Trend Observation
For AW 2026/27, TENCEL™ and Lyocell are no longer just eco-friendly alternatives under the sustainability label; they have become the core battleground for premium fabrics. From Milan to Shanghai, the proportion of Lyocell blends at fabric fairs has risen significantly, especially in innerwear and home textiles, where brands now position TENCEL™ as the primary selling point for touch and function. Consumer expectations for a "second skin" are driving fiber fineness below 0.9 dtex.
The innerwear market shows the most dramatic shift. Seamless, breathable, and antibacterial properties have become baseline requirements. TENCEL™ blends with spandex and nylon are rapidly penetrating high-end wire-free bras and loungewear. Its moisture-wicking performance surpasses cotton, softness exceeds Modal, and biodegradability aligns with both sensitive skin and environmental demands.
Home textiles reveal a "sustainable luxury" trend. TENCEL™ Lyocell blended with linen, silk, and wool is used for high-count bedding and decorative fabrics, with colors dominated by mineral grey, moss green, and deep indigo. Smart temperature regulation and anti-static finishing allow TENCEL™ bedding to offer warmth and dryness in autumn and winter.
Notably, domestic viscose capacity faces structural substitution. In 2025, viscose staple fiber capacity is about 5 million tons, while Lyocell capacity has exceeded 800,000 tons and is expected to surpass 1.5 million tons by 2027. Policy restrictions on high-pollution viscose processes are accelerating the downstream switch to Lyocell.
Industry Impact
The premiumization of Lyocell imposes new requirements on the supply chain. First, sustainable certification of wood pulp (e.g., FSC) has become a hard threshold for EU exports. Second, NMMO solvent recovery must exceed 99.5%, otherwise cost advantages will be offset by environmental investments. Leading domestic companies have achieved closed-loop production, but small and medium factories still face technological upgrading pressure.
The substitution effect on viscose capacity manifests in three ways: first, new project approvals are tightening, and viscose expansion has essentially stalled; second, existing viscose lines are being converted to Lyocell, but equipment compatibility is limited and conversion costs are high; third, downstream brands specify Lyocell ratios, forcing spinners to adjust blends. By 2028, the substitution rate of Lyocell for viscose in innerwear and home textiles is expected to reach 35%-40%.
In foreign trade, the EU Carbon Border Adjustment Mechanism (CBAM) includes Lyocell, but due to its low-carbon attributes, the actual tax burden is lower than viscose. The US market focuses more on supply chain transparency, and TENCEL™'s blockchain traceability system becomes a differentiation advantage. Exporters need to prepare certifications and data disclosure in advance.
On the design side, mature anti-fibrillation treatment technology allows high-count Lyocell yarns to remain smooth after multiple washes. This gives designers greater creative freedom, from minimalist silhouettes to intricate jacquards. The keywords for AW 2026/27 are "quiet luxury touch" and "techno-nature."
Practical Recommendations
For Buyers - Prioritize Lyocell suppliers with FSC and OEKO-TEX® certifications to ensure compliance and premium space. - Include TENCEL™ blend ratios in contract terms, with a price adjustment mechanism triggered below 30%. - Monitor the price gap between domestic Lyocell and imported TENCEL™; as the gap narrows to within 15% in 2026, moderately increase domestic sourcing.
For Designers - For innerwear, try TENCEL™ blended with bio-based spandex to balance seamlessness and elasticity, with a weight of 120-160 g/m². - In home textile jacquards, contrast Lyocell's luster with linen's texture; avoid high saturation and shift to earth tones. - Develop traceable story packs, integrating fiber origin and carbon footprint data into hangtags and online detail pages to build consumer trust.
For Factories - Assess the feasibility of converting existing viscose lines to Lyocell, focusing on NMMO recovery and solvent purification. - Invest in anti-fibrillation finishing equipment to enhance the durability of high-count Lyocell fabrics, meeting the 50-wash standard for premium home textiles. - Build joint laboratories with downstream brands to develop customized blends for innerwear and home textile segments.
For Exporters - Complete CBAM carbon data reporting early, leveraging Lyocell's low-carbon label to secure long-term EU orders. - For the US market, highlight TENCEL™'s blockchain traceability and zero-deforestation commitment to mitigate supply chain scrutiny. - Watch for Southeast Asia capacity transfer opportunities; establish Lyocell fabric processing in Vietnam and Indonesia to leverage tariff advantages for Europe and the US.
For AW 2026/27, the premiumization of TENCEL™ and Lyocell is not a short-term trend but a microcosm of the textile industry shifting from "scale expansion" to "value deepening." Those who first close the loop from fiber to yarn to fabric to brand will seize the high ground in the next round of competition.