Volume Insights on Lyocell Sector

The lyocell volume projection was valued at 172,732.7 metric ton in 2010 and is projected to reach 914,976.6 metric ton by 2034, registering a CAGR of 8.55% from 2025 to 2034.

Volume Insights Strategic Overview

Allied Market Research announces the release of its comprehensive analysis of the lyocell sector. Rise in demand for sustainable textiles is expected to drive the growth of the lyocell sector. Consumers, especially in Europe and North America, are becoming more informed about the environmental impact of their purchasing decisions. This has led to a rise in demand for clothing and textiles made from renewable, compostable, or recyclable materials. In response, fashion brands across the spectrum—from fast fashion giants to luxury labels—are increasingly incorporating lyocell into their product lines. Brands such as Levi’s, H&M, and Zara have launched eco-conscious collections featuring Lyocell under names like TENCEL™, helping to position the fiber as both a sustainable and stylish choice. The trend is further supported by sustainability certifications like OEKO-TEX® and FSC®, which assure consumers of lyocell’s environmentally responsible origins.

The report highlights the growth in E-commerce apparel sales. The growth of digital platforms and mobile commerce has significantly enhanced consumer convenience, allowing people to browse and purchase clothing online with greater ease than ever before. This shift has not only broadened the reach of fashion brands but has also given rise to a more informed and conscious consumer base hat prioritizes transparency, traceability, and sustainability in their buying decisions. Online retail offers brands a powerful channel to communicate the environmental and functional benefits of lyocell directly to consumers. Unlike traditional brick-and-mortar stores, e-commerce platforms provide space for detailed product descriptions, certification badges (e.g., TENCEL™, OEKO-TEX®, FSC®), and sustainability narratives. This allows brands to highlight Lyocell’s key attributes—such as its biodegradable nature, breathable texture, and soft feel—which resonate with eco-conscious consumers, particularly millennials and Gen Z.

The global volume of spunbonded production process is expected to grow from 37,855.1 metric ton in 2024 to 210,608.4 metric ton by 2034, registering a CAGR of 8.77% over the forecast period. The spunbonded production process, widely used in nonwoven fabric manufacturing, is gaining increasing attention for its application in lyocell fiber production, particularly for nonwoven applications such as wipes, medical textiles, filtration media, and hygiene products. Lyocell has been used in woven and knitted textiles due to its strength, softness, and sustainability.

Regional, Lyocell Sector Volume Growth

Asia-Pacific dominates the lyocell sector sales with 48.7% share in 2010 and 8.99% CAGR, while North America and Europe show strong growth at 8.77%, 8.66% CAGR respectively, fueled by the rise of digital-native sustainable brands such as Everlane, Tentree, and Thought Clothing has also contributed to Lyocell's growing visibility. These companies, often built on a direct-to-consumer model, use lyocell in a range of garments including casualwear, loungewear, and basics.

The regional analysis highlights significant variations in adoption trends and market potential across the globe. Asia-Pacific leads the market, contributing over 48.7% of the total volume in 2024 and is expected to grow at a CAGR of 8.99%, driven by growth in e-commerce apparel sales.

Lyocell Volume Growth, By Region, 2010-2034 (Metric ton)

Source: AMR Analysis

The report identifies China as the largest contributors to the lyocell sector in terms of volume. In China, increasing application in home textiles drives the demand in the lyocell market. Lyocell in China is further used in bed linens, towels, and upholstery due to its exceptional softness, strength, and moisture-wicking properties, which make it an ideal choice for home textiles. The growing demand for premium, eco-friendly, and durable household fabrics, especially among the rising middle-class and urban populations, is significantly contributing to the volume growth of Lyocell in the Chinese market

In China lyocell are projected to reach 819.39 metric ton by 2034, achieving a CAGR of 9.15%. However, India remains an important player in Asia-Pacific region, growing with a CAGR of 9.27% by 2034.

Emerging markets such as India and China are expected to drive significant growth as sustainability becomes a central concern in the global textile industry, certifications and eco-labels have emerged as crucial tools for building consumer trust and ensuring product transparency. In the case of lyocell, recognized certifications such as OEKO-TEX®, FSC® (Forest Stewardship Council), and branded labeling like TENCEL™ play a vital role in validating the fiber's environmental and ethical credentials. India is expected to grow with a CAGR of 9.27%, the highest among major countries. China is projected to grow at a CAGR of 9.15%.

Lyocell Sector Volume Share, By Country, 2010-2034 (Metric ton)

Source: AMR Analysis

Key Highlights by Stakeholders

Asia-Pacific, with rise in luxury fashion adoption, is expected to drive the growth of the lyocell market. In the Asia-Pacific region, the luxury fashion industry is undergoing a shift toward sustainability, with premium brands increasingly embracing lyocell as a high-performance and eco-friendly alternative to traditional materials like silk and viscose. In China, where the luxury market is expanding rapidly, local and international brands are responding to the rising influence of environmentally conscious millennials and Gen Z consumers. Brands are incorporating lyocell into their premium collections to meet growing preferences for sustainable yet elegant garments. Additionally, government support for green development and carbon neutrality goals under initiatives like "Made in China 2025" have further encouraged textile innovation using fibers like lyocell.

Increasing Smart Textile Integration in Lyocell Sector Volume Trends

The report also highlights the smart textile integration blending lyocell with conductive fibers for wearable tech innovation. Lyocell’s smooth fiber surface, excellent moisture management, and breathability enhance user comfort, which is a key consideration in wearable technology. Whether it is for athletic performance monitoring, health diagnostics, or temperature regulation, smart garments must be comfortable enough for prolonged wear, yet durable and responsive. Lyocell meets these criteria while also offering biodegradability, which is especially relevant in addressing the growing concerns around e-waste and textile sustainability.

In fashion industries, designers are beginning to experiment with Lyocell in garments that change color based on heat or light, respond to environmental humidity, or adjust their insulating properties. When combined with shape-memory alloys or thermochromic elements, Lyocell can become part of adaptive clothing that provides both functionality and style. Its aesthetic appeal and luxurious drape ensure that these innovative applications do not compromise design.

Lyocell stakeholders should use the report’s insights to grab new opportunities and plans.

About Allied Market Research

Allied Market Research is a full-service research and business consulting firm that provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com.

About Allied Market Research

Allied Market Research is a full-service market research and business consulting firm, which provides actionable insights and strategic recommendations to help clients make informed decisions and achieve sustainable growth. For more inquiries, please visit alliedmarketresearch.com