TENCEL™ Lyocell: The Complete Guide to One of the Most Sustainable Fabrics Today

As conscious consumers look for alternatives to polyester, rayon, and other resource-heavy textiles, TENCEL™ Lyocell has become one of the most widely discussed sustainable fabrics in fashion and home goods. But with growing interest comes confusion: What is TENCEL Lyocell? What is lyocell made of? Is lyocell toxic? Does it shrink? Is it a natural fiber, or is lyocell plastic?

Here, we’re untangling the terminology, the science, and the sustainability claims behind lyocell so you can shop with confidence.

What Is TENCEL™ Lyocell?

TENCEL™ Lyocell is a branded version of lyocell fiber produced exclusively by the Austrian company Lenzing AG. While “lyocell” refers to a type of regenerated cellulose fiber, TENCEL™ Lyocell is known for higher sustainability standards, traceability, and stricter environmental controls than generic lyocell.

In short:
All TENCEL™ Lyocell is lyocell, but not all lyocell is TENCEL™.

This distinction matters when evaluating sustainability and toxicity claims.

What Is Lyocell Material?

Lyocell material is a semi-synthetic fiber made from wood pulp. The most common sources are:

• Eucalyptus

• Beech

• Birch

• Softwood forests

These trees are often grown on responsibly managed plantations, and eucalyptus in particular requires significantly less water and pesticides than cotton.

What Is Lyocell Made Of? / What Is Lyocell Fabric Made Of?

Lyocell is made from cellulose, the structural component of plant cell walls. The wood pulp is dissolved into a solution using a solvent, then pushed through fine nozzles to form fibers. The fibers are washed, dried, spun, and turned into fabric.

The process is known as the solvent-spinning method, which is considered cleaner than the chemical-intensive processes used for viscose and modal.

What Is TENCEL Lyocell Made Of?

TENCEL™ Lyocell is made from the same cellulose-based raw materials, but with added guidelines:

• Wood pulp from FSC- or PEFC-certified forests
  
  

• A non-toxic solvent (NMMO) that is recovered and reused at a 99.5% rate
  
  

• A closed-loop production system that minimizes waste streams
  
  

This is why TENCEL™ holds a stronger sustainability reputation than generic lyocell.

Is Lyocell Toxic?

Short answer: No, lyocell is not considered toxic.

The solvent used to dissolve wood pulp in lyocell production is N-methylmorpholine N-oxide (NMMO), a safer alternative to the carbon disulfide used in viscose manufacturing.

• NMMO is non-volatile
  
  

• It does not create harmful emissions when handled properly
  
  

• In TENCEL™ systems, it is almost entirely recovered
  
  

However:
Not all generic lyocell mills operate at the same environmental standards. This is why TENCEL™ Lyocell is generally preferred in sustainability evaluations.

Is TENCEL Lyocell Toxic?

TENCEL™ Lyocell specifically is recognized as non-toxic, Oeko-Tex certified, and free from harmful chemical residues. Lenzing’s closed-loop system prevents the release of toxic byproducts, making it one of the cleanest man-made cellulosic fibers available.

Is Lyocell a Natural Fiber?

Lyocell is considered a semi-synthetic fibernot fully natural like cotton, and not fully synthetic like polyester.

Why?

Because while lyocell originates from natural cellulose, it undergoes a chemical process that transforms the pulp into fiber.

Think of it as:
Natural origin + controlled scientific processing = regenerated cellulose fiber.

Is Lyocell Plastic?

No.

Lyocell is not a plastic, and it does not contain petroleum. Unlike polyester, it does not shed microplastics when washed.

Instead, lyocell fibers are biodegradable and compostable in industrial and home environments, depending on fabric blends and finishes.

Does Lyocell Stretch? / Is Lyocell Fabric Stretchy?

Pure lyocell is not inherently stretchy. It behaves more like a soft, drapey woven cotton.
However, when blended with elastane or knit into jersey structures, lyocell fabrics can develop stretch.

Does Lyocell Fabric Shrink? / Will Lyocell Fabric Shrink?

Lyocell can shrink slightly on the first wash, especially if exposed to high heat.
To avoid shrinkage:

• Wash cold
  
  

• Use a gentle cycle
  
  

• Air dry or tumble dry low
  

TENCEL™ Lyocell tends to shrink less due to its controlled fiber quality.

Does TENCEL Lyocell Shrink?

TENCEL™ Lyocell may shrink 2–5% on the first wash if care instructions aren’t followed, but it is more stable than generic lyocell.

Is Lyocell Breathable?

Yes, extremely.

Lyocell fibers have high moisture-wicking capacity, which makes the fabric:

• Breathable

• Cool to the touch

• Suitable for hot climates and activewear

• Resistant to bacterial growth
  
  

This breathability is why lyocell is increasingly used in bedding, loungewear, and even lyocell hiking clothing.

Modal, TENCEL, Lyocell, what’s the Difference?

• Modal: Another Lenzing fiber, softer, more flexible, made from beechwood.
  
  

• Lyocell: Generic term for regenerated cellulose fibers made from wood pulp.
  
  

• TENCEL™ Lyocell: Lyocell produced specifically by Lenzing under strict sustainability guidelines.
  
  

The biggest differentiator is the solvent system: Lyocell uses a closed-loop method that is safer and cleaner than the viscose/modal chemical process.

Why Lyocell Matters for Sustainable Fashion

Lyocell stands out for several reasons:

• Lower water use than cotton
  
  

• No microplastic pollution
  
  

• Biodegradable and compostable
  
  

• Strong, durable, and long-lasting
  
  

• Less chemical pollution than viscose
  
  

• Large-scale potential without environmental degradation
  
  

When sourced from certified forests and produced in closed-loop systems, lyocell is one of the most responsible textile choices available today.

At Shifting Gaia, Here’s Where We Stand

We evaluate lyocell and TENCEL™ Lyocell using our sustainability rubric across:

• Material sourcing
  
  

• Water and chemical use
  
  

• Production impact
  
  

• Waste and circularity
  
  

• Certifications
  
  

• Labor transparency
  
  

• Packaging
  
  

We encourage brands to prioritize TENCEL™ Lyocell over generic lyocell and to disclose sourcing, finishing chemicals, and blends, because fabrics are only sustainable when the entire process is transparent.