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Lyocell Fiber Market Profiles: Segment Size, Growth, and Trends Forecast (2024-2031) | Most Major Companies likes - Lenzing AG, Acegreen Eco-Material Technology Co., Ltd., Weiqiao Textile Company Limited, Smartfiber AG, Chonbang Co., Ltd.

04-30-2025 01:51 PM CET | Chemicals & Materials

Press release from: DataM Intelligence 4 Market Research LLP

Lyocell Fiber Market

Lyocell Fiber Market

The global lyocell fiber market is on a strong upward trajectory, projected to grow from an estimated USD 1.6 billion in 2023 to USD 4.6 billion by 2033, registering a compound annual growth rate (CAGR) of approximately 11.1 percent. Demand is being driven by eco-conscious consumers, advances in fiber technology, and expanding applications across apparel, automotive, electrical and specialty textiles.

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Market Drivers and Opportunities

Eco-Friendly Production: Lyocell's closed-loop manufacturing recycles over 99 percent of processing solvents and water, aligning with global sustainability targets and reducing environmental footprint.

Superior Performance Attributes: Recent innovations have enhanced tensile strength, moisture management and softness, making lyocell competitive with cotton and synthetic fibers in both comfort and durability.

Emerging Market Growth: Rapid urbanization and rising disposable incomes in Asia-Pacific, Latin America and parts of Africa are spurring demand for premium, sustainable textiles.

Technical Textiles Expansion: Automotive interiors and electrical insulation applications are increasingly adopting lyocell for its biodegradability, flame resistance and breathability properties.

Strategic Partnerships: Collaborations between fiber producers, fashion brands and research institutes are unlocking novel lyocell blends and functional finishes (e.g., antimicrobial, UV-protection).

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Market Segmentation

By Fabric Type

Woven Fabric: Accounts for roughly 60 percent of global demand, favored in apparel and home textiles for its strength, drape and comfort.

Non-Woven Fabric: Represents about 40 percent, rapidly growing in hygiene, medical and filtration applications due to excellent absorbency and barrier properties.

By Application

Apparel (≈55 percent): Dominates as consumers seek sustainably sourced, breathable fabrics for t-shirts, activewear and denim blends.

Automotive (≈15 percent): Lyocell is gaining traction in seat upholstery and interior panels for its moisture-management and eco-credentials.

Electrical (≈10 percent): Niche use in insulating wraps and cable armoring leverages lyocell's thermal stability and low electrical conductivity.

Other (≈20 percent): Includes home textiles, industrial wipes and specialty composites where biodegradability and softness are valued.

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By Region

Asia-Pacific (≈46 percent): The largest regional market, driven by China's vast textile manufacturing base, government incentives for green textiles and rising export demand.

Europe (≈25 percent): Strong growth supported by strict environmental regulations, high consumer awareness of sustainable fashion, and established technical textile industries.

North America (≈17 percent): Growth fueled by premium apparel brands and automotive OEMs integrating lyocell into eco-friendly product lines.

Latin America (≈8 percent): Emerging adoption in home textiles and apparel, backed by local investments in modern fiber plants.

Middle East & Africa (≈4 percent): Early-stage market with potential in specialty medical and hygiene non-wovens.

Key Players & Recent Strategic Developments

Lenzing AG

Launched TENCELTM REFIBRATM technology to produce lyocell containing up to 30 percent recycled cotton, enhancing circularity in apparel.

Expanded capacity at its Thailand facility to support growing demand for specialty lyocell fibers.

Aditya Birla Group

Commissioned a new lyocell fiber plant in India, increasing annual capacity by 50 kilotons and incorporating bio-energy systems to reduce carbon footprint.

Entered a joint venture with a global fashion brand to co-develop lyocell blends for sustainable denim.

Weiqiao Textile Company Limited

Installed next-generation solvent recovery units to push closed-loop recycling efficiency from 99 percent to 99.8 percent.

Partnered with automotive OEMs to supply lyocell-based interior fabrics for premium electric vehicles.

Smartfiber AG

Introduced naturally infused lyocell fibers with antimicrobial silver-ion treatment tailored for medical and sportswear sectors.

Opened an R&D center in Switzerland focused on flame-retardant lyocell composites for electrical insulation.

Chonbang Co., Ltd.

Developed biodegradable lyocell blends reinforced with bio-resins, expanding applications in molded non-woven components and horticultural fabrics.

Secured ISO 14001 certification across all production units, underscoring commitment to environmental management.

Other Notable Competitors

Acegreen Eco-Material Technology Co., Ltd.

Baoding Swan Fiber Co. Ltd.

Nien Foun Fiber

Zhejiang Yaojiang Industrial Group

China Populus Textile Ltd.

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Contact Us -

Company Name: DataM Intelligence
Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
Phone: +1 877 441 4866
Website: https://www.datamintelligence.com

About Us -

DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.

Our research database features countless statistics and in-depth analyses across a wide range of 6300+ reports in 40+ domains creating business solutions for more than 200+ companies across 50+ countries; catering to the key business research needs that influence the growth trajectory of our vast clientele.

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