Abstract The growing interest in bamboo fibers for pulp, paper, and board production in the USA necessitates a comprehensive financial viability assessment. This study conducts a detailed technoeconomic analysis (TEA) of bamboo fiber production, primarily for the consumer hygiene tissue market although it is also applicable to other industrial uses. The economic viability of two pulping methods – alkaline peroxide mechanical pulping (APMP) and ammonium bisulfite chemical pulping (ABS) – was explored within three different pulp mill settings to supply pulp to two nonintegrated tissue and towel mills in South Carolina, USA. The target was to produce wet lap bamboo bleached pulp at 50% consistency and 70% ISO brightness. Despite higher initial capital invesment and operating costs, ABS achieved a lower minimum required selling price – USD 544 to 686 per bone dry metric ton (BDt = 1000 BDkg) – in comparison with USD 766 to 899 BDt −1 for APMP. This price advantage is partly due to an additional revenue stream (lignosulfonate byproduct), which not only boosts revenue but also circumvents the need for expensive chemical recovery systems. When compared with traditional kraft pulping, both methods require significantly lower capital investments, with minimum required selling prices (estimated to achieve 16% IRR) below current market rates for extensively used bleached kraft pulps in the USA tissue industry. The economic benefits derive from several factors: the low cost of bamboo as raw material, reduced capital needs for new pulping technologies, lower transportation costs from the pulp mill to tissue and towel manufacturing facilities, and the high market price of bleached kraft pulp.