Lyocell Fiber Market: Future Demand and Top Key Players Analysis | 2029
The Business Research Company
The Business Research Company's Lyocell Fiber Global Market Report 2025 – Market Size, Trends, And Global Forecast 2025-2034
LONDON, GREATER LONDON, UNITED KINGDOM, November 14, 2025 /EINPresswire.com/ -- What Is The Expected Cagr For The Lyocell Fiber Market Through 2025?
The lyocell fiber market has seen robust growth in the past few years. It is projected to surge from $1.43 billion in 2024 to $1.57 billion in 2025, with a compound annual growth rate (CAGR) of 9.8%. Factors such as increased use of environmentally friendly textiles, heightened awareness of biodegradability, the expansion of the apparel sector, a growing preference among consumers for comfortable fabrics, and increased textile exports have contributed to this growth in the historical period.
The lyocell fiber market size is projected to experience robust growth in the coming years, expanding to $2.25 billion by 2029 with a compound annual growth rate (CAGR) of 9.4%. Factors contributing to this growth for the forecast period include enhanced lyocell manufacturing capabilities, increased sustainable fiber production investments, burgeoning demand from the technical textiles sector, the growth of the home textiles branch, and increased usage in sportswear and activewear. The forecast period will also be characterised by significant trends such as advancements in water-repellent and moisture-absorbing lyocell, investments in research and development, innovations in mixed fabrics, implementation of circular economy strategies, and the evolution of high-performance eco-friendly textiles.
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What Are The Key Factors Driving Growth In The Lyocell Fiber Market?
The surge in demand for textiles and apparel is anticipated to stimulate the expansion of the lyocell fiber market. The reference here to textiles and apparel is an all-encompassing term for the industry that focuses on the manufacturing, designing, and distribution of fabrics, garments, and accessories for personal, commercial, or industrial utilization. The escalated demand from textiles and apparel is fueled by the rising consumer inclination towards superior quality, resilient, and innovative textile materials. People are showing interest in dependable, comfortable, stylish clothing that offers superior performance and is environmentally friendly. Lyocell fibers enrich textiles and apparel by providing soft, breathable, and tough fabrics making them perfect for clothing, home textiles, and sports apparel. It enhances comfort and manages perspiration while backing sustainability through environment-friendly manufacturing processes. For example, imports of textiles and apparel for the year-to-date period ending in April 2024 reached 30,095.1 million square meter equivalents (MSME) as reported by the International Trade Administration, a US government agency, in June 2024. This was a 9.5% hike compared to the same duration in 2023. Thus, the escalating demand for textiles and apparel is propelling the growth of the lyocell fiber market.
What Are The Top Players Operating In The Lyocell Fiber Market?
Major players in the Lyocell Fiber Global Market Report 2025 include:
• 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.
What Are The Upcoming Trends Of Lyocell Fiber Market In The Globe?
Prominent businesses in the lyocell fiber industry are pivoting towards the production of novel products like fiber crimps, in an effort to augment fabric texture, bolster durability and broaden their usage in eco-friendly textiles. Fiber crimps are essentially natural or deliberately designed curvatures in a fiber, which enhance its volume, flexibility, and capacity to retain air, which in turn enhances the fabric's softness, bounce-back ability and heat retention properties. For example, Lenzing AG, an Australian chemical industry firm, launched upgrades to its Tencel Lyocell fibers in January 2024, placing a strong emphasis on innovative natural aesthetics and sustainability. It showcases a naturally textured appearance, driven by nature and integrates diverse staple length variations with a matte finish for genuine fabric aesthetics. It contributes to sustainability by utilizing at least 50% less water and carbon, compared to standard lyocell. Additionally, it offers superior softness, moisture management and impressive durability, as well as increased fabric volume and resilience, courtesy of the crimped fibers. This innovation opens up new possibilities in textile design, particularly for premium denim and clothing, catering to the escalating demand for environmentally friendly and high-quality fabrics.
Comprehensive Segment-Wise Insights Into The Lyocell Fiber Market
The lyocell fibermarket covered in this report is segmented –
1) By Fiber Type: Lyocell Staple Fiber, Lyocell Filament Fiber, Blended Lyocell Fiber
2) By Product Type: Staple Fiber, Filament Fiber
3) By Distribution Channel: Online Retail, Offline Retail, Direct Sales, Wholesale Distributors
4) By Application: Apparel, Home Textiles, Medical And Hygiene, Automotive Filters, Other Applications
5) By End User: Textile Industry, Healthcare, Automotive, Other End-Users
Subsegments:
1) By Lyocell Staple Fiber: Short Fibers Used In Spinning Yarns, Fibers For Nonwoven Fabrics, Fibers For Blended Textiles
2) By Lyocell Filament Fiber: Continuous Filament Yarns, High-Strength Textile Applications, Technical Textiles
3) By Blended Lyocell Fiber: Cotton-Lyocell Blends, Wool-Lyocell Blends, Synthetic-Lyocell Blends
View the full lyocell fiber market report:
https://www.thebusinessresearchcompany.com/report/lyocell-fiber-global-market-report
Global Lyocell Fiber Market - Regional Insights
In 2024, the Asia-Pacific held the top spot in the global market for lyocell fiber, and it is projected to grow at an accelerated rate for the forecast period. The regions examined in the 2025 Lyocell Fiber Global Market Report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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