The Global Lyocell Rayon Market was valued at USD 1.26 Billion in 2023 and is projected to reach USD 2.38 Billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 7.3% during the forecast period (2023-2032). This expansion stems from the textile industry’s pivot toward eco-friendly materials, with lyocell’s closed-loop production process and biodegradability making it the sustainable fiber of choice for fashion brands worldwide.
As fast fashion confronts environmental scrutiny, lyocell rayon has emerged as a technological and ecological breakthrough in cellulose fibers. We profile the Top 10 Companies in the Lyocell Rayon Industry—innovators who are transforming textile supply chains through cutting-edge production methods and circular solutions.
🔟 1. Lenzing AG
Headquarters: Lenzing, Austria
Key Offering: TENCEL™ branded lyocell and modal fibers
The undisputed market leader controls 50%+ global lyocell capacity through its patented REFIBRA™ technology, which integrates recycled cotton waste into lyocell production. Lenzing’s vertical integration spans from wood pulp processing to finished textile solutions.
Sustainability Leadership:
- First carbon-neutral lyocell producer achieving Scope 1-3 emissions neutrality
- 99.8% solvent recovery rate in closed-loop production
- Global Renewable Energy Index score: 91/100
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9️⃣ 2. Aditya Birla Group (Grasim Industries)
Headquarters: Mumbai, India
Key Offering: Livaeco lyocell for mass-market apparel
This industrial powerhouse operates the world’s largest viscose production capacity and has committed $200 million to lyocell expansion. Their Birla Cellulose division supplies 15% of global lyocell demand across 50 countries.
Operational Advantages:
- 40% lower water consumption than conventional viscose production
- New 100,000 ton/year lyocell plant commissioning in Thailand (2025)
8️⃣ 3. Eastman Chemical Company
Headquarters: Kingsport, Tennessee, USA
Key Offering: Naia™ cellulosic fibers for premium textiles
Leveraging 50+ years of cellulose ester expertise, Eastman’s molecular recycling technology produces lyocell with enhanced softness and durability. Their Naia™ fiber dominates the North American sustainable fashion market.
Technical Breakthroughs:
- Patented low-energy dissolution process
- Fiber traceability through blockchain integration
7️⃣ 4. Sateri
Headquarters: Shanghai, China
Key Offering: Ecovero™ lyocell for Asian fast-fashion markets
As China’s largest viscose producer, Sateri is converting 30% of capacity to lyocell production. Their recent acquisition of Finland’s Infinna technology enables textile-to-textile recycling at scale.
Sustainability Benchmarks:
- FSC™ and PEFC™ certified wood sourcing
- Water recycling rate: 85% (industry average: 65%)
Download FREE Sample Report: Lyocell Rayon Market – View in Detailed Research Report
6️⃣ 5. Baoding Swan Fiber Co., Ltd.
Headquarters: Baoding, China
Key Offering: Industrial-grade lyocell for technical applications
Specializing in performance textiles, Baoding produces lyocell variants with enhanced tensile strength (up to 45 cN/tex) for medical, filtration, and composite materials.
R&D Focus Areas:
- Flame-retardant lyocell for protective gear
- Antimicrobial fiber treatments for healthcare textiles
5️⃣ 6. Qingdao Textiles Group Fiber Technology
Headquarters: Qingdao, China
Key Offering: Cost-competitive lyocell for apparel blends
The company’s optimized production processes enable price points 15-20% below Western producers, making sustainable textiles accessible to emerging markets.
Geographic Reach:
- Supplies 300+ Chinese garment manufacturers
- 25% annual export growth to ASEAN countries
4️⃣ 7. Acelon Chemicals & Fiber Corporation
Headquarters: Taipei, Taiwan
Key Offering: Performance-enhanced Acelon-LY™ fibers
Taiwan’s specialty fiber leader produces lyocell with built-in moisture-wicking, UV protection, and thermal regulation properties for activewear brands.
Technical Capabilities:
- Nanofiber surface treatments
- Cross-linking technology for durability
3️⃣ 8. Chonbang Co., Ltd.
Headquarters: Seoul, South Korea
Key Offering: High-tenacity lyocell for denim applications
Chonbang’s proprietary wet-strength technology makes its lyocell ideal for durable denim, reducing cotton dependency in the jeans industry by up to 50%.
Product Innovation:
- Patented indigo affinity technology
- Stretch lyocell blends for comfort denim
2️⃣ 9. Smartfiber AG
Headquarters: Rudolstadt, Germany
Key Offering: SeaCell™ with seaweed additives
This specialty producer creates lyocell infused with organic seaweed extracts, delivering natural antioxidants and minerals to skincare textiles.
Wellness Applications:
- Medical textiles with anti-inflammatory properties
- Luxury sleepwear with skincare benefits
1️⃣ 10. China Populus Textile Ltd.
Headquarters: Shanghai, China
Key Offering: Budget lyocell for mass production
With capacity exceeding 150,000 tons annually, China Populus supplies cost-effective lyocell to domestic fast-fashion retailers and textile exporters.
Market Strategy:
- Economies of scale in production
- Just-in-time delivery for garment manufacturers
Get Full Report Here: Lyocell Rayon Market – View in Detailed Research Report
🌱 Outlook: The Sustainable Fiber Revolution Accelerates
The lyocell market is undergoing a fundamental transformation as brands replace conventional fibers with closed-loop alternatives. With environmental regulations tightening globally, manufacturers are racing to expand capacity through 2030.
📈 Critical Market Dynamics:
- European brands committing to 50% lyocell blends by 2028
- North American CAGR of 8.2% through 2032 (highest regional growth)
- Technical textiles sector adopting high-performance lyocell variants
- Circular production models reducing reliance on virgin wood pulp
Get Full Report Here: Lyocell Rayon Market – View in Detailed Research Report
These industry leaders aren’t just producing fibers—they’re redefining sustainable textiles for the 21st century.
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