Rayon Fibers Market Overview, 2025-30

The global rayon fiber market has experienced significant growth and transformation in recent years, driven by evolving consumer preferences, technological innovations, and increasing environmental awareness. The demand for rayon fibers has surged, particularly in the apparel sector, due to their affordability and the growing inclination towards sustainable and biodegradable materials. The market has also witnessed the introduction of specialized rayon variants like lyocell and modal. Lyocell, produced using a closed-loop process that recycles water and solvents, is gaining popularity due to its minimal environmental footprint and superior properties, including breathability and moisture-wicking capabilities.

Modal fibers, known for their softness and resistance to shrinkage, are increasingly being blended with other materials to create high-quality fabrics for various applications. Technological advancements have played a pivotal role in enhancing the production processes of rayon fibers. Innovations such as solvent spinning and the use of eco-friendly solvents have emerged, reducing the environmental impact associated with traditional manufacturing methods. These advancements not only improve the sustainability of rayon production but also enhance the quality and performance of the fibers, meeting the increasing consumer demand for eco-conscious products.

In response to the growing emphasis on sustainability, several key players in the rayon fiber market have adopted innovative practices. For instance, companies like Sateri have achieved breakthroughs in producing viscose fibers from recycled textile waste, contributing to a circular economy and reducing reliance on virgin wood pulp. Such initiatives align with the global shift towards sustainable manufacturing practices and reflect the industry's commitment to minimizing its ecological impact. Governments worldwide are implementing stricter regulations to mitigate pollution and promote sustainable practices within the textile industry. These regulations encompass aspects such as chemical usage, waste management, and emissions control, compelling manufacturers to adopt cleaner and more efficient production methods.

According to the research report, "Global Rayon Fiber Market Overview, 2030,", the Global Rayon Fiber market was valued at more than USD 20.35 Billion in 2024, with the CAGR of 6.39% from 2025-2030. The growth of the rayon fiber market has also been fueled by significant regional developments, particularly in Asia. The region's rapidly expanding textile industry, combined with favorable government policies, has created a conducive environment for the growth of rayon production. The increasing usage of rayon fibers in the health and hygiene sector for production, since they have an efficient absorbency with non-irritating properties, has thereby stimulated growth in the market.

Simultaneously, the allowance of the combination of rayon with other fibers allows manufacturers to optimize specific characteristics in finished textile products, such as durability, softness, or moisture-wicking abilities. Rayon fibers are highly sought after across various industries, such as automotive, home furnishings, and filtration processes. Additionally, governments in the region have supported the growth of the rayon fiber market by implementing policies that promote sustainable production practices and incentivize investments in eco-friendly technologies. Furthermore, rayon fiber manufacturing companies also experienced low sales in 2020 by 10 to 20 % compared to 2019.

However, post ease of lockdowns, demand rose rapidly, generating huge sales for companies operating in the market. As part of the global push towards a circular economy, companies have begun to explore the use of post-consumer textile waste and recycled wood pulp to produce rayon fibers. This not only reduces the environmental impact of rayon production but also addresses concerns about deforestation and the depletion of natural resources. Major players in the industry, such as Sateri, have pioneered the use of recycled materials in rayon production, contributing to the development of more sustainable products.

Market Drivers

• Rising Demand for Sustainable and Biodegradable Textiles: One of the main drivers of the rayon fibers industry is the growing consumer preference for eco-friendly and biodegradable materials. Rayon, being derived from natural cellulose (often from wood pulp), is considered a semi-synthetic alternative to petroleum-based fibers like polyester. As sustainability becomes a central focus in fashion and textile manufacturing, many brands are turning to rayon as a greener choice. Additionally, government regulations and environmental concerns are pushing manufacturers to reduce their carbon footprint, thereby increasing the demand for rayon and similar regenerated fibers.
• Rapid Growth in the Apparel and Fashion Industry: The expansion of the global fashion and apparel industry, especially in emerging economies like India, China, and Brazil, is significantly boosting rayon consumption. Rayon is widely used for its silk-like feel, breathability, and affordability, making it a popular material in casual wear, dresses, linings, and home textiles. The fast fashion trend, where new styles are rapidly produced and sold at lower prices, also contributes to higher rayon demand due to its versatility and ease of dyeing and blending with other fibers.

Market Challenges

• Environmental Concerns Related to Production Process: Despite being made from natural cellulose, the production of rayon involves chemical-intensive processes that can be harmful to the environment if not managed properly. For example, the viscose process uses toxic chemicals like carbon disulfide, which can pose health risks to workers and lead to environmental pollution. This has led to increasing scrutiny from environmental groups and regulatory bodies, pressuring companies to adopt cleaner production technologies and improve waste management systems.
• Volatility in Raw Material Supply and Prices: The rayon industry heavily relies on wood pulp, which makes it vulnerable to fluctuations in raw material availability and cost. Factors such as deforestation concerns, supply chain disruptions, and global demand for pulp in other industries (like paper and packaging) can affect rayon production. Additionally, sourcing pulp sustainably often comes at a higher cost, which can squeeze profit margins for manufacturers and affect pricing in the competitive textile market.

Market Trends

• Shift Toward Eco-Friendly Production Methods: To address environmental concerns, there is a noticeable shift toward adopting more sustainable and cleaner production techniques, such as the lyocell process, which uses non-toxic solvents and has a closed-loop system for recycling water and chemicals. Innovations like Lenzing’s TENCEL™ and other branded fibers are becoming more popular due to their environmentally responsible manufacturing. These advancements are shaping the future of the rayon industry toward low-impact and circular production models.
• Increased Investment in Asia-Pacific Markets: The Asia-Pacific region is becoming a central hub for rayon fiber production and consumption due to factors like abundant raw material availability, low labor costs, and growing textile industries. Countries such as China, India, and Indonesia are witnessing increased foreign direct investment in their textile sectors, driving growth in rayon manufacturing. This regional expansion is not only fueling global supply but also catering to the rising demand within domestic markets in these countries.

Lyocell is the fastest-growing product type in the global rayon fiber industry due to its eco-friendly production process and rising demand for sustainable textiles.

Lyocell’s rapid growth in the global rayon fiber industry is primarily driven by its environmental advantages and alignment with the increasing global focus on sustainability. Unlike traditional rayon types like viscose and modal, Lyocell is produced using a closed-loop process that recycles water and non-toxic organic solvents, significantly reducing harmful chemical discharge and environmental impact. This method appeals strongly to both environmentally conscious consumers and major fashion brands seeking to meet stricter environmental standards and reduce their carbon footprints.

Moreover, as regulatory pressure and consumer awareness increase around the detrimental effects of conventional textile production, Lyocell stands out as a solution that combines performance with eco-responsibility. It is made from sustainably sourced wood pulp, often from eucalyptus, beech, or spruce trees grown in responsibly managed forests. This renewable raw material base adds to its appeal in a market where traceability and ethical sourcing are becoming key purchasing factors. Lyocell offers superior material properties such as excellent breathability, moisture management, softness, and durability, making it a versatile choice for apparel, home textiles, and even medical or industrial applications.

These performance characteristics have contributed to its popularity in both luxury and everyday fashion markets. Leading brands and retailers are increasingly incorporating Lyocell into their product lines, fueling demand and encouraging further investment in production capacity globally. The shift in consumer preferences - especially among Millennials and Gen Z who prioritize sustainability and transparency - is accelerating Lyocell’s market growth even more rapidly. Its biodegradable nature adds yet another layer of appeal in a world grappling with textile waste.

Healthcare & Hygiene is the fastest-growing application type in the global rayon fiber industry due to increasing demand for biodegradable, skin-friendly, and highly absorbent materials in medical and personal care products.

The Healthcare & Hygiene segment is experiencing the fastest growth within the global rayon fiber industry because rayon offers a unique combination of properties that make it ideally suited for medical and personal care applications, especially in a world increasingly focused on health, hygiene, and sustainability. Rayon fibers are soft, breathable, hypoallergenic, and highly absorbent, making them perfect for use in products like surgical masks, gowns, wound dressings, sanitary napkins, diapers, and wipes. These properties are essential for maintaining comfort and hygiene, particularly in sensitive applications involving direct skin contact or fluid absorption.

As global populations rise and healthcare access expands - especially in emerging markets - the need for affordable, safe, and effective hygiene products continues to surge. This trend has been amplified further by the COVID-19 pandemic, which dramatically increased demand for disposable medical supplies and heightened awareness of infection control and personal hygiene worldwide. Unlike synthetic fibers such as polyester or polypropylene, rayon decomposes naturally, reducing the environmental impact of single-use healthcare items. Governments, regulatory bodies, and environmental organizations are increasingly encouraging the adoption of sustainable alternatives in healthcare, giving rayon a significant competitive edge.

Moreover, innovations in fiber technology have enabled the development of specialty rayon types with enhanced antimicrobial, moisture-wicking, and structural properties - further boosting their use in advanced medical textiles. Large multinational companies in hygiene and personal care are actively shifting toward more eco-conscious sourcing and manufacturing practices. This shift includes increasing the rayon content in their product lines to meet both regulatory standards and consumer expectations.

Medical & Hygiene Textiles are the fastest-growing end-user type in the global rayon fiber industry due to rising healthcare needs, increased hygiene awareness, and the growing demand for biodegradable, skin-friendly, and disposable products.

The Medical & Hygiene Textiles segment is leading the growth in the global rayon fiber industry, primarily driven by the convergence of rising healthcare demand, increasing public hygiene consciousness, and the urgent need for sustainable alternatives to synthetic materials. Rayon’s naturally soft, breathable, and highly absorbent properties make it an ideal material for products that come into direct contact with the skin, such as surgical gowns, face masks, wound dressings, sanitary pads, diapers, and personal wipes. As global health systems expand - especially in developing regions - and populations age, the need for safe, comfortable, and effective medical and hygiene textiles has grown significantly.

The COVID-19 pandemic further accelerated this trend, putting hygiene and infection control at the forefront of both policy and consumer behavior. The result has been a surge in demand for disposable medical products, where rayon has played a critical role due to its compatibility with single-use applications and natural biodegradability. As concerns mount about plastic pollution caused by disposable hygiene products, manufacturers and end-users are increasingly opting for rayon-based textiles, which decompose more easily and align with global sustainability goals.

Rayon’s renewable origin - being derived from wood pulp - adds to its appeal, especially for companies aiming to meet eco-certification standards and reduce their environmental footprint. This shift is not just consumer-driven; regulatory frameworks in many regions now encourage or even mandate the use of more eco-friendly materials in healthcare and hygiene products, further propelling the growth of rayon in this end-use category.

The Asia-Pacific region is experiencing rapid growth in the global rayon fiber industry due to its expanding textile manufacturing base, cost-efficient production, and rising demand for affordable and sustainable fibers in domestic and export markets.

Asia-Pacific’s significant growth in the global rayon fiber industry is driven by a combination of industrial capacity, economic dynamics, and shifting consumer preferences, all of which make the region a powerhouse for both rayon fiber production and consumption. One of the most fundamental factors behind this growth is the region’s massive and continually expanding textile manufacturing base, especially in countries like China, India, Indonesia, Pakistan, and Bangladesh.

These nations have well-established textile industries that not only serve vast domestic markets but also cater to global fashion and apparel brands, creating a high and consistent demand for regenerated cellulose fibers like rayon, which are used for their versatility, comfort, and affordability. In addition, the cost of production in many Asia-Pacific countries is significantly lower than in Western nations, thanks to factors like cheaper labor, abundant raw materials, supportive government policies, and economies of scale. These conditions have enabled manufacturers in the region to produce rayon at highly competitive prices, fueling both regional consumption and exports.

Governments in the Asia-Pacific region have also played a vital role in nurturing the rayon industry by providing incentives for industrial development, infrastructure upgrades, and environmental improvements. Countries like China and India have made targeted investments in fiber and textile parks, where production is vertically integrated from fiber to finished garment, streamlining supply chains and increasing efficiency. Furthermore, with rising global awareness around sustainability, rayon has emerged as a preferred alternative to synthetic fibers due to its natural origin and biodegradability.

Asia-Pacific producers have responded to this trend by adopting cleaner and more efficient production technologies, including closed-loop systems that minimize chemical discharge and reduce water usage. This alignment with global sustainability goals has opened doors to new markets, especially in Europe and North America, where retailers are increasingly seeking environmentally responsible materials.

• September 2023: Lenzing Group announced the plans to expand its production capacity for its Lenzing Ecovero and nonwoven Veocel textile brands in Asia Pacific.
• November 2021: Asia Pacific Rayon Limited launched its ten-year sustainability vision, APR2032. Under this vision, the company will produce rayon fibers with 20% recycled textile content and plan to achieve net zero emissions from land use through vertical integration.
• August 2021: Lenzing AG planned to invest more than USD 200 million in its existing production sites in Indonesia and China to improve its traditional production capacity into sustainable specialty fibers.
• July 2021: Sateri launched three zero-carbon fiber products named EcoCosy, Lyocell, and FINEX. All these products are carbon-neutral certified and accelerated Sateri’s journey into the green trend.
• January 2021: Nanollose and Grasim Industries Limited (Grasim) filed a joint patent application for a Tree-Free lyocell fiber made from Microbial Cellulose.

Considered in this report:

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report:

• Rayon Fibers Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type:

• Viscose
• Modal
• Lyocell
• Others

By Application:

• Apparel
• Home Textiles
• Healthcare & Hygiene
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience:

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.