Lyocell fabric is a type of regenerated cellulosic fiber made from natural materials such as wood pulp or cotton through an environment-friendly production process. It possesses characteristics similar to cotton or silk such as excellent moisture absorbency and breathability along with enhanced durability and sustainability. The growing environmental concerns among consumers regarding non-biodegradable synthetic clothing fabrics is boosting the demand for natural and eco-friendly substitutes like lyocell fabric. 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 Opportunity:
The growing demand for sustainable and eco-friendly alternatives presents a key market opportunity for lyocell fabric. Customers are increasingly preferring apparel and home textiles made from natural fibers due to stringent environmental regulations related to synthetic fabrics. Lyocell fabric has minimal environmental impact compared to viscose and polyester fabrics as its production process utilizes renewable wood pulp and emits fewer greenhouse gases. Various fashion brands and textile manufacturers have started using lyocell in their sustainable clothing lines to attract ethically-conscious consumers. The rapid growth of organic and eco-friendly fashion is expected to drive the sales of lyocell fabric over the forecast period.
Porter's Analysis
Threat of new entrants: The lyocell fabric industry needs significant investments to set up manufacturing plants for producing lyocell fabric due to which the threat of new entrants is moderate. However, the presence of established players poses barriers for new companies in this space.
Bargaining power of buyers: The bargaining power of buyers is moderate due to the availability of alternatives like cotton and viscose fabrics. However, certain properties like sustainability and comfort offered by lyocell fabric keep buyers dependent on this fabric.
Bargaining power of suppliers: The key raw materials required are wood pulp and solvents. The presence of many suppliers for these raw materials keeps their bargaining power low.
Threat of new substitutes: Other cellulosic fabrics are substitutes to lyocell fabric but none can fully substitute its specific properties of sustainability, moisture-wicking and breathability. Therefore, the threat of new substitutes is low.
Competitive rivalry: The presence of major players results in high competitive rivalry in the lyocell fabric market due to which companies focus on product differentiation and innovation to gain an edge.
SWOT Analysis
Strengths: Lyocell fabric is a sustainable and comfortable fabric. It is breathable, soft and moisture-wicking.
Weaknesses: High production costs and dependency on raw material prices. Lyocell fabric is also more expensive than cotton.
Opportunities: Growing demand for sustainable fabrics and activewear presents an opportunity. Increased applications in apparel, home textiles and medical sectors as well.
Threats: Availability of cheaper substitutes like cotton and price fluctuations in raw material costs pose threats. Intense competition from existing players exists.
Key Takeaways
The global Lyocell Fabric Market Growth is expected to witness high growth over the forecast period of 2023-2030. The market size for lyocell fabric is projected to cross US$ 2 Bn by 2030 growing at a CAGR of 6.8% during the forecast period.
Asia Pacific dominates the global lyocell fabric market with a share of over 40% in 2023. China represents the largest producer as well as consumer of lyocell fabric in the region. Growing demand for lyocell fabrics in apparel and home textiles from countries like India and Japan will drive the Asia Pacific lyocell fabric market during the forecast period.
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. These players are focusing on wide application base and new product development using sustainable raw materials.
For more insights, read- https://www.newsanalyticspro.com/lyocell-fabric-market-trends-size-and-share-analysis/
