Regenerated Cellulose Market Report 2026

The regenerated cellulose market size has grown strongly in recent years. It will grow from $17.62 billion in 2025 to $19.3 billion in 2026 at a compound annual growth rate (CAGR) of 9.5%. The growth in the historic period can be attributed to expansion of textile manufacturing using viscose fibers, growth of packaging film applications, availability of natural cellulose feedstock, increasing demand for breathable fabrics, early adoption of regenerated cellulose films.

The regenerated cellulose market size is expected to see strong growth in the next few years. It will grow to $27.27 billion in 2030 at a compound annual growth rate (CAGR) of 9%. The growth in the forecast period can be attributed to increasing demand for sustainable textile materials, rising use of biodegradable packaging films, expansion of automotive interior applications, growing investments in circular material solutions, increasing adoption of low-emission cellulose processing technologies. Major trends in the forecast period include increasing adoption of bio-based regenerated fibers, rising demand for sustainable packaging films, growing use of lyocell and modal fibers, expansion of high-transparency cellulose films, enhanced focus on low-impact manufacturing processes.

The escalating global demand for eco-friendly textiles is anticipated to fuel the growth of the regenerated cellulose market. Eco-friendly textiles are crafted without the use of chemicals or pesticides during the fabric production process, aligning with environmentally conscious practices. Regenerated cellulose, formed by converting natural cellulose into soluble derivatives and transforming them into fibers or films, plays a pivotal role in meeting this demand surge. Forecasts from TheRoundup project a substantial $1.57 billion increase in annual global sales of eco-friendly clothing by 2025, underscoring the driving force behind the regenerated cellulose market's expansion.

Leading companies in the regenerated cellulose market are concentrating on innovative solutions, such as ionic liquid-based regenerated cellulose technology, to address the growing demand for low-emission, waste-reducing, and environmentally sustainable fiber production. This technology utilizes stable, non-volatile ionic liquids to dissolve cellulose, providing a safer and greener alternative to traditional solvents like carbon disulfide or NMMO. For example, in July 2025, the Institute of Process Engineering (IPE), a China-based research institute under the Chinese Academy of Sciences, inaugurated a 1,000-ton ionic liquid-based regenerated cellulose fiber plant. This technology dissolves cellulose using non-volatile ionic liquids, replacing hazardous solvents employed in conventional viscose production. It achieves over 99% solvent-recovery efficiency, enabling near-zero emissions and eliminating wastewater, waste gas, and solid waste. The regenerated fibers comply with international standards for fineness, tensile strength, elongation, and uniformity, making them suitable for textile applications. This industrial-scale plant exemplifies a sustainable, low-carbon method for producing regenerated cellulose fibers.

In September 2024, Suzano Papel e Celulose SA, a Brazilian company, acquired Lenzing AG for $251.56 million. This acquisition enables Suzano to broaden its portfolio by leveraging Lenzing's expertise in regenerated cellulose. Lenzing AG is an Austrian company specializing in the production of regenerated cellulose.

Major companies operating in the regenerated cellulose market are Natureworks LLC, Bio-On SRL, BASE SE, Tianan Plantic Technologies Limited, Asahi Kasei Corporation, CFF GmbH & Co. K.G., Grasim Industries Limited, Kelheim Fibres GmbH, Lenzing AG, Corbion NV, Danimer Scientific, Yield10 Bioscience Inc., International Paper, GP cellulose LLC, Sateri, Fulida Group, Eastman Chemical Company, Synthesia, Futamura Group, AMS Group PLC, Shandong Henglian New Materials, Zhejiang Kerui, Cobetter, EMD Millipore, Parkson Corporation, Hiller Separation & Process, Rotex Automation, IFS Industriefabrik Schneider GmbH, Kaisha Russell Finex, Forsberg’s Inc., Schlumberger Asia Services Limited, SWECO.

Asia-Pacific was the largest region in the regenerated cellulose market share in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the regenerated cellulose market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the regenerated cellulose market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The regenerated cellulose market consists of sales of regenerated cellulose by product type including rayon regenerated cellulose, lyocell regenerated cellulose and modal regenerated cellulose. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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