Lyocell Fabric Market is Estimated to Witness High Growth Owing to Opportunity in Sustainable and Eco-Friendly Alternatives
Lyocell Fabric Market |
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
Global
Lyocell Fabric Market Demand 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.
Get More Insights on this Topic- https://www.dailyprbulletin.com/lyocell-fabric-market-value-insights-and-forecast-trends/
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