The Lyocell Fabric Market, estimated at USD 1.34 Bn in 2025, is expected to exhibit a CAGR of 7.1% and reach USD 2.17 Bn by 2032.
The Consumer Goods sector remains a vital driver of global growth, as organizations respond to evolving consumer expectations with sustainable practices, ethical production, and innovative product development. At the same time, advances in e-commerce, digital transformation, and supply chain optimization are reshaping the industry landscape, enhancing competitiveness, and unlocking new opportunities for long-term growth and collaboration.
Key Development
- In January 2025, Lenzing Group unveiled an innovative method for enhancing TENCEL Lyocell fibers, resulting in stretch fabrics that offer exceptional comfort and low maintenance. This cutting-edge technique serves as an eco-friendly substitute for synthetic materials and encompasses the redesign of woven fabric, pre-treatment of the fabric, expansion in diameter during wet processing, and augmentation of yarn crimps in the width wise orientation.
- In 2025, Evrnu introduced a groundbreaking recyclable Lyocell material crafted from discarded cotton textile waste, marking a significant advancement in sustainable textile innovation.
- In October 2025, Lenzing Group, a prominent fiber manufacturer based in Austria, revealed its commitment to enhancing sustainability in the denim industry by expanding its range of eco-friendly products. This expansion includes the introduction of matte Tencel-branded lyocell fibers, uniquely engineered to disperse light and reduce shine in denim applications, further solidifying Lenzing's position as a leading provider of wood-based fibers for the textile sector.
- In August 2025, Lenzing Group unveiled the latest additions to its specialty nonwoven ingredient brand VEOCEL, namely the LENZING Lyocell Fine Skin and LENZING Lyocell Micro Skin fibers. These innovative fibers, part of the VEOCEL Beauty range, offer exceptional characteristics such as softness and translucency, making them ideal for various beauty applications.
Link - https://www.coherentmarketinsights.com/market-insight/lyocell-fabric-market-2765
Key Players: 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., Acelon Chemicals & Fiber Corp., TENCEL, HerMin, DAKS India, Jcrafteco, and Balavigna Mills Pvt. Ltd.
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