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The Lyocell Fabric Market is Estimated To Witness High Growth Owing To Sustainable Production Trends

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Anubhav mishra
The Lyocell Fabric Market is Estimated To Witness High Growth Owing To Sustainable Production Trends

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.

Market Overview:

Lyocell fabric is a cellulosic fiber similar to rayon, but produced through an environmental friendly production process. It is made from wood pulp through a solvent spinning process using N-methyl-morpholine-N-oxide (NMMO) as the solvent. Lyocell fabric offers properties such as moisture wicking, breathability, and natural softness. It is finding increasing application in clothes, home textiles and industrial fabrics due to its sustainable production and eco-friendly attributes.

Market key trends:

Lyocell fabric production is considered more sustainable compared to other cellulosic fibers as it uses NMMO solvent which can be recycled for reuse in the production process. Around 99% of the solvent is recycled reducing environmental footprint. Also, for lyocell production, trees are selectively cut from managed forests where new trees are planted in place of the ones harvested. Hence lyocell fabric production is contributing towards sustainable development. Growing consumer preference for eco-friendly fabrics made from sustainably sourced materials is driving the demand for lyocell fabric globally. Major textile brands are opting for lyocell as it qualifies for their sustainable material goals, thus propelling the market growth.

Porter's Analysis

Threat of new entrants: Low capital requirements and established distribution channels lower barriers to entry. However, strong brand loyalty and economies of scale secure incumbent positions.

Bargaining power of buyers: Individual buyers have low bargaining power due to the availability of substitutes. However, larger buyers can negotiate lower prices through bulk purchases.

Bargaining power of suppliers: A few cellulose suppliers like Lenzing A.G. dominates the sourcing of raw materials. This gives them significant influence over prices.

Threat of new substitutes: Alternatives like cotton, polyester and bamboo have established manufacturing capabilities and consumer acceptance. This exerts pricing pressure.

Competitive rivalry: Regional players compete on cost and innovation. Global players differentiate through branding and performance characteristics to command premium pricing.

SWOT Analysis

Strengths: Eco-friendly production with minimal environmental impact. Superior moisture management and breathability over synthetic fabrics.

Weaknesses: Higher costs compared to synthetic fabrics. Limited dyeability restricts design capabilities.

Opportunities: Growing consumer demand for sustainable apparel and home textiles. Potential in technical and medical textile applications.

Threats: Susceptibility to fluctuations in pulp prices. Intense competition from synthetic and natural substitutes.

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 preference for eco-friendly fabrics among consumers and manufacturers. The market size is projected to reach US$ 2.15 Bn by 2030.

Regionally, Europe dominates the global market currently. Stringent environmental regulations boost the adoption of lyocell in countries like Germany and the UK. Asia Pacific is anticipated to be the fastest growing market due to rising income levels, growing textile industry in India and China.

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 capacity expansion projects to tap the increasing demand for sustainable fabrics globally.

Explore more trending article on this topic:  https://www.newswirestats.com/lyocell-fabric-market/

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