South America Rayon Fibers Market Outlook, 2030

Rayon, also known as viscose, is a versatile and environmentally friendly fiber made from regenerated cellulose, typically derived from wood pulp. It is used widely in textiles, home furnishings, and other applications due to its softness, breathability, and draping ability. The market for rayon fibers in South America is expanding as both consumer demand and industrial applications rise, especially in the textile and apparel sectors. South America has seen a rise in the adoption of new techniques for producing and utilizing rayon. Many manufacturers in the region are focusing on improving the sustainability of rayon production by shifting toward eco-friendly methods.

For example, some companies have implemented closed-loop processes in rayon production, which reduce the waste and chemical pollution associated with traditional production methods. In this process, solvents used in the production of rayon are recycled and reused, significantly lowering the environmental impact. Additionally, there is a growing trend toward using sustainable raw materials such as sustainably sourced wood pulp, bamboo, and other renewable resources, as well as exploring alternatives to traditional chemicals used in rayon production.

South American manufacturers are also exploring innovative uses of rayon fiber in combination with other materials, such as blending rayon with cotton or polyester to enhance the fabric’s performance, durability, and comfort. New techniques such as eco-friendly dyeing and finishing technologies are also gaining traction, which help minimize water usage and reduce the carbon footprint of rayon-based fabrics. For instance, some textile producers are incorporating digital printing technology into rayon fabric production, offering more sustainable and efficient production processes that allow for complex, high-quality prints without the waste associated with traditional screen printing methods.

According to the research report "South America Rayon Fiber Market Outlook, 2030,", the South America Rayon Fiber market is anticipated to grow at more than 6.76% CAGR from 2025 to 2030. The region’s involvement in the rayon fiber market is expanding not only through domestic production but also through trade. Several South American countries are key players in the global rayon fiber supply chain, with Brazil, Argentina, and Colombia being the primary producers and exporters of rayon-based textiles. Additionally, international investments in South American rayon production facilities are growing, enhancing the region's production capabilities.

Brazil, for example, has implemented policies that encourage more responsible production practices and the use of sustainable materials in the textile industry. This is in line with the broader global trend toward more stringent environmental standards in the textile industry, driving South American producers to innovate and improve their manufacturing practices. The growth of the rayon fiber market is also supported by technological advancements in fiber production and fabric finishing. In particular, developments in digital printing and eco-friendly dyeing technologies have enabled South American manufacturers to produce high-quality, low-waste fabrics that cater to the demands of modern consumers.

Digital printing allows for complex, intricate designs to be applied to rayon fabrics without the excessive water usage and chemical waste associated with traditional dyeing methods. Similarly, the rise of waterless dyeing techniques, which utilize CO2 instead of water, has significantly reduced the environmental impact of rayon textiles. These technological improvements not only enhance the fabric’s appeal to environmentally-conscious consumers but also boost the region’s competitiveness in the global market. The presence of abundant natural resources, particularly in countries like Brazil and Argentina, has facilitated access to high-quality wood pulp for rayon production. This has made South America a key supplier in the global rayon value chain, with the region exporting significant quantities of rayon textiles to international markets.

Market Drivers

• Growing Textile and Apparel Industry: One of the major drivers for rayon fiber demand in South America is the expanding textile and apparel sector. Countries like Brazil, Colombia, and Peru are witnessing a rise in domestic clothing consumption, driven by a growing middle class and increased disposable incomes. Rayon, being a versatile and cost-effective alternative to cotton and silk, is increasingly preferred in the production of garments, especially for casual wear, sportswear, and women’s clothing. Its softness, breathability, and drape quality make it ideal for fashion-focused consumers in warmer climates typical of the region.
• Availability of Raw Materials and Forestry Resources: South America is rich in natural resources, especially in cellulose from wood pulp, which is the primary raw material for rayon production. Countries such as Brazil and Chile have extensive forest plantations that supply pulpwood, providing a competitive advantage for domestic rayon production. Government support for sustainable forestry and increasing investments in biobased industries are also bolstering rayon manufacturing capacity in the region, reducing dependency on imports and encouraging local value chain development.

Market Challenges

• Environmental Concerns and Sustainability Issues: Despite being derived from natural sources, rayon production is often criticized for its environmental impact. The use of toxic chemicals in the viscose process and improper waste management can lead to pollution of water and soil. In South America, where environmental regulations vary across countries and enforcement can be inconsistent, the rayon industry faces pressure from environmental groups and international buyers to adopt cleaner production techniques. Adapting to stricter global sustainability standards while maintaining cost competitiveness remains a significant hurdle.
• Infrastructure and Logistics Limitations: Another major challenge in the South American rayon industry is the underdeveloped infrastructure in certain regions. Poor transportation networks, limited port facilities, and inefficient logistics can disrupt the supply chain, increasing the cost and time required to move raw materials and finished products. This is especially problematic for countries that rely on exports or imported machinery and chemicals for rayon production. Infrastructure constraints also hinder access to emerging markets within the continent, limiting growth opportunities.

Market Trends

• Shift Toward Sustainable and Eco-Friendly Fibers: With increasing global focus on sustainability, there's a noticeable trend in South America toward the production and consumption of eco-friendly rayon variants, such as modal and lyocell. These fibers are made using closed-loop processes that minimize environmental harm. Consumers and international brands sourcing from South America are demanding greater transparency and eco-certification, encouraging manufacturers to invest in cleaner technologies, renewable energy, and sustainable sourcing practices.
• Regional Integration and Trade Agreements: South America is seeing a trend toward greater regional economic cooperation through trade blocs like MERCOSUR. These agreements aim to reduce tariffs and trade barriers among member countries, making it easier for rayon producers to access new markets within the continent. Intra-regional trade is on the rise, allowing for more collaboration across supply chains and fostering a competitive textile ecosystem that supports rayon fiber consumption and innovation.

The growing demand for eco-friendly, soft, and high-performance textiles in South America is driving the increased adoption of Modal fiber in the rayon industry.

The South American rayon fiber industry has seen a noticeable shift toward Modal fibers due to a convergence of environmental, economic, and consumer-driven factors. Modal, a type of semi-synthetic fiber made from beechwood pulp, is known for its exceptional softness, breathability, and environmental sustainability qualities that are increasingly appealing to both manufacturers and end-users in the region. As consumer awareness around sustainability and comfort grows, especially in countries like Brazil, Colombia, and Argentina, textile producers are responding by integrating more environmentally responsible materials into their supply chains.

Modal’s production process uses less water and fewer chemicals compared to traditional rayon or cotton, aligning well with the rising ecological consciousness and tightening environmental regulations across South America. Furthermore, global fashion brands expanding in Latin American markets are pushing local suppliers to meet higher sustainability standards, and Modal offers a convenient pathway to compliance without sacrificing product quality. In addition, the softness and strength of Modal make it ideal for a range of textile applications from innerwear and casual wear to home textiles catering to the diverse lifestyle preferences emerging in urban South America.

Economically, South American textile industries are seeking value-added alternatives to compete on the global stage, and Modal fiber's higher durability and luxurious feel provide a premium product positioning opportunity. Technological advancements and partnerships with global fiber producers, such as Lenzing AG, have also made Modal more accessible in terms of cost and supply, encouraging its use across more local textile mills. Additionally, the regional push for circular economy practices in fashion and textiles encouraged by both governments and consumers is making Modal increasingly favorable, as it is biodegradable and often produced through closed-loop processes.

The growth of the healthcare and hygiene application segment in South America's rayon fiber industry is primarily driven by increasing health awareness, urbanization, and the rising demand for disposable, soft, and biodegradable hygiene products.

In South America, the healthcare and hygiene segment within the rayon fiber industry is expanding rapidly, fueled by a combination of public health concerns, demographic changes, and shifting consumer preferences. The post-pandemic world has heightened awareness around personal hygiene, infection control, and sanitary living conditions across the region. Consumers, especially in urban centers like São Paulo, Buenos Aires, and Santiago, are increasingly prioritizing cleanliness and adopting products that support better hygiene practices.

Rayon fibers, particularly viscose, are well-suited for such applications due to their softness, high absorbency, and biodegradable nature - qualities that make them ideal for use in medical gauze, baby wipes, sanitary napkins, face masks, and adult incontinence products. As the middle class expands and disposable incomes rise, there’s a growing demand for convenient and disposable hygiene products that are also environmentally responsible. Rayon fibers offer a sustainable alternative to synthetic fibers, which are common in hygiene products but contribute to plastic pollution.

South American governments and environmental organizations are beginning to regulate waste from non-biodegradable materials more strictly, encouraging the use of eco-friendly fibers like rayon in essential hygiene goods. Additionally, the aging population in countries such as Chile and Uruguay is driving up the need for adult care products, while a high birth rate in parts of Brazil and Peru supports demand for baby care items - both of which use rayon-based products extensively.

The regional healthcare sector is also modernizing, with hospitals and clinics seeking cost-effective, sterile, and disposable medical supplies, further boosting the use of rayon in this space. Moreover, as international brands and manufacturers invest in or expand into South American markets, they bring with them global hygiene standards and product innovations that increasingly rely on sustainable raw materials.

The fashion segment in South America's rayon fiber industry is growing due to increasing consumer demand for stylish, comfortable, and eco-friendly clothing that aligns with both modern lifestyle trends and environmental values.

The rapid growth of the fashion end-user segment within South America's rayon fiber industry is largely attributed to the evolving preferences of a younger, urban, and increasingly eco-conscious consumer base. In major cities such as São Paulo, Buenos Aires, Bogotá, and Lima, there's a strong shift toward fashion that is not only trendy and affordable but also sustainable. Rayon, especially in its Modal and viscose forms, is becoming a preferred fabric choice for designers and brands across the continent because of its luxurious texture, breathability, and ability to mimic the feel of silk or cotton while maintaining a lower environmental impact.

As global fashion influences permeate South America through social media and e-commerce, local consumers are becoming more aware of materials used in their clothing, demanding transparency, ethical sourcing, and eco-friendliness - traits that rayon fibers can effectively deliver. The rise of "slow fashion" and environmentally responsible clothing lines in the region is pushing more brands to adopt rayon due to its biodegradable nature and renewable source (wood pulp), aligning with the global movement toward circular fashion. Additionally, the climate in much of South America favors lightweight and breathable clothing, making rayon a practical choice for everyday wear, from casual to formal attire.

Economic factors play a role as well - rayon offers an affordable yet premium-feeling fabric alternative that suits a wide market segment, from budget-conscious consumers to those seeking luxury at a reasonable price. Regional textile industries, particularly in Brazil and Colombia, are investing in advanced manufacturing technologies to integrate more rayon into their production lines, further fueling the fiber’s availability and adoption. Government support for sustainable industries and increased attention to reducing environmental impact in fashion are reinforcing this transition. In essence, the fashion industry's embrace of rayon fiber in South America reflects a broader cultural and economic transformation - where style, comfort, and sustainability intersect.

Brazil leads the rayon fiber industry in South America primarily due to its abundant and sustainably managed eucalyptus plantations, which provide a consistent, cost-effective, and eco-friendly raw material source for viscose rayon production.

Brazil's dominance in the South American rayon fiber industry can be attributed to a combination of natural, economic, and industrial advantages, but at the heart of it lies its vast eucalyptus plantations, which serve as the primary raw material for viscose rayon. Eucalyptus trees grow exceptionally well in Brazil's tropical and subtropical climates, offering rapid growth cycles that are ideal for industrial-scale fiber production. Unlike many other countries that depend on imported wood pulp, Brazil has developed a vertically integrated supply chain, wherein companies control everything from eucalyptus cultivation to fiber processing, ensuring quality and cost efficiency.

These plantations are often certified by international sustainability organizations such as FSC (Forest Stewardship Council) or PEFC (Programme for the Endorsement of Forest Certification), underscoring Brazil's commitment to sustainable forestry practices. This environmental responsibility has become increasingly important as global consumers and fashion brands prioritize eco-conscious sourcing. Furthermore, Brazil has invested heavily in modernizing its pulp and fiber manufacturing infrastructure, with companies like Bracell and Suzano leading innovations in dissolving pulp technology - a key ingredient in rayon production.

Their state-of-the-art mills use advanced techniques to minimize water and energy usage, reduce chemical waste, and lower carbon emissions, aligning with global sustainability goals. Additionally, Brazil's strong transportation network, port infrastructure, and trade agreements facilitate the efficient export of rayon and related products, giving it a competitive edge in global markets. The country's established textile industry, though not as large as in Asia, also provides domestic demand and contributes to a robust ecosystem supporting rayon development.

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.