Fabric Guide

Lyocell Fabric

Lyocell exemplifies innovation, transforming wood into high-performance fibers with little waste.

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By Sander Tamm
Last updated: Jan 24, 2025
Pictured: Pants made from 65% TENCEL Lyocell, a type of lyocell (Eileen Fisher)

What is lyocell?

Lyocell is a semi-synthetic fiber made from wood cellulose, primarily eucalyptus, using a closed-loop process with non-toxic solvents. The best-known brand of lyocell is TENCEL Lyocell, produced by Lenzing, but other producers such as Aditya Birla and Sateri also hold a significant share of the lyocell market. 


As of 2023, lyocell had an annual production volume of 370 thousand tonnes, making it the third most-produced man-made cellulosic fiber (MMCF) after viscose and acetate. It is widely used in various applications, primarily within clothing and home textiles.

What is lyocell made of?

Lyocell is made from natural cellulose extracted from various sources of wood pulp, primarily eucalyptus, beech, and pine. This cellulose is chemically transformed into fibers and woven into fabrics commonly used in denim, activewear, footwear, and home textiles. As a semi-synthetic fiber, lyocell combines natural plant-based raw materials with synthetic processing.

What are the benefits of lyocell?

These are some of the advantages of lyocell:

  1. Efficient closed-loop chemical process: Lyocell production is chemically efficient compared to other fibers. It uses a non-toxic solvent and has a solvent recovery rate of up to 99%, also known as a closed-loop chemical process.
  2. Made primarily from eucalyptus trees: Eucalyptus requires five times less water than cotton, grows without pesticides, and thrives in poor soils. However, a drawback is that its fast growth can lead to water loss and wildfires in drought-prone areas.
  3. Lyocell is fully biodegradable: Lyocell is produced from wood using non-toxic solvents, allowing it to biodegrade fully within 30 days in oceanic conditions. This differentiates it from synthetic fabrics such as polyester, which decompose for 20 to 40 years
  4. Resistant to shrinking: Lyocell fabric resists shrinkage and retains its shape after washing, increasing its durability and lowering its cost-per-wear in the long term. It may, however, shrink by 3 to 5% during the first wash cycle.
  5. Resistant to wrinkling: With its silk-like texture, lyocell resists wrinkling, keeps clothes smooth, and reduces the need for frequent ironing.
  6. Lyocell is breathable: Lyocell is breathable, moisture-absorbent, and hygienic, making it an excellent choice for applications requiring effective air circulation and dryness, such as activewear, bedding, and clothing for warm climates.

What are the properties of lyocell fabric?

Lyocell fabric feels smooth and soft, providing a texture comparable to natural fibers like cotton and silk. It resists shrinking and wrinkling, maintaining its shape after washing. Lyocell is also highly breathable, and great at facilitating air circulation and moisture management to keep the skin dry. However, avoid exposing lyocell fabrics to high heat during washing, drying, or ironing to preserve their properties.

Lyocell vs. TENCEL: Are they the same?

No, lyocell and TENCEL are not the same. TENCEL, or TENCEL Lyocell, is a specific brand of lyocell fibers produced by Lenzing, while lyocell is the generic name for this type of fiber. Chemically, the two are identical, but TENCEL Lyocell distinguishes itself through its production practices, sourcing raw materials only from FSC or PEFC-certified forests. According to the Higg MSI, it also has a reduced impact on global warming, eutrophication, water scarcity, and resource use compared to regular lyocell.


In addition to Lenzing, another key producer of sustainable lyocell is Aditya Birla, and their branded lyocell is called Birla Excel. Canopy Planet, the leading authority on sustainability assessments of cellulosic fiber producers, ranked Aditya Birla higher than Lenzing AG in its 2024 report. Thus, consider that TENCEL Lyocell is not the only branded lyocell with added sustainability benefits available on the market.

Certification standards for lyocell

The two key standards for lyocell, FSC and PEFC, cover the sourcing of raw materials (wood):

  • Forest Stewardship Council (FSC) sets uniform international standards through a top-down approach, ensuring that wood for lyocell comes from responsibly managed forests. Its criteria focus on preserving biodiversity, protecting indigenous rights, sustainable harvesting, and enforcing effective water management practices. FSC is the most rigorous certification for sustainably sourced wood.
  • Programme for the Endorsement of Forest Certification (PEFC) uses a bottom-up approach, allowing countries to develop local standards suited to local needs. It supports climate resilience through carbon sequestration and pollution monitoring while ensuring safety, equality, and income stability. PEFC and FSC share the same goal of sustainable forest management, but PEFC is more accessible and flexible for small-scale forestry operations.

Is lyocell sustainable?

Regular, unbranded lyocell is more sustainable than many conventional fibers due to its efficient closed-loop chemical process, which reclaims and reuses up to 99% of solvents, and its lower water and energy demands.


However, the 2023 "Pulping Borneo" report revealed that some lyocell producers source wood pulp from suppliers linked to deforestation. Sateri, a major viscose producer that entered the lyocell market in 2020, sources pulp from Asia Symbol, a company implicated in the report in deforesting carbon-rich peatlands and critical habitats of Bornean orangutans in Indonesia. It’s worth noting, however, that between the 2023 and 2024 Hot Button Reports, Sateri has undergone improvements in its sourcing practices.

Bornean orangutans in Indonesia
Bornean orangutans in Indonesia / Thomas Fuhrmann, CC BY-SA 4.0

Reports such as “Pulping Borneo” demonstrate that lyocell's environmental integrity can’t be taken for granted and highlight the importance of sourcing wood only from sustainably managed, FSC, or PEFC-certified forests. While certification schemes are not without issues, their value cannot be ignored, and TENCEL Lyocell is a great example of a highly sustainable lyocell fiber with all the right boxes ticked.