Lyocell Fiber Global Market Report 2025

The lyocell fiber market size has grown strongly in recent years. It will grow from $1.43 billion in 2024 to $1.57 billion in 2025 at a compound annual growth rate (CAGR) of 9.8%. The growth in the historic period can be attributed to the rising adoption of eco-friendly textiles, increasing awareness of biodegradability, expansion of the apparel industry, growing consumer preference for comfortable fabrics, and an increase in textile exports.

The lyocell fiber market size is expected to see strong growth in the next few years. It will grow to $2.25 billion in 2029 at a compound annual growth rate (CAGR) of 9.4%. The growth in the forecast period can be attributed to the increasing production capacity of lyocell, rising investment in sustainable fiber manufacturing, growing demand from technical textiles, expansion of the home textiles segment, and increasing use in sportswear and activewear. Key trends in the forecast period include developments in hydrophobic and moisture-wicking lyocell, investment in research and development, innovation in blended fabrics, adoption of circular economy practices, and the development of high-performance eco-friendly textiles.

The growing demand for textiles and apparel is expected to drive the growth of the lyocell fiber market in the coming years. Textiles and apparel refer to the broad sector that includes the production, design, and distribution of fabrics, clothing, and accessories for personal, commercial, or industrial use. The rising demand in this sector is driven by increasing consumer preference for high-quality, durable, and innovative fabrics, as consumers seek comfortable, long-lasting, and stylish clothing with improved performance and sustainability. Lyocell fiber enhances textile and apparel products by providing soft, breathable, and durable fabrics, making it ideal for clothing, home textiles, and activewear. It improves comfort and moisture regulation while supporting sustainability through eco-friendly manufacturing processes. For instance, in June 2024, according to the International Trade Administration, a United States-based government agency, textile and apparel imports for the year-to-date period ending in April 2024 reached 30.09 billion square meter equivalents, representing a 9.5% increase compared to the same period in 2023. Therefore, the growing demand for textiles and apparel is fueling the growth of the lyocell fiber market.

Key companies operating in the lyocell fiber market are focusing on developing innovative products such as fiber crimps to enhance fabric texture, durability, and versatility for sustainable textile applications. Fiber crimps refer to the natural or engineered waviness or bends in fibers that increase bulk, elasticity, and air retention, improving fabric softness, resilience, and insulation performance. For instance, in January 2024, Lenzing AG, an Austria-based chemical industry company, introduced advancements in its Tencel Lyocell fibers, focusing on innovation in natural aesthetics and sustainability. The fibers feature a natural, textured appearance inspired by nature, achieved through variations in staple length and a matte finish for an authentic fabric look. They offer sustainability benefits with at least 50% lower water and carbon footprints compared to generic lyocell, while maintaining softness, moisture management, and exceptional durability. The crimped fibers also improve bulk and resilience, expanding design possibilities for premium denim and apparel and meeting growing demand for eco-friendly, high-quality fabrics.

In October 2024, Birla Cellulose Limited, an India-based manufacturing company, partnered with Circ to promote circular economy practices by advancing the use of recycled and sustainably sourced fibers in textile production. This collaboration aims to accelerate textile recycling by purchasing Circ’s recycled pulp to produce lyocell fiber, thereby increasing access to sustainable recycled materials and supporting circular economy initiatives within the textile industry. Circ is a United States-based textile-to-textile recycling company that provides lyocell fiber.

Major players in the lyocell fiber market are Grasim Industries Limited, Xinjiang Zhongtai Chemical Co. Ltd, Aditya Birla Group, Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd., Lenzing AG, Weiqiao Textile Company Limited, Sateri, Baoding Swan Fiber Co. Ltd., Acegreen Eco-Material Technology Co. Ltd., Chonbang Co. Ltd., Birla Cellulose Ltd, Shanghai Tenbro Bamboo Textile Co. Ltd., China Populus Textile Ltd., China Textile Academ, Guangdong Yitong Textile Co. Ltd., Runteks Industrial Group Co. Ltd., Smartpolymer GmbH, Yibin Grace Group Co. Ltd., Firobon Textile Co. Ltd., Hubei Jisheng Textile Co. Ltd., and Acelon Chemicals & Fiber Corporation.

Asia-Pacific was the largest region in the lyocell fiber market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in lyocell fiber report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The quick escalation of U.S. tariffs and the resulting strain in trade relations in spring 2025 are considerably influencing the Paper, Plastics, Rubber, Wood And Textile sector by inflating costs for imported pulp, resin, synthetic rubber, lumber, and cotton key inputs with limited domestic substitutes. Packaging manufacturers, for example, now pay more for plastic films and corrugated materials, squeezing margins in an already price-sensitive market. Textile producers face similar challenges, as tariffs on imported yarns and dyes compound pressures from rising labor costs. Some firms are shifting to recycled materials or biodegradable alternatives, while others consolidate suppliers to negotiate bulk discounts.

The lyocell fiber market research report is one of a series of new reports that provides lyocell fiber market statistics, including lyocell fiber industry global market size, regional shares, competitors with a lyocell fiber market share, detailed lyocell fiber market segments, market trends and opportunities, and any further data you may need to thrive in the lyocell fiber industry. This lyocell fiber market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Lyocell fiber is a sustainable and biodegradable man-made fiber produced from wood pulp obtained primarily from eucalyptus, beech, or spruce trees. Its key purpose is to offer a soft, breathable, and durable textile that is appreciated for its moisture absorption, comfort, and environmentally friendly production process with minimal chemical usage.

The key fiber types of lyocell fiber include lyocell staple fiber, lyocell filament fiber, and blended lyocell fiber. Staple fibers are short-length fibers used in yarn spinning and nonwoven fabric manufacturing. The primary product types are staple fiber and filament fiber, distributed through online retail, offline retail, direct sales, and wholesale distributors. Its applications cover apparel, home textiles, medical and hygiene, automotive filters, and others, serving end users such as the textile industry, healthcare, automotive, and others.

The countries covered in the lyocell fiber market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The lyocell fiber market consists of sales of fashion accessories, luxury fabrics, yarns, and finished textile products. Values in this market are ‘factory gate’ values; that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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