What: Next-generation materials in fashion, expected to grow to 8% of the fibre market by 2030, present a transformative opportunity to reduce environmental impact and costs, requiring brands to address financial, technical, and operational barriers through strategic scaling.

Why it is important: Next-gen materials can significantly enhance sustainability, cut costs, and give brands a competitive edge.

Early adoption and strategic scaling will enable brands to lead in a shifting regulatory and consumer-driven landscape while addressing critical environmental challenges. The fashion industry's reliance on traditional materials drives 92% of its emissions and accounts for a significant portion of costs. Next-generation materials offer a solution with the potential to reach 8% of the fibre market by 2030, up from the current 1%. Transitioning to these materials could reduce costs of goods sold (COGS) by approximately 4% over five years, but brands face financial, technical, and operational barriers.

A new report outlines three levers to scale adoption: driving consistent demand, optimising processes to reduce costs, and securing strategic capital. Successful integration of next-gen materials requires alignment with business strategies, risk mitigation, and leveraging industry-wide collaboration. The adoption of these materials not only cuts costs and emissions but also positions brands as leaders in sustainability, innovation, and resilience.

IADS Notes: Recent market developments demonstrate accelerating momentum in next-gen materials adoption. In October 2024, major fashion brands shifted from experimental to mainstream implementation of sustainable innovations, while Polybion's collaboration with Ganni in November 2024 showcased how luxury retailers can successfully integrate novel materials . The transformation extends beyond product development, as evidenced by Peek & Cloppenburg's January 2025 launch of their fully sustainable store concept .

This evolution is particularly timely given the March 2024 EU policy changes and France's proposed anti-fast fashion legislation , which are reshaping industry requirements. The business case is strengthened by changing consumer behaviour, with February 2025 data showing nearly half of global companies now incorporating sustainability features in new product launches , indicating a clear market shift toward environmentally conscious production methods.

Scaling next-gen materials in fashion