Forests Are Under Pressure: What That Means for Cellulosic Sourcing

A recent issue brief by Canopy and finance.earth highlights a growing challenge: forests are under increasing pressure from rising demand across energy, construction, packaging and textiles.

The report makes it clear that the room to expand the wood supply without causing further deforestation or degradation is limited.

4 signals that can’t be ignored

1) Rising demand is tightening wood markets

Multiple industries are competing for the same raw material. This is expected to lead to structurally tighter markets, with higher and more volatile prices.

2) Supply is increasingly threatened

Land competition and climate impacts are reducing predictable supply. The report notes that extreme forest fires could increase globally by up to 14% by 2030.

3) Regulation is becoming a market-access gate

The EU Deforestation Regulation (EUDR), which comes into force in December 2026, will require proof that commodities are deforestation- and degradation-free. This will increase demand for certified supply and traceability.

4) Investor expectations are shifting

Capital markets are paying closer attention to deforestation exposure, moving wood sourcing from an operational detail to a strategic business risk.

What this means for cellulosic fibers

Wood pulp is a key input for man-made cellulosic fibers such as viscose. As wood markets tighten, fashion brands may face:

• Higher input costs

• Greater exposure to supply disruption

• More complex due diligence requirements

The report’s central recommendation is clear: reduce reliance on virgin wood by scaling circular and Next Gen alternatives, including fibers made from waste textiles.

How SaXcell comes into play

These findings reinforce a direction the textile industry is already moving toward: decoupling growth from finite forest resources.

SaXcell’s textile-to-textile recycling process aligns directly with this approach by turning cotton waste into high-quality regenerated cellulose fibers. This reduces dependence on virgin wood, lowers exposure to price volatility and supports more resilient supply chains.

Want to discuss how circular fibers can strengthen your sourcing strategy?

Get in touch with us to explore practical next steps.