Viscose Staple Fiber Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Viscose Staple Fiber Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The viscose staple fiber market was valued at over 4,750 kilotons in 2020, and it is projected to register a CAGR of over 4% during the forecast period (2022-2027).

The COVID-19 pandemic has had a significant impact on the value chain in every aspect. Because of the government's limitations, the supply of raw materials came to a standstill. As a result of the lockdowns in several countries, the price of viscose fiber has dropped, forcing many companies, such as Lenzing AG, to start making safety masks at their factories, as non-woven fibers are needed for mask manufacturing. The pandemic had a detrimental influence on the market, particularly in automobile and garment applications. However, the industry saw marginal growth in 2021, as several firms have begun to produce woven textiles in their facilities. In the anticipated time, the market is expected to grow positively.

In the coming years, the demand for viscose fiber is likely to be higher since it is mostly preferred in fashionable clothing and in the hygiene sector, where purity and absorbency have top priorities.

Synthetic fibers may create a hindrance to the market growth of viscose fibers.

The Asia-Pacific region dominated the market and accounted for a share of 65%, and it is also estimated to record the fastest CAGR during the forecast period.

Natural and biodegradable viscose staple fibers (VSF) or artificial cotton fibers are made from wood pulp and cotton pulp, both of which have properties similar to cotton fibers. These fibers are adaptable and pliable, and they may be used in a variety of applications, including garments, home textiles, home furnishings, dress materials, and woven and knitted.

Increasing demand for textiles and apparel is expected to drive the demand for VSF in these applications. Asia-Pacific, the largest market for woven fabrics, is witnessing healthy growth due to the increasing demand in countries like India, China, etc.

In India, the demand for apparel has increased with growing consumer preference in response to growing foreign textile brands. The demand has been augmented by digitalization and social networking sites and apps, which help in increasing the sale of garments.

Viscose is the most important man-made cellulose fiber, with a market share of around 79% of all man-made cellulose fibers.

Small regions, such as Bangladesh, have witnessed an increase in population and living standards, driving the demand for knitted fabrics.

All the aforementioned factors are expected to increase the demand for viscose staple fiber during the forecast period.

Asia-Pacific is expected to dominate the VSF market during the forecast period. China is the largest producer and consumer of viscose staple fiber globally. The country accounts for ~65% of the total globally produced viscose staple fiber, owing to the rapidly increasing yarn production.

China is the largest clothing producer in the world and has the largest production capacity for textile products consisting of cotton, man-made fibers, and silk. The major problem faced by the Chinese viscose staple fiber industry is the presence of surplus production capacities.

Lenzing and Birla are some of the major global manufacturers with their production facilities in China.

According to Invest India, India's domestic clothing and textile sector provides 5% of the GDP, 7% of industrial production in value terms, and 12% of export revenues. India is the world's sixth-largest exporter of textiles and clothing.

With the removal of Anti Dumping Duty on viscose fiber in India, the industry is set to see a growth surge in the coming years.

There has been an increase in wages in the country due to which the textile production is expected to shift to low-wage ASEAN countries, ultimately affecting the sales of viscose staple fiber in China.

Additionally, supportive government regulations, such as the Amended Technological Upgradation Fund Scheme (ATUFS) and the Scheme for Integrated Textile Parks (SITP), and capital and freight subsidy on textiles by the states of Maharashtra and Haryana have provided a boost to the industry. This, in turn, has significantly driven the market for viscose staple fiber in India.

Due to all these factors, the market for viscose staple fiber is expected to grow in the region during the forecast period.

The viscose staple fiber market is consolidated in nature, and the top five manufacturers occupy around 60% of the market. The major players in the market include Lenzing AG, Birla Cellulose, SATERI, Xinjiang Zhongtai Chemical Co. Ltd, and Tangshan Sanyou Group Xingda Chemical Fibre Co. Ltd, among others.

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