Eco Fiber Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Regenerated Fibers, Recycle Fibers, Organic Fibers, Others), By Application (Clothing/Textile, Household Furnishing, Medical, Others), By Region and Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 57.57 Billion
CAGR (2026-2031)	8.11%
Fastest Growing Segment	Organic Fibers
Largest Market	Asia Pacific
Market Size (2031)	USD 91.92 Billion

Market Overview

The Global Eco Fiber Market will grow from USD 57.57 Billion in 2025 to USD 91.92 Billion by 2031 at a 8.11% CAGR. Eco fibers are defined as textile materials derived from sustainable sources, such as organic crops, regenerated cellulose, or recycled feedstocks, which are engineered to minimize environmental degradation during their lifecycle. The expansion of this market is fundamentally driven by stringent government regulations enforcing waste reduction and carbon emission targets, coupled with binding corporate mandates to achieve carbon neutrality within supply chains. These regulatory and operational imperatives serve as the primary catalysts for growth, establishing a structural necessity for sustainable procurement that remains distinct from transient consumer fashion trends.

Despite this progress, the market faces a significant challenge regarding the cost competitiveness and scalability of sustainable materials against virgin fossil-based alternatives. The abundance of inexpensive conventional synthetics continues to inhibit the wider market penetration of eco-friendly options. According to Textile Exchange, in 2025, it was reported that while global fiber production increased to 132 million tonnes in 2024, recycled fibers accounted for only 7.6 percent of the total market share. This disparity underscores the economic barriers that currently impede the rapid industrial adoption of eco fibers.

Key Market Drivers

Rising Eco-Conscious Consumerism and Ethical Fashion Demand is significantly reshaping the Global Eco Fiber Market as buyers increasingly prioritize environmental impact over fast fashion trends. This shift is not merely attitudinal but is translating into tangible market behaviors, where consumers actively seek products with lower carbon footprints and circular lifecycles. The demand for transparency and sustainability is compelling brands to integrate eco-friendly materials into their core collections, moving beyond niche offerings to mainstream adoption. This trend is exemplified by the robust expansion of the circular fashion economy, which relies heavily on durable and recyclable eco fibers. According to ThredUP, March 2025, in the '2025 Resale Report', the online resale market experienced a 23 percent growth in 2024, underscoring the accelerating consumer preference for sustainable and circular consumption models.

Simultaneously, Advancements in Green Fiber Processing and Recycling Technologies are addressing critical supply-side constraints related to scalability and fiber quality. Innovations in chemical and mechanical recycling are enabling the efficient conversion of mixed-textile waste into high-grade fibers, thereby reducing the industry's reliance on virgin resources and mitigating cost barriers. These technological breakthroughs are allowing major retailers to aggressively increase their uptake of recycled feedstocks. According to H&M Group, March 2025, in the 'Annual and Sustainability Report 2024', the company reported that the share of recycled materials in its commercial goods rose to 29.5 percent. Highlighting the broader industrial capacity growth, according to the Global Organic Textile Standard, May 2025, in the 'Annual Report 2024', the number of certified facilities globally increased by 5.2 percent to 15,441.

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Key Market Challenges

The cost competitiveness and scalability of sustainable materials against virgin fossil-based alternatives represents a critical barrier to the expansion of the Global Eco Fiber Market. Manufacturers and brands are frequently constrained by narrow profit margins, compelling them to prioritize materials that offer the lowest unit cost. Virgin synthetics benefit from decades of industrial optimization and low feedstock prices, creating a significant price disparity that eco fibers, which often lack comparable economies of scale, struggle to overcome. This economic disadvantage effectively disincentivizes the mass industrial adoption of sustainable options, confining them to premium niche segments rather than facilitating widespread market penetration.

This structural imbalance is clearly reflected in the dominance of conventional fibers within the supply chain. According to Textile Exchange, in 2025, it was identified that polyester fiber production climbed to approximately 78 million tonnes in 2024, representing 59 percent of total global fiber output. This immense volume of inexpensive conventional material saturates the market, making it operationally difficult for eco fibers to compete on a level playing field. Consequently, the abundance of lower-cost virgin options continues to stifle the scalability of sustainable procurement, preventing eco fibers from achieving the market share necessary to drive competitive pricing.

Key Market Trends

The Commercialization of Agricultural Waste-Derived Cellulosic Fibers is rapidly advancing as a vital alternative to traditional wood-based pulp, effectively mitigating the environmental risks associated with deforestation. This trend involves the industrial scaling of "Next Generation" technologies that utilize agricultural residues, such as wheat straw and hemp waste, to produce high-quality viscose and lyocell. By valorizing abundant harvest byproducts, manufacturers are decoupling fiber production from forestry land use while simultaneously providing farmers with new revenue streams. The industrial viability of this shift is gaining momentum; according to Canopy, October 2025, in the 'Hot Button Report 2025', it was revealed that the number of commercial-scale Next Gen fiber lines increased to 16, while 54 percent of global man-made cellulosic fiber capacity achieved Green Shirt status for sourcing leadership.

Simultaneously, a Shift Toward Regenerative Agriculture Practices for Fiber Sourcing is fundamentally altering the upstream supply chain by prioritizing soil health and biodiversity over mere yield maximization. Fashion conglomerates are increasingly bypassing commodity markets to invest directly in farming initiatives that sequester carbon and restore ecosystem services. This approach secures a resilient supply of natural raw materials like cotton and wool while helping brands meet science-based climate targets through insetting rather than offsetting. The scale of this transition is becoming substantial; according to Kering, August 2025, in the 'Regenerative Fund for Nature 2024 Annual Report', it was disclosed that the company's supported projects have successfully expanded to cover 1.1 million hectares of crop and rangelands across eight countries.

Segmental Insights

The organic fibers segment is emerging as the fastest-growing category within the global eco fiber market. This rapid expansion is primarily driven by heightened consumer demand for textiles produced without harmful pesticides or synthetic fertilizers, reflecting a broader shift toward sustainable agriculture. Furthermore, stringent certification standards established by organizations such as the Global Organic Textile Standard ensure transparency and traceability across the supply chain, thereby reinforcing market confidence. As global fashion brands increasingly commit to responsible sourcing strategies to meet environmental compliance targets, the commercial adoption of organic cotton, wool, and linen continues to accelerate significantly.

Regional Insights

Asia Pacific leads the global eco fiber market, primarily driven by its extensive textile manufacturing infrastructure in countries like China and India. The region benefits from the substantial availability of natural raw materials, such as organic cotton and bamboo, which facilitates cost-effective production. Additionally, rising demand from international apparel brands for sustainable supply chains compels local manufacturers to adopt eco-friendly fibers. Supportive government policies promoting green industrial practices further consolidate this market position. As a result, Asia Pacific functions as the central production base meeting the worldwide requirement for environmentally responsible textiles.

Recent Developments

• In October 2024, Birla Cellulose entered into a long-term strategic partnership with a US-based textile-to-textile recycling innovator to accelerate the commercialization of recycled cellulosic fibers. Under this agreement, the Indian fiber producer committed to purchasing up to 5,000 tons of recycled pulp annually from its partner's first commercial-scale facility for a period of five years. This recycled pulp will be converted into lyocell staple fiber, thereby enhancing the availability of high-quality circular materials for the global fashion industry. The collaboration highlights the industry's shift towards integrating recycled feedstocks into established supply chains to reduce reliance on virgin materials.
• In June 2024, Eastman expanded its sustainable product portfolio by launching a new version of its cellulosic fiber specifically designed for the denim market. The company introduced Naia Renew for denim, a fiber produced from 60% sustainably sourced wood pulp and 40% certified recycled waste materials. This product launch addresses the textile industry's need for eco-friendly alternatives in denim production, offering a material that is both biodegradable and compostable. The innovation allows brands to create denim garments with a reduced environmental impact while maintaining the fabric's aesthetic and functional qualities, marking a significant advancement in the Global Eco Fiber Market.
• In June 2024, the Swedish private equity firm Altor completed the acquisition of a prominent textile recycling company previously known for its dissolving pulp made from 100% textile waste. Following the acquisition, the business was rebranded to operate under the name of its flagship product, Circulose. The new owner aims to safeguard the unique chemical recycling technology and scale the production of the biodegradable raw material, which serves as a substitute for virgin cotton and man-made cellulosic fibers. This strategic move ensures the continued availability of high-quality recycled feedstock for global fashion brands and secures a vital supply chain for circular eco-fibers.
• In May 2024, Hyosung TNC announced a partnership with a sustainable materials leader to establish a fully integrated manufacturing facility for bio-based chemicals in Vietnam. This collaboration involves an investment of $1 billion to construct a plant capable of producing 50,000 tons of bio-butanediol annually, which will be used to manufacture the company's bio-based spandex products. The facility aims to replace fossil fuel-based raw materials with sugarcane-derived alternatives, significantly reducing the carbon footprint of the final fiber products. The project aligns with the company's strategy to meet the growing global demand for sustainable textiles and supports the wider industry's transition towards net-zero emissions.

Key Market Players

• Lenzing AG
• Grasim Industries Ltd.
• Shanghai Tenbro Bamboo Textile Co. Ltd.
• China Bambro Textile (Group) Co. Ltd.
• Pilipinas Ecofiber Corporation
• Teijin Limited
• David C. Poole Company, Inc.
• Polyfiber Industries Limited
• Sateri Group
• Wellman Advanced Materials LLC

By Type	By Application	By Region
Regenerated Fibers Recycle Fibers Organic Fibers Others	Clothing/Textile Household Furnishing Medical Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Eco Fiber Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Eco Fiber Market, By Type:

• Regenerated Fibers
• Recycle Fibers
• Organic Fibers
• Others

• Eco Fiber Market, By Application:

• Clothing/Textile
• Household Furnishing
• Medical
• Others

• Eco Fiber Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE