth Drivers:
  • Increasing preference for organic clothing among the populace is one of the major factors that is expected to propel growth of market over the forecast period
  • Increasing preference towards use of bio-based resources in various end-use industries is expected to drive demand for lyocell fabric during the forecast period
Restraints & Challenges:
  • Lyocell fabric has relatively low surface energy, which makes it difficult for dyes to bind to it. This is one of the major factors that is expected to hamper growth of market over the forecast period

Market Trends

Rising access to the internet in emerging & underdeveloped countries, emerging middle class population with disposable incomes, and the expansion of the clothing & footwear industry are main trends in the global Lyocell fabric market. Additionally, discounted rates, combined packages, and variety in product range have influenced consumers to buy products from e-commerce websites, thereby driving market growth.

Figure 2. Global Lyocell Fabric Market Value Share (%), By Application, 2021

Lyocell Fabric  | Coherent Market Insights

On the basis of applications, the apparel segment is expected to witness significant market share in the market over the forecast period. Lyocell fabric is soft, lightweight, comfortable, and breathable in nature and has a very smooth surface. Due its high elasticity and strength, it is widely used for producing sportswear. Moreover, lyocell fabric has excellent moisture absorption properties, which makes it a preferred choice for people with sweating problems or those living in rainy weather regions. 

Recent Developments

  • In October 2021, Austria-based fibre manufacturer Lenzing group announced the expansion of its ‘sustainable offering’ for the denim industry with the introduction of matte Tencel-branded lyocell fibres. Lenzing Group is a manufacturer of wood based fibers used in the textile industry. The new fiber type is specially designed to scatter light and permanently diminish sheen in denim applications.
  • In August 2020, Lenzing Group announced the introduction of the new LENZING Lyocell Fine Skin and LENZING Lyocell Micro Skin fibers under its specialty nonwoven ingredient brand VEOCEL. These fibers, introduced under the VEOCEL Beauty segment, the product provides properties such as softness and translucency which are ideal for beauty applications.
  • In March 2019, Grasim Industries announced the acquisition of Soktas India. Soktas India Private Limited is a subsidiary of SÖKTAS Tekstil Sanayi ve Ticaret A.S., which is a global manufacturer and marketer of fabrics, with its manufacturing base in Soke, Turkey. The acquisition of Soktas India is a compelling strategic fit, and would further strengthen the Grasim Industry’s leadership in the premium cotton and linen fabric market in India.

Competitive Section

Major players operating in the global lyocell fabric market include Lenzing A.G., Aditya Birla Group, AkzoNobel N.V., Smartfiber AG, Nien Foun Fiber Co., Ltd., Invista , Baoding Swan Fiber Co. Ltd., Qingdao Textiles Group Fiber Technology Co., Ltd., China Bambro Textile (Group) Co., Ltd., Acegreen Eco-Material Technology Co. Ltd., China Populus Textile Ltd., and Acelon Chemicals & Fiber Corp.

Global demand for lyocell fabrics has been on the rise due to their applications in various industries such as textiles, healthcare, hygiene, automotive, and others. Lyocell fabric is a natural fiber made from wood pulp. This regenerated cellulose fiber is usually sold under the brand name, Tencel, in the U.S. Lyocell fabric is a biodegradable fiber made with wood pulp from sustainable tree farms using a solvent spinning technique. Major applications of lyocell fabric are in the garment industry. It is also used in manufacturing of various other products such as ropes, bandages, abrasive materials, automotive filters, and protective suiting materials.

Market Dynamics

Lyocell fabric offers various properties such as softness, strength, absorbency, and wickability compared to other cellulosic fibers which makes it a preferable choice in hygiene sector for manufacturing products such as wet wipes and sanitary napkins. Factors such as rising health & hygiene awareness among people, coupled with increasing disposable income of people across the globe have led to increasing demand for lyocell fabrics for manufacturing hygiene products. For instance, according to a report by Bureau of Economic Analysis report in May 2022, disposal income increased $113.4 billion in 2022 with 5% increase from the previous year 2021. Thus, increasing demand for hygiene products is expected to drive demand for lyocell fabric over the forecast period.

The main component of lyocell fabric, cellulose, is obtained from forests and its production does not result in by-products which are harmful for the environment and human health. Owing to rising environmental concerns, demand for lyocell fiber is increasing across the globe. Furthermore, rising technological advancements have paved way to produce lyocell fiber using cutting-edge N-methyl morpholine-N-oxide (NMMO) technology. This technology is resource-conserving, simple, and environment-friendly in comparison to conventional manufacturing processes.

Among product type, staple fiber held a significant market share in the year 2021. Staple fibers are prominently used in the production of heavy-use objects such as blankets, coats, rugs, and wrap threads. Rising demand for housing products is anticipated to fuel demand for blankets, rugs, and carpets over the forecast period.

Key features of the study:

  • This report provides an in-depth analysis of global  lyocell fabric market, and provides market size (US$ Billion) and compound annual growth rate (CAGR %) for the forecast period (2022-2030), considering 2021 as the base year
  • It elucidates potential revenue opportunity across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approvals, regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global lyocell fabric market based on the following parameters – company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Lenzing A.G., Aditya Birla Group, AkzoNobel N.V., Smartfiber AG, Nien Foun Fiber Co., Ltd., Invista , Baoding Swan Fiber Co. Ltd., Qingdao Textiles Group Fiber Technology Co., Ltd., China Bambro Textile (Group) Co., Ltd., Acegreen Eco-Material Technology Co. Ltd., China Populus Textile Ltd., and Acelon Chemicals & Fiber Corp
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up gradation, market expansion, and marketing tactics
  • The global lyocell fabric market report caters to various stakeholders in this industry including investors, suppliers,  lyocell fabric packagers,  providers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global lyocell fabric market

Detailed Segmentation:

  • Global Lyocell Fabric Market, By Product Type :
    • Staple
    • Filament
  • Global Lyocell Fabric Market, By Application:
    • Healthcare
    • Hygiene
    • Apparel
    • Home Textile
    • Automotive
    • Others (Cigarette Filters, etc.)
  •  Global Lyocell Fabric Market, By Region:
    • North America
      • By Country:
        • U.S.
        • Canada
    • Latin America
      • By Country:
        • Brazil
        • Mexico
        • Argentina
        • Rest of Latin America
    • Europe
      • By Country:
        • Germany
        • U.K.
        • France
        • Italy
        • Spain
        • Russia
        • Rest of Europe
    • Asia Pacific
      • By Country:
        • China
        • India
        • Japan
        • Australia
        • South Korea
        • ASEAN
        • Rest of Asia Pacific
    • Middle East & Africa
      • By Country/Region:
        • Middle East
        • Africa
  • Company Profiles
    • Lenzing A.G.
      • Company Overview
      • Product Portfolio
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Aditya Birla Group
    • AkzoNobel N.V.
    • Smartfiber AG
    • Nien Foun Fiber Co., Ltd.
    • Invista
    • Baoding Swan Fiber Co. Ltd.
    • Qingdao Textiles Group Fiber Technology Co., Ltd.
    • China Bambro Textile (Group) Co., Ltd.
    • Acegreen Eco-Material Technology Co. Ltd.
    • China Populus Textile Ltd.
    • Acelon Chemicals & Fiber Corp

“*” marked represents similar segmentation in other categories in the respective section

Frequently Asked Questions

Global lyocell fabric market was valued at around US$ 1.1 Billion in 2021.
Increasing preference for organic clothing among the populace is one of the major factors that is expected to propel growth of market over the forecast period.
Rising access to the internet in emerging & underdeveloped countries, emerging middle class population with disposable incomes, and the expansion of the clothing & footwear industries are main trends in the market.  
Lyocell fabric has relatively low surface energy, which makes it difficult for dyes to bind to it. This is one of the major factors that is expected to hamper growth of market over the forecast period.
Major players operating in the market include Lenzing A.G., Aditya Birla Group, AkzoNobel N.V., Smartfiber AG, Nien Foun Fiber Co., Ltd., Invista , Baoding Swan Fiber Co. Ltd., Qingdao Textiles Group Fiber Technology Co., Ltd., China Bambro Textile (Group) Co., Ltd., Acegreen Eco-Material Technology Co. Ltd., China Populus Textile Ltd., and Acelon Chemicals & Fiber Corp
The market is estimated to grow at around 6.9% CAGR in the forecast period (2022-2030).

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