The United States Lyocell Fabric Market is estimated to be valued at USD 171.0 Mn in 2024 and is expected to reach USD 290.3 Mn by 2031, growing at a compound annual growth rate (CAGR) of 8% from 2024 to 2031.

This market has seen consistent growth over the past few years and increasing demand from various end-use sectors such as apparel, home furnishing, and industrial has contributed significantly to the growing market size. The lyocell fabric market in the United States is expected to witness positive trends in the near future. Factors such as growing popularity of sustainable fabrics, rising environmental awareness among consumers and manufacturers, and shifting preference towards biodegradable and compostable materials will drive the demand. Additionally, growth in acceptance of lyocell as an alternative to cotton and other synthetics in various applications augurs well for the expansion of the market during the forecast period.

Market driver - Rapid growth in apparel and textile industry

The United States apparel market has seen significant growth over the past few years owing to rising spending power, changing fashion trends, and comfortable lifestyle adoption among consumers. Americans today are more inclined towards branded apparel and accessories that help them portray a certain style statement. This has opened opportunities for new fabrics like lyocell to gain prominence.

Lyocell fabric has found extensive application in tops, bottoms, activewear, and other apparel categories due to properties like breathability and moisture-wicking. The superior moisture management ability of lyocell makes it suitable for active and athletic apparel meant for various indoor and outdoor activities. It ensures the wearer stays dry and comfortable. Several well-known sportswear brands in the US have incorporated lyocell into their offerings like yoga pants, joggers, shorts, and tees to capitalize on the fabric's performance attributes. The fabric is also being used by lifestyle brands to make stylish yet comfortable clothes.

The textile industry has also emerged as a major end-user of lyocell due to its enhanced sustainability profile. Major US home furnishing companies have started utilizing lyocell in bedsheets, towels, drapes, and upholstery fabrics as it provides durability along with a soft handfeel. The growing emphasis on eco-friendly materials in the interiors space bodes well for lyocell fabrics. Both apparel and textiles are thriving industries in the United States, propelling the uptake of innovative fabrics like lyocell that address the modern needs of consumers. The immense potential exhibited by lyocell to disrupt incumbent cotton and modal ensures strong future growth prospects.

Market driver - Increasing popularity of Lyocell as an alternative to cotton and modal

Lyocell fabric is increasingly gaining a foothold in the US fabric market as a viable alternative to traditionally used cotton and modal fibers. While cotton and modal continue to be dominant options, their limitations around sustainability issues and performance attributes compared to lyocell are driving a gradual shift in consumer preference.

Lyocell provides an eco-friendlier production method and superior strength, softness, drape and breathability qualities vis-a-vis cotton or modal. The growing environmental consciousness among Americans is compelling brands, retailers as well as end consumers to adopt more sustainable fabrics. Lyocell helps address this need with a highly renewable production process and biodegradable characteristics. In addition, lyocell fiber delivers a soft and smooth feel on skin akin to modal but offers enhanced wet strength, wrinkle resistance and moisture management lacking in modal or cotton.

Several apparel retailers in the US have started promoting lyocell labelled apparel and positioning it as a 'green' fabric choice to eco-conscious consumers. Positive consumer feedback and growing demand are encouraging many retailers to expand their lyocell offerings across various product segments from basics to active and athleisure styles. The growing popularity of blended fabrics is another driver contributing to lyocell consumption in the US. Brands are blending lyocell with other natural fibers to develop new fabric innovations catering to ever-evolving consumer preferences. As consumers get more familiar with lyocell and perceive it as a valuable alternative through consistent branding by retailers, its demand as a sustainable fabric has been on a rise over the past few years.

Market Challenge: High Production Cost of Lyocell

One of the major challenges faced by the United States lyocell fabric market is the high production cost of lyocell compared to other cellulosic and synthetic fibers. Lyocell is produced through an environmentally friendly production process known as the Lyocell process, which involves dissolving cellulose pulp in an organic solvent and then spinning it into fibers. However, this solvent-spinning process requires significant capital investment and operating expenses. Setting up a commercial lyocell production plant involves costs of establishing pretreatment facilities, reaction vessels, solvent recovery units, and spinning equipment. Moreover, the energy-intensive nature of the Lyocell process also contributes to high production costs. For example, large amounts of heat are needed for solvent recovery and reuse. The compliance with stringent environmental regulations during manufacturing also increases costs. Due to these factors, the production cost of lyocell is nearly 30-40% higher than viscose rayon. This high cost poses a significant challenge for lyocell manufacturers in pricing their products competitively against lower-cost cellulosic and synthetic alternatives.

Market Opportunity: Growth in Demand from Personal Care and Hygiene Industry

The United States lyocell fabric market is expected to witness significant opportunities owing to the growth in demand for lyocell from the personal care and hygiene industry. Lyocell fibers have attributes such as high absorbency, quick drying, smooth texture, and natural appearance that make them suitable for use in personal care products such as baby wipes, adult wipes, and feminine hygiene items. The demand for sustainable and eco-friendly personal care products is on the rise among consumers. Lyocell is gaining popularity as it is derived from wood pulp through a closed-loop production process involving no hazardous chemicals. Its biodegradable nature helps reduce environmental pollution. The personal care and hygiene industry in the U.S. has been growing steadily due to rising health awareness. As manufacturers look for green alternatives to cotton and synthetic fibers, lyocell is expected to experience increasing usage in personal wipes, diapers, and other hygiene products. This growing demand from the personal care segment presents a major opportunity for lyocell producers to expand their customer base and improve market share in the U.S.

Key players like Lenzing AG, Acegreen Eco-Material Technology Co., Ltd., Aditya Birla Group have focused on product innovation and development of new sustainable fabrics to gain an edge. In 2019, Lenzing launched Tencel Luxe and Tencel Denim fibers made from wood pulp for premium and denim fabrics. These fibers offer stretch, softness and breathability. They are more sustainable than cotton or synthetics. The new product lines helped Lenzing capture nearly 15% market share in the USLyocell fabric market in 2020.

Companies have also targeted the growing activewear and athleisure segments in the US. In 2018, Acegreen partnered with outdoor brands like Patagonia and Columbia Sportswear to supply Lyocell fabrics for their sportswear collections. The moisture-wicking and quick-drying properties of Lyocell fabrics made them suitable for these segments. Acegreen saw over 30% rise in Lyocell fabric sales to the US in 2019 due to this strategic partnership and product targeting of fast growing activewear categories.

Adoption of new production technologies has also helped firms. In 2017, Aditya Birla Group set up a new lyocell spunmelt production line in USA with advanced solvent recovery processes. This reduced their production costs by 12-15% compared to competitors. The lower costs allowed them to pass on savings in cheaper fabric prices without compromising on margins. This enabled them to gain 5% market share in the US Lyocell fabric market within a year of commencing local production.

As seen through these examples, product innovation, strategic collaborations and technology led cost management have been winning strategies adopted by key players to drive growth in the US Lyocell fabric market. Focus on developing sustainable solutions and targeting high growth end-use segments have helped companies capture greater.

Insights by product type: Filament's Versatility Drives its Dominance in the US Lyocell Fabric Market

Within the US Lyocell Fabric Market, the filament segment contributes the 57.7% share in 2024, owing to its versatility across various end uses. Filament lyocell fiber is produced through a continuous spinning process, allowing it to be manufactured in a wide range of denier sizes and finishes. This versatility enables it to meet diverse performance requirements across apparel, home textiles, and industrial applications.

For apparel, filament lyocell is frequently utilized in fabrics requiring softness, moisture absorption, and drapeability. Its smooth texture renders it suitable for dress shirts, women's knits, and athletic wear. Major brands have incorporated filament lyocell into premium clothing lines targeting its breathability and comfort. In home textiles, filament lyocell thrives due to its ability to mimic cotton in sheets, towels, and upholstery fabrics. Its hypoallergenic, wrinkle-resistant properties are attractive for high-end bed and bath items.

Filament lyocell also sees widespread adoption in industrial textiles where reliability is paramount. Its inherent strength allows it to replace synthetic fibers in filter bags, conveyor belts, and geotextiles. Leading manufacturers have standardized on filament lyocell for its consistent quality across high-volume production runs. Looking ahead, ongoing R&D could expand its end uses further through novel finishes and alloying with other fibers.

Insights by application: Apparel Dominates US Lyocell Fabric Demand due to Focus on Comfort

Within the US Lyocell Fabric Market, the apparel segment captures the 47.3% share of applications in 2024. Lyocell's natural softness and breathability have fueled its popularity in clothing, where comfort and performance are top priorities. Its moisture-wicking ability keeps wearers dry without the clinginess of other synthetics. Major apparel brands have transitioned lyocell fiber lines to meet demand from eco-conscious consumers as well.

In basics, lyocell competes directly with cotton for its drape, four-way stretch, and wrinkle resistance. Popular styles incorporating lyocell include tees, underwear, leggings, and polos. For activewear, its quick-drying quality allows lyocell to pair effectively with moisture-managing technologies. Leading sportswear labels offer lyocell blends that keep athletes cool and dry throughout workouts. Lyocell also features in dresses, skirts and women's tops where a smooth, supple handfeel is desired.

Looking ahead, lyocell fabric mills will strive to develop new alloys and textured finishes to further broaden lyocell's fashion and performance profiles. As sustainability gains prominence, lyocell stands to benefit from its clean manufacturing process compared to oil-based synthetics commonly found in clothing. Barring any unforeseen challenges, apparel seems poised to sustain lyocell fabric demand in the US market.

LENZING AG, Invista, TOAD&CO, Riverside Fabrics, Potter & Co

• On 19 October 2021, Lenzing diversifies denim offering with launch of new matte TENCEL branded lyocell fibers.
• On 18 July 2023 Lenzing introduces new resource-efficient dyeing approach for TENCEL™ Lyocell fibers. The new approach reduces water and energy usage in creating similar wash-down aesthetics, previously only achievable through a resource-intensive denim dyeing and bleaching process

• By Product Type
  • Filament
  • Staple
• By Application
  • Apparels
  • Home Textiles
  • Hygiene
  • Healthcare
  • Automotive
  • Others