April 18, 2024
Lyocell Fabric Market

Lyocell Fabric Market driven by increasing demand from apparel industry

Lyocell fabric is primarily made from wood pulp through solvent-spinning process, which makes it highly breathable and absorbent in nature. This fabric provides advantages such as moisture absorption and quick drying capabilities along with its sustainability credentials. The fabric is commonly used in various clothing items such as t-shirts, shirts, underwear, pants, socks, dresses and others owing to its soft hand feel, moisture management and quick drying properties. The growing demand for sustainable fashion has boosted the market for lyocell fabric Globally.

The Global Lyocell Fabric Market is estimated to be valued at US$ 1.26 Bn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the key trends in the lyocell fabric market is the increasing demand from athleisure and activewear industry. The highly breathable, soft and quick drying properties of lyocell fabric make it suitable for manufacturing various kinds of sports and athleisure clothing. Many leading sports and athletic brands are incorporating lyocell into their clothing lines owing to consumer demand for sustainable and performance fabrics. Additionally, lyocell fabric is gaining popularity for manufacturing sustainable undergarments as well due to its moisture wicking, softness and breathable characteristics. The rising health and fitness trends have propelled the demand for performance fabrics like lyocell from activewear producers Globally.

Porter’s Analysis

Threat of new entrants: The lyocell fabric market requires high capital investments to set up manufacturing units and source raw materials like wood pulp, thereby limiting the threat of new entrants.

Bargaining power of buyers: Buyers have moderate bargaining power in the lyocell fabric market due to the presence of various established players offering differentiated products.

Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitutes for wood pulp, the key raw material.

Threat of new substitutes: There is a moderate threat from synthetic fabric substitutes like polyester and nylon that offer properties similar to lyocell fabric.

Competitive rivalry: The lyocell fabric market is moderately competitive due to the presence of various Global and regional players.

Key Takeaways:

Global Lyocell Fabric Market Demand is expected to witness high growth. The Asia Pacific region currently dominates the market and is expected to maintain its position over the forecast period. Countries like China and India have emerged as major consumers of lyocell fabric owing to the growth of textile and apparel industries in these countries.
The Asia Pacific region is projected to be the fastest growing as well as the largest market for lyocell fabric during the forecast period. This can be attributed to the availability of raw materials, low production costs, and presence of major textile industry in countries like China and India. China dominates the Asia Pacific lyocell fabric market owing to the large production facilities and export hub status for textiles.

Key players operating in the lyocell fabric market are Sara Swati Engineering Limited, Schoeller Arca TIME Material Handling Solution, Mekins Group, Swift Technoplast Private limited, Doll Plast Pallets, JIT Wood Packaging, LEAP India Pvt. Ltd., Spanco Enterprises, Bharadwaj Packaging Private Limited, Aristoplast Products Pvt. Ltd., B.D. Industries (India) Pvt. Ltd., Total Pack, and DNA Packaging Systems. Major players are focusing on capacity expansions and product innovations to cater to the growing demand for sustainable fabrics.

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