Scaling Next-Gen Materials In Fashion: An Executive Guide
Materials lie at the heart of the fashion industry. They account for 92% of the industry’s total emissions through their extraction, processing, and production, and around 30% of cost of goods sold (COGS). Next-generation materials present the opportunity to transform the industry’s environmental impact. However, many brands lack guidance and are unprepared for a material transition and how to drive adoption to unlock the benefits of these new materials. In this new report created by Boston Consulting Group and Fashion for Good, based on industry best practices and the successes of early movers, we provide brands with a structured framework to act on key levers and a pathway to address key challenges while driving measurable results.
Executive Summary
A new report, Scaling Next-Gen Materials in Fashion: An Executive Guide, reveals that next-gen materials could represent 8% of the total fibre market by 2030, equivalent to approximately 13 million tons. 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 strategic adoption of next-gen materials could lead to an approximate 4% reduction in COGS over five years, compared to inaction. This demonstrates the importance of transitioning to these materials for brands aiming to maintain their competitive edge.
Scaling with Three Levers
The scaling of next-generation materials is hindered by financial, technical, and operational obstacles. This report provides a strategic plan for industry leaders to navigate these challenges, emphasising the need for both individual brand action and industry-wide collaboration. Three primary levers are identified for scaling next-gen materials and reducing the cost of transition:
Demand: Consistent demand signals stabilise markets; demand pooling and transition financing can overcome adoption barriers.
Cost: Cost engineering and process optimisation across the supply chain unlock economies of scale, driving affordability and adoption.
Capital: Strategic financing aligned with each phase of the adoption curve ensures sustained growth and scaling potential.
This report, based on industry best practices and the successes of early movers, provides brands with a structured framework to act on key levers and a pathway to address key challenges while driving measurable results.
Conclusion and Recommendations
Successful implementation necessitates the integration of next-gen materials into core business strategies, aligning with financial goals to secure resources and drive accountability. This requires a comprehensive understanding of the current material mix, supply chain, and external ecosystem to mitigate risks and capitalize on opportunities for long-term resilience.
Once the foundation is in place, brands are positioned to activate the three critical levers of demand, cost, and capital to drive scale and effectively bend the next-gen materials cost curve. This transformation can be achieved through individual or collective efforts with other brands and suppliers, or a combination of both approaches for maximum impact.
The time to act is now. The next-gen materials revolution is more than a challenge—it’s an unprecedented opportunity to lead. Brands that adopt next-gen materials today will not only unlock financial benefits (up to 4% of COGS savings within 5 years vs inaction) and drive long-term value but also position themselves as leaders in an evolving landscape.
Relevant Resources
Financing the Transformation in the Fashion Industry
Unlocking Investment to Scale Innovation. Report by Fashion for Good and BCG
Fashion for Good & BCG launch New Report - Financing the Transformation in Fashion
Unlocking the Trillion-Dollar Fashion Decarbonisation Opportunity
Fashion for Good and Spring Lane Capital Report Defines How Project Finance Can Bridge the Innovation Commercialisation Gap
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