Synthetic viscose fiber market to reach 37.4 billion dollars amid sustainability push

The global synthetic viscose fiber market is projected to expand significantly over the next decade, according to a new report from Allied Market Research (AMR). The market, valued at 19 billion dollars in 2024, is forecast to reach 37.4 billion dollars by 2034, registering a compound annual growth rate (CAGR) of seven percent.

This growth is primarily driven by sustained demand for affordable and versatile textiles within the apparel, home furnishings, and industrial sectors. Viscose remains a popular choice due to its texture and for blending with other fibers.

However, the industry faces notable restraints, including environmental concerns associated with chemical-intensive production processes and a dependency on raw materials like wood pulp.

Macroeconomic and geopolitical pressures

The AMR report highlights that the market is sensitive to global economic and political shifts. Fluctuating raw material and energy prices have impacted production costs.

The International Monetary Fund (IMF) noted a decline in global GDP growth from 6 percent in 2021 to 3.2 percent in 2023, affecting textile consumption following the Covid-19 pandemic and subsequent inflation.

Geopolitical factors have also created disruptions. Trade tensions, such as US-China tariffs, have impacted supply chains, as China is a dominant force in viscose production. Furthermore, environmental regulations in both China and Europe have led to temporary production halts, while the conflict in Ukraine has increased energy costs for European manufacturers.

Sustainability and innovation as key opportunities

Despite these challenges, the AMR analysis identifies technological innovation in sustainable production as a major opportunity. The industry is experiencing a trend towards adopting eco-friendly processes, such as closed-loop systems, to address environmental concerns.

Austrian-based Lenzing AG, for example, has focused on this area with its Ecovero brand, which provides FSC-certified sustainable viscose fibers. The report also notes innovation in using recycled cellulose and agricultural waste as alternative raw materials.

Recent strategic moves reflect this trend. In April 2025, Chinese producer Tangshan Sanyou Xingda Chemical Fiber Co., Ltd. partnered with Swedish firm Circulose to commercialise recycled pulp.

Key players are also expanding capacity in high-growth regions. Asia Pacific Rayon (APR) opened Indonesia’s largest integrated viscose rayon production facility in February 2020.

The AMR report segments the market by fiber type (regular viscose and high wet modulus viscose), product form (staple fiber and filament fiber), and application, which includes spinning clothing, home textile, and medical textiles.