The global rayon fiber market size was valued at USD 20.50 billion in 2024 and is projected to reach USD 30.42 billion by 2030, growing at a CAGR of 6.8% from 2025 to 2030. This strong growth trajectory is largely driven by increasing awareness and demand for sustainable and environmentally friendly textile materials.

Rayon fibers, which are derived from natural cellulose sources, are gaining popularity due to their eco-friendly and biodegradable characteristics. Unlike many synthetic fibers such as polyester, rayon provides a renewable alternative that aligns well with the global push toward sustainability and reducing environmental impact. This makes rayon an attractive choice not only for consumers but also for businesses seeking to adopt greener and more responsible practices in textile manufacturing.

The material's biodegradability is particularly appealing to environmentally conscious buyers and industries focused on sustainability, further fueling its widespread adoption. Moreover, the burgeoning growth of the textile industry, especially in rapidly developing economies such as China, India, and Bangladesh, plays a crucial role in driving the demand for rayon fibers. These countries, recognized as major players in the global textile export market, benefit from rising disposable incomes and evolving consumer preferences that favor comfortable, stylish, and sustainable clothing options.

Rayon’s inherent versatility and softness, combined with its excellent ability to blend seamlessly with other fibers, make it a highly favored choice for a broad spectrum of apparel, ranging from casual wear to formal attire. In addition to market dynamics, supportive government policies in these regions—such as tax incentives, subsidies, and other facilitative measures—further encourage the production and use of rayon fibers, thereby reinforcing the market’s growth prospects.

Key Market Trends & Insights:

• The North America rayon fiber market was valued at approximately USD 3.98 billion in 2024, reflecting the region’s significant demand for this versatile and sustainable fiber. Within this market, the United States holds a prominent position, with the rayon fiber market there expected to grow steadily and surpass USD 4.41 billion by 2030. This growth highlights the increasing adoption of rayon fibers across various industries in the U.S., driven by factors such as rising consumer awareness of sustainable materials and expanding end-use applications.

• When analyzing the market by material type, the modal rayon fibers segment is anticipated to witness the fastest growth, with a compound annual growth rate (CAGR) of 7.4% projected from 2025 to 2030. Modal rayon fibers are prized for their superior softness, durability, and moisture-wicking properties, making them highly popular among manufacturers and consumers seeking enhanced textile performance.

• In terms of applications, the health and hygiene sector is expected to be the fastest-growing segment for rayon fiber use during the same forecast period, also registering a CAGR of 7.4% from 2025 to 2030. This growth is driven by increasing demand for hygienic, comfortable, and biodegradable materials in products such as medical textiles, personal protective equipment (PPE), and sanitary products, where rayon’s natural and eco-friendly attributes are highly valued.

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Market Size & Forecast:

• 2024 Market Size: USD 20.50 Billion

• 2030 Projected Market Size: USD 30.42 Billion

• CAGR (2025-2030): 6.8%

• Asia-Pacific: Largest market in 2024

Key Companies & Market Share Insights:

The competitive landscape of the rayon fibers market is characterized by its dynamic nature, where companies are increasingly prioritizing sustainability, innovation, and strategic partnerships to fuel their growth and stay ahead in the industry. With the rising consumer preference for eco-friendly and sustainable materials, businesses that effectively align their strategies with these evolving trends are better positioned to secure and strengthen their market presence over time.

Key players dominating the rayon fibers market include well-established companies such as Aditya Birla Group, Kelheim Fibres GmbH, The Lenzing Group, Toray Industries Inc., Asia Pacific Rayon Limited, Eastman Chemical Company, Goonvean Fibres Ltd., Grasim Industries Limited, Nanollose, Sateri, Zhejiang Fulida Holding Co., Ltd., and Zhong Tai International Development (HK) Limited. These organizations are actively engaged in a variety of strategic initiatives aimed at reinforcing their competitive edge.

Among these activities, substantial investments in research and development (R&D) play a critical role in enhancing fiber quality, improving sustainability profiles, and developing next-generation products that meet stringent environmental and performance standards. Furthermore, companies are pursuing mergers and acquisitions to broaden their product offerings and expand their geographic reach, enabling them to serve diverse customer needs more effectively.

Additionally, many of these companies are forging collaborations and partnerships with downstream users, such as textile manufacturers and apparel brands, to create tailored solutions that cater to specific application requirements. This close cooperation helps to foster innovation and accelerates the adoption of rayon fibers across various end-use sectors.

Key Players

• Aditya Birla Group

• Lenzing AG

• Kelheim Fibres GmbH

• Grasim Industries Limited

• Eastman Chemical Company

• Asia Pacific Rayon Limited

• Toray Industries Inc.

• Sateri

• Fulida (Zhejiang Fulida Holding Co., Ltd.)

• Aoyang Technology

• Yibin Grace Group

• CHTC Helon

• Bohi Industry

• Tembec, Inc.

• Indo Rayon Utama Tbk

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Conclusion:

The global rayon fiber market is experiencing robust growth, driven by increasing consumer demand for sustainable and biodegradable materials. Rayon fibers, derived from natural cellulose, offer a renewable alternative to synthetic fibers, aligning with global sustainability goals. The market is expanding across various applications, including apparel, home textiles, and health & hygiene products, with modal rayon fibers and health & hygiene applications projected to grow at the highest rates. Regional growth is particularly strong in Asia-Pacific, supported by favorable government policies and a growing middle-class population.