The Lyocell fabric market is estimated to be valued at US$ 1.26 Bn in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Lyocell fabric, also known as Tencel, is a natural cellulose fiber made from wood pulp through solvent spinning technique. It offers properties such as breathability, moisture wicking, absorbency and softness similar to cotton. Lyocell fabric is often used in apparel, home textiles and medical applications due to its sustainable production process that uses less water and chemicals compared to other fabrics such as rayon. With rising eco-consciousness, lyocell fabric is gaining popularity as an alternative to cotton and polyester in premium clothing and linens.

Market Dynamics:
Increasing demand for sustainable fabrics from textile and apparel industry is expected to be a major driver for lyocell fabric market over the forecast period. Consumers are becoming increasingly aware about the negative environmental impact of synthetic fabrics and are preferring natural and eco-friendly fabrics like lyocell. The lyocell production process uses 90% less water compared to cotton and releases no toxic chemicals in wastewater, thus supporting its positioning as a sustainable fabric. Additionally, lyocell has also demonstrated superior moisture management and softness compared to cotton which is augmenting its popularity in premium apparel and linens.
Moreover, lyocell fabric is gaining acceptability as a versatile performance fabric with properties between silk and cotton. It offers wicking, insulating and lightweight characteristics suitable for activewear and outdoors apparel. This is helping lyocell expand its consumer base beyond basic apparel into specialized segments. Growing prioritization of sustainability in textile industry coupled with lyocell's material advantages over cotton and polyester is expected to drive significant market growth over the forecast period.

SWOT Analysis

Strengths: Lyocell fabric is made from wood pulp through a solvent-based process that allows for minimal environmental impact during production. It is highly breathable, absorbent and has a texture similar to cotton. Lyocell fabric is biodegradable and helps reduce waste.

Weaknesses: The production process of lyocell fabric is complex and requires significant capital investment. Raw material prices for lyocell depend greatly on fluctuating wood pulp prices.

Opportunities: Growing awareness about environmentally-friendly fabrics is expected to drive demand for lyocell fabric. Development of newer production processes can help lower manufacturing costs and improve commercial viability.

Threats: Availability of cheaper synthetic fabrics that imitate characteristics of lyocell fabric pose competition. Stringent regulations pertaining to effluent discharge during production act as a challenge.

Key Takeaways

The global lyocell fabric market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing consumer preference for sustainable fabrics. Lyocell fabric is gaining widespread popularity owing to its natural composition and biodegradability.

Regional analysis: Europe currently dominates the global lyocell fabric market and is expected to continue its lead over the forecast period. This can be attributed to stringent environmental laws and growing textile industry in countries like Germany and Austria. Asia Pacific is anticipated to exhibit the fastest growth in demand for lyocell fabric owing to expanding textile sectors and rising disposable incomes in countries like China and India.

Key players operating in the lyocell fabric market are 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. Lenzing A.G. and Aditya Birla Group enjoy a major market share.

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