The 2024 report diagnosed the problem. The 2026
data shows what has, and has not, changed. Some barriers have softened through relationship building and
improved innovator-readiness. Others have hardened. The recommendations below respond directly to what
the data tells us has worsened, stalled, or newly emerged as the critical path.
Recommendation 01
Solve the Performance and Aesthetics Problem First
With 100% of brands now rating performance and aesthetics as a 'very significant'
obstacle, this is no longer an item on a checklist, it is the gate. Innovators must build
performance matching into the core product development roadmap, not treat it as a post-TRL-7 problem. Brands
should co-invest in performance testing earlier (JDAs, not just LOIs). Industry bodies should develop
shared performance benchmarking protocols so testing is not duplicated across every
partnership, reducing cost and time for both parties.
InnovatorsBrandsIndustry
Recommendation 02
Move from LOIs to Offtakes: The Pipeline Is Ready, The Commitment Is Not
LOIs surged to 72% of innovators. Supply agreements and JDAs each reached 33%. The
commercial pipeline is substantially fuller than two years ago. Yet offtake agreements remain flat at
~16%. The bottleneck is now brand risk aversion, specifically, fear of failed past experiences
(12%→39%) and change management friction. A solution is conditional offtake
structures: volume commitments that trigger only upon meeting performance milestones, with defined
off-ramps. Brands need legal templates and internal process maps to make this feasible. Innovators need to
come to the table with these structures ready.
BrandsInnovatorsInvestors
Recommendation 03
Rebuild Brand Adoption Infrastructure: Activate the Innovation Labs That Are Growing
Dedicated R&D teams held nearly flat (37%→35%) and financial
resources stayed stable (48%→50%). But innovation labs surged from
19%→45% (+26pts), brands are investing in shared infrastructure rather than internal
headcount. This is a structural risk: without internal capability, even willing brands cannot
execute. The answer is not simply hiring, it is building shared innovation
infrastructure. This means: consortium models where multiple brands co-fund testing programmes;
industry-hosted innovation labs; and three-way (brand to supplier to innovator) project structures that
distribute internal workload. The data shows three-way partnerships held steady as one of the only effective
strategies. Scale this model.
BrandsSuppliersIndustry Bodies
Recommendation 04
Give Suppliers a Demand Signal: They Are Ready and Waiting
Supplier frustration is building: 'lack of brand demand' as an obstacle jumped from
42% → 62%. Suppliers have innovation teams (77%), R&D capabilities (69%), and openness to
partnerships (92%). The friction is not supplier reluctance, it is absent or unclear brand
pull-through. Brands need to formalise demand signals earlier: translate LOIs into supply agreement
discussions with manufacturers, include suppliers in JDA conversations from the start, and create
three-party intent structures (brand + supplier + innovator) that give manufacturers the
confidence to invest in new material capabilities.
BrandsSuppliersInnovators
Recommendation 05
Demonstrate Supply Chain Integration Pathways to Unlock Investment
Investors now rate supply chain integration difficulty at 100% very significant, up from
76%. This is the single most important shift in the investor landscape. Innovators seeking capital must
move their pitch from 'brand interest' to 'manufacturing pathway'. This means: identifying
and contracting a committed manufacturing partner; producing detailed integration plans (equipment
requirements, process modifications, timelines); and presenting cost-to-parity scenarios. Investors are no
longer satisfied with LOIs as proof of commercial traction. They need to see a credible manufacturing
roadmap.
InnovatorsInvestorsSuppliers
Recommendation 06
Create Sector Standards: The Single Most Requested Resource Across All Groups
Clear standards (LCA methodology, code of practice, performance benchmarks) are the most
requested resource for brands (85% 'very helpful'), and consistently in the top two across all five
stakeholder groups. Two years on from the 2024 report, no common standard has emerged. This
is now urgent. Textile Exchange, ZDHC, Fashion for Good, and other industry bodies should converge on a single
interoperable framework covering: lifecycle assessment methodology, performance testing protocols,
sustainability claims validation, and supply chain traceability standards. Without this, every partnership
reinvents the wheel.
Industry BodiesBrandsInnovatorsInvestors
Recommendation 07
Refocus Sustainability Narratives on Chemistry and Climate: Broaden Later
The sharp declines in 'high priority' ratings for traceability
(−11pts), biodiversity (−17pts), and circularity (−18pts) are a warning sign. The industry is
involuntarily narrowing its sustainability focus under financial and operational pressure.
While pragmatic prioritisation is understandable, the risk is that whole categories of impact (social,
biodiversity, circularity) get deprioritised just as regulation arrives to mandate them. The recommendation:
lead with the commercial case (chemistry, CO₂, regulations) to drive adoption, while
architecting materials to address broader impacts so that when standards tighten, the
solutions are ready.
InnovatorsBrandsSupporters
The Overarching Imperative
The 2024 report asked: how can we accelerate
the process of scaling material innovations? The 2026 data gives us a clearer answer: the
bottleneck is no longer awareness, intent, or early partnerships, it is conversion. Conversion from
LOI to offtake. From lab-validated to supply chain-integrated. From pilot collection to brand wide category integration.
From ESG narrative to commercial standard.
The industry needs to move from exploration to
infrastructure building. Fewer new pilots, more conditional commitments. Fewer databases, more warm
introductions with deal support. Fewer reports, more shared standards.
Next Gen materials will only
become This Gen materials when the ecosystem builds the tracks, not just the trains.