Lyocell Fiber Market By Type (Staple Fiber, Cross-Linked Fiber) By Application (Apparel, Home Textiles, Surgical Products, Baby Diapers, Tire Cord, Conveyor Belts, Specialty Papers, Others): Growth, Future Prospects, and Competitive Analysis, 2015 - 2027

Lyocell is a manmade cellulosic fiber produced by a solvent spinning process wherein the cellulose undergoes no chemical change. Lyocell fiber is an exceptionally strong fiber with several industrial uses such as ropes, automotive filters, bandages, abrasive materials, protective suiting, etc. The key ingredient of lyocell fiber is cellulose, an organic polymer extracted from plants cells. Cellulose used for the manufacture of lyocell fiber is a derivative of hardwood trees pulp. The manufacturing process of lyocell fiber include several major steps such as dissolving the cellulose, filtering, spinning, drying and finishing. The global lyocell fiber market is expected to offer cumulative growth opportunity of over USD 10,669 million from 2021 to 2027. The global revenue of lyocell fiber industry was USD 941 million in 2020 and is expected to exhibit moderate CAGR of over 9.97% during the forecast period tot reach over USD 1,931 million by the end of 2027.

Rising Demand for Absorbent Lyocell Staple Fiber

There is rising demand for absorbent fibers owing to increasing demand hinging on fashion and comfort. In addition, since production of cotton is limited and cannot cross a particular level owing to limited availability of land, several other synthetically manufactured fibers are available such as viscose and polyester. However, owing to the increasing awareness regarding eco-friendly concepts among manufacturers and consumers, viscose and polyester fibers are not majorly preferred due to the problem of effluent generation such as carbon disulphide and sulphur compounds. Also, lyocell fibers are finding widespread use especially in apparel and home textile applications due to their superior properties such as strength, softness, resistance to wrinkles, ease of washing, excellent drapability and biodegradability among others. Moreover, owing to increasing per capita incomes, the apparel and textile industry has witnessed a tremendous growth over the past decade. This has further led to the increased demand for aesthetically efficient and cost-effective fabric. Increasing applications of lyocell fibers in adult diapers, baby diapers and feminine hygiene products coupled with high demand for biodegradable fabrics are some other major factors driving the overall lyocell fiber market.

Interesting Facts About Lyocell Fiber

  • Lyocell fibers find widespread uses in the manufacture of hygiene and medical nonwoven products
  • Solvent spun lyocell fibers provide high durability, strength, absorbency, biodegradability and purity, making them ideal for nonwoven applications such as filters, wipes, feminine hygiene products, etc.
  • Lyocell fiber manufacturers, relying on wood pulp as the sole input, are witnessing increased production costs
  • Lyocell fibers enhance the properties of base resin and provides a smooth surface
  • Lyocell fiber is manufactured through a closed-loop process, which is eco-friendly, but expensive. Hence, availability of low-cost substitutes is anticipated to hamper the lyocell fiber market

Bargaining Power of Raw Materials Suppliers

The market is characterized by the presence of a few local and overseas raw material suppliers. Manufacturers can opt for different suppliers for different purposes due to variation in products. The procurement of raw materials depends on the special quoted prices and convenience of manufacturers. Buyers are do not have much options to switch to another supplier due to the niche presence of suppliers, thus leading to higher bargaining power of suppliers. Furthermore, there is a low threat of forward integration, as the suppliers of wood pulp cannot manufacture lyocell fibers themselves since it requires complex machinery and plant setup. Therefore, it can be predicted that the bargaining power of the supplier would remain high in the global lyocell fiber market over the forecast period.

Eco-friendly Nature to Boost the Demand for Lyocell Fiber

Lyocell is a sustainable fiber derived from wood cellulose. It is a man-made fiber similar to rayon. However, lyocell fiber is considered to be the most environment-friendly fiber. Unlike other man-made fibers, the supply chain scenario of lyocell fiber is simple. It is manufactured using wood pulp extracted from eucalyptus trees. Most chemicals used in the manufacture of lyocell can be recycled. The rise in eucalyptus plantations to provide raw material for the fiber and environment-friendly manufacturing process adopted for its manufacture have earned lyocell fiber appraisal certification from the Forest Stewardship Council. The closed-loop manufacturing technique has also been endorsed by the Programme for the Endorsement of Forest Certification. Tencel, the major brand of lyocell fiber, is 98% biodegradable. Rising popularity of eco-friendly fibers is expected to increase the demand for lyocell fiber during the forecast period. Moreover, implementation of environmental laws by various government agencies such as the U.S. Environmental Protection Agency is likely to further drive the demand for eco-friendly fibers. Popular man-made fibers such as polyester have toxic effects on the environment. Lyocell fiber is anticipated to side-line other popular man-made fibers such as polyester in terms of demand during the forecast period.

The adoption of lyocell fibers relies largely on the specific requirement of end-users, which further facilitates the entry of new competitors. There is no adoption of particular brand names of lyocell fibers. However, high capital investment is required for establishing lyocell fiber manufacturing units, as the production of lyocell fibers is majorly governed by sophisticated technology and different regulatory bodies regulate its uses. Therefore, it can be concluded that there is a moderate to high threat of new entrants in the lyocell fiber market. Key players in this industry include; Lenzing AG, Chon Bang, Aditya Birla, Smart Fiber AG, Qingdao Textiles, Weiqiao Textile Company Limited, Acelon, City Vector, China Populus Textile Ltd., Baoding Swan Fiber Co. Ltd., Sateri and Longcell.

Frequently asked questions about global industry

Lyocell Fiber market witnessed a decline of 13.31% in 2020 and expected to match the revenue of year 2019 in 2021. The market expected to pick-up slowly and restore the growth rate by 2024.

Lyocell fiber production is dominated by the Asia Pacific with huge installed capacity in China and other Southeast Asian countries. Asia Pacific held over 60% share in total production and over 50% share in demand for lyocell fiber in 2020.

Huge demand from apparel industry, nonwoven fabrics and technical textile to drive the market for lyocell fiber

Key players in this industry include; Lenzing AG, Chon Bang, Aditya Birla, Smart Fiber AG, Qingdao Textiles, Weiqiao Textile Company Limited, Acelon, City Vector, China Populus Textile Ltd., Baoding Swan Fiber Co. Ltd., Sateri and Longcell.

By type, staple fiber segment accounted for the largest market value share of over 65% in 2020. Based on application, apparel segment held the largest market value share of 35% in 2020 and expected to maintain its dominance till the end of 2027.

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Published Date:  Sep 2021
Category:  Advanced Materials
Report ID:   58926
Report Format:   PDF
Pages:   120
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