Threads of change
How social values and innovation are reshaping the textile industry
Our society’s relationship with the fashion industry is shifting, driven by growing demand for sustainable practices and heightened awareness of its environmental and social impact—from excessive water use and unethical labor conditions to mounting textile waste and carbon-heavy global logistics.
Rising consumer awareness has put pressure on fashion companies to address their social and environmental impact through new technologies and innovations that support the circular economy. Furthermore, tightening regulations, recent trade uncertainties, and deglobalization trends are additional macro-level phenomena that are increasing pressure to accelerate the shift towards more sustainable practices.
Offering renewable, biodegradable alternatives with lower water usage, reduced chemical impact, and the potential for more ethical and transparent supply chains, the cellulose-based textile fiber industry will play a key role in reducing the environmental footprint of the textile industry.
Although most novel textile fibers are still in relatively early stages of development, their path to commercialization is being significantly accelerated through strategic partnerships across the value chain. In addition to consumer and regulatory pressures, two major forces propel the development of innovative technologies in the textile sector:
1. Technological advancements.
Universities, start-ups, and major corporations are pushing the boundaries to reinvent man-made cellulosic fibers (MMCFs).
2. Sector and product diversification.
Companies are exploring new avenues to diversify their offerings and reduce reliance on traditional fibers. Over the past 10 years, these efforts have led to the emergence of various new technologies, each promising much higher sustainability credentials than conventional fibers like polyester, cotton, and viscose.
Exploring new technological pathways
The technological landscape for novel cellulosic fibers is vast. The primary feedstock has always been dissolving pulp, and novel technologies expand the range of feedstocks to include textile waste, agro-residues, and paper-grade pulp.
In addition to a diverse feedstock base, the technological landscape is also very heterogeneous, each technology possessing unique advantages and challenges.
Here are a few examples of prominent technological pathways at the brink of commercial-scale operations:
1. Novel ionic liquids.
Utilizing similar technologies and processes as the lyocell method, this process can also utilize paper-grade pulp as feedstock. However, achieving near-100% solvent recovery and ensuring solvent availability remain critical challenges.
2. Cellulose carbamate process.
It can convert cellulose-rich textile waste into new MMCFs. Brands are likely willing to pay a higher premium for fibers derived from post-consumer textile waste, but the chemical-intensive process and the difficulty of sourcing textile waste at scale still pose considerable challenges.
3. Direct spinning using micro-fibrillated cellulose.
It produces textile fibers without harmful chemicals, offering a feel similar to natural fibers like cotton and linen. While the streamlined production process has only a few steps, its key drawback currently lies in very high energy consumption.
Making it real
Technological development is crucial for industrial transformation, but it is typically a painfully slow process. A stage-gate approach is often necessary for effective risk management. Therefore, in AFRY’s experience, some key premises must be in place for a successful development process:
- Intellectual capital protection: Identify technological paths and safeguard intellectual property.
- Early market connection: Engage with the market and brand owners early in the development process.
- Industrial synergies: Seek partnerships with host industries to leverage existing infrastructure.
- Feedstock supply chains: Develop and secure reliable feedstock supply chains
- Patient capital: Find investors willing to share future benefits and financial risks.
Lessons from the Chinese lyocell revolution
Ultimately, the success and widespread adoption of new cellulosic fibers will depend on their cost competitiveness. The lyocell fiber journey can offer valuable insights for all novel cellulosic textile fiber developers.
For nearly 30 years, lyocell fibers were a niche specialty product, commanding high price premiums over mainstream man-made cellulosic fibers such as viscose. During that time, lyocell demand experienced only very moderate growth.
In 2018, when most patents related to the production process and fiber characteristics expired, R&D activity around lyocell technology surged, led by China. As a result, the global lyocell capacity grew from 300kt/a in 2018 to over 1Mt/a in 2024, driven by a tsunami of investments, primarily in China.
Up until recently, the Chinese lyocell fiber quality was deemed inferior to that of European producers. This, combined with overall economic headwinds in the textile industry, was reflected in very low operating rates, with most Chinese lyocell production consumed domestically.
However, during the last 6 months, operating rates have reached nearly 85%, with over 20% of lyocell production being exported outside of China. The key driver? Aggressive pricing coupled with improving quality. Once spinning mills and nonwoven producers had access to an alternative cheaper than viscose with acceptable quality, demand for lyocell fiber soared. This created a ripple effect, incentivizing downstream value chain innovation and debottlenecking, particularly in dyeing processes. Lyocell fiber acceptance in the nonwoven industry was equally successful, driven by a simpler and shorter value chain, as well as highly cost-conscious raw material sourcing.
While the economic sustainability of current lyocell prices remains uncertain, the Chinese lyocell revolution is a great analogue for the potential of novel cellulosic textile fibers. Niche markets, especially in apparel and high fashion, may still accommodate more expensive fibers with compelling sustainability narratives. However, cost competitiveness will be essential for broader market acceptance.
Authored by Matti Sarantola, AFRY Management Consulting.
This article is part of our AFRY Insights publication series, where experts from AFRY Management Consulting share their insights into emerging global trends across the energy and bioindustry sectors, as well as sustainability transformation.
