Lyocell Fiber Market SWOT Analysis Of Top Key Player Forecasts To 2020

Lyocell fiber, a type of rayon, is primarily manufactured from bleached wood pulp (also known as dissolving pulp). It is derived from cellulose. Lyocell, widely known as the third generation cellulose fiber, has expanded the market for conventional rayon fibers. Lyocell fibers are used in several end-user industries such as home textiles, apparel, medical equipment, and nonwoven apparel such as baby diapers. Products such as casual wear; high-end designer clothes, sportswear, home textiles (including bedsheets, curtains, drapes, and carpets) and other products (such as medical gloves and surgical equipment) are made from lyocell fibers. With rising awareness about environmental sustainability in the textile industry, lyocell fibers have gained popularity among a broad spectrum of end-users owing to their eco-friendly manufacturing process. Lyocell fiber is manufactured through an environmentally sustainable closed-loop method. Closed-loop manufacturing is a process, wherein most chemicals and solvents employed can be reused. Akin to most man-made fibers, the production of lyocell fiber requires more energy than that for natural fibers. However, according to Lenzing AG, low-carbon biofuels can be used to manufacture lyocell fiber. This helps reduce carbon emissions. There exists a low degree of backward integration in the lyocell fiber market. Companies such as Lenzing AG manufacture wood pulp used to make lyocell fiber. Weyerhaeuser, a popular manufacturer of wood pulp, owns one of the largest timberland in the U.S. Lenzing AG and Weyerhaeuser collaborated in 2008 to develop novel lyocell-based nonwoven fabrics.

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Demand for lyocell fiber was the highest in the apparel application segment, accounting for over 55% of the volume share in 2013, owing to its favorable properties such as soft, absorbent, and superior qualities. Demand for lyocell fibers in home textiles application is also increasing rapidly, as these are used to make drapes and curtains. Lyocell fibers are biodegradable; hence, these are extensively used in the manufacture of surgical products and baby diapers. Lyocell fiber is a strong and absorbent fabric, wherein the absorbent property and wet strength of the fiber is better than the traditional cotton fiber. These fibers are washable and resistant to shrinkage. Therefore, lyocell fiber is used widely in the apparel industry. Lyocell fibers are biodegradable materials; hence, these are used in various applications. For instance, these fibers are used in the manufacture of surgical products and baby diapers. Lyocell fibers are extensively employed in the production of surgical materials such as surgical coats for doctors and nurses.

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Asia Pacific accounted for more than 65% share of the global lyocell fiber market in 2013. High population and improvement in the standard of living in developing countries in Asia Pacific has fueled demand for textile products. This, in turn, has boosted the demand for lyocell fiber. Most countries in Asia Pacific such as China and India are developing rapidly. Urbanization and increase in consumers’ disposable income has led to an improvement in lifestyle. As a result, demand for lyocell fiber is high in Asia Pacific, particularly in the apparel sector. Demand for lyocell fiber is expected to increase significantly in North America and Europe during the forecast period. Developed countries such as the U.S. in North America and UK, Germany, and France in Europe are likely to drive the demand for lyocell fiber owing to the presence of well-established textile industries in these regions. The environmentalist approach of most countries in Western Europe has boosted the demand for lyocell fiber in the region. Although lyocell is a man-made fiber, it is produced from natural raw materials such as wood pulp.

Companies such as Lenzing AG, Aditya Birla Group, smartfiber AG, Acelon Chemicals & Fiber Corporation, Chon Bang Company Limited, Weiqiao Textile Company Limited, and Qingdao Textiles Group Fiber Technology Co., Ltd. have been covered in the report.

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