Cellulose Fiber Market Flourishing Amid Rising Environmental Concerns

The global cellulose fiber market size is expected to reach USD 62.92 billion by 2030, registering a CAGR of 6.1% from 2024 to 2030, according to a new report by Grand View Research, Inc. The increasing gap between the demand and production of natural cellulose fibers across various end-use industries is the major factor for the growth of the market. In addition, the rise in textile & apparel industries in developing and emerging economies is also anticipated to fuel the global market growth.

Increasing demand for eco-friendly and biodegradable fibers, especially in textile and hygiene industry is driving the cellulose fibers market. The production of synthetic or man-made fibers includes the industrial processing of wood pulp derived from botanical sources. However, the manufacturing of cellulose fibers entails mechanical and chemical processing of wood pulp. Viscose, triacetate, and acetate are the most common variants of rayon, which are man-made cellulose fibers used extensively across end-use industries.

The cellulose fibers market is highly capital intensive and requires proper expertise. The players present in the market are constantly engaged in the research & development for new product and technology innovations. The fluctuating raw material prices, rigid regulation regarding forestry & environmental and declining cotton production are the major challenges faced by the industry.

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Cellulose Fiber Market Report Highlights

Synthetic products held the largest revenue share of 62.6% in the market in 2023. This is owing to the cost-effectiveness, scalability, and superior performance offered by man-made fibers.

Natural products segment is expected to grow at a significant CAGR during the forecast period. The increasing emphasis on environment-friendly and sustainable practices has led to a surge in demand for natural fibers, as they align with consumer preferences for environmentally responsible products.

In terms of application, textile accounted for the highest market share in 2023. The textile industry is an extensive consumer of cellulose fibers, utilizing them as a primary raw material in the production of a wide range of products, such as apparel, home furnishings, and industrial textiles.

The industrial segment is expected to advance at a notable CAGR over the forecast period. The sector’s robust demand for cellulose fibers as a critical component in various manufacturing processes has been a primary driver of this segment’s expansion.

Asia Pacific led the market with a revenue share of 38.2% in 2023. This region houses well-established industrial and textile sectors, which are primary consumers of cellulose fibers.

Key Cellulose Fiber Company Insights

Some key companies involved in the cellulose fibers market include LENZING AG, Grasim Industries Limited, and Sateri, among others.

LENZING AG is an Austrian manufacturer of wood-derived viscose fibers, textile fibers, modal fibers, and various other types of fibers used in the textile industry. The company offers its products under distinct brand names: TENCEL, VEOCEL, LENZING ECOVERO, and LENZING. TENCEL is the company’s flagship brand, offering three sustainable products – TENCEL Modal, TENCEL Lyocell, and TENCEL Lyocell Filament. LENZING produces its Lyocell fibers with the REFIBRA technology, which uses recycled cotton textile materials.

Grasim Industries Limited is a textile manufacturing company in India under the Aditya Birla Group. The company is a producer of viscose staple fibers, viscose filament yarn, textiles, insulators, chemicals, and paints. Viscose staple fibers produced by the company are used in apparel, home textiles, knit wear, dress materials, and other non-woven applications. The company additionally exports its viscose filament yarn to over 45 countries globally.

List of Key Players of Cellulose Fiber Market