Next-gen materials could reshape the fashion industry, cutting emissions and reducing costs. A new report outlines how brands can scale adoption through demand, cost, and capital levers.
The fashion industry is at a crossroads. Materials drive its impact and its economics, accounting for 92 percent of total emissions from extraction to production, while making up around 30 percent of the cost of goods sold. This reliance on resource-intensive materials has positioned next-generation alternatives as a critical solution. Yet, despite their potential, brands lack a clear framework for integrating these innovations at scale.
A new Fashion for Good report, Scaling Next-Gen Materials in Fashion: An Executive Guide, projects that by 2030, next-gen materials could comprise eight percent of the total fiber market — about 13 million tons. This marks a substantial increase from today’s one percent but still risks falling short of demand due to mounting regulatory pressure, climate-related supply chain disruptions, and shifting consumer expectations. The strategic adoption of these materials is not just about reducing environmental impact — it could lead to a four percent reduction in the cost of goods sold over five years compared to inaction.
“The fashion industry stands at a critical juncture where next-generation materials are no longer just an opportunity but a business imperative,” Katrin Ley, Managing Director at Fashion for Good, said in a statement. “The opportunity is there, but requires individual and collective action across demand, cost, and capital levers to bend the adoption curve.”
The Levers for Scaling Next-Gen Materials
Financial, technical, and operational barriers have slowed the industry-wide adoption of next-gen materials. The report outlines a three-pronged approach that could help brands overcome these challenges:
Demand
Consistent market signals are essential to stabilizing supply chains. Without predictable demand, production of next-gen materials remains limited, keeping costs high. Pooling demand across brands and leveraging transition financing mechanisms could accelerate adoption.
Cost
Despite higher initial price points, strategic cost engineering and supply chain process optimization can unlock economies of scale, making these materials financially viable. As next-gen materials scale, brands that commit early will gain cost advantages over competitors slow to adapt.
Capital
Investment across all phases of material adoption is critical to sustained growth. Brands must align financing strategies with the trajectory of next-gen materials to ensure long-term viability and scaling potential.
For next-gen materials to reach commercial viability, they must be embedded into core business strategies. Understanding the material mix, supply chain dependencies, and broader ecosystem risks will determine whether brands position themselves at the forefront of the next era of fashion or fall behind.
“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.”
The report comes as biomaterials manufacturer Modern Meadow announced it’s set to unveil its latest Bio-Vera products at Lineapelle 2025, held at the Fiera Milano Rho Center from February 25 to 27. The company will present new models of shoulder bags, pouches, footwear, and accessories, along with suede swatches in camel, navy blue, taupe, and forest green, and full-grain swatches in white perforated and chestnut brown. These offerings are crafted from materials containing more than 80 percent renewable carbon content.
David Williamson, PhD, CEO of Modern Meadow, emphasized the significance of this event: “Our participation at Lineapelle is an opportunity for brands and tanneries to experience the look and feel of Bio-Vera first-hand.” According to Williamson, the material is “beautiful, stronger, and lighter” than traditional materials as it is created using a revolutionary miscible blend of plant-based proteins, biopolymers, and post-consumer waste “that maximize performance and sustainability at the molecular level.”
At London’s biomaterials startup earlier this year, Modern Synthesis announced $5.5 million in funding to accelerate production of sustainable biomaterials for the fashion industry. The global bio-based leather market is experiencing significant growth, driven by increasing consumer demand for sustainable and ethical alternatives to traditional leather. Valued at $122.6 million in 2023, the market is projected to grow from $139.2 million in 2024 to $394.9 million by 2032, reflecting a compound annual growth rate of 13.9 percent.
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