Fiber giants are advancing forest-friendly materials, Hot Button report finds

More companies that provide rayon, lyocell and modal to fashion brands are sourcing less from ancient and endangered forests, according to the nonprofit Canopy. Although the vast majority of cellulosic fibers are still spun from virgin materials, some of the biggest producers have been quickly adopting forest-friendly and circular materials.

Seventy percent of companies making semi-synthetic, cellulose-based fibers now exhibit green practices that reduce pressures on forests, according to the10th Hot Button report by Canopy, issued Oct. 16. Fifty four percent of fiber producers that the group tracked have reached the nonprofit’s favorable green rating, with 59 percent offering material traceability.

There has been notable progress over the past decade. Canopy has classified 21 companies as green, up from zero in 2016. And in that time, the number of apparel product lines made from next-gen, preferable sources of manmade cellulosic fibers rose to 16 from none.

Canopy uses this annual report in part to help brands make informed sourcing decisions, in line with its mission to save some of the hundreds of millions of trees felled for fashion each year. The Vancouver nonprofit works with 950 companies to protect forests and biodiversity in apparel, packaging and other industries.

A long way to go

And yet there’s a long way to go to advance circularity in rayon and other manmade cellulosic fibers (MMCFs). Although sourced from wood, plants or and waste, semisynthetics involve chemical and mechanical processing.

The use of recycled materials for such fibers is still rare, although it grew to 1.1 percent in 2024 from .7 percent a year earlier, according to the latest Materials Market Report by Textile Exchange.

Such textiles represent only 6 percent of the global fiber market, according to Textile Exchange. It found that fibers approved by Forest Stewardship Council (FSC) or other certification made up as much as 70 percent of cellulosic fiber market share.

“When we can pull these levers to build demand for those sorts of fibers, the world is better off,” said Forest Stewardship Council U.S. President Sarah Billig.

Who’s doing what

Tied for the top honors in the Hot Button report are Lenzing of Austria, responsible for nearly 13 percent of the worldwide production of manmade cellulosic fibers, and Tangshan Sanyou of China, which makes 9 percent. They are followed by Aditya Birla of India, which supplies almost 16 percent of global volumes.

Such early adopters are also working toward circularity goals, including using less wood and boosting next-generation production by 2030. For example:

  • Yibin Grace, which placed sixth in the report, in April announced it was opening China’s first dissolving pulp mill to turn old textiles into material for new fibers. 
  • Tangshan Sanyou in July started working with textile-to-textile recycler Circ on next-generation lyocell.
  • The fourth company on the list, Jilin Chemical Fiber, in May began producing Reboocel fiber made from FSC-certified bamboo and bamboo recycled from furniture.
  • Xinxiang Chemical (Bailu Group) in the spring launched pilot production for recycled viscose.

Other progress includes the rise of textile-to-textile material Circulose, which rose from startup Renewcell’s ashes in Sweden. More brands, such as Reformation, are working its pulp into their collections.

In addition, in February recycling startup Circ launched Fiber Club, a collaboration with Fashion for Good and Canopy. Birla Cellulose, Arvind Limited and Foshan Chicley have joined the effort to push circular manmade cellulosics, along with brands Bestseller, Eileen Fisher, Everlane and Zalando.

Canopy rates companies according to sourcing, conservation, innovation, traceability and other factors. The new report added chemical management to reflect participation in the Zero Discharge of Hazardous Chemicals program.

What needs work

Canopy calls on companies to scale up next-gen materials from crop and textile waste to reduce pressure on forests for virgin pulp.

That said, some smaller fiber companies that employ more advanced circularity practices are struggling. Kelheim Fibres of Germany entered bankruptcy last year. Formosa Chemicals & Fibre of Taiwan is set to fold, and American rayon maker Enka appears to be on the brink of closing.

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