Next-gen materials, such as textile-to-textile recycled polyester and lab-grown cotton, are said to hold the potential to address the critical challenges of sustainability and circularity within the apparel sector.
These developments are in the nascent stages of commercial availability, with ongoing research focused on enhancing their technological capabilities and cost-effectiveness.
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The report titled ‘Scaling Next-Gen Materials in Fashion: An Executive Guide‘ and published by Fashion for Good and Boston Consulting Group, projects that textile-to-textile recycling solutions will play a key role in driving this growth across man-made cellulosic fibres (MMCF), natural fibres, and synthetics.
As the fashion industry continues to evolve, the analysis highlights the potential financial benefits of integrating advanced materials into apparel manufacturing processes.
The study suggests that brands could see a significant decrease in their cost of goods sold (COGS) by approximately 4% over a five-year period if they choose to adopt these innovative textiles.
This strategic move is not only cost-effective but also critical for companies looking to sustain their market position amid a rapidly changing sector.
Fashion for Good managing director Katrin Ley said: “The fashion industry stands at a critical juncture where next-generation materials are no longer just an opportunity but a business imperative.
“The opportunity is there, but requires individual and collective action across demand, cost, and capital levers to bend the adoption curve.”
Despite this notable increase, there are concerns that the pace of growth may not fully meet the escalating demands of the industry. Factors such as stricter regulatory frameworks, climate-induced disruptions in supply chains, and shifts in consumer buying behaviour are likely to drive demand beyond what this projected growth can supply.
This report outlines a strategic approach for industry leaders to address these obstacles, highlighting the importance of both individual brand efforts and collective industry collaboration.
Scaling using three strategic levers
The three key levers to scale next-gen materials and reduce transition costs are:
Demand: Steady demand signals help stabilise markets, while demand pooling and transition financing can help overcome adoption barriers.
Cost: Optimising processes and applying cost engineering throughout the supply chain enables economies of scale, making materials more affordable and accelerating adoption.
Capital: Aligning strategic financing with each phase of the adoption curve is crucial for ensuring long-term growth and scaling success.
As the fashion sector seeks wider entry into emerging material markets, a focus on reducing expenses is key to fostering sustainability and maintaining competitiveness.
The report explains the industry’s evolution will require an expedited approach with brands playing a critical role in this shift. Through targeted initiatives, brands have the opportunity to integrate next-generation materials into their offerings, ensuring alignment with their commercial objectives and gaining a market advantage.
Moreover, it also notes that a united effort can magnify these effects — by combining demand, standardising sourcing methods, and sharing resources, businesses can diminish risks and leverage scale to their benefit. This dual approach of individual brand innovation and collective industry collaboration is essential for achieving both environmental goals and economic success.
BCG managing director and partner Catharina Martinez-Pardo said: “The transition to next-generation materials is both a challenge and an opportunity for the fashion industry. Brands that act now to embed these materials into their core strategy will win the next era of fashion.”
