Understanding the differences between lyocell vs cotton becomes crucial when choosing sustainable, comfortable fabrics for your wardrobe and home. Over 68% of US consumers now prioritize eco-friendly textiles in their purchasing decisions, yet many remain confused about lyocell’s advantages over traditional cotton. This comprehensive guide reveals the exact properties, environmental impact, and performance characteristics that distinguish these two popular fabrics in 2025. …Lyocell is a regenerated cellulose fiber made from wood pulp through an innovative closed-loop manufacturing process that recovers over 99% of solvents used in production. …The choice between lyocell vs cotton depends on your priorities: sustainability goals, budget constraints, specific use applications, and care preferences. Neither fiber is universally superior—each excels in different scenarios. Choose lyocell if you prioritize: environmental sustainability, moisture-wicking performance, luxury feel, and durability. …Our sustainability analysis shows lyocell winning decisively with 78% less water usage, no pesticide requirements, and complete biodegradability.