Regenerated Cellulose Market 2024 – Market Size & Segments Analysis, Industry Trends, Manufacturers Analysis, Opportunities and Forecast 2030

The global market value of the regenerated cellulose market was valued at USD 18.2 billion in 2022, and a CAGR of 9.2% is expected during the forecast period. Regenerated cellulose is a group of materials that are produced simply from natural cellulose. It encompasses various products such as viscose rayon, lyocell, and other cellulose derivatives used in textiles, packaging, and other industries.

Factors driving growth include sustainability concerns, demand for eco-friendly materials, and technological advancements in cellulose regeneration processes. Innovation in biodegradable materials, increased focus on circular economy principles, and expansion in emerging markets like China, Japan, and India are driving the growth of the market significantly.

Regenerated cellulose provides an alternative to synthetic fibers, appealing to environmentally conscious consumers. Ongoing research and development efforts have led to advancements in cellulose regeneration processes. Improving the efficiency, quality, and cost-effectiveness of regenerated cellulose products. Changing consumer preferences towards ethical products is driving the growth of the market. 

Impact of Covid-19

Lockdown, travel restrictions, and factory closures disrupted the supply chain worldwide, affecting the availability of raw materials and production processes for regenerated cellulose. This led to a delay in manufacturing and distribution, impacting the market’s overall output. During the pandemic, there was a shift in consumer behavior towards comfort, sustainability, and hygiene. This led to increased demand for textiles made from regenerated cellulose fibers due to their softness and eco-friendly nature. The pandemic led to a surge in demand for personal protective equipment like gowns, masks, and medical textiles. Regenerated cellulose fibers, known for their moisture-wicking and breathable properties, found applications in producing eco-friendly personal protective equipment. The pandemic also highlighted the importance of sustainability and resilience in supply chains. Companies and consumers increasingly prioritized eco-friendly materials, benefiting the regenerated cellulose market in the long term as businesses sought to meet evolving sustainability standards.

Growth Drivers

With increasing awareness of environmental issues, there is a growing demand for sustainable materials. Regenerated cellulose offers a renewable and biodegradable alternative to synthetic fibers. Increasing demand for regenerated cellulose for the manufacturing of personal protective equipment is driving the growth of the market significantly.

Ongoing research and development have led to advancements in cellulose regeneration processes, improving the efficiency, quality, and cost-effectiveness of regenerated cellulose products. Changing consumer preferences toward sustainable and ethical products drive the demand for regenerated cellulose. Expansion in emerging markets such as China, Japan, South Korea, and India is driving the growth in the market significantly. Increasing demand for regenerated cellulose in agriculture, packaging, and the automotive industry is driving growth in the market.

Segmentation

By Type

·         Fiber

·         Film

By Source

·         Wood-Pulp

·         Non-Wood Pulp

·         Recycled Pulp/ De-Inked Pulp

 By Manufacturing Process

·         Viscose

·         Cuprammonium

·         N-Methyl Morpholine N-Oxide

·         Acetate

By End-User Industry

·         Fabric

·         Automotive

·         Agriculture

·         Packaging

·         Others

Regional Outlook

·         Asia Pacific

·         North America

·         Latin America

·         Middle East and Africa

·         Europe

Regenerated Cellulose Market End-User Industry

On the basis of end-user industry, the regenerated cellulose market is segmented into fabric, automotive, agriculture, packaging, and others. The fabric industry is the leading segment and is expected to dominate during the forecast period due to the excess demand for it in ethnic wear, sportswear, fashionable dresses, innerwear, outerwear, carpets, curtains, blankets, and many more to provide several characteristics such as luster, softness, breathability, comfort, absorbency, and others.

Increasing demand for regenerated cellulose in automotive, packaging, and agriculture is driving the growth of the market significantly. Regenerated cellulose is increasingly used in food, pharmaceutical, and cosmetic packaging, driven by the demand for alternative packaging. In the automotive industry, it is used for interior components such as seat covers, headliners, and door panels, as they offer advantages such as durability, moisture resistance, and sustainability. It also finds application in the agriculture industry as mulching films, biodegradable plant pots, and agricultural textiles, offering benefits such as biodegradability and an alternative to traditional plastics.

Regenerated Cellulose Market by Type Segmentation

On the basis of type, the regenerated cellulose market is segmented into fibers and films. Fibers are the leading segment due to increasing demand for eco-friendly products, which do assure sustainability. High wet tenacity, softness, and brightness are the properties of regenerated cellulose. Increasing emphasis on sustainability and eco-friendliness has further boosted the demand for regenerated cellulose, as it is derived from renewable sources such as wood pulp and has a lower environmental footprint. Due to its extensive use across various industries, fibers have become a dominant segment in the industry.

Regional Outlook

On the basis of the regions, the regenerated cellulose market is segmented into 5 parts: Asia Pacific, North America, Latin America, the Middle East and Africa, and Europe. The Asia-Pacific region, including countries like India, China, Australia, and South Africa, is the leading segment and is expected to dominate during the forecast period due to increasing awareness about sustainability and rising disposable income. People are environment-friendly in this region. The use of environmentally friendly products in the fabric, automotive, and packaging industries is driving growth in the market.

The growth of end-use industries in the region is driving the demand for regenerated cellulose. Stringent regulations regarding plastic usage and increasing awareness of the usage of environmentally friendly alternatives to plastic are driving the growth of the regenerated cellulose market. Countries like the United States of America, Canada, the United Kingdom, Russia, France, Spain, Italy, Greece, and the Nordic region are observing a significant change in the behavior of the people towards the usage of environmentally friendly products.

Increasing demand for personal protective equipment in these regions is driving growth in the regenerated cellulose market. Increasing demand for masks, gloves, and other equipment is driving the market towards success significantly. The Middle East, Africa, and Latin America are witnessing moderate growth during the forecast period. Countries like the United Arab Emirates, Saudi Arabia, South Africa, and Egypt are showing promising growth in the regenerated cellulose market. Increasing demand for regenerated cellulose in the automotive, agriculture, and packaging industries is driving significant growth in the market.

Key Players

·         Lenzing AG

·         Base SE Sappi Limited

·         Kelheim Fibers GmbH

·         Tangshan Sanyou Group

·         Xingda Chemical Fiber co. ltd

·         Fulida groups holding co. ltd

·         Sateri Holdings ltd

·         Grasim Industries Ltd

·         Other Players