A new report by Fashion for Good and BCG highlights the urgent need for fashion brands to adopt next-generation materials, which could reshape the industry’s environmental impact and cost structure. Materials account for 92 per cent of fashion’s emissions and nearly 30 per cent of cost of goods sold (COGS).
While next-gen materials currently make up only 1 per cent of the fiber market, they could reach 8 per cent or 13 million tons by 2030. However, achieving this growth requires overcoming financial, technical, and operational barriers amid regulatory pressures, supply chain disruptions, and shifting consumer preferences.
The report, Scaling Next-Gen Materials in Fashion: An Executive Guide, outlines three key levers to accelerate adoption: demand, cost, and capital. Stable demand signals, demand pooling, and transition financing can ease adoption challenges. Cost engineering and supply chain optimization will make these materials more affordable.
Strategic financing, aligned with different adoption phases, is essential for long-term scaling. Brands that integrate next-gen materials into core strategies can reduce COGS by 4 per cent over five years, ensuring competitiveness in an evolving market.
Industry leaders stress the urgency of action. “Next-generation materials are no longer just an opportunity but a business imperative,” said Katrin Ley, managing director at Fashion for Good. BCG’s Sebastian Boger emphasized that scaling these materials is critical for staying relevant, while Catharina Martinez-Pardo noted that brands embedding them into their strategies now will lead the future of fashion.
The report calls for both individual brand efforts and industry-wide collaboration to drive adoption and secure long-term resilience.
