by 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 to 2030, as highlighted in a new report published by Coherent Market Insights.
The Lyocell Fabric Market report provides insightful data on the main strategies adopted by market leaders, trends, and factors acting in the market, underlining factors likely to act as a restraint or driver for global growth in the Lyocell Fabric Market.
Market Overview:
Lyocell fabric is a type of rayon fabric made from dissolving pulp obtained from cellulose sources like wood. It is highly breathable, moisture-wicking, soft and natural fiber with benefits like being long-lasting, eco-friendly, absorbent and has good drape quality. Lyocell fabrics are comfortable alternatives to cotton and is used to make clothing like shirts, dresses, blouses etc.
Market key trends:
The demand for lyocell fabric is growing at a steady pace owing to increasing demand for sustainable fabrics. Lyocell fabric production process is eco-friendly as it uses wood pulp sourced from sustainably managed forests and regenerates chemicals used in the manufacturing back into the system. It is also biodegradable. Moreover, lyocell has moisture management properties and is lightweight and durable. It provides comfort similar to cotton. These properties have increased lyocell fabric adoption in apparel and home furnishing industries. Also, new product development by manufacturers introducing lyocell blends with other fibers is expected to support the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The Global Lyocell Fabric Market  requires high initial capital investment for establishing manufacturing units, technical skills and development. This presents a barrier to entry for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute fabrics like viscose and modal. However, lyocell’s eco friendly attributes increase its demand.
Bargaining power of suppliers: A few firms dominate the supply of raw materials like wood pulp. This gives suppliers significant influence over prices.
Threat of new substitutes: New eco friendly substitutes from advanced fibers may threaten lyocell’s demand. However, lyocell has established properties that are difficult to replace.
Competitive rivalry: The market sees fierce competition between major players to increase market share. This has pressured companies to invest in R&D to improve production.
SWOT Analysis
Strengths: Lyocell is sustainable and biodegradable. It provides comfort similar to cotton and is softer than viscose.
Weaknesses: High capital investment and costs associated with lyocell production. Supply chain disruptions can impact prices.
Opportunities: Increasing demand for eco friendly fabrics from apparel and home textiles industry. Growth in emerging economies expands lyocell’s market reach.
Threats: Economic slowdowns lower the demand growth. Dependency on fluctuating wood pulp prices increases supply risks.
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. The Asia Pacific dominates the global lyocell fabric market, with majorly five countries including China, India, Japan, South Korea and Indonesia contributing to the largest market share.
The Asia Pacific region dominates the lyocell fabric market driven by fast growing textile industries and thriving apparel and fashion sectors in major economies like China and India. China is the largest producer and exporter of lyocell fabrics globally. European countries like Germany, UK, and Italy also have sizable markets for lyocell due to strong presence of premium apparel brands.
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. Major players are investing in expanding production capacities utilizing advanced technologies to cater to the growing.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
