Man-made fibers are produced through various processes carried out on wood pulp obtained from plant sources. Wood pulp undergoes several mechanical as well as chemical processes resulting in a number of cellulose fiber types having different properties. Rayon and its types including acetate, triacetate, and viscose fibers are some of the commonly used man-made cellulose fibers. Cellulose fibers have major applications in textile, spun yarn, and fabrics. Few other applications include their usage in the paper industry, carpet production, etc.

Man-made cellulose fibers are synthetically manufactured using renewable and cheaper feedstock than their synthetic alternatives. However, in comparison, they consume a large amount of water and energy in their processing. There are various types of fibers obtained from a number of chemical processes, and every fiber possesses certain useful characteristics. Acetate fiber has fast drying capability and is used in apparel, fabrics, cigarette filters, etc. Similarly, rayon is very absorbent; hence, it gets easily dyed and is used in apparel, home furnishing products such as curtains, carpets, etc.

The growing demand for biodegradable, environmental friendly and skin friendly fabrics and clothing from the textile industry has been driving the global market for cellulose fibers. Clothing is the biggest end-use application, which accounts for more than half of the total cellulose fibers consumed globally. Shift towards replacing petrochemical fibers with cellulose fibers from major end-use industries has also been one of the major factors fueling the market growth. However, the volatility in wood pulp prices, which is a major raw material to cellulose fiber production coupled with the regulatory issues due to growing environmental concerns are the major factors that have been increasing the production cost of cellulose fibers and inhibiting market growth. Consequently, the world is shifting focus towards developing cellulose fibers through renewable sources and providing biodegradable solution to various industrial demands.

Cellulose fibers are majorly consumed in the clothing industry, which accounted for approximately 61.2% of the total consumption in 2011. Cellulose fibers are used in various regenerated forms such as corn fibers, lyocell, rayon, modal, tencel, viscose, and many others in the clothing industry. According to their properties, they are used for various types of clothes and fabrics. Application of cellulose fibers in the clothing industry held maximum share, and is also expected to be the fastest growing application segment for man-made cellulose fibers, at an estimated CAGR of 7.6% from 2012 to 2018. The global demand for cellulose fibers from spun yarn is expected to grow at a CAGR of 7.3% from 2012 to 2018.Growing demand for fibers produced from renewable sources coupled with the environment sustainability they provide is expected to drive the market for man-made and natural cellulose fibers.

Asia Pacific emerged as the leading market for cellulose fibers and accounted for 45.3% of the global demand in 2011. Asia Pacific is also expected to be the fastest growing market, with an estimated CAGR of 8.1% in terms of volumes from 2012 to 2018. The growing demand from textile industry, particularly in China and India, is propelling the market growth in the region. Developed economies of North America and Europe are considered to be mature markets for cellulose fibers and hence they are expected to grow at a slower pace than Asia Pacific.

Some of the major companies operating in the global market include Aoyang, Fulida, Grasim Industries, Helon, Indo Bharat, Lenzing, Sateri, Tangshan and Thai Rayon among some other companies.