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Why Fashion Brands Are Switching to Lyocell (And You Should Too)

Summary:


Looking for the best Lyocell fabric clothing manufacturer in India? Lyocell is soft, breathable, eco-friendly, and perfect for brands that care about comfort and sustainability. From luxe dresses to activewear, it's a top fabric choice in 2025. Learn how NoName turns Lyocell into high-quality, fashion-forward garments with low MOQs and ethical production you can trust.


Introduction:


Lyocell fabric is fast becoming the go-to choice for fashion brands that care about the planet and their customers. In today’s fashion landscape, where sustainability is a must, Lyocell offers the perfect mix of eco-friendliness, durability, breathability, and luxurious softness. If you're a fashion retailer aiming to build a responsible and future-ready label, the fabrics you choose — especially Lyocell — are as important as your designs.


Why Fashion Brands Are Switching to Lyocell

Originally commercialized by Lenzing AG under the brand name TENCEL™, and now also produced in India by Birla Cellulose as Birla Excel™, Lyocell is made from sustainably sourced wood pulp using a closed-loop process that recycles over 99% of solvents. From luxe loungewear and flowy dresses to soft T-shirts and elevated workwear, Lyocell is a game-changing textile.


If you’re looking for the right lyocell fabric clothing manufacturer in India, this guide is your roadmap to making smarter, greener choices for your brand.



What Is Lyocell Fabric?


Lyocell is a regenerated cellulose fiber made from the pulp of sustainably grown trees like eucalyptus, beech, or oak. Although it belongs to the rayon family, Lyocell stands out due to its eco-friendly closed-loop production process and advanced performance features that make it ideal for modern, conscious fashion.


Lyocell is produced through a closed-loop solvent spinning process, where over 99% of the organic solvent (NMMO – N-Methylmorpholine N-oxide) used in fibre dissolution is recycled and reused. This significantly reduces water waste, chemical runoff, and energy consumption, making it far more sustainable and safer than conventional viscose or rayon, which often involve harmful chemicals.


The result is a soft, breathable, biodegradable, and skin-friendly fabric that adapts to a wide range of fashion categories — from luxury wear and casual streetwear to baby clothing, underwear, and activewear.



Key Features of Lyocell Fabric:


  • Produced by Industry Leaders: Trusted brands like Lenzing (TENCEL™) and Birla Cellulose (Birla Excel™) manufacture high-quality Lyocell using sustainable forestry and innovative technologies.

  • Micro-Tracker Traceability: Both Lenzing (TENCEL™) and Aditya Birla Group (Birla Excel™) have introduced advanced micro-tracing technologies in their Lyocell fibres to ensure full supply chain transparency. These micro-trackers — either physical markers or DNA-based molecular tracers — are embedded directly into the fibre during production. They remain intact throughout the manufacturing process, allowing verification of fibre origin at any stage — from raw fibre to yarn, fabric, and final garment. This ensures brands can confidently prove the authenticity, sustainability, and traceability of their Lyocell garments, building trust with environmentally conscious consumers and supporting ethical sourcing claims.

  • Ultra-Breathable and Moisture-Wicking: Lyocell naturally wicks moisture away from the skin, making it cooler, drier, and more comfortable — ideal for summer wear and high-performance garments.

  • Silky Soft Yet Strong: Lyocell has a smooth surface and soft hand feel similar to silk. It's durable when dry but can become weaker when wet, so it should be handled with care, especially during washing.

  • Wrinkle-Resistant: Garments made from Lyocell maintain a neat appearance with minimal ironing — a bonus for both fashion and home textiles.

  • Excellent Dye Absorption: Lyocell absorbs dye well, resulting in vibrant, rich colours. However, this also makes it prone to colour bleeding or seepage during initial washes. To preserve colour quality, it's best to wash Lyocell items separately in cold water and avoid harsh detergents.

  • Biodegradable and Compostable: At the end of its life cycle, Lyocell naturally decomposes, making it a zero-waste choice for eco-conscious fashion brands.



Handling and Care Tips:


  • Wash in cold water, preferably by hand or on a gentle cycle

  • Use mild, non-bleach detergents

  • Avoid wringing or rough agitation — Lyocell fibres are delicate when wet

  • Air dry flat or tumble dry on low to prevent shrinkage

  • Avoid mixing with dark or heavily dyed garments during the first washes


In summary, Lyocell fabric is the ultimate blend of sustainability, functionality, and comfort. Backed by global manufacturers like Lenzing and Birla, and equipped with advanced traceability and care features, it’s an ideal fabric choice for brands looking to create high-quality, conscious clothing that lasts.


A Quick History: The Evolution of Lyocell


The concept of Lyocell was first developed in the 1980s as a next-generation alternative to rayon and modal. It aimed to solve the environmental issues associated with traditional viscose production, which uses toxic chemicals like carbon disulfide.


  • 1992: Lyocell was commercialized under the brand name TENCEL™ by Austrian textile company Lenzing AG.

  • Over time, other major fibre producers joined in, including Aditya Birla Group, which launched Birla Excel™ through its Birla Cellulose division.

  • Today, Lyocell is recognized globally for its eco credentials, performance benefits, and rising demand in the sustainable fashion segment.




How Lyocell Is Made: A Sustainable Manufacturing Story


How Lyocell Is Made

Lyocell is not just a fabric — it’s a statement about conscious production.


A step-by-step breakdown of Lyocell production:


  1. Wood Harvesting: Sourced from responsibly managed forests certified by FSC® or PEFC™.

  2. Pulping: The wood is mechanically and chemically broken down into cellulose pulp.

  3. Dissolving Pulp: Pulp is mixed with a non-toxic solvent (NMMO) to form a thick solution.

  4. Fiber Spinning: The solution is pushed through spinnerets to create long, smooth fibers.

  5. Washing and Drying: Fibers are washed, dried, and cut into lengths for yarn spinning.

  6. Closed-Loop Recovery: The solvent is recovered and reused, reducing water waste, emissions, and chemical runoff.


This process has a far lower environmental footprint compared to polyester, conventional cotton, or viscose. It requires less water, emits fewer greenhouse gases, and leaves behind no toxic residues.


Is Lyocell Sustainable?


Yes, Lyocell is one of the most sustainable fabrics available today. It is made from renewable wood sources like birch & eucalyptus, which grow quickly and require minimal water or pesticides. What makes Lyocell truly eco-friendly is its closed-loop production process, where over 99% of the non-toxic solvent used to dissolve the wood pulp is recovered and reused, resulting in very little waste or pollution.


Additionally, Lyocell is biodegradable and compostable, meaning it won’t contribute to long-term landfill waste. Its production uses less water and energy compared to cotton and doesn't release harmful chemicals like traditional viscose. When sourced from certified producers like Lenzing (TENCEL™) or Birla Excel, Lyocell supports responsible forestry and ethical supply chains, making it a top choice for sustainable fashion brands worldwide.



Why Fashion Retailers Should Choose Lyocell


Fashion retailers worldwide are embracing Lyocell due to its wide range of benefits, both functional and environmental. Here’s why Lyocell is an ideal choice:


1. Unmatched Sustainability

  • Lyocell is biodegradable, compostable, and produced with minimal ecological impact. Brands looking to stand out in the sustainable fashion space can confidently use Lyocell in their collections to align with climate-conscious values.


2. Superior Moisture Management

  • Lyocell can absorb up to 50% more moisture than cotton, making it ideal for activewear, innerwear, summer wear, and humid climates. It naturally wicks away sweat and keeps the body cool and dry.


3. Exceptional Comfort and Softness

  • With its smooth surface and fine fibers, Lyocell feels silky-soft against the skin. It’s hypoallergenic and breathable, making it suitable even for sensitive skin and baby clothing.


4. Strength and Durability

  • Unlike many natural fibers, Lyocell retains its strength even when wet. This means garments last longer and resist tearing or deformation, reducing returns and customer complaints.


5. Versatility in Design

  • Lyocell drapes beautifully, holds dye brilliantly, and blends easily with other fibers like cotton, wool, polyester, and elastane. This gives designers the freedom to experiment with texture, structure, and silhouette.



Common Lyocell Applications in Fashion


Lyocell can be used across a wide variety of garments and textile products. Its adaptability makes it a go-to choice for:


  • Tops and T-Shirts: Ultra-soft, lightweight, and breathable for everyday wear.

  • Dresses and Blouses: Luxurious drape and elegant flow, ideal for both casual and formal wear.

  • Denim and Pants: Used in denim blends for soft yet structured jeans.

  • Activewear and Loungewear: Moisture-wicking and comfortable for movement and relaxation.

  • Baby and Kidswear: Hypoallergenic and safe for delicate skin.

  • Home Textiles: Popular for bedsheets, pillowcases, and towels.


Birla Excel: India’s Homegrown Lyocell Fibre


When we talk about Lyocell production on a global scale, Aditya Birla Group plays a major role. Through its Birla Cellulose arm, it manufactures Birla Excel™, a premium Lyocell fibre, locally in India.


What Makes Birla Excel™ Stand Out?


  • 100% plant-based and FSC-certified wood pulp.

  • Closed-loop system with 99.7% solvent recovery.

  • Known for being one of the strongest cellulosic fibers in the world.

  • Excellent comfort, dye absorption, and versatility.

  • Widely used in fashion, home textiles, non-wovens, and denim.


Innovation and Sustainability:


Birla Cellulose has also collaborated with Circ to create recycled Lyocell from textile waste and launched Nullarbor-20™, which includes 20% bacterial cellulose, pushing the boundaries of next-gen sustainable fabrics.


For retailers, sourcing from Birla Excel means high-quality, locally available Lyocell with lower shipping costs, shorter lead times, and traceable sustainability.



The Best Lyocell Fabric Clothing Manufacturer in India


When it comes to transforming Lyocell fabric into stylish, high-performance garments, NoName stands out as a leading sustainable clothing manufacturer in India.


Whether you’re a startup or a mid-sized label, NoName is the perfect partner for scaling your brand with eco-conscious materials and precision manufacturing.


What NoName Offers:


  • ✅ Deep expertise in Lyocell garment construction, finishing, and dyeing.

  • ✅ A Flexi MOQ model, perfect for small orders and emerging brands.

  • ✅ Strong private-label support for launching your own brand line.

  • ✅ Complete customization: styles, cuts, prints, and finishes to suit your brand story.

  • ✅ Transparent supply chains and a clear focus on ethical production.


If you’re looking for a trusted lyocell fabric clothing manufacturer in India, NoName combines fashion-forward design with responsible practices, every step of the way.



Conclusion: Build a Greener Fashion Brand with NoName


As fashion retailers, the materials you choose define your brand’s identity and values. Lyocell is more than a fabric — it’s a commitment to quality, comfort, and sustainability.

When you choose to work with NoName, a forward-thinking clothing manufacturer in India, you gain access to:


  • Expert craftsmanship in Lyocell garments

  • Sustainable sourcing and transparent production

  • Flexibility for small and medium orders

  • End-to-end private-label solutions


Ready to launch your sustainable collection?


Partner with NoName — the leading Lyocell fabric clothing manufacturer in India. We help conscious fashion brands bring their ideas to life with sustainable materials, smart manufacturing, and expert support.


WhatsApp: +91-9717 508 508

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