Viscose Filament Yarn Market in India

Viscose Filament Yarn in India Trends and Forecast

The future of the viscose filament yarn market in India looks promising with opportunities in the textile & apparel and home textile markets. The global viscose filament yarn market is expected to grow with a CAGR of 3.5% from 2025 to 2031. The viscose filament yarn market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing consumer demand for eco-friendly textiles & clothing and the growing need for raw fiber in the production of fabric.

• Lucintel forecasts that, within the sales channel category, direct sale is expected to witness a higher growth over the forecast period.
• Within the end use category, textile & apparel will remain a larger segment over the forecast period.

Emerging Trends in the Viscose Filament Yarn Market in India

The viscose filament yarn (VFY) market in India is undergoing a significant transformation, driven by evolving consumer preferences, technological advancements, and sustainability imperatives. As one of the largest producers and consumers of viscose yarn, India is witnessing a shift in demand patterns, production processes, and market strategies. The industry is responding to global trends such as eco-friendly manufacturing, digitalization, and the integration of new materials. These changes are not only enhancing the competitiveness of Indian manufacturers but also positioning the country as a key player in the global textile value chain.

• Growing demand for sustainable and eco-friendly yarns: Environmental concerns and stricter regulations are pushing manufacturers to adopt greener production methods. The use of closed-loop processes, biodegradable chemicals, and renewable raw materials is gaining traction. Brands and consumers are increasingly seeking certifications like FSC and OEKO-TEX, which is prompting Indian producers to invest in sustainable practices. This trend is enhancing the marketability of Indian viscose yarns in both domestic and international markets, while also reducing the environmental footprint of the industry.
• Technological advancements in production processes: Automation, digital monitoring, and advanced spinning technologies are being integrated into viscose filament yarn manufacturing. These innovations are improving product consistency, reducing waste, and increasing operational efficiency. Indian manufacturers are leveraging Industry 4.0 solutions to optimize resource utilization and minimize downtime. The adoption of these technologies is enabling producers to meet stringent quality standards and cater to the evolving needs of high-end textile applications, thereby strengthening their competitive edge.
• Diversification into value-added and specialty yarns: There is a growing focus on developing specialty viscose yarns with enhanced properties such as high tenacity, flame resistance, and antibacterial features. This diversification is driven by demand from sectors like sportswear, medical textiles, and home furnishings. Indian companies are investing in R&D to create differentiated products that command premium prices. This trend is helping manufacturers tap into new market segments and reduce dependence on commodity-grade yarns, thus improving profitability.
• Expansion of export opportunities: Indian viscose filament yarn producers are increasingly targeting international markets, especially in Asia, Europe, and the Middle East. Competitive pricing, improved quality, and compliance with global standards are making Indian yarns attractive to overseas buyers. Trade agreements and government incentives are further supporting export growth. This expansion is helping Indian manufacturers mitigate domestic market fluctuations and establish a stronger presence in the global textile supply chain.
• Emphasis on circular economy and recycling initiatives: The industry is embracing circular economy principles by promoting recycling and reuse of viscose waste. Companies are developing processes to recover and repurpose production by-products, reducing landfill and resource consumption. Collaboration with fashion brands and NGOs is fostering the adoption of recycled viscose yarns. This trend is not only addressing environmental concerns but also creating new business opportunities and enhancing the sustainability credentials of Indian viscose yarn producers.

These emerging trends are fundamentally reshaping the viscose filament yarn market in India. The shift towards sustainability, technological innovation, product diversification, export orientation, and circular economy practices is driving growth and competitiveness. Indian manufacturers are adapting to global demands and regulatory expectations, positioning themselves as leaders in responsible textile production. As these trends continue to evolve, the Indian viscose filament yarn industry is set to play a pivotal role in the future of sustainable and value-added textiles, both domestically and internationally.

Recent Developments in the Viscose Filament Yarn Market in India

The viscose filament yarn (VFY) market in India has witnessed a significant transformation in recent years, driven by technological advancements, sustainability initiatives, and evolving consumer preferences. As one of the largest producers and consumers of VFY, India’s textile industry is adapting to global trends and domestic demands. Key players are investing in capacity expansion, product innovation, and eco-friendly manufacturing processes. These developments are shaping the competitive landscape, enhancing export potential, and supporting the growth of allied sectors. The following outlines five major recent developments impacting the Indian VFY market.

• Capacity Expansion by Leading Manufacturers: Major Indian VFY producers have announced substantial capacity expansions to meet rising domestic and international demand. Companies like Grasim Industries and Century Rayon are investing in new production lines and upgrading existing facilities. This expansion is expected to increase supply, stabilize prices, and strengthen India’s position as a global supplier. The move also creates employment opportunities and supports the growth of downstream industries such as apparel and home textiles. Enhanced capacity ensures better fulfillment of large orders, making Indian VFY more competitive in the global market.
• Adoption of Sustainable Production Practices: Sustainability has become a central focus for VFY manufacturers in India. Firms are increasingly adopting closed-loop production systems, reducing water and chemical usage, and sourcing wood pulp from certified sustainable forests. These initiatives help minimize environmental impact and align with global sustainability standards. As a result, Indian VFY is gaining preference among eco-conscious brands and consumers. The shift towards greener production not only enhances brand reputation but also opens up new export markets, particularly in Europe and North America.
• Technological Advancements in Yarn Quality: Indian VFY producers are investing in advanced spinning technologies and quality control systems. Innovations such as automated spinning, real-time monitoring, and improved finishing processes have led to higher-quality yarn with better strength, luster, and uniformity. These technological upgrades enable manufacturers to cater to high-end fashion and technical textile segments. Improved product quality also reduces rejection rates and enhances customer satisfaction, further boosting the market’s growth prospects.
• Strategic Partnerships and Collaborations: The Indian VFY sector has seen a rise in strategic partnerships between domestic manufacturers and international textile companies. These collaborations focus on technology transfer, joint product development, and market expansion. By leveraging global expertise and distribution networks, Indian firms can access new markets and diversify their product offerings. Such alliances also facilitate knowledge sharing and foster innovation, helping the industry stay competitive amid changing market dynamics.
• Government Policy Support and Incentives: The Indian government has introduced various policy measures and incentives to support the VFY industry. Initiatives such as the Production Linked Incentive (PLI) scheme, export promotion policies, and infrastructure development projects are encouraging investment and modernization. These policies aim to enhance the sector’s global competitiveness, attract foreign investment, and boost exports. Government support is also helping small and medium enterprises upgrade their capabilities, contributing to the overall growth and resilience of the VFY market.

These recent developments are collectively transforming the Indian viscose filament yarn market, making it more competitive, sustainable, and innovation-driven. Capacity expansions and technological advancements are improving product quality and supply reliability, while sustainability initiatives are enhancing global appeal. Strategic partnerships and supportive government policies are further strengthening the industry’s foundation, enabling it to capture new opportunities in both domestic and international markets. As a result, the Indian VFY sector is well-positioned for sustained growth and increased global prominence.

Strategic Growth Opportunities for Viscose Filament Yarn Market in India

The viscose filament yarn (VFY) market in India is experiencing dynamic growth, driven by evolving consumer preferences, technological advancements, and expanding end-use industries. As manufacturers seek to capitalize on these trends, strategic opportunities are emerging across various applications. These opportunities are not only enhancing the value proposition of VFY but also positioning India as a key player in the global textile landscape. Understanding these growth avenues is crucial for stakeholders aiming to maximize returns and foster sustainable development in the sector.

• Product Innovation: The development of high-performance and specialty viscose filament yarns is enabling manufacturers to cater to niche markets such as sportswear, medical textiles, and eco-friendly fashion. By focusing on innovation, companies can differentiate their offerings, command premium pricing, and address specific consumer needs. This approach also supports the adoption of sustainable practices, as new yarns often incorporate environmentally friendly processes and materials, thereby enhancing brand reputation and market reach.
• Expansion in Home Textiles: The rising demand for premium home furnishings, including curtains, upholstery, and bed linens, is creating significant opportunities for VFY producers. Viscose filament yarn’s lustrous appearance and soft texture make it ideal for these applications. By targeting the home textile segment, manufacturers can tap into a growing market driven by urbanization, rising disposable incomes, and changing lifestyle preferences, ultimately boosting sales and profitability.
• Growth in Fashion Apparel: The fashion industry’s increasing preference for sustainable and versatile materials is fueling the adoption of viscose filament yarn in apparel manufacturing. VFY’s drape, sheen, and comfort make it a popular choice for dresses, blouses, and ethnic wear. By aligning with fashion trends and collaborating with designers, VFY producers can enhance their market presence and capture a larger share of the value-added textile segment.
• Technical Textiles Adoption: The use of viscose filament yarn in technical textiles, such as filtration fabrics, industrial threads, and automotive interiors, is expanding rapidly. This growth is driven by the yarn’s strength, durability, and adaptability to specialized requirements. By investing in R&D and targeting technical textile applications, manufacturers can diversify their product portfolio, reduce dependency on traditional markets, and access higher-margin opportunities.
• Export Market Expansion: Indian VFY manufacturers are increasingly focusing on export markets to leverage global demand for high-quality yarns. By adhering to international standards, enhancing production capacities, and building strong distribution networks, companies can penetrate new geographies. This strategy not only increases revenue streams but also mitigates risks associated with domestic market fluctuations, ensuring long-term business sustainability.

These strategic growth opportunities are reshaping the viscose filament yarn market in India, driving innovation, diversification, and global competitiveness. By capitalizing on advancements in product development, expanding into new application areas, and targeting international markets, stakeholders are strengthening the industry’s foundation for sustained growth. Collectively, these initiatives are enhancing the market’s resilience, profitability, and contribution to India’s textile sector.

Viscose Filament Yarn Market in India Driver and Challenges

The major drivers and challenges impacting the viscose filament yarn market in India stem from a combination of technological advancements, economic trends, and regulatory frameworks. These factors collectively shape the market’s growth trajectory, influencing production capacities, demand patterns, and competitive dynamics. While technological innovations and favorable economic conditions can propel the market forward, regulatory changes and environmental concerns may pose significant hurdles. Understanding these drivers and challenges is crucial for stakeholders to navigate the evolving landscape and make informed strategic decisions in the Indian viscose filament yarn sector.

The factors responsible for driving the viscose filament yarn market in India include:
• Growing Textile and Apparel Industry: The rapid expansion of India’s textile and apparel sector is a primary driver for the viscose filament yarn market. As consumer demand for fashionable and comfortable clothing rises, manufacturers increasingly turn to viscose filament yarn for its silk-like feel, versatility, and cost-effectiveness. The government’s support for textile parks and export incentives further boosts production and consumption, making viscose filament yarn a preferred choice for both domestic and international markets. This growth in end-use industries directly translates to higher demand for viscose filament yarn.
• Technological Advancements in Production: Innovations in manufacturing processes, such as improved spinning techniques and automation, have significantly enhanced the quality and efficiency of viscose filament yarn production. These advancements reduce production costs, minimize waste, and enable the creation of specialty yarns with superior properties. As a result, manufacturers can cater to diverse customer requirements and maintain competitiveness in both local and global markets. The adoption of modern technology also supports scalability and consistent product quality, further driving market growth.
• Increasing Preference for Eco-friendly Fibers: With rising environmental awareness, there is a growing preference for sustainable and biodegradable fibers in the textile industry. Viscose filament yarn, derived from natural cellulose, is perceived as an eco-friendly alternative to synthetic fibers. This shift in consumer and manufacturer preferences is encouraging the adoption of viscose filament yarn, especially as brands and retailers seek to enhance their sustainability credentials. The trend towards green textiles is expected to sustain long-term demand for viscose filament yarn in India.
• Favorable Government Policies and Investments: The Indian government’s proactive policies, such as the Production Linked Incentive (PLI) scheme and investments in textile infrastructure, have created a conducive environment for the growth of the viscose filament yarn market. These initiatives aim to boost domestic manufacturing, attract foreign investment, and enhance export competitiveness. By providing financial incentives and streamlining regulatory processes, the government is enabling manufacturers to expand capacities, upgrade technology, and explore new markets, thereby driving overall market expansion.

The challenges in the viscose filament yarn market in India are:
• Environmental Concerns and Regulatory Compliance: The production of viscose filament yarn involves chemical-intensive processes that can lead to environmental pollution if not managed properly. Stringent environmental regulations and the need for compliance with global sustainability standards pose significant challenges for manufacturers. Investments in effluent treatment and cleaner technologies are necessary but can increase operational costs. Non-compliance risks reputational damage and loss of market access, especially in export-oriented segments, making environmental management a critical challenge for the industry.
• Volatility in Raw Material Prices: The primary raw material for viscose filament yarn is wood pulp, the prices of which are subject to fluctuations due to supply-demand imbalances, import dependencies, and global market dynamics. Price volatility can erode profit margins and disrupt production planning for manufacturers. Additionally, competition for raw materials from other industries, such as paper and packaging, can exacerbate supply constraints. Managing raw material costs and ensuring a stable supply chain remain persistent challenges for the market.
• Intense Market Competition and Substitutes: The viscose filament yarn market in India faces stiff competition from both domestic and international players, as well as from alternative fibers like polyester and nylon. These substitutes often offer lower prices or superior performance characteristics, making it challenging for viscose filament yarn to maintain its market share. Continuous innovation, quality improvement, and effective marketing are essential for manufacturers to differentiate their products and withstand competitive pressures in a dynamic market environment.

The interplay of robust drivers and formidable challenges shapes the future of the viscose filament yarn market in India. While technological progress, sustainability trends, and supportive policies fuel growth, environmental compliance, raw material volatility, and competition present significant obstacles. Stakeholders must strategically address these challenges to capitalize on emerging opportunities and ensure the market’s sustained expansion and resilience.

List of Viscose Filament Yarn Market in India Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, viscose filament yarn companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the viscose filament yarn companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5

Viscose Filament Yarn Market in India by Segment

The study includes a forecast for the viscose filament yarn market in India by sales channel and end use.

Viscose Filament Yarn Market in India by Sales Channel [Analysis by Value from 2019 to 2031]:

• Direct Sale
• Indirect Sale

Viscose Filament Yarn Market in India by End Use [Analysis by Value from 2019 to 2031]:

• Textiles & Apparel
• Home Textile
• Others

Features of the Viscose Filament Yarn Market in India

Market Size Estimates: Viscose filament yarn in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Viscose filament yarn in India market size by sales channel and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different sales channel and end use for the viscose filament yarn in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the viscose filament yarn in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.

FAQ

Q1. What are the major drivers influencing the growth of the viscose filament yarn market in India?
Answer: The major drivers for this market are the increasing consumer demand for eco-friendly textiles & clothing and the growing need for raw fiber in the production of fabric.
Q2. What are the major segments for viscose filament yarn market in India?
Answer: The future of the viscose filament yarn market in India looks promising with opportunities in the textile & apparel and home textile markets.
Q3. Which viscose filament yarn market segment in India will be the largest in future?
Answer: Lucintel forecasts that direct sale is expected to witness the higher growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the viscose filament yarn market in India by sales channel (direct sale and indirect sale), and end use (textiles & apparel, home textile, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Viscose Filament Yarn Market in India, Viscose Filament Yarn Market in India Size, Viscose Filament Yarn Market in India Growth, Viscose Filament Yarn Market in India Analysis, Viscose Filament Yarn Market in India Report, Viscose Filament Yarn Market in India Share, Viscose Filament Yarn Market in India Trends, Viscose Filament Yarn Market in India Forecast, Viscose Filament Yarn Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.