Next-generation materials including textile-to-textile recycled polyester and lab-grown cotton could represent 8% of the total fibre market by 2030 – equivalent to approximately 13 million tons, according to a new report from Fashion for Good and the Boston Consulting Group.

Although a vast improvement from just 1% of the fibre market today, this growth may still fall short of industry demand due to mounting regulatory pressures, climate-related supply chain disruptions and evolving consumer preferences, the report’s authors observe.

Materials account for 92% of the industry’s total emissions through their extraction, processing and production, as well as around 30% of cost of goods sold (COGS). Next-generation materials present the opportunity to transform the industry’s environmental impact. Many brands, however, lack guidance and are unprepared for a material transition and how to drive adoption to unlock the benefits of these new materials.

“The fashion industry stands at a critical juncture where next-generation materials are no longer just an opportunity but a business imperative,” said Katrin Ley, managing director at Fashion for Good. “The opportunity is there, but requires individual and collective action across demand, cost, and capital levers to bend the adoption curve.”

Three levers

The scaling of next-generation materials is hindered by financial, technical and operational obstacles. The report, Scaling Next-Gen Materials in Fashion: An Executive Guide, provides a strategic plan to enable industry leaders to navigate these challenges.

 It emphasises the need for both individual brand action and industry-wide collaboration, identifying three primary levers for scaling next-gen materials and reducing the cost of transition.

Firstly, consistent demand signals stabilise markets and demand pooling and transition financing can overcome adoption barriers. Secondly, cost engineering and process optimisation across the supply chain will unlock economies of scale, driving affordability and adoption. Finally, strategic financing aligned with each phase of the adoption curve will ensure sustained growth and scaling potential.

Successful implementation necessitates the integration of next-gen materials into core business strategies, aligning with financial goals to secure resources and drive accountability, the report’s authors say. This requires a comprehensive understanding of the current material mix, supply chain and external ecosystem to mitigate risks and capitalise on opportunities for long-term resilience.

“Scaling next-generation materials isn’t just about sustainability – it’s about staying relevant in a changing market,” says Sebastian Boger, of BCG’s Fashion and Luxury sector. “But these materials won’t scale on their own and industry-wide action is key. The transition to next-generation materials is both a challenge and an opportunity for the fashion industry and brands that act now to embed these materials into their core operations will win the next era of fashion.”

The report can be downloaded here.

www.fashionforgood.com