by The global 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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Lyocell fabric is a cellulosic fiber made from wood pulp through a solvent spinning process. Lyocell fabric has moisture wicking properties, high absorbency, and quick drying abilities. It is soft, lightweight and durable. These properties make lyocell fabric suitable for making clothing apparel like t-shirts, dresses, pants, as well as home furnishing products like bed sheets and towels. The low impact production process and biodegradable nature of lyocell fabric is gaining popularity in the textile industry for its sustainability benefits.
Market key trends:
One of the key trends in the lyocell fabric market is the rising production of lyocell fabric. Major lyocell fabric producers are expanding their production capacities to cater to the growing demand. For instance, in 2021, Lenzing AG announced plans to invest €125 million in making its production lines at its facility in Heiligenkreuz, Austria more sustainable and efficient. This is expected to increase the facility’s lyocell production capacity by 50%. Similarly, in 2022, Aditya Birla Group inaugurated a new lyocell spun yarn manufacturing facility in India, doubling its lyocell staple fiber capacity to 60 KTPA. The increasing production of lyocell fabrics by major players is expected to drive the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital requirement and ease of manufacturing process attracts new players which increases competition in the industry.
Bargaining power of buyers: Buyers have moderate to high bargaining power due to presence of several key players offering substitutes.
Bargaining power of suppliers: Suppliers have low bargaining power due to availability of alternative raw material sources.
Threat of new substitutes: Threat from other regenerated cellulosic fibers and cotton fabric is moderate due to superior properties and sustainability of lyocell fabric.
Competitive rivalry: Intense competition among key players to gain maximum market share.
Key Takeaways
The global lyocell fabric market is expected to witness high growth, exhibiting a CAGR of 6.9% over the forecast period, due to increasing demand for sustainable fabrics.
Regional analysis: North America dominates the global market with the largest share, followed by Europe and Asia Pacific. China is the fastest growing market in Asia Pacific region owing to rising disposable income, growing demand for premium apparel, and presence of key lyocell fabric manufacturers.
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. Key players focus on new product launches and capacity expansions to strengthen their market presence.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
