Cellulose Fiber Market Size, Share and Trends 2024 to 2034

Cellulose Fiber Market Size and Forecast 2024 to 2034

The global cellulose fiber market size is calculated at USD 43.72 billion in 2024 and is anticipated to reach around USD 69.84 billion by 2034, expanding at a CAGR of 4.79% from 2024 to 2034. Increasing environmental concerns across industries is the key factor driving the growth of the market. Also, the rising demand for sustainably sourced material, along with the technological advancements in cellulose fiber production, can fuel market growth shortly.

Cellulose Fiber Market Key Takeaways

• By product, the synthetic products segment has dominated the market with revenue share of 62.8% in 2023.
• By product, the natural products segment is anticipated to grow at a significant rate over the projected period.
• By application, in 2023, the textile segment led the cellulose fiber market by holding the largest market share of 47%.
• By application, the industrial segment is expected to witness notable growth during the projected period.

Regional Insights

Asia Pacific dominated the cellulose fiber market in 2023. The region's dominance is attributed to the well-established textile sectors, which are major consumers of cellulose fibers. Furthermore, Asia Pacific contains abundant resources that are crucial inputs for cellulose fiber manufacturing. In Asia Pacific, China leads the market by holding the largest market share. This is due to increasing demand from neighboring economies like India and Bangladesh.

• In May 2024, Intertek unveiled iCare, a digital platform for swift textile testing management in India. iCare transforms quality assurance by providing real-time monitoring and interaction features. It improves transparency and efficiency in testing processes. With plans for global expansion, iCare sets a new standard for Total Quality Assurance.

North America held a significant share of the cellulose fiber market in 2023. The growth of the region can be linked to the increasing demand for fashion apparel created from biodegradable fibers. The region also has wide forestlands that offer a sustainable and robust supply of wood pulp, which is the key raw material for fiber production. However, increasing the domestic market for these products, especially in sectors like textiles, hygiene, and construction, is fuelling the cellulose fiber market growth in the region.

Market Overview

Cellulose fiber is a natural fiber extracted from cellulose, the key element of plant cell walls. Generally, it is obtained from wood pulp, but it can also be obtained from flax, cotton, and hemp. This fiber is known for its renewability, biodegradability, and environmental friendliness. Cellulose fiber can be used in textiles to design technical textiles that have a special purpose and involve physical properties. Future environmental issues have shifted toward more eco-friendly practices over the technological textile supply chain.

Biggest Textile Exporter Countries Statistics (2022) 

Cellulose Fiber Market Growth Factors

• Increasing demand for technical textiles in various industries is expected to boost the cellulose fiber market growth soon.
• The rapidly expanding paper and construction sectors can propel the growth of the market further.
• The growing global need for versatile, biodegradable, and cost-effective fibers will likely help in the market expansion over the forecast period.

Impact of AI on Cellulose Fiber Market

Artificial Intelligence (AI) is increasingly revolutionizing the market by improving production quality and efficiency. AI-driven technologies are used to optimize production processes, reduce operational costs, and enhance supply chain management. Furthermore, the advancement in AI technology enables consumers to fulfill rising consumer demand and adapt to changing industry standards.

• In September 2024, India launches AI-powered fashion forecasting with VisioNxt. The bilingual web portal, developed by the National Institute of Fashion Technology (NIFT), is meant to offer trend insights catered specifically to India's diverse fashion market.

Market Scope

Market Dynamics

Driver

Rising Demand in Textile Industry

The textile industry is a major driver of cellulose fibers, particularly in manufacturing fabrics like lyocell, rayon, and modal. The fashion industry's requirement for breathable, comfortable, and sustainable textiles has raised the utilization of cellulose fibers. Fashion labels also leverage cellulose fibers in their clothing lines, including Tencel. These fibers are convenient for performance and activewear textiles due to their breathability, softness, and moisture absorption properties.

• In October 2024, For the first time, the world-renowned Japanese denim manufacturer Kaihara Denim and the Lenzing Group, a major supplier of regenerated cellulosic fibers ROICA, a pioneer in premium stretch fiber, joined forces to co-create the SAISEI Collection, a premium stretch denim line. The strategic partnership is ideally positioned to offer a greater percentage of recycled materials in denim to the global market.
• In September 2024, Birla Cellulose, a leading player in sustainable fiber solutions, conducted the second edition of the hub meet at The Residency. The agenda was to highlight the transformational potential of sustainable MMCF (Man-Made Cellulosic Fibers) in the Home Textiles sector. 

Restraint

Fluctuations in raw material prices

The fluctuating raw material prices have a significant negative impact on the growth of the cellulose fibers market. This, in turn, results in inconsistent prices, posing a big construed issue regarding market expansion. Moreover, changes in forestry methods, growing demand for wood pulp, and climate-related issues can negatively influence the overall supply chain of cellulose fiber.

Opportunity

Increasing awareness of biodegradability

The rising global awareness of environmental concerns, coupled with the increasing issues about the influence of non-biodegradable materials, creates substantial market opportunities. Furthermore, Consumers search for products with high biodegradability and less environmental footprints, which aligns with ongoing sustainability practices in the industry. Also, regulatory standards promoting eco-friendly practices encourage market players to utilize materials like cellulose fibers.

• In June 2024, Researchers Invent 100% Biodegradable Barley Plastic. Made from barley starch mixed with fiber from sugarbeet waste sees. Researchers hope that their invention can help to reduce plastic pollution. The material is made using natural plant material from crops and can be used for food packaging, among other things.
• In August 2024, an Indian entrepreneur created a biodegradable plastic-like carrier bag for small businesses using cellulose, sugar, and corn fibers. Mohammed Azhar Mohiuddin, the founder of Bio Reform, has replaced over 6 million plastic bags in checkout counters across India using his innovative product.

Product Insights

The synthetic products segment dominated the cellulose fiber market in 2023. The dominance of the segment can be attributed to the scalability, cost-effectiveness, and superior performance provided by artificial fibers. Synthetic fibers have numerous advantageous characteristics, such as elasticity, low absorbency, durability, and resistance to atmospheric factors when distinguished from natural fibers. Additionally, the manufacturing of synthetic fibers depends less on environmental conditions and location than on natural fibers.

The natural products segment is anticipated to grow at a significant rate in the cellulose fiber market over the projected period. The growth of the segment can be driven by the rising focus on eco-friendly and sustainable practices by end users. Natural fibers are soft to the touch which makes them suited for textiles. However, they promote renewable methods in different industries like construction and fashion. Also, the breathability, biodegradability, and sustainability of these fibers are of high importance.

Application Insights

In 2023, the textile segment led the cellulose fiber market by holding the largest market share. The dominance of the segment can be credited to the wide consumer base offered by the textile industry to cellulose fibers, using them as a major raw material in the manufacturing of an extensive range of products, like home furnishings, apparel, and industrial textiles. Furthermore, these fibers are in demand because of their eco-friendly properties and natural feel, which contribute to comfortable and sustainable textile products ranging from high-end fashion to casual wear.

• In September 2024, Lenzing Groups launched the latest brand identity for its flagship textile brand, Tencel. Lenzing Group, which regenerates cellulose fiber suppliers for textile and nonwoven industries. The update aims to align Tencel with collaboration, sustainability, and innovation.

The industrial segment is expected to witness notable growth in the cellulose fiber market during the projected period. The growth of the segment can be credited to the development of cellulose fiber technology along with the sector's increasing demand for cellulose fibers. Cellulose fibers have unique physical properties, including absorbency, high strength, and biodegradability, which makes them important in applications ranging from filtration and paper production to construction and insulation.

Cellulose Fiber Market Companies

• LENZING AG (Austria)
• Bambro Textile Co. Ltd (China)
• Sateri (China)
• Shandong Helon Textile Sci. & Tech. Co. Ltd (China)
• Kelheim Fibers GmbH (Germany)
• Grasim (India)
• Fulida Group Holding Co. Ltd (China)
• Sappi (South Africa)
• Tangshan Sanyou Group (China)
• Eastman Chemical Company (US)
• CFF GmbH & Co. KG (Germany)
• China Hi-Tech Group Corporation (China).

Recent Developments

• In June 2024, Eastman unveiled the launch of Naia Renew for the denim segment to grow its sustainability objectives at the Denim Premiere Vision exhibition. This is a cellulosic acetate fiber that has been created from 40% certified recycled content and 60% sustainable wood pulp.
• In February 2024, Eastman and Cargill unveiled a partnership to develop bio-based packaging materials. This might affect the application of cellulose esters in eco-friendly packaging materials.
• In August 2023- Sateri (Nantong) Fibre Co., Ltd. began Lyocell fiber production, adding 10,000 tonnes to Sateri's yearly production capacity, bringing the company's total current capacity to 250,000. 
• In May 2023, Daicel Corporation, a top cellulose manufacturer, announced a major investment to grow its production capacity in Japan, addressing the rising demand for cellulose esters in the region.
• In 2022, Sappi committed to being a part of the solution and is working to decarbonize its operations. It will cut using coal at its German location in Stockstadt as a next step, to develop sustainable products.

Segments Covered in the Report

By Product

• Natural
• Synthetic

By Application

• Textile
• Hygiene
• Industrial
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa