Eco Fibers on the Rise: Report Forecasts $69 Billion by 2025

A new report from Grand View Research forecasts that worldwide, the eco fiber market will reach $69.0 billion by 2025. The report profiles industry leaders, such as Aditya Birla’s Grasim Industries.   Expansion is expected to occur at a CAGR of more than 9.2%, thanks to a combination of factors.  The key forces expected to drive this growth include the rise of online fashion retail, a continued worldwide trend toward increased disposable income, and the ongoing creation of high-quality, innovative fabrics.  Traditionally, one factor limiting growth has been the labor-intensive value chain. Labor costs have played a key role across the value chain, from farming to fabric processing.  Now, however, manufacturers are adopting new approaches. The industry is becoming more automated and technological, with economies of scale supporting mechanization over manual labor. At the same time, eco fibers are gaining popularity for high-end, fashionable apparel and designer garments.  There is a much greater variety of eco fiber textiles to choose from: absorbent, antimicrobial, hypoallergenic, UV-resistant, insulating, and highly breathable fabrics are all available.  Although it has sometimes been difficult to achieve a coherent, simple definition of eco fibers, they are generally understood to be natural rather than synthetic. There is also a general expectation that they are produced using materials and processes that make an effort at sustainability.  The Grand View report found that regenerated eco fibers, such as viscose rayon, are by far the largest category of eco fibers. They accounted for 52.7% of all market revenue in 2018.  The key reason for this, according to the report’s authors, has to do with the sustainability commitments made by manufacturers. Companies like Aditya Birla’s Grasim Industries have put more of an emphasis on sustainably disposing of textile and industrial waste for the purpose of minimizing human and environmental impacts. Grasim’s parent company is Aditya Birla, an India-based multi-national corporate titan with a commitment to sustainability.  Company Chairman Mr. Kumar Mangalam Birla has expressed his belief that Aditya Birla must adhere to their values even if the price is slower economic growth.  As a division of Aditya Birla, Grasim also adheres to these values. Sustainability, for Grasim, goes beyond protecting the environment. Grasim embraces a proactive, innovative approach to processes and technology so that the company can safeguard the health, safety, and economic wellbeing of the surrounding communities and the environment.  These efforts have paid off. The company has achieved more than a 50% reduction in water consumption. It even has a plant that is the lowest consumer of water globally. The company uses innovative closed-loop fiber manufacturing, which allows it to reuse water and materials rather than wasting them. The result is four USDA-certified Biobased products, including Birla Viscose, Birla Modal, Birla Excel and Birla Spunshades.  The Asia Pacific region already accounts for a large share of the eco fiber market – 32.4% in 2018, with more expected. The market is expected to grow rapidly in the United States as well.  Judging by the efforts of Grasim, the growth will continue to be green.