Cellulose Fiber Market is forecasted to reach $42.2 billion by 2025, after growing at a CAGR of 8.1% during 2020-2025. With rise in the consumption in textile industry coupled with growing population, is expected to fuel the demand of cellulose fiber. Growing public interest towards sustainable,skin-friendly, biodegradable, and environment-friendly products will further enhance the overall market demand for cellulose fibers during the forecast period.
- Asia-Pacific dominates the cellulose fiber market owing to increasing demand from applications such as apparel, home textile and industrial.
- Increasing adoption of sustainable, skin-friendly, and biodegradable products; and implementation of stringent government regulations related to use of environment friendly products will increase the market demand for cellulose fibers in the near future.
- Economic factors such as rising population, increasing disposable income of the middle-class family, and rapidly changing fashion trends drives the global cellulose fiber market.
Fiber Type- Segment Analysis
Natural cellulose fiber segment is expected to grow with the highest CAGR in the cellulose fiber market during the forecast period due to its properties including sustainability and environmental friendly.Natural cellulose fibers have many advantages over synthetic cellulose fibers owing to which this segment held the largest market in overall market in 2019. Rising adoption of natural fibers in various industries including textile, industrial, and apparel will expected to further enhance the demand of natural cellulose fibers in coming years.
Application – Segment Analysis
Textile sector has been the primary market for cellulose fibers for many years. Due to increase in the global middle class spending, increasing population, rapidly changing fashion trends, and rising standard of living, the consumption of cellulose fiber has always been considerably high in textile application in comparison to other applications.Cotton is the textile industry’s primary raw material. Due to the difficulty in its cultivation, the cotton production is declining which resulted in significant growth in demand for cellulose fibers based on wood.
Geography- Segment Analysis
APAC dominated the cellulose fibers market with a share of more than 38%, followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investmentfor economic development of South East Asia, the current scenario is changing.Countries in South East Asia are witnessing high growth in the textile industry. China and India are the major consumer of cellulose fibers in APAC region due to increasing demand of textile in various sectors coupled with rising population and disposable income. According to IBEF, the Indian textiles and apparel industry is valued at around $150 billion in 2017 and is expected to reach $223 billion by 2021 after growing at CAGR of 10.4%. This is expected to further fuel the demand of cellulose fibers in Indian market.
Drivers –Cellulose Fibers Market
- Growing demand for cellulose fibers in textile and apparel industry
Increasing consumption of cellulose fiber in textile industry is one of the major driver supporting the growth of overall market. Rise in disposable income and changing fashion trend is expected to drive the textile and apparel industry.Also, growing automotive and building &construction industry will continue to demand for non-clothing textiles. All these factors are expected to boost the demand for cellulose fibers.
- Increasing adoption of sustainable, skin-friendly, biodegradable, and environment friendly products
Changing consumer preferences towards adoption of environmental friendly products is further fueling the demand of cellulose fibers. Cellulose fiberhas numerous advantages over conventional fiber which makes it material of choice. Cellulose properties such as skin-friendly, biodegradable, and environmentally friendly would further fuel the growth of the market.
Challenges – Cellulose Fibers Market
- Fluctuation in raw material prices
Prices of the raw material needed to produce cellulose fiber are volatile in nature and are constantly changing, however impacting its application in various industries.
Technology launches,acquisitions and R&D activitiesare key strategies adopted by players in the cellulose fiber market. In 2019, the market of cellulose fiber has been consolidated by the top five players accounting for xx% of the share. Major players in the Cellulose Fiber Market are Lenzing AG, Sateri, Kelheim Fibres GmbH, Grasim Industries Limited, Fulida Group Holding Co., Ltd., Fulida Group Holding Co., Ltd., China Bambro Textile (Group) Co. Ltd., CFF GmbH & Co. KG, Crea Fill Fibers Corporation, The International Paper Company, Grupo Sniace,among others.
- In September 2017, the Lenzing Group has opened a new textile application innovation center (AIC) in Hong Kong. It will develop and test new facilities which include recent innovations like the RefibraTM branded lyocell fiber and the EcoVeroTM branded viscose fiber.
- In December 2018, APR started the commissioning of viscose rayon plant that is made from natural wood cellulose generated from sustainably maintained plantations. With an annual production capacity of numerous viscose fiber, the organization plans to promote Indonesia’s textile industry that is continuously dependent on cotton and viscose imports. It will pave the way for ‘making Indonesia 4.0’ roadmap to encourage the country’s export and GDP. Therefore, this initiative will commence to the expansion of the cellulose fiber market.
IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.