Lyocell Fabric Market

Lyocell Fabric Is Estimated To Witness High Growth Owing To Increased Demand For Sustainable Fabrics

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The Lyocell Fabric market is estimated to be valued at US$ 1.26 Bn or Mn 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 produced from wood pulp using a solvent-spinning process that produces natural cellulosic fibers with high moisture absorption properties. It is used to produce clothing, home furnishings and medical textiles. The fabric is breathable, absorbent and has a soft feel similar to cotton. It is more durable than cotton and considered eco-friendly as the production process is closed-loop and uses less harsh chemicals than other fabrics such as viscose.

Market Dynamics:
The increasing demand for sustainable fabrics from the textile industry is expected to drive the growth of the lyocell fabric market over the forecast period. Consumers are increasingly preferring fabrics produced from renewable materials rather than petroleum-based synthetics due to environmental concerns. Lyocell being produced from wood pulp using fewer chemicals is perceived as an eco-friendly alternative among buyers. Another factor aiding the market growth is lyocell fabric’s moisture-wicking and quick-drying properties which make it suited for athletic and outdoor apparel. The rising health consciousness is further augmenting the demand for lyocell as it is hypoallergenic and less likely to cause skin irritation compared to other fabrics.

SWOT Analysis

Strength: Lyocell fabric is made from biodegradable materials through environmentally friendly production process. It has breathability and moisture wicking properties that keep the wearer dry and comfortable. Lyocell fabric is highly durable and retains shape after multiple washes.

Weakness: Lyocell fabric is more expensive to produce as compared to cotton or polyester fabrics. The manufacturing process requires comparatively higher capital investment. The production process also depends on solvents like N-Methylmorpholine-N-oxide (NMMO) which have environmental impact if not handled properly.

Opportunity: Increasing consumer awareness about environmentally sustainable fabrics presents an opportunity for lyocell fabric manufacturers. Growing apparel and home textiles industry especially in Asia Pacific region provides an avenue for market expansion. Development of newer lyocell blends with natural and synthetic fabrics further enhances product utility.

Threats: Volatility in raw material prices especially wood pulp can increase lyocell fabric production costs. Strong competitive pressure from cotton, viscose and other synthetic fabrics restricts market share and pricing flexibility. Stringent environmental regulations in production potentially increases compliance costs.

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 demand for eco-friendly fabrics. The market size for lyocell fabric is estimated to reach US$ 1.26 Bn in 2023.

The Asia Pacific dominates the global lyocell fabric market and is expected to continue its dominance during the forecast period. This is attributed to rising textiles manufacturing industry and growing fashion industry in countries such as China, India and Indonesia. Positive government policies aimed at promoting use of sustainable fabrics also support regional market growth. Europe is the second largest lyocell fabric market driven by stringent regulations restricting use of hazardous chemicals in fabric production.

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. These manufacturers focus on new product launches, capacity expansions and partnerships to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it