by Market Overview:
The Global Lyocell Fabric Market is estimated to be valued at US$1.1 billion in 2021, and this value is projected to expand at a CAGR of 6.9% between 2022 and 2030, according to a report by Coherent Market Insights. Lyocell fabric, also known as Tencel, is a sustainable and eco-friendly textile derived from renewable wood pulp. Its key advantages lie in its softness, breathability, moisture-wicking properties, and ability to be blended with other fibers. With increasing awareness regarding sustainable fashion and the need for environmentally-friendly textiles, the demand for Lyocell fabric is witnessing an upward trajectory.
Market Key Trends:
One key trend in the Lyocell Fabric Market is the growing preference for sustainable fashion. Consumers are becoming increasingly conscious of the environmental impact of their fashion choices and are actively seeking out sustainable alternatives. Lyocell fabric is biodegradable, requires less water and energy during production, and is produced from sustainably managed forests. These factors have made Lyocell fabric a sought-after choice in the fashion industry. For example, leading apparel brands are incorporating Lyocell fabric into their collections to cater to the eco-conscious consumer demand.
Porter’s Analysis:
– Threat of New Entrants: The threat of new entrants in the Lyocell Fabric Market is relatively low due to the capital-intensive nature of the industry and the stringent regulations surrounding sustainable textile production.
– Bargaining Power of Buyers: The bargaining power of buyers is moderate as they have a range of sustainable fabric alternatives to choose from. However, the unique properties and growing popularity of Lyocell fabric provide some leverage to the suppliers.
– Bargaining Power of Suppliers: The bargaining power of suppliers is relatively high as Lyocell fabric production requires specialized machinery and expertise, limiting the number of suppliers in the market.
– Threat of New Substitutes: The threat of substitutes is low as Lyocell fabric’s unique combination of softness, sustainability, and moisture-wicking properties make it difficult to replicate.
– Competitive Rivalry: The Lyocell Fabric Market is fairly consolidated, with key players dominating the market share. Intense competition exists among these players in terms of product innovation, pricing strategies, and expanding their geographical presence.
Key Takeaways:
1;the Global Lyocell Fabric Market Demand is expected to grow at a CAGR of 6.9% over the forecast period. This growth is driven by the increasing demand for sustainable fashion and the unique advantages of Lyocell fabric, such as its softness and eco-friendly production processes.
2; the regional analysis reveals that Asia-Pacific is the fastest-growing and dominating region in the Lyocell Fabric Market. The region’s rapid urbanization, rising disposable incomes, and increasing awareness about sustainable fashion are boosting the demand for Lyocell fabric.
3; the key players operating in the global Lyocell Fabric Market include Lenzing AG (Austria), Aditya Birla Management Corporation Pvt. Ltd. (India), Nien Foun Fiber Co., Ltd. (Taiwan), CHONBANG Co., LTD. (South Korea), Weiqiao Textile Company Limited (China), Acelon Chemicals & Fiber (China), smartfiber AG (Germany), and Shangtex Holding Co., Ltd (China). These companies are focusing on strategic partnerships, product innovation, and geographical expansion to strengthen their market position.
In conclusion, the Lyocell Fabric Market is witnessing significant growth due to the increasing demand for sustainable fashion. As more consumers become aware of the environmental impact of their fashion choices, the demand for eco-friendly textiles like Lyocell fabric is expected to soar. With its unique properties and growing adoption by major fashion brands, the Lyocell Fabric Market is poised for a bright and sustainable future.
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. With an MBA in E-commerce, she has an expertise in SEO-optimized content that resonates with industry professionals.
