New Report from Fashion for Good and BCG Unveils Executive Guide for Scaling Next-Gen Materials Advising Industry Leaders to Pull Individual and Collective Levers Across Supply Chain
BOSTON, Feb. 13, 2025 -- 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).1 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.
A new report, Scaling Next-Gen Materials in Fashion: An Executive Guide, reveals that next-gen materials could represent 8% of the total fiber market by 2030, equivalent to approximately 13 million tons. Although a vast improvement from just 1% of the fiber 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.
"The fashion industry stands at a critical juncture where next-generation materials are no longer just an opportunity but a business imperative," said Katrin Ley, managing director at Fashion for Good. "The opportunity is there, but requires individual and collective action across demand, cost, and capital levers to bend the adoption curve."
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, emphasizing 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 stabilize markets; demand pooling and transition financing can overcome adoption barriers.
- Cost. Cost engineering and process optimization 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.
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.
"Scaling next-generation materials isn't just about sustainability—it's about staying relevant in a changing market," said Sebastian Boger, global leader of BCG's Fashion & Luxury sector. "But these materials won't scale on their own—industry-wide action is key."
"The transition to next-generation materials is both a challenge and an opportunity for the fashion industry," said Catharina Martinez-Pardo, a BCG managing director and partner. "Brands that act now to embed these materials into their core strategy will win the next era of fashion."
For more information about the report, please visit:
https://www.bcg.com/publications/2025/scaling-next-gen-materials-in-fashion
1. World Resources Institute and Apparel Impact Institute, Roadmap to Net Zero: Delivering Science-Based Targets in the Apparel Sector, 2021; BCG analysis.
MEDIA CONTACTS:
Fashion for Good
Rokin 102
1021 NV, Amsterdam
The Netherlands
+31(0)20 261 9680
press@fashionforgood.com
Boston Consulting Group
Eric Gregoire
+1 617 850 3783
gregoire.eric@bcg.com
ABOUT FASHION FOR GOOD
Fashion for Good is the pioneer of collaborative innovation in the fashion industry. Its Innovation Platform connects brands, manufacturers, innovators, and funders to jointly transform the industry and to bring new ideas and technologies from niche to norm. Fashion for Good's programs are supported by founding partner Laudes Foundation, co-founder William McDonough and industry partners, adidas, Arvind Limited, BESTSELLER, Birla Cellulose, C&A, CHANEL, Inditex, Kering, Levi Strauss & Co., Norrøna, ON, Otto Group, Paradise Textiles, Patagonia, PDS Limited, PVH Corp., Reformation, Shahi Exports, Target, Teijin Frontier, and Zalando.
Website: www.fashionforgood.com
LinkedIn: @fashionforgood
Instagram: @fashionforgood
ABOUT BOSTON CONSULTING GROUP
Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholders—empowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact.
Our diverse, global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change. BCG delivers solutions through leading-edge management consulting, technology and design, and corporate and digital ventures. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, fueled by the goal of helping our clients thrive and enabling them to make the world a better place.
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