Increasing Demand for Regenerated Fibers Boosts Global Rayon Market to USD 32.8 Billion

Market Overview

Rayon fiber - commonly known as viscose, is witnessing rising global demand as sustainability becomes central to textile industry innovation. Made from regenerated cellulose derived from wood pulp, rayon offers properties similar to cotton and silk, making it a popular choice across fashion, home textiles, and industrial applications. As of 2025, the global rayon fiber market is valued at USD 21.4 billion, and is projected to reach USD 32.8 billion by 2032, growing at a CAGR of 5.9%.

The market is evolving rapidly with a focus on bio-based materials, improved manufacturing techniques, and expanding applications across apparel, non-woven fabrics, and medical textiles. Key industry players are investing in sustainable feedstock and closed-loop production processes to comply with environmental regulations and cater to eco-conscious consumers.

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Growth Drivers

Rising Preference for Eco-Friendly Textiles

The global shift toward sustainable and biodegradable materials is a primary growth catalyst. Rayon, being a renewable, plant-based fiber, fits well within this demand landscape. Fashion retailers and brands are increasingly sourcing rayon as part of their sustainable product lines to reduce reliance on petroleum-based synthetics.

Expanding Applications in Apparel and Non-Woven Textiles

Rayon’s excellent absorbency, softness, and breathability make it ideal for diverse uses—from high-end fashion garments to hygiene products like baby wipes and surgical masks. The expansion of these sectors, especially post-pandemic, has amplified demand for versatile textile fibers like rayon.

Technological Advancements in Manufacturing

Manufacturers are adopting newer technologies like lyocell and modal production processes that enhance fiber strength and reduce environmental impact. Innovations in spinning and dyeing techniques are also boosting production efficiency while ensuring compliance with global sustainability norms.

Growth in Emerging Economies

Rapid urbanization and rising disposable income across Asia-Pacific, Latin America, and parts of Africa are generating robust demand for low-cost, breathable, and stylish fabrics. Countries like India, China, and Bangladesh are not only major rayon producers but also key consumers, thanks to their flourishing textile and garment industries.

Trends Shaping the Industry

Bio-Based and Circular Rayon Production

The trend toward bio-based and circular economies is pushing companies to adopt closed-loop systems, especially in viscose rayon manufacturing. These systems recycle chemicals and minimize water usage, significantly reducing the environmental footprint of production processes.

Integration of Rayon in Smart and Technical Textiles

Rayon’s compatibility with other fibers allows it to be blended in technical textiles, offering enhanced moisture-wicking and comfort properties. It's increasingly being used in performance wear, bedding, and upholstery, often blended with spandex, polyester, or cotton to optimize functionality.

Strategic Collaborations and Vertical Integration

Major textile corporations are focusing on vertical integration—from pulp production to yarn spinning—to streamline quality control and cost-efficiency. Collaborations between fiber producers and fashion houses are also accelerating the development of branded rayon blends tailored for luxury and sustainable markets.

Competitive Landscape and Outlook

Top market participants such as Major companies in the industry include Grasim Industries Limited, Sateri, Asia Pacific Rayon Limited, Zhejiang Fulida Holding Co., Ltd., Nanjing Chemical Fiber Co., Ltd., Tangshan Sanyou Group, Xinxiang Bailu Chemical Fiber Co., Ltd., Thai Rayon Public Company Limited, Eastman Chemical Company, Century Rayon, and Yibin Grace Group.

With textile brands worldwide committing to circular fashion goals, rayon fiber is positioned as a key material in the future of sustainable textiles. From biodegradable casualwear to next-gen medical fabrics, rayon’s adaptability ensures its continued prominence across sectors.

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Market Segments

The global rayon fiber market is segmented based on type, application, and region: