NEW DELHI (India CSR): As global textile supply chains move toward low-carbon and circular materials, India’s man-made cellulosic fibre (MMCF) sector is emerging as a key materials hub. The newly released 10th Edition of Canopy’s Hot Button Report, the fashion industry’s leading rating for responsible wood sourcing for viscose and rayon production , highlights a decade of progress across the global MMCF industry and underscores the opportunity for India to strengthen its position as a key leader in circular fibre production. More than 550 leading brands – from H&M, Myntra, and Zara to Stella McCartney and Target – use the report as a sourcing guide. Indian brands now have increasing options to choose viscose and lyocell from suppliers that are more transparent, are reducing their environmental impact on the world’s forest and are participating in a shift towards textile circularity.
The Hot Button Report shows that the MMCF sector has advanced from zero low-risk Green Shirt producers in 2016 to 21 in 2025, and from no commercial-scale Next Gen fibre lines to 16 available today. The findings demonstrate that supply chain transformation is possible at speed and scale, with 98% of global MMCF production now assessed and 70% of producers earning Green, Partial Dark Green, or Dark Green designations, a sharp contrast to just nine years ago.
While the report does not evaluate countries individually, India plays an increasingly critical role in this global transition. The country has production capacity of approximately 865,000 tonnes of viscose annually, accounting for a major share of Asia’s MMCF output. This internal MMCF capacity is low risk for Ancient and Endangered Forests, but the export of MMCF from other countries is introducing risk into Indian supply chains. Strengthening domestic traceability and ensuring sourcing that is free of Ancient and Endangered forests will be key to strengthening India’s competitiveness and advancing its leadership in global textile markets.
“Transformation of the MMCF sector is accelerating,” said Nicole Rycroft, Founder and Executive Director of Canopy. “India’s textile industry has both the raw materials and the innovation capacity to be an early leader in Next Gen production globally. Its supply chain readiness means it is primed for the right scale and kind of investment to unlock this potential.”
The Hot Button Report remains the industry’s most trusted resource for assessing MMCF producers on responsible forest sourcing, traceability, and Next Generation (Next Gen) fibre production. Since its first publication in 2016, the report has charted the industry’s progress from opacity to accountability.
The 2025 rating is led by Lenzing and Tangshan Sanyou, who share the top position, followed closely by Aditya Birla Group in second place. Other top performers include Jilin Chemical Fiber, Yibin Grace, and Xinxiang Chemical Fiber Co. (Bailu), who all advanced their Next Gen integration and forest-safe practices during the past year.
This year’s Report includes contributions from 30 MMCF producers globally, including two new entrants, with 54% of global production now coming from Green Shirt–rated facilities
“This 10th edition of the Hot Button Report shows that supply chain transformation is not only possible, it’s happening,” said Nicole Rycroft, Founder and Executive Director of Canopy. “Business-as-usual can no longer be the standard. The leaders in the Hot Button are demonstrating that investing in Next Gen Solutions isn’t just good for the planet, it’s integral to building resilient, low-carbon supply chains to meet brand expectations against increasingly volatile raw material supply, and deliver long-term business value.”
India’s vast textile infrastructure, combined with abundant raw materials, gives it a significant opportunity to accelerate the shift to circular and Next Gen fibre production. According to Canopy’s Unlocking India’s Next Gen Economy Opportunity Paper, India generates over 100 million tonnes of agricultural residues and 7.8 million tonnes of post-consumer textile waste annually – resources that can replace high -carbon forest inputs in viscose production while cutting emissions and reducing pollution.
(India CSR)
