Over the last year the fashion industry has seen Next Gen players including Renewcell, Bolt Threads and Spinnova vocally express their struggles to scale their initiatives and it appears Material Innovation Initiative, the non profit that aims to accelerate the development of sustainable and animal-free materials for the fashion, automotive, and home goods industries, has fallen foul to the same fate.
While the Material Innovation Initiative did not return request for comment when approached, Just Style has seen a letter from Jacqueline Kravette, director and president of the board of directors, to stakeholders in which she announces “with mixed emotions” the winding down of MII’s operations following “a thorough evaluation and much deliberation.”
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The organisation had been effective since 2019 with the mission of transforming the next-gen materials industry through accelerating the development of high-quality, high-performance, animal-free and environmentally preferred next-generation materials.
“We envisioned a world where the materials used in fashion, automotive, and home goods industries would protect human rights, mitigate climate change, spare animals’ lives, and preserve our planet for future generations,” Kravette explains.
The Material Innovation Initiative (MII) has been instrumental in inspiring over $2.31bn in investments into next-gen materials, including $504m in 2023 alone. These investments have driven innovation and growth across the sector, enabling the development of materials that meet performance, aesthetic, and sustainability needs at competitive prices.
The company’s State of the Industry reports have been vital resources for innovators, brands, and investors, saving them time and guiding strategic decision-making. And it has facilitated groundbreaking partnerships between next-gen material innovators and major brands.
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By GlobalData“In 2023, we saw almost 400 collaborations between influential brands and next-gen material companies, showing the increasing interest from brands to incorporate next-gen materials into their collections. This also illustrates the tremendous potential of next-gen materials to disrupt the fashion, home goods and automotive industries,” said Kravette.
So what went wrong?
The fall of Next Gen powerhouses such as Renewcell, which announced a series of sales falls on the back of waning interest in recycled fibres from the wider industry before it finally succumbed and filed for bankruptcy in February, and a restructure announced at Spinnova in March which would result in job losses and a shakeup of its management team, signify there is a deep underlying problem in this area. At the time CEO Tuomas Oijala suggested the current tough economic climate was not the easiest for scaling a growth company.
He urged the textile and apparel sectors to back Next Gen innovators.
“If the global textile industry wants to shift its material base from conventional materials, such as cotton and polyester, to more sustainable alternatives, we need all the players in the textile value chain on board. Bringing a new material innovation like Spinnova to the market in larger volumes requires investments, incentives and long-term commitments from investors, textile industry players and policymakers.”
Non-profit Canopy’s founder and executive director Nicole Rycroft urged the industry to ring Renewcell’s recycled fibre operations back online as well as enable other ventures that are ready to scale circular materials.
Rycroft pointed out that without bold commitments from every stakeholder, including fibre producers, global brands, and governments, the world will not be able to implement low-carbon solutions in time to limit global temperature rises and avoid the worst impacts of climate change.
The night is darkest before the dawn
“One company’s demise does not negate the demand for next-gen materials or the viability of the industry as a whole. Per Gartner’s Hype Cycle for Emerging Technologies, the next-gen materials industry is likely emerging out of the ‘trough of disillusionment’ and moving up the ‘curve of enlightenment’ towards maturity. Setbacks and shake-outs are an expected part of this stage of development,” reads the report.
Stephanie Downs, co-founder and CEO, Uncaged Innovations adds: “A lot of the first-movers in this space — who really paved the way in generating interest and demand — have faced challenges. Investors see pilots here and there but they’re looking for bigger commitments to prove that brands want this and will do what is necessary to support it.”
In her letter, Kravette said since MII began operations the “landscape of the materials industry has changed dramatically.”
“The concept of next-gen materials has gone from a niche idea to a critical component of sustainability strategies for leading global brands. Today, there are 141 companies dedicated to next-gen materials, up from just 102 in 2022, demonstrating the rapid growth and adoption within the industry.
“This increased innovation has brought down prices, improved quality, and expanded the range of available materials, making them viable alternatives to conventional animal and petrochemical-derived materials,” she said.
While MII has not explicitly stated the reason for its closure, Kravette said the industry is now “well-positioned to continue advancing towards a more sustainable and humane future without the direct involvement of MII.”
What will the Material Innovation Initiative closure mean for the sector?
Nicole Rycroft, executive director at Canopy says MII played a “pivotal role” in advancing the conversation and action around alternative, sustainable materials and bringing “much-needed attention” to the importance of developing Next Gen materials to replace unsustainable, animal-based materials.
“The closure of MII is a reminder that while there is momentum, the Next Gen material space is still evolving. We need continued robust support, investment, and collaboration across sectors to scale game-changing Next Gen innovations that will ultimately reshape the material supply chain.
“There are a lot of lessons to be learned from the challenges they encountered as well as their numerous successes. They leave an important body of work that will continue to be built upon by brands, innovators and civil society organisations active in the low-carbon materials space.
“Next Gen materials are increasingly a business priority as they build supply chain resilience and enable businesses to insulate themselves from resource scarcity, volatile pricing, and environmental regulations. The demand for low-carbon Next Gen materials is rising rapidly, and it is essential that the industry not only maintains, but also accelerates, the progress we have made. We need to ensure that the innovative companies creating these materials have the resources and market access needed to scale.”
Rycroft adds Canopy is committed to continuing the work of fostering collaboration between brands, innovators, investors and suppliers to drive transformative change and is dedicated to supporting the industry to scale Next Gen production on accelerated timelines. This she says not only brings low-carbon circular materials to market but also safeguards the world’s forests and climate.
“The fashion industry can’t afford for the transition to Next Gen materials to stall. Next Gen supply chains are ‘fit for purpose’ in today’s world as opposed to ‘take, make, waste’ production systems that are relics of the last century. Now is the time for brands, producers, investors, and policymakers to strengthen their commitment to Next Gen materials. Resilient supply chains, our climate, and future generations depend on it.”
