London: A report highlights the necessity for the fashion industry to transition to next-gen materials, which could represent 8% of the fibre market by 2030, to tackle significant emissions. Industry leaders are called to action to align these materials with their core business strategies for sustainability and relevance.
A recent report published by Fashion for Good and Boston Consulting Group (BCG) has highlighted the urgent need for the fashion industry to embrace next-generation materials in order to reduce its significant environmental impact. With materials accounting for 92% of the industry’s total emissions through extraction, processing, and production, and approximately 30% of the cost of goods sold (COGS), the report underscores the importance of a material transition for overall sustainability and market relevancy.
The report, titled “Scaling Next-Gen Materials in Fashion: An Executive Guide,” outlines the potential for next-gen materials to make up 8% of the total fibre market by the year 2030, which would equate to roughly 13 million tons. This marks an improvement from the current figure of just 1% of the fibre market, yet it may not meet the industry’s growing demands amidst increasing regulatory pressures and shifting consumer preferences.
Katrin Ley, managing director at Fashion for Good, stated, “The fashion industry stands at a critical juncture where next-generation materials are no longer just an opportunity but a business imperative.” She elaborated that the successful adoption of these materials requires both individual and collective action across various market levers related to demand, cost, and capital.
The report identifies three crucial levers for scaling next-gen materials:
-
Demand: Establishing consistent demand signals can stabilise markets, while demand pooling and transition financing can help overcome barriers to adoption.
-
Cost: Implementing cost engineering and optimisation techniques throughout the supply chain can facilitate economies of scale, making these materials more affordable.
-
Capital: It is essential to secure strategic financing that aligns with each phase of the adoption curve to ensure sustainable growth and facilitate scaling.
The authors assert that successful implementation necessitates integrating next-gen materials into core business strategies, aligning them with financial objectives to enhance resource allocation and accountability. Understanding the current material mix and external ecosystem is crucial for mitigating risks and seizing long-term opportunities.
Sebastian Boger, global leader of BCG’s Fashion & Luxury sector, remarked, “Scaling next-generation materials isn’t just about sustainability—it’s about staying relevant in a changing market.” He emphasised that without concerted industry-wide action, the potential of these materials may not be realised.
Moreover, Catharina Martinez-Pardo, a managing director and partner at BCG, indicated that the transition to these innovative materials represents both a challenge and an opportunity for brands. She stated, “Brands that act now to embed these materials into their core strategy will win the next era of fashion.”
The report aims to offer guidance to industry leaders on how to effectively navigate the complexities surrounding the introduction of next-generation materials, advocating for proactive measures to ensure a more sustainable and economically viable future for the fashion industry.
Source: Noah Wire Services
