Sustainabelle
Sustainabelle Advisory Services · Comparative Survey Analysis · 2024 to 2026

Next Gen to This Gen
Scaling Material Innovations
in Fashion

This dashboard presents a comprehensive two-year comparative analysis tracking confidence, challenges, commercial progress, and strategy shifts across five stakeholder groups in the fashion materials innovation ecosystem.

2024 Survey · 159 respondents
2026 Survey · 115 respondents
Innovators · Brands · Suppliers · Investors · Supporters
50+ Comparable Data Points
Deep Dives
Executive Summary
Key Findings: What Changed in Two Years
From 2024 to 2026 the fashion next-gen innovation ecosystem shows signs of maturation under pressure, more commercial activity, sharper barriers, and a recalibration of what works.

The Next Gen to This Gen comparative analysis is the first study of its kind focused on the fashion materials innovation sector. By replicating the 2024 survey methodology in 2026 across the same five stakeholder groups, the study provides a unique view into how industry confidence, commercial progress, and strategic priorities are evolving over time.

While the 2024 report established a baseline understanding of the sector's opportunities and barriers, the 2026 findings reveal where momentum is building, where challenges remain persistent, and where new priorities are emerging. Together, the insights presented on this dashboard offer a data-driven view of the industry's progress toward scaling Next Gen material innovations.

As outlined in the original 2024 report, and for the purpose of this study, Next Gen is defined as renewable materials and processes, not yet at scale, that aim to reduce our dependence on finite resources such as petroleum, land, and water; minimise risks to human health, human rights and animal welfare; and which often enable more circular ways of production.

The question now is no longer whether these innovations are needed, but what it will take for the industry to move to meaningful scale.

Three Headlines for the Industry Right Now
What the 2026 survey results tell us most urgently
The ecosystem is building pipelines, not converting them
Innovator LOIs surged from 48% → 72%, supplier partnerships from 64% → 82%, but offtake agreements remain flat at 16% and brand adoption fell from 85% → 75%. The industry is getting better at forming relationships. It is not yet converting them into volume commitments at scale.
Strategy confidence has shifted across multiple areas.
Perceived effectiveness of ‘Alignment with sustainability targets’ declined from 93% → to 75%. ‘Developing internal expertise’: 58% → 18%. ‘Strong marketing story’: 67% → 32%. Only R&D budget allocation and three-way partnerships held steady. Overall, approaches that previously supported adoption appear to be becoming less effective in the current context.
The next step is to advance from awareness to infrastructure
Suppliers cite ‘lack of brand demand’ at 62% (up from 42%). Investors rate supply chain integration as very significant at 100% (up from 76%). Clear sector standards remain the single most requested resource across all five groups. The industry lacks not awareness or intent, but the connective infrastructure to convert both into commercial outcomes.
Ten Key Findings
Finding 01
Optimism is maturing into realism, not collapsing
The share of respondents who are 'very' or 'extremely' confident in material innovations dipped from 73% → 67%, while 'moderately confident' grew from 15% → 24%. This is a sector growing up. Critically, there was no increase in 'not confident at all' responses.
Finding 02
Performance and aesthetics is a non-negotiable for brands
Among brands, the percentage rating 'performance specs and aesthetics' as 'very significant' obstacle rose from 84% → 100%. Unanimous. Brands have moved past 'interesting concept' and now demand production-ready, performance-matched materials. Innovators who cannot cross this bar are shut out.
Finding 03
Commercial pipelines are expanding, but offtakes remain steady
Innovator LOIs with brands increased 48% → 72%. Supply agreements and JDAs each rose 25% → 33%. Supplier partnerships increased 62% → 88%. Exclusivity grants grew 17% → 25%. But offtake agreements held steady at ~16% . Brands are deepening early-stage relationships while taking a measured approach to volume commitments.
Finding 04
Brand adoption activity has slowed down
Brands 'presently trying to adopt' fell from 85% → 75%. Selling innovative products dropped slightly from 74% → 70%. Dedicated R&D teams held nearly flat at 37% → 35%. Financial resources were stable at 57% → 50%. Brands are consolidating and becoming more selective, not scaling up their engagement.
Finding 05
Strategy confidence decreased whilst budgets and three-way partnerships held steady
'Strong marketing story' effectiveness fell from 67% → 32%. 'Strong impact results' from 60% → 35%. Only R&D budget allocation (67%) and three-way brand to supplier to innovator partnerships (57% → 56%) remained stable. The message: structural collaboration beats storytelling.
Finding 06
Sustainability priorities are focusing around chemistry and climate
Almost every sustainability topic lost 'high priority' votes. Sharpest drops: social labour (−6pts), traceability (−11pts), circularity (−18pts). Only chemical reduction held near flat (52%→51%, −1pt). The industry appears to be narrowing focus toward what is measurable and technically addressable.
Finding 07
Suppliers: demand signal from brands is the bottleneck
Suppliers' 'lack of interest/demand from brands' as a very significant obstacle jumped from 42% → 62%. Meeting brand performance specs rose 58% → 69%. Suppliers are increasingly frustrated, but they are open to partnerships (92%+) and building internal capability, but brand pull-through is not materialising.
Finding 08
Investors see supply chain integration as the #1 risk
Investors' view of 'difficulty integrating with existing supply chains' as a major funding obstacle jumped from 76% → 100%. Price premium risk rose 76% → 92%. The investor thesis has shifted: show path to supply chain integration, not just brand LOIs, to unlock capital.
Finding 09
Regulatory complexity is growing for supply chain partnerships
Innovators reporting regulatory compliance challenges with suppliers rose from 20% → 26%. This reflects expanding EU regulation (EUDR, CSRD, ESPR). Clear sector standards remain among the most requested resources across all stakeholder groups in both years.
Finding 10
The industry gap is building connective infrastructure, not awareness or intent
Across all five stakeholder groups, the consistent ask in 2026 is for better connection infrastructure: innovator databases, warm introductions, three-way facilitation programmes, and sector standards. Awareness and intent exist, what the ecosystem still lacks is the mechanism to convert them into commercial outcomes at scale.
Methodological Note and Data Disclaimer

Survey design: Both surveys used an identical question structure to enable direct year-on-year comparison. The 2024 survey included 159 respondents; the 2026 survey included 115 respondents.

Comparing 2024 to 2026: The respondent populations are not identical between years. This is a cross-sectional study, not a longitudinal panel. Participants may differ between years in terms of organisation type, seniority, geography, and individual perspective. Year-on-year changes should be interpreted as directional signals reflecting ecosystem shifts, not precise measurements within a fixed cohort.

Sample size: Sub-group analyses (particularly Suppliers n=13 to 19, Investors n=13 to 23) are based on small samples. A single response can move a percentage by 5 to 8 points. Treat directional shifts, not individual figures, as the finding.

Open-ended responses: Qualitative responses on the Survey Voices page are reproduced verbatim or lightly edited for clarity. They represent individual perspectives and do not necessarily reflect the views of Sustainabelle Advisory Services.

Respondents Overview
Cross-Industry Overview
Aggregate findings across all five stakeholder groups: respondent mix, confidence levels, sustainability priorities.
Respondent Breakdown by Stakeholder Group
Number of respondents · 2024 vs 2026
2024
2026
Innovators
2024
56
2026
43▼13
Brands & Retailers
2024
27
2026
20▼7
Other Stakeholders
2024
34
2026
26▼8
Investors
2024
23
2026
13▼10
Suppliers & Manufacturers
2024
19
2026
13▼6
Innovator Confidence in Material Innovations
% responding at each confidence level · 2024 vs 2026
2024
Extremely confident
33%
Very confident
40%
Moderately confident
15%
Slightly confident
5%
Unsure / None
7%
73%
Very or Extremely confident
2026
Extremely confident
33%
Very confident
33%
Moderately confident
26%
Slightly confident
5%
None at all
5%
67% ▼6
Very or Extremely confident

Confidence is softening, not collapsing. The moderate-confidence cohort grew by 9pts, a sign of healthy recalibration rather than disillusionment. The floor (none/slight confidence) held flat, which matters.

Sustainability Priorities: % Rating Each Topic as 'High Priority'
All stakeholders · 2024 vs 2026
2024
2026
CO₂ reduction
2024
76%
2026
68%▼8
Circularity / Recycling
2024
82%
2026
64%▼18
Traceability & transparency
2024
72%
2026
61%▼11
Chemical reduction
2024
52%
2026
51%→0
Elimination of plastics
2024
55%
2026
44%▼11
Social labor conditions
2024
53%
2026
47%▼6
Biodiversity conservation
2024
51%
2026
37%▼14
Animal welfare
2024
35%
2026
30%▼5

Every sustainability priority decreased between 2024 and 2026. Largest drops: circularity/recycling (−18pts), biodiversity (−14pts), traceability (−11pts), plastics (−11pts), CO₂ (−8pts). Chemical reduction fell the least (−1pt, 52%→51%) but did not rise. The industry is narrowing its sustainability focus across every dimension.

Stakeholder View · Innovators
Innovators
This group of stakeholders encompasses both startups and more mature firms that are working on developing, or producing, Next Gen material innovations.
2024 → 2026
51%→48%
Generating revenue from product sales
2024 → 2026
64%→82%
Have supplier/manufacturer partnerships
2024 → 2026
15%→23%
Granted exclusivity to brand partners
Technology Readiness Level (TRL)
Innovators only · count of respondents per TRL · 2024 vs 2026
2024
2026
TRL 9 Operational system
2024
19
2026
8▼11
TRL 8 System complete
2024
7
2026
8▲1
TRL 7 System prototype
2024
7
2026
10▲3
TRL 6 Tech demonstrated
2024
5
2026
9▲4
TRL 4 to 5 Lab validated
2024
11
2026
7▼4
TRL 2 to 3 Early concept
2024
5
2026
3▼2

The TRL distribution shifted toward the middle (TRL 6 to 8) and away from TRL 9. More companies are in active scale-up mode. The TRL 6 to 7 cohort grew from 12 → 19 respondents, a positive pipeline signal.

Material Classification: What Innovators Are Working On
% of innovator respondents per material category
2024
2026
Cellulosic Fibre
2024
43%
2026
17%▼26
Bio-Based Dyes
2024
33%
2026
38%▲5
Synthetic Fibre
2024
17%
2026
26%▲7
Leather Alternatives
2024
57%
2026
33%▼24
Recycled Polyester
2024
20%
2026
25%▲5
Recycled Cotton
2024
20%
2026
25%▲5
Recycled Cotton & Polyester blend
2024
10%
2026
21%▲11
Finishing Chemistries
2024
10%
2026
7%▼3
Traceability Systems
2024
14%
2026
0%▼14

Cellulosic fibres dropped sharply (43%→17%). Synthetic alternatives, bio-based dyes, recycled polyester, and leather alternatives all gained ground. The portfolio is diversifying away from cellulosics and toward more commercially mature categories.

Brand Agreements in Place
% of innovator respondents with each agreement type
2024
2026
Letters of Intent (LOI)
2024
48%
2026
72%▲24
Supply Agreements
2024
23%
2026
35%▲12
Joint Development (JDA)
2024
23%
2026
35%▲12
Service Agreements
2024
16%
2026
28%▲12
Offtake Agreements
2024
16%
2026
16%→0
Licensing Agreements
2024
16%
2026
9%▼7
Feedstock Agreements
2024
12%
2026
14%▲2

Broad pipeline growth across LOIs (+17pts), supply agreements (+8pts), JDAs (+8pts), and service agreements (+10pts). However offtakes remain steady at 16 to 17%, the most commercially binding agreement type. Brands are willing to formalise early relationships but remain reluctant to commit to volume.

Brand Partnership Factors: What Innovators Value Most
% rating 'Very Important' when choosing brand partners
2024
2026
Mission & sustainability alignment
2024
87%
2026
77%▼10
Speed of decision-making
2024
69%
2026
79%▲10
PR / Marketing reach
2024
71%
2026
49%▼22
Capability to pay premium
2024
54%
2026
70%▲16
R&D budget from brand
2024
63%
2026
53%▼10
R&D expertise from brand
2024
54%
2026
35%▼19

Innovators are reprioritising toward commercial capability: speed (+9pts) and premium-paying ability (+15pts) rose, while marketing reach (−22pts) and R&D expertise (−16pts) fell. After years of slow pilots, innovators increasingly want who will pay and decide fast, not who has the biggest logo.

How significant are each of these obstacles when seeking support, adoption or investment from brands? (Innovator View)
% rating 'Very Significant'
2024
2026
Resistance to status quo
2024
62%
2026
53%▼9
Price premium difficulty
2024
68%
2026
62%▼6
Decision-maker access
2024
51%
2026
56%▲5
Setting up contracts
2024
56%
2026
39%▼17
Long-term brand commitment
2024
67%
2026
60%▼5
Operational resources at brand
2024
56%
2026
58%▲2
Brand performance specifications
2024
35%
2026
39%▲4
Production calendar pressure
2024
33%
2026
54%▲21
How significant are each of these obstacles when seeking to partner with supply chain partners, such as suppliers, manufacturers, mills, etc.? (Innovator View)
% rating 'Very Significant'
2024
2026
Price premium difficulty
2024
57%
2026
61%▲4
Resistance to status quo
2024
53%
2026
50%▼3
Decision-maker access
2024
33%
2026
44%▲13
Operational resources
2024
56%
2026
58%▲2
Long-term commitment
2024
33%
2026
38%▲2
Supply chain integration
2024
54%
2026
60%▲6
Communication
2024
38%
2026
30%▼8
Funding Sources Secured
% of innovators who have secured each capital type
2024
2026
Government Grants
2024
64%
2026
67%▲3
Venture Capital
2024
44%
2026
47%▲3
Foundation Grants
2024
36%
2026
33%▼3
Convertible Securities (SAFEs)
2024
28%
2026
30%▲2
Funding Obstacles (Innovator View)
% rating 'Very Significant'
2024
2026
Limited investor knowledge of fashion
2024
62%
2026
50%▼12
Technology scaling risk
2024
60%
2026
50%▼10
Fund lifecycle misalignment
2024
40%
2026
38%▼2
Limited access to investors
2024
34%
2026
30%▼4
Limited impact reporting data
2024
33%
2026
12%▼21
Communication with investors
2024
28%
2026
13%▼15
Lack of resources for financial projections
2024
28%
2026
16%▼12
Applicability to multiple sectors
2024
18%
2026
25%▲7

Most funding obstacles eased, notably impact reporting (−21pts) and investor communication (−15pts), suggesting innovators are becoming more investor-ready. Tech scaling risk and investor knowledge gaps remain the top two challenges in both years, both above 50%.

Resources Innovators Find Helpful
% rating 'Very Helpful'
2024
2026
Supplier introductions
2024
42%
2026
38%▼4
Supplier database
2024
56%
2026
67%▲9
Sector standards
2024
67%
2026
43%▼24
Innovator to supplier programme
2024
42%
2026
38%▼4
Innovator Voices from the Survey
“I would change the incentives of the fashion industry. The system is still driven by immediate cost and scale, which hinders adoption of new materials.”
Innovator · 2026
“Shift procurement from price per meter to lifecycle value. Materials that do not price in externalities have an unfair cost advantage.”
Innovator · 2026
“A PPA moment for fashion: advanced market commitments from brands that let us raise capital against guaranteed demand, not optimistic projections.”
Innovator · 2026
“Shared sector testing infrastructure so every brand does not run the same durability tests separately. This wastes months and thousands of euros per innovator.”
Innovator · 2026
Stakeholder View · Brands & Retailers
Brands
This group of stakeholders includes brands and retailers operating in a wide range of markets involved with textiles and materials innovation.
2024 → 2026
85%→75%
Currently trying to adopt innovative materials
2024 → 2026
74%→70%
Selling products with innovative materials
2024 → 2026
82%→89%
Products with innovative materials priced same or higher
2024 → 2026
30%→15%
Co-developed IP with innovators
Internal Resources Allocated to Material Innovation
% of brands with each resource in place
2024
2026
Sustainability team
2024
70%
2026
85%▲15
Financial resources for innovation
2024
48%
2026
50%▲2
Innovation team
2024
48%
2026
50%▲2
Dedicated R&D team for materials
2024
37%
2026
35%▼2
Innovation labs / facilities
2024
13%
2026
52%▲39

Sustainability teams increased. Dedicated R&D teams (37%→35%) and financial resources stayed steady (48%→50%). Innovation labs, however, increased sharply (13%→52%).

Obstacles to Adopting Innovative Materials
% rating 'Very Significant'
2024
2026
Performance specs & aesthetics
2024
84%
2026
100%▲16
Price premium
2024
55%
2026
68%▲13
Operational resources
2024
56%
2026
58%▲2
Internal change management
2024
41%
2026
50%▲9
Supply chain integration
2024
54%
2026
60%▲6
Long-term contracts
2024
67%
2026
60%▼5
Production calendar
2024
33%
2026
54%▲21
Communication with innovators
2024
18%
2026
46%▲28

Performance and aesthetics is now unanimous (100%). Every brand respondent rated it very significant. Communication friction with innovators also increased as a significant obstacle. The barriers are sharpening around product performance, aesthetics and internal bandwidth, not awareness or will.

Adoption Strategies: What have proven most effective in driving successful internal adoption of sustainable material innovations?
Brand perspective
2024
2026
Strong business case
2024
73%
2026
56%▼17
R&D budget allocation
2024
67%
2026
67%→0
Strong marketing story
2024
67%
2026
32%▼35
Close innovator partnerships
2024
67%
2026
53%▼12
Strong impact results
2024
60%
2026
35%▼25
Internal technical expertise
2024
58%
2026
18%▼40
Three-way partnerships
2024
57%
2026
56%→0
Signing offtakes
2024
17%
2026
0%▼17

R&D budget allocation and three-way partnerships held stable. Marketing story importance and internal expertise decreased. Brands now believe structural collaboration and capital, not narrative or internal specialists, are what moves the needle.

Offtake Agreement Barriers
% of brands citing each factor as preventing offtake commitment
2024
2026
High risk perception (conditional)
2024
44%
2026
45%→0
Uncertain innovator supply capability
2024
48%
2026
39%▼9
Requires change management
2024
37%
2026
45%▲8
Cross-team interaction issues
2024
40%
2026
28%▼12
Previous unsuccessful experience
2024
11%
2026
35%▲24
Innovation too far upstream
2024
33%
2026
28%▼3

Notably, previous unsuccessful experiences as an offtake barrier tripled (11%→35%). Brands are cautious from previous unsuccessful pilots. Risk aversion is increasingly evidence-based, which means innovators need to show track records, not just potential.

What's Important When Adopting Innovative Materials
% rating 'Very Important'
2024
2026
Performance, quality & aesthetics
2024
84%
2026
100%▲16
Alignment with sustainability targets
2024
93%
2026
75%▼18
LCAs & third-party certifications
2024
81%
2026
75%▼6
Price point
2024
81%
2026
80%→0
Sustainability alignment
2024
93%
2026
75%▼18
Ease of integration
2024
81%
2026
90%▲9
Production capacity
2024
70%
2026
75%▲5
Emerging legislation & regulations
2024
59%
2026
55%▼4
Consumer demand
2024
48%
2026
40%▼8
Innovator team expertise
2024
33%
2026
25%▼8

Ease of integration increased. Supply chain integration has become a primary adoption criterion, reflecting the growing complexity of embedding new materials into existing manufacturing flows.

Agreements Brands Have in Place with Innovators
% of brands with each agreement type
2024
2026
Letters of Intent
2024
35%
2026
46%▲11
Supply Agreements
2024
19%
2026
35%▲16
Joint Development (JDA)
2024
26%
2026
20%▼6
Licensing Agreements
2024
22%
2026
30%▲8
Service Agreements
2024
19%
2026
25%▲6
Offtake Agreements
2024
22%
2026
15%▼7
Feedstock Agreements
2024
12%
2026
0%▼12
Materials Brands Are Working On
% of brand respondents working on each category
2024
2026
Recycled Cotton
2024
85%
2026
74%▼11
Traceability Systems
2024
85%
2026
68%▼17
Recycled Polyester
2024
63%
2026
84%▲21
Cellulosic Fibre
2024
67%
2026
63%▼4
Leather Alternatives
2024
63%
2026
68%▲5
Bio-Based Dyes
2024
67%
2026
42%▼25
Waterless Dye Processes
2024
59%
2026
58%→0
Recycled Cotton/Poly Blend
2024
20%
2026
25%▲5

Recycled polyester gained the most ground as brands double down on what is commercially available at scale. Recycled cotton and traceability both declined slightly despite remaining top priorities.

Resources Brands Find Most Helpful
% rating 'Very Helpful'
2024
2026
Clear sector standards
2024
81%
2026
85%▲4
Innovator database
2024
78%
2026
50%▼28
Supplier database
2024
56%
2026
67%▲9
Brand to supplier to innovator programme
2024
52%
2026
40%▼12
Introductions to innovators/suppliers
2024
44%
2026
20%▼24

Sector standards are the #1 ask in both years. The innovator database dropped in importance (78%→50%). Brands may feel they already have enough pipeline, but need better support to evaluate and integrate material innovations. The supplier database increased, signalling growing complexity in supply chain navigation.

Brand Voices from the Survey
“Change the single margin KPI to a dual KPI: 50% margin performance and 50% planetary and social impact at product level. Then budgets will follow.”
Brand · 2026
“We need standardised LCAs for all brands so we are not commissioning separate assessments and getting different results for the same material.”
Brand · 2026
“Volume aggregation across brands to minimise the price premium. If ten brands commit to the same innovator together, the economics change for everyone.”
Brand · 2026
“AI-powered P&L modelling tools for material adoption. Finance teams need to see full lifecycle cost, not just unit price.”
Brand · 2026
“Brands have now made the link between Next Gen materials and their decarbonisation roadmaps. Even without complete LCAs, the need is clear.”
Brand · 2024
“The urgency is around Net Zero targets. Scope 3 materials are such a big piece. We know what needs to happen. Internal alignment is the problem.”
Brand · 2024
Stakeholder View · Suppliers & Manufacturers
Suppliers
This group of stakeholders includes any actors that are present throughout fashion/textile-related industries from raw material to textiles mills and dye houses.
2024 → 2026
100%→92%
Open to collaborative partnerships
2026
54%
Does your government have policies, incentives, or subsidies that incentivize your company to adopt and produce innovative materials?
Internal Resources Allocated to Material Innovation
% of suppliers with each resource in place
2024
2026
Innovation team
2024
58%
2026
77%▲19
Sustainability team
2024
58%
2026
69%▲11
Dedicated R&D team for materials
2024
63%
2026
69%▲6
Financial resources for innovation
2024
58%
2026
33%▼27
Innovation labs / facilities
2024
13%
2026
52%▲39

In 2026, innovation and R&D teams increased, but financial resources for innovation decreased. Suppliers are investing in human capital while pulling back on capital-intensive infrastructure.

Adoption Obstacles (Supplier View)
% rating 'Very Significant'
2024
2026
Performance specs mismatch
2024
58%
2026
69%▲11
Price premium
2024
68%
2026
62%▼6
Lack of brand demand
2024
42%
2026
62%▲20
Internal change management
2024
41%
2026
50%▲9
Operational resources
2024
42%
2026
38%▼4
Long-term contract commitment
2024
54%
2026
47%▼7
Production calendar
2024
33%
2026
54%▲21
Communication with innovators
2024
18%
2026
46%▲28
Access to innovators
2024
26%
2026
33%▲7

'Lack of brand demand' jumped 42% → 62%, the sharpest rise among all obstacles. Communication friction with innovators also increased. Suppliers are ready and capable; they're waiting for brands to create clear demand signals and for better innovator communication channels.

Strategies for Successful Adoption of Material Innovations (Supplier View)
% rating 'Very Effective'
2024
2026
Developing internal technical expertise
2024
61%
2026
77%▲16
Allocating R&D budgets
2024
68%
2026
50%▼18
Strong business case
2024
73%
2026
56%▼17
Three-way brand to supplier to innovator partnership
2024
67%
2026
67%→0
Marketing story
2024
56%
2026
62%▲6
Close partnerships with innovators
2024
50%
2026
67%▲17
Impact results
2024
37%
2026
54%▲17
Signing offtakes
2024
17%
2026
0%▼17

Developing internal technical expertise rose (+16pts) as the top effective strategy, suppliers are betting on building internal capability. Close partnerships with innovators also rose (+17pts). Signing offtakes decreased, even suppliers are sceptical of that lever.

Offtake Barriers (Supplier View)
Factors preventing offtake commitment
2024
2026
Uncertain innovator supply capability
2024
75%
2026
75%→0
High risk perception
2024
44%
2026
45%→0
Previous unsuccessful experiences
2024
11%
2026
35%▲24
Requires change management
2024
33%
2026
8%▼25
Customer Demand Importance Before Trialing
How important is verified customer demand or existing commercial traction before you trial a new material?
2024
2026
Very important
2024
63%
2026
54%▼9
Somewhat important
2024
32%
2026
33%→0
Not important
2024
5%
2026
15%▲10

The trend toward 'not important' (5%→15%) is notable, some suppliers are willing to trial without a brand demand signal, suggesting they're becoming more proactively innovative rather than purely reactive and as brand demand stalls.

Resources Suppliers Find Most Helpful
% rating 'Very Helpful'
2024
2026
Dedicated R&D funding
2024
68%
2026
62%▼6
Clear sector standards
2024
68%
2026
54%▼14
Factory capability programme
2024
42%
2026
54%▲12
Innovator database
2024
53%
2026
38%▼15
Innovator introductions
2024
42%
2026
38%▼4
Investor network introductions
2024
37%
2026
38%→0

R&D funding tops both years (68%→62%), suppliers consistently want direct capital support, not just access. The factory capability programme rose, signalling growing appetite for structured capability-building that helps factories handle new material requirements. Sector standards remain critical at 54%.

Supplier Voices from the Survey
“We need a clear answer from brands about why they do not adopt innovations that clearly meet their sustainability targets. This disconnect is invisible to us.”
Supplier · 2026
“Strong, enforceable regulation with real penalties. Without regulatory force, brands will continue to delay indefinitely.”
Supplier · 2026
“Lower price points, high performance, low plastic content. Innovators who hit all three get our full collaboration and investment.”
Supplier · 2026
“We need longer development timelines from brands. We are asked to trial new materials on the same calendar as existing products. It does not work technically.”
Supplier · 2026
“Cotton pricing projections are alarming. We know we need alternatives, but brands need to signal demand before we can invest in new capability.”
Supplier · 2024
“Access to shared testing and R&D infrastructure. Shared access would transform what suppliers can do alongside innovators.”
Supplier · 2024
Stakeholder View · Investors
Investors
This group of stakeholders includes venture capitalists, private equity firms, philanthropic foundations, family offices, impact investors, and individual investors who are engaged with, or looking to engage with Next Gen material innovations and sustainability in the fashion sector.
2024 → 2026
96%→85%
Actively investing in material innovations
2024 → 2026
43%→38%
No preference on brand exclusivity
2024 → 2026
82%→85%
Participating in conferences/events for scouting innovations
Investor Type (Scope)
% of investor respondents by type
2024
2026
Venture Capital
2024
83%
2026
69%▼14
Impact Investor
2024
22%
2026
38%▲16
Corporate Venture Capital
2024
17%
2026
0%▼17
Growth Equity
2024
0%
2026
15%▲15
Family Office
2024
9%
2026
8%→0
Private Equity
2024
22%
2026
15%▼7

Impact investors grew from 22%→38% while corporate VCs dropped out entirely. This shift toward mission-aligned capital may reflect a narrowing of the VC investor pool, and increasingly important for innovators to understand what different investor types prioritise.

Brand Signal Importance for Investment Decisions
% rating each agreement type as 'Very Important' signal for investing in material innovation
2024
2026
Offtake Agreements
2024
83%
2026
69%▼14
Licensing Agreements
2024
78%
2026
62%▼16
Supply Agreements
2024
70%
2026
77%▲7
Joint Development (JDA)
2024
61%
2026
69%▲8
Letters of Intent (LOI)
2024
48%
2026
72%▲24

Offtake importance declined (83%→69%) while supply agreements increased. This signals that investors are accepting a broader range of commercial proof points, supply chain engagement matters as much as brand commitment.

Funding Obstacles for Innovators (Investor View)
% rating 'Very Significant'
2024
2026
Supply chain integration difficulty
2024
76%
2026
100%▲24
Price premium attached to innovations
2024
76%
2026
92%▲16
High technology scaling risk
2024
73%
2026
77%▲4
Brand performance spec mismatch
2024
35%
2026
39%▲4
Inadequate financial projections
2024
39%
2026
46%▲7
Fund lifecycle misalignment
2024
40%
2026
38%▼2
Limited investor access
2024
30%
2026
38%▲8
Crowded competitor landscape
2024
30%
2026
25%▼5
Limited impact reporting data
2024
13%
2026
23%▲10
Communication difficulties
2024
17%
2026
37%▲20

Supply chain integration hit 100% in 2026, every investor respondent sees it as very significant. Price premium risk increased to 92%. The investor thesis is clear: demonstrate a credible path to supply chain integration and cost parity, not just brand enthusiasm.

Value Chain Stages Investors Are Backing
% actively investing per stage
2024
2026
End of Life Solutions
2024
96%
2026
77%▼19
Alternative Fibres & Materials
2024
91%
2026
69%▼22
Reverse Logistics
2024
70%
2026
62%▼8
Dyeing and Finishing
2024
78%
2026
54%▼24
Logistics & Packaging
2024
61%
2026
38%▼23
Retail and Use
2024
48%
2026
54%▲6
Spinning, Knitting, Weaving
2024
57%
2026
38%▼19
Cut, Make, Trim
2024
35%
2026
38%▲3
Investor Resource Allocation for Innovation Scouting
% using each approach
2024
2026
Events & conferences
2024
82%
2026
92%▲10
Strategic alliances (trade assocs, incubators)
2024
73%
2026
67%▼6
In-house tech expertise (VPs, advisors)
2024
68%
2026
58%▼10
Technology scouting platforms
2024
18%
2026
25%▲7

Conferences remain the primary scouting channel. Tech scouting platforms are rising from a low base, a growing segment worth watching. In-house expertise declined slightly.

Resources Investors Find Most Helpful
% rating 'Very Helpful'
2024
2026
Innovator database
2024
57%
2026
54%▼3
Clear sector standards
2024
57%
2026
33%▼26
Innovator to investor relationship programme
2024
58%
2026
42%▼16
Introductions to innovators
2024
39%
2026
35%▼4

Sector standards dropped among investors, suggesting they are developing their own evaluation frameworks rather than waiting for industry consensus.

Investor Voices from the Survey
“More funding for first commercial plants. The Series A to Series B bridge for manufacturing scale-up is where most innovators are failing right now.”
Investor · 2026
“Focus on industrial and commercial applications first, less price sensitive, and they help achieve volume before entering fashion.”
Investor · 2026
“Clear benchmarks like a SaaS napkin or a climate tech brick. What does a healthy next-gen materials company look like at each stage? No one has built this.”
Investor · 2026
“Show us the supply chain integration pathway before the brand LOI. Prove you can make it at scale, then we will discuss the brand relationships.”
Investor · 2026
“I really hope regulations can come fast because the industry is taking advantage of the fact that it is not regulated. It is a way for them to wait and hold.”
Investor · 2024
Stakeholder View · Supporters
Industry Supporters
This group of stakeholders includes consultancies, contractors, nonprofits, advocacy groups, incubators/accelerators, academic/research institutions, and industry alliances dedicated to promoting sustainable practices and facilitating the adoption of Next Gen materials in the fashion industry.
Variables Influencing Industry Adoption (Supporter View)
% rating 'Very Important'
2024
2026
Emerging legislation & regulations
2024
94%
2026
88%▼6
Performance, quality & aesthetics
2024
91%
2026
96%▲5
Alignment with sustainability targets
2024
91%
2026
72%▼22
Ease of integration
2024
79%
2026
85%▲6
Price point
2024
73%
2026
96%▲23
LCAs & third-party certifications
2024
73%
2026
67%▼8
Consumer demand
2024
64%
2026
77%▲13
Production capacity
2024
70%
2026
85%▲15

Supporters increasingly see price, performance and aesthetics as the leading adoption drivers, closely aligned with what brands themselves report. Consumer demand also rose, suggesting supporters believe end-consumer pressure is building.

How important are the following variables in influencing industry adoption of innovative materials? (Supporter View)
% rating 'Very Significant'
2024
2026
Price premium barrier
2024
76%
2026
92%▲16
Performance spec mismatch
2024
73%
2026
75%▲2
Resistance to status quo
2024
66%
2026
48%▼18
Decision-maker access
2024
53%
2026
64%▲11
Operational resource limits
2024
50%
2026
62%▲12
Production calendar pressure
2024
53%
2026
50%▼3
Communication between stakeholders
2024
17%
2026
37%▲20

Price premium and performance/aesthetics both increased in the supporter view, confirming these as the industry's primary systemic obstacles. Notably, 'resistance to status quo' declined, supporters perceive that culture is improving, but economics and technical barriers are hardening.

Supporter Confidence in Material Innovations
Response distribution
2024
A great deal
27%
A lot
33%
A moderate amount
30%
A little
6%
2026
A great deal
8%
A lot
35%
A moderate amount
50%
A little
8%

The supporter community shows notable confidence erosion: 'a great deal of confidence' fell from 27%→8%, and 'moderate' grew from 30%→50%. This mirrors the wider industry trend toward cautious realism.

Resources Supporters Find Most Helpful
% rating 'Very Helpful'
2024
2026
Clear sector standards
2024
73%
2026
81%▲8
Innovator database
2024
70%
2026
62%▼8
Innovator to investor relationship programme
2024
58%
2026
42%▼16
Introductions to innovators
2024
39%
2026
35%▼4

Sector standards rose to #1 among supporters, the strongest endorsement of any stakeholder group. Supporters, who often act as connectors and advisors, feel this gap most acutely. The innovator database fell slightly (70%→62%), suggesting supporters feel they already have good pipeline visibility but lack the common frameworks to evaluate and compare innovations.

Supporter Voices from the Survey
“A strong EU legislative framework enforced on all products entering the union, making the EU the global regulatory floor, not just a regional standard.”
Supporter · 2026
“Cost-sharing mechanisms to bridge the gap between innovation cost and commercial price. Public-private coalitions that underwrite this transition.”
Supporter · 2026
“Destigmatise innovative materials amongst designers and creative directors. The conversation has to reach the design room, not just sustainability teams.”
Supporter · 2026
“Rebuild the supply chain for sustainable materials. We need mills and facilities purpose-built for these new inputs, not retrofitted existing ones.”
Supporter · 2026
“Standards coordination is the single thing with highest leverage. Without a common LCA and performance benchmark, brands keep reinventing the wheel.”
Supporter · 2024
“Support innovators in reaching industrial scale before expecting commercial terms. The TRL 7 to commercial production gap is where we keep losing companies.”
Supporter · 2024
Roadmap Review
Were We Right? 2024 Predictions vs 2026 Reality
The 2024 report identified three priority pillars and predicted powerful tailwinds. Two years on, we review each prediction against what actually happened.
The 2024 Three-Pillar Roadmap: Reviewed
Partial Priority 1: Information Creation & Standards
2024 Prediction
Create open-source standards (code of practice, LCA methodology, template agreements) and build alignment frameworks.
2026 Reality
Sector standards remain the #1 most-requested resource in 2026, from brands (85%), suppliers (68%), and across all groups. Almost no progress has been made on actual standards. No interoperable LCA standard exists.
The industry talks about standards, but has not yet built them. Two years on, the gap is even more acutely felt, brands now cite 'clear standards' as their single most helpful resource. This is the most urgent unfulfilled priority from 2024.
Correct Priority 2: R&D Optimisation via Supplier Partnerships
2024 Prediction
Leverage supplier knowledge and facilities for triangulated three-way partnerships (brand to supplier to innovator). Create access to shared equipment and resources.
2026 Reality
Three-way partnerships held as one of only two 'very effective' strategies for brands (57%→56%). Innovator to supplier partnerships surged from 62% → 88%. Supply agreements and JDAs both grew (+8pts). The three-way model is increasingly the commercial standard.
The data shows the industry has moved in exactly this direction. The highest-quality commercial relationships now involve all three parties, not just brand to innovator. The priority now is to formalise and scale this model with legal templates and shared financing.
Partial Priority 3: More Catalytic Funding, Public and Private
2024 Prediction
Push for government funding, develop pre-competitive R&D grants from brands, establish prize/competition mechanisms for innovators.
2026 Reality
Government funding remained the top source secured by innovators (64%→67%). However, VC activity softened globally and several high-profile companies failed despite significant capital. Brand-funded R&D remained limited. The EU Green Deal and US IRA provided some tailwinds, but Trump's 2025 rollbacks and tariff shocks dramatically changed the landscape.
The prescription was correct but the macro environment made delivery harder. Government grants held up; private catalytic capital did not scale as hoped. The key 2026 insight: investors now demand supply chain integration proof (100% rate it very significant) before committing. Simply having more funding mechanisms is not enough, innovators must be investable.
.

The 2024 report assumed regulation would be a reliable tailwind. In the EU, this held. In the US, it reversed. The divergence is now reshaping where innovators seek partnerships, where investors deploy capital, and which sustainability narratives have commercial staying power. The chemical/PFAS domain is the clearest example of durable regulatory pressure, one that innovators working in dyes, finishes, and materials chemistry should explicitly leverage in their commercial positioning.

2024 Driver Predictions: Reviewed Against 2026 Evidence
The 2024 report identified four adoption drivers. How did each play out?
Wrong Driver 1: Ambitious Impact Goals would drive material shift
2024 Prediction
Brands with Net Zero targets would be more likely to adopt Next Gen materials. '85% of leading brands have decarbonisation targets.'
2026 Reality
Brand adoption activity fell. Brands 'presently trying to adopt' dropped 85%→75%. Co-developed IP fell 30%→15%. Dedicated R&D teams held nearly flat (37%→35%). The targets remained on paper but financial pressure overwhelmed execution.
The 2024 assumption was that stated targets would translate to action. What actually happened: targets existed but budgets contracted, internal capability eroded, and performance requirements hardened to 100%. Targets without incentive structures and budgets are not drivers; they are aspirations.
Wrong Driver 2: 'Tsunami' of Regulation would catalyse innovation
2024 Prediction
35+ pieces of sustainability legislation would force brands toward Next Gen materials. Regulatory pressure was described as a near-certain accelerant.
2026 Reality
US regulatory rollback was significant. EU regulation advanced but implementation timelines slipped. EUDR was delayed. Green Claims Directive stalled. In practice, regulatory certainty, which brands need to make long-term commitments, did not materialise as predicted.
The regulatory tsunami was more of a rising tide, uneven by geography. The survey reflects this: 'emerging legislation' as an adoption criterion fell from 59%→55% for brands. The key exception: chemical regulation (REACH, PFAS) which continued advancing everywhere, explaining the chemical reduction priority anomaly.
Correct Driver 3: Supply Chain Risk would push alternative sourcing
2024 Prediction
Climate disruption to cotton and traditional supply chains would push brands toward innovative alternatives. Supply chain resilience as commercial driver.
2026 Reality
Suppliers investing in innovation capability grew substantially. Three-way partnerships and supply agreements increased. The supply chain integration challenge became the #1 investor concern (76%→100%). Brands increasingly cite ease of integration (+9pts) as top adoption criterion.
This prediction proved correct in direction but wrong in mechanism. Supply chain pressure did intensify, but it expressed as risk aversion and complexity rather than open innovation. Brands wanted supply chain simplification, not more novel integrations. The result: innovators who can demonstrate a clear manufacturing pathway are now far better positioned than those with only brand LOIs.
Partial Driver 4: Consumer demand would force sustainable priorities
2024 Prediction
Gen Z and Millennial demand for sustainable products would create commercial pull for Next Gen materials.
2026 Reality
Consumer demand as an adoption factor fell from 48%→40% for brands. Supporters saw it rise (64%→77%), but that reflects observer optimism, not brand action. The 'attitude-behaviour gap' in consumer sustainability spending was not overcome.
Consumer demand remains a weak commercial signal at the brand level. Macroeconomic pressures reduced consumers' willingness to pay premiums. The innovators who called this out in 2024, 'I need a magic wand that makes consumers actually buy', were right.
What Survey Respondents Said: Voices on the State of the Industry
Selected quotes from the 2026 survey question 'If you could wave a magic wand and change something to help scale material innovations in the fashion industry, what would it be?' and the 2024 expert interviews
2026 Survey Voices
"If I could use a magic wand, I would change the incentives of the fashion industry. Today, the system is still very much driven by immediate cost and scale, which ends up hindering the adoption of new materials."
Innovator · 2026 Survey
"A strong and precise supportive legislative framework in the EU that focuses on CO₂ reduction and circularity, and enforces these also on all products entering the union."
Supporter · 2026 Survey
"More funding available for first commercial plants. Providing off-take agreements is a common industry-wide practice."
Investor · 2026 Survey
"Change the single margin KPI of the business to a dual KPI with 50% margin performance and 50% planetary and social impact at product level."
Brand · 2026 Survey
"Focus on industrial and commercial applications first since they are less price sensitive and can help achieve volume BEFORE focusing on brands."
Investor · 2026 Survey
2024 Expert Interview Voices
"I really hope that regulations can come fast and be established quickly because I think the industry is taking advantage of it right now."
Investor · 2024 Survey
"Brands have now made the link, it wasn't the case before, between Next Gen materials and their decarbonisation roadmaps."
Brand · 2024 Survey
"More patience and more non-dilutive funding. More brand off-take agreements and integration of innovations into ongoing collections (beyond capsules)."
Innovator · 2024 Survey
"I would accelerate industrial adoption cycles in the fashion supply chain. Material innovations take years to scale because validation, certification, and mill integration move much slower than brand timelines."
Innovator · 2026 Survey
Industry Directory
Innovators, Suppliers, and Investors
A living directory of innovators, suppliers, and investors in next-generation material innovation in fashion. Powered by a Google Sheet and updated in real time. Entries not exhaustive. Open-source and collaborative. You are invited to contribute new entries and update existing information.
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260+
Innovators
30+
Suppliers
70+
Investors
Conclusions & Recommendations
The Way Forward: What 2026 Tells Us We Must Do Differently
Based on the shifts observed between 2024 and 2026, these seven recommendations define where the industry must focus its collective energy to accelerate the scaling of Next-Gen material innovations.
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.
Survey Voices
What the Industry Is Saying
Voices across the industry highlight a consistent set of barriers and opportunities shaping next-gen innovation. Explore reflections from across all stakeholder groups to understand what is needed to support progress at scale.

Key takeaway: Read 2024 responses alongside 2026 and they are nearly identical. Standards, conditional commitments, shared infrastructure, regulatory certainty, and price parity appear across both years and all five groups.

What This Data Is Really Telling Us

The most frequent asks are not about materials science, pilot programmes, or communication tools. They are about incentive structures, accounting frameworks, business model architecture, and pricing mechanisms:

  • “Change the single margin KPI to a dual KPI: margin plus planetary impact” (Brand, 2026)
  • “Shift procurement from price per metre to lifecycle value” (Innovator, 2026)
  • “Price the damages of CO₂ and chemicals throughout the industry” (Innovator, 2026)
  • “Flip the cost of virgin versus recycled/bio-feedstocks” (Brand, 2024)
  • “Make true pricing a legal standard” (Supporter, 2024)
  • “AI-powered P&L tools predicting the financial impact of material adoption” (Brand, 2026)
  • “Volume aggregation across brands to minimise the price premium” (Brand, 2026)
  • “Sticks and carrots to reduce the cost difference between sustainable and conventional materials” (Investor, 2024)

This is a strong signal. The industry is not saying it lacks knowledge, passion, or innovative companies. It is saying that the economic system in which it operates makes the right choice the expensive choice. Conventional materials do not price in their environmental cost. Brand KPIs reward margin, not impact. Procurement systems evaluate cost per unit, not cost per lifecycle. Finance teams have limited tools to model the full P&L of a material switch.

The implication is uncomfortable: no amount of innovation, awareness, or goodwill can overcome a broken incentive structure. Innovators building better materials are competing against a price signal that systematically undervalues what they offer. Brands wanting to adopt face internal financial frameworks that make the switch look like a cost, not an investment. This is why the same asks appear year after year. It is not that the industry ignores the feedback. It is that the levers required to act on it (carbon pricing, mandatory LCA-based procurement, EPR reform, true cost accounting) sit largely outside the control of any individual company.

The strategic implication for innovators: until the external incentive structure changes, the most durable competitive advantage is not a better material. It is a commercial model that makes the switch financially compelling within the current broken system. That means being able to show cost-to-parity roadmaps, offer conditional offtake structures with clear off-ramps, and build the P&L case that finance teams cannot reject. The companies that will scale are not those waiting for the system to fix itself.

Innovator Voices
2026: selected responses
“More long-term committed brands, more investment from brands.”
“I would accelerate industrial adoption cycles in the fashion supply chain. Material innovations take years to scale because validation, certification, and mill integration move much slower than brand timelines.”
“If I could use a magic wand, I would change the incentives of the fashion industry. Today, the system is still very much driven by immediate cost and scale, which ends up hindering the adoption of new materials.”
“Incentivise brands to try new materials and start pilots through tax credits and funding, just like how there are millions for oil and gas industries to adopt new technology.”
“Administration support, real green procurement, honest cooperation and collaboration across the value chain. Less greenwashing.”
“Have a clear target and roadmap for reducing reliance on virgin fossil fuel chemicals.”
“Have finance and operations involved from the start. Currently projects are often managed by innovation and sustainability departments alone, which are disconnected from the business decision-makers.”
“Reduce regulatory barriers, increase government support.”
“More budget available for proof-of-concepts or early projects with brands. Sustainability budgets in particular all seem to have disappeared.”
“Implement an ESPR-style policy package for textiles with clear eco-design requirements and strongly modulated EPR fees that reward better LCA performance.”
“Building shared, sector-specific infrastructure for material startups. Most accelerators and funding models are designed for SaaS businesses, not hard materials companies.”
“Materials take 15 to 20 years to mature. That is not for the faint of heart, and it requires patient investors and committed brand partners.”
“Understanding that the current supply chain and ecosystem is not fit for purpose and needs as much change and innovation as the actual materials.”
2024: selected responses
“More patience and more non-dilutive funding opportunities. More brand off-take agreements and integration of innovations into ongoing collections, beyond capsules.”
“Off-take agreements or contractual commitment from brands to secure scale-up.”
“Faster decisions and commitment from brands.”
“More ownership on the brands’ side. They make the money but do not take responsibility.”
“Creating a material consortium to leverage collective genius. So many start-ups are competing for the same resources and supply chain capacity.”
Brand Voices
2026: selected responses
“Change the single margin KPI of the business to a dual KPI: 50% margin performance and 50% planetary and social impact at product level.”
“True data demonstrating the impact of these innovations. All brands using the same data to make decisions: emissions factors, LCAs.”
“AI-powered finance tools predicting the P&L when adopting a successful and qualified material.”
“For brands to be proactive and educate their consumers to help them make the best decisions when buying, not waiting for legislation to tell them what to do.”
“Material volume aggregation and supply chain nomination across brands to minimise the price premium.”
“Government funding towards innovators to bring prices down.”
“Standardised LCAs from the start to make evaluating based on emissions easier for brands, to better align with measured and tracked impact targets.”
“To change the mindset of all designers.”
2024: selected responses
“Address collective efforts and investments of many brands and investors in top promising innovations for quick proof of scaling.”
“Clear legislative alignment and timelines, and mindset shift within senior leaders.”
“More funding to help both suppliers and small startup brands to do more R&D, purchase and market these goods.”
“Internal bias against innovative materials needs to be addressed directly.”
“Material innovators being more open to work with start-up brands. There are mutual benefits in sharing feedback and test results.”
Supplier / Manufacturer Voices
2026: selected responses
“Changing the mindset of brands and getting a clear answer from them about why they do not adopt an innovation if it meets their targets on performance and price.”
“If I could change one thing, it would be strong, enforceable government regulation that sets clear sustainability targets and requires companies to meet them, not voluntary pledges.”
“Lower price points, high performance and low plastic content.”
“Accelerate legislation in the area.”
“Removal of synthetic fibres from the value chain.”
2024: selected responses
“More commitment from brands to buy the products developed with new materials.”
“A dedicated full supply chain mill to work only under material innovation for testing and developing.”
“Brands walking the talk and willing to pay the price for sustainability instead of pushing the burden to manufacturers only.”
“Better interactions throughout the supply chain. Brands need to help take a top-down approach to facilitate new technologies.”
“How can we bring brands to the table to make meaningful, long-term commitments to drive these material innovations forward?”
Investor Voices
2026: selected responses
“Focus on industrial and commercial applications first since they are less price sensitive and can help achieve volume before focusing on brands.”
“Clear set of benchmarks, like a SaaS-style napkin or the Climate Brick, to show how materials companies need to think about the milestones to hit as they scale.”
“Ensure adequate incentive alignment between suppliers and innovators. Share risk and reward, contextualise application and crowd in active brand commitment and funding.”
“Corporations need to start working earlier with startups.”
“Shorter sales cycles, faster prototyping and evaluation, and more restrictions on hazardous chemicals.”
“Make sustainable solutions affordable and easily scaled.”
2024: selected responses
“Long-term offtake agreements from large brands at price points that allow start-ups to have good unit economics.”
“Matching KPIs between innovation and commercial teams.”
Hot Topics
Exclusivity and Offtakes
The two commercial mechanisms that define the pace of scaling.
The exclusivity shift
% of innovators granting exclusivity by category, 2024 vs 2026. Overall exclusivity rose 17 to 25%.
All Innovators
17% → 25%
Granting exclusivity
All Brands
15% → 24%
Asking for exclusivity
Brands NOT Asking
63% → 76%
Still the majority
Alternative Leather: 71% to 33%
The sharpest shift. In 2024, 71% of alt-leather innovators had granted exclusivity. By 2026 this reduced to 33%. The wave of high-profile failures dissolved exclusivity relationships and left fewer active brand partnerships overall.
Dyes and Finishes: 33% to 38%
The only category where exclusivity is rising. ZDHC and PFAS regulatory pressure creates urgency among lead brands who want early access to compliant innovations. Bio-based dye innovators are also using exclusivity as a deal-structuring tool to attract brand co-investment for scale-up.
Recycling and Circular: 20% to 25%
The Circ Fibre Club provides conditional first-access that operates like soft exclusivity without the legal downside. The recycling category is bifurcating between committed brand-investor partners and open competitive markets.
Bio-Based Fibre: 9% to 18%
The fastest-growing exclusivity rate from a low base. Lead brands are beginning to secure early positions in the next wave of commercial bio-based fibre innovators. The doubling signals a move from pilot-and-wait to secure-and-scale.
Offtakes
Innovators
17% → 16%
Flat. No progress.
Brands
22% → 17%
Fell
Suppliers
5% → 8%
Slight rise
Scar tissue
11% → 35%
Bad past experience tripled
Barriers to Signing Offtakes, Brand View
Previous bad experiences
2024
11%
2026
35% ▲24
High risk perception even when conditional
2024
56%
2026
45% ▼11
Requires significant change management
2024
37%
2026
45% ▲8
Too far upstream in supply chain
2024
33%
2026
28% ▼3

Previous bad experiences tripled (11 to 35%). The solution is not more persuasion. It is better legal structures with conditional triggers and clear exit ramps.

2024 Report Case Study
The Circ Fibre Club: A Template for the Sector

The Circ Fibre Club offers an answer to the offtake impasse. Brands specify future use of recycled fibre: not a binding volume commitment, but a conditional demand signal that allows Circ to fundraise against it.

Why this model works:

Modelled on Power Purchase Agreements from renewable energy: the mechanism that unlocked investment in wind and solar before the grid was ready.

Key data point
0% of brands in 2026 rate signing offtakes as a very effective strategy, down from 17% in 2024. The Fibre Club model offers a conditional, risk-adjusted path that may unlock the next wave of commercial commitments without requiring brands to accept traditional offtake risk.
Innovator Type Differences
Recycling vs Biobased vs Alt Leather vs Dyes
The survey data does not tell a single story. Each innovator category has a distinct commercial trajectory, facing different obstacles, attracting different investors, and progressing at different rates.
Comparative Metrics by Innovator Category, 2024 vs 2026
Category Revenue Generating Supplier Partnerships Exclusivity Granted TRL 7 to 9 Key Shift
Recycling / Circularity
70%25% 60%62% 20%25% 80%62% Revenue fell sharply. Cost parity not achieved at scale.
Bio-Based Fibre
33%27% 50%82% 9%18% 50%64% Supplier partnerships surged 32 points. TRL advancing. Less revenue but stronger pipeline and partner depth.
Alternative Leather
57%50% 100%67% 57%33% 100%50% Exclusivity collapsed after Bolt, MycoWorks, NFW failures. TRL stalled.
Dyes and Finishes
67%50% 78%88% 33%38% 67%50% ZDHC and PFAS regulatory tailwind. Rising exclusivity. Only category citing beauty as secondary market.
Traceability
86%50% 71%100% 14%0% 86%100% All respondents at TRL 9. Highly commercial but shrinking representation.

No category is uniformly struggling or uniformly thriving. Recycling faces the toughest commercial environment despite high TRL. Alt leather is digesting failures. Bio-based fibre is building quietly with stronger supplier networks. Dyes and finishes benefit from regulatory tailwinds.

Recycling and Circular: Cost Parity Is the Wall
The recycling category has the highest TRL concentration but the sharpest revenue collapse (70 to 25%). This paradox is explained as you can have offtake agreements and high TRL and still fail if you cannot hit cost parity at commercial scale. The scale-up financing gap between pilot plant and first commercial facility is where this category keeps breaking down. Syre and Reju show promise.
Bio-Based Fibre: The Quiet Improvers
Bio-based fibre has the lowest commercial profile but the most positive structural signals: supplier partnerships rose from 50 to 82%, exclusivity is appearing, and TRL is advancing. This is what early-stage maturation looks like before the commercial breakthrough. The category risk is development timeline: bio-based fibre takes ~5 to 10 years from TRL 3 to commercial. Investor patience is being tested.
Alternative Leather: Processing a Wave of Failures
Three high-profile failures in 24 months reset market expectations. Exclusivity collapsed as partnerships dissolved, and supplier rates fell as manufacturing relationships broke down. Remaining innovators are re-entering with more modest claims, clearer cost roadmaps, and more careful commercial structures.
Dyes and Finishes: The Regulatory Tailwind Category
All sustainability priorities fell. Chemical reduction fell the least (−1pt). across all stakeholders in 2026. ZDHC MRSL v4.0, PFAS bans under REACH, and expanding chemical disclosure requirements create mandatory demand regardless of voluntary brand commitments. This category is also the only one to cite beauty as a secondary market, providing a revenue pathway outside fashion.
2024 Cross-Category Correlations Updated for 2026
The 2024 report identified six notable correlations in the innovator data. Two years on, we assess which held.
Confirmed
Feedstock and Offtake Correlation (72%)
Strong 2024 correlation between feedstock and offtake agreements held. Supply chain embeddedness predicts commercial commitment depth.
Confirmed
Funding, Mentorship, Partnerships Triangle
The three-way relationship among capital, mentorship access, and strategic partnerships remains central. Each unlocks the others.
Confirmed
Alt-leather Faces Unique Investor Obstacles
The crowded landscape challenge unique to alt-leather remained acute, reinforced by high-profile failures which further concentrated remaining capital.
Confirmed
Recycling: Impact Data Gap Equals Funding Gap
Correlation between limited impact reporting data and lack of financial projection capability held and deepened.
Evolved
Dyes and Finishes: Tech Scaling Now Universal
In 2024 unique to dyes. By 2026, technology scaling risk is the second-highest investor obstacle across all categories (73 to 77%).
Reversed
Biomaterials Supply Chain Resistance Now Universal
In 2024, bio was unique in citing supply chain resistance as top obstacle. By 2026, this has become near-universal across the ecosystem.
Further Reading
Resources
Key reports and frameworks referenced in this analysis, plus essential reading for anyone working at the intersection of next-gen materials, circular economy and fashion innovation commercialisation. This resources list is non-exhaustive. If you have any suggestions to be included, please contact the Sustainabelle team at info@sustainabelle.com
Source Report
Sustainabelle Advisory Services · 2024
Next Gen to This Gen: Scaling Material Innovations in the Fashion Sector (2024)
The foundational report from which this comparative analysis draws its 2024 baseline. Covers confidence, barriers, strategies, roadmap priorities, and hot topics across five stakeholder groups. The 2026 survey replicates its methodology for direct comparability.
Access 2024 report →
Next-Gen & Bio-Based Materials
Material Innovation Initiative · 2020
Material Performance and Sourcing: Bovine Leather
Requirements for innovators to meet leather criteria, testing, and what brands want.
Access report →
Material Innovation Initiative · 2020
Mycelium Leather Technology Assessment
Describing mycelium technology, criteria and replacement of leather.
Access report →
Biofabricate and Fashion For Good · 2020
Understanding 'Bio' Material Innovations
Defining bio materials and examples.
Access report →
Material Innovation Initiative · 2022
Brand Engagement with Next-Gen Materials: 2022
Brand engagement (partnerships, orders) with the Next-Gen market.
Access report →
Textile Exchange · 2022
Sustainability of Biosynthetics Report
How biosynthetics are a part of a sustainable future.
Access report →
Material Innovation Initiative · 2023
2023 State of the Industry Report
Next-Gen material annual outlook.
Access report →
Material Innovation Initiative · 2023
Brand Engagement with Next-Gen Materials: 2023
Brand engagement (partnerships, orders) with the Next-Gen market.
Access report →
Material Innovation Initiative · 2023
US Consumer Research Report: Next-Gen Materials
Surveying the US consumer base for Next-Gen adoption.
Access report →
Material Innovation Initiative · 2023
2022 State of the Industry Report: Next-Gen Materials
Covers investments, innovation, and industry partnerships from 2022. Next-gen material companies raised at least $456.75 million from 28 publicly disclosed deals that year.
Access report →
Material Innovation Initiative · 2024
White Space #1: Sub-Categories with Limited Innovation 2024
Unmet opportunities for Next-Gen materials.
Access report →
Material Innovation Initiative · 2024
Why To Invest In Next-Gen Materials
Highlights the potential of next-gen materials, offering investors a case for sustainable change and value capture.
Access report →
Material Innovation Initiative · 2024
Beyond Polyester: 100% Bio-Based Synthetic Fibers
Addresses scrutiny on polyester and synthetic fibers due to microplastic pollution, exploring bio-based alternatives as substitutes.
Access report →
Textile Exchange · 2024
Materials Market Report 2024
Shows global fiber production increased 7% while the overall market share of recycled polyester declined and synthetics continued to dominate.
Access report →
Boston Consulting Group + Fashion For Good · 2025
Scaling Next-Gen Materials in Fashion: An Executive Guide
Reveals next-gen materials could represent 8% of total fibre market by 2030, plus a strategic plan with three scaling levers.
Access report →
Textile Exchange · 2025
Materials Market Report 2025
Global fiber production reached 132 million tonnes in 2024, with polyester accounting for 59% of output and recycled fiber exceeding 1%.
Access report →
Materials Market & Benchmarking
Textile Exchange · 2022
Preferred Fiber and Materials Market Report 2022
Market overview of conventional and preferred sustainable materials.
Access report →
Textile Exchange · 2023
Materials Benchmark Report: Brands and Retailers
Reporting on brands and retailers' uptake, scaling and use of materials, and the benchmarking process.
Access report →
Textile Exchange · 2023
Materials Market Report 2023
Scoping material production volumes in fashion textile and apparel industries.
Access report →
Textile Exchange · 2023
Material Pathways: Accelerating Action Towards Climate+ Goals
Material contribution toward the climate goal of a 45% reduction in GHG emissions by 2030.
Access report →
Textile Exchange · 2024
The Future of Synthetics
Calls for the industry to stop introducing new virgin fossil fuel-derived materials.
Access report →
Textile Exchange · 2024
Reimagining Growth Landscape Analysis
Addresses structural challenges facing the textile industry around production volumes and tension.
Access report →
Textile Exchange · 2024
Materials Benchmark Insights and Trends 2024
Record participation of 423 companies; shows share of raw materials certified increased from 58% to 67%.
Access report →
Accelerating Circularity · 2024
Global Cotton Report
Trials and the current state of cotton recycling.
Access report →
Investment & Finance for Innovation
Boston Consulting Group and Fashion For Good · 2020
Financing the Transformation in the Fashion Industry: Unlocking Investment to Scale Innovation
Investment needs to mobilise fashion innovation.
Access report →
Fashion For Good · 2023
The Great Unlock: Closing the Innovation Commercialisation Gap Through Project Finance Solutions
How to gain needed capital for scaling innovation.
Access report →
Global Fashion Agenda · 2023
GFA Monitor 2023
Examines challenges facing the industry including financial pressures, greenwashing, and regulation.
Access report →
Fashion For Good · 2025
Fashion Innovation Overview 2025
Reviews the financial mechanisms needed to drive transformation and bring innovative solutions to commercial scale.
Access report →
Fashion For Good · 2025
Price Parity Toolkit
Developed with support from Laudes Foundation, Canopy, and Finance Earth; introduces a "premium decoupling" financing approach.
Access report →
Industry Outlook & Strategy
Business of Fashion & McKinsey · 2022
The State of the Fashion Industry 2023
Annual overview of the fashion industry.
Access report →
Business of Fashion & McKinsey · 2023
The State of Fashion 2024
Eighth annual report discusses major themes shaping the fashion economy, with ESG as a top concern.
Access report →
Global Fashion Agenda · 2023
Fashion CEO Agenda 2023
Outlines five socio-environmental sustainability priorities for fashion executives.
Access report →
Business of Fashion & McKinsey · 2024
The State of Fashion 2025
Ninth edition notes sustainability has fallen off the agenda, with 18% of fashion executives citing it as a top-three growth risk (down from 29%).
Access report →
Global Fashion Agenda · 2024
Fashion CEO Agenda 2024: Special Edition
Released for the GFS 15-year anniversary; presents five pivotal opportunities to unlock transformative impact.
Access report →
Global Fashion Agenda · 2024
GFA Monitor 2024
Partnership with Apparel Impact Institute, Ellen MacArthur Foundation, Fair Labor Association, Social & Labor Convergence Program, and Textile Exchange; covers progress across social and environmental targets.
Access report →
Business of Fashion & McKinsey · 2025
The State of Fashion 2026
10th edition covers ongoing challenges including trade disruptions, rising costs, and volatility, noting that sustainability is returning to priority lists.
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Climate, Decarbonisation & Net Zero
World Resources Institute and Apparel Impact Institute · 2021
Roadmap to Net Zero: Delivering Science-Based Targets in the Apparel Sector
Assessing fashion's adoption of science-based targets and how they will be delivered.
Access report →
University of Cambridge CISL, The Fashion Pact & Conservation International · 2023
Raising the Ambition for Nature: A Fashion, Apparel, and Textile Sector Primer
Scientific primer to navigate target-setting guidance for nature from the Science Based Targets Network.
Access report →
Fashion For Good and Apparel Impact Institute · 2024
Unlocking the Trillion-Dollar Fashion Decarbonisation Opportunity
Decarbonising supply chain potential and GHG solutions.
Access report →
Apparel Impact Institute · 2025
Taking Stock of Progress Against the Roadmap to Net Zero 2025
Global fashion emissions rose 7.5% in 2023 to 944 million metric tons.
Access report →
Circularity, Recycling & Textile Waste
Accelerating Circularity · 2020
A Playbook for Building Circular Textile-to-Textile Recycling Systems
Step-by-step guide on implementing circular business models.
Access report →
Fashion For Good · 2022
Sorting for Circularity Europe
Assessing EU textile waste for solutions and commercialisation.
Access report →
Fashion For Good · 2022
Sorting for Circularity India: Wealth in Waste
State and potential of textile waste in India.
Access report →
Accelerating Circularity · 2023
Putting Textiles to Good Use
Recycling system report.
Access report →
UNEP · 2023
Sustainability and Circularity in the Textile Value Chain: A Global Roadmap
Consultation with 140 stakeholders including brands, producers, innovators, recyclers, policymakers and financial institutions.
Access report →
Fashion For Good · 2024
Sorting for Circularity USA
Assessing US textile waste for solutions and commercialisation.
Access report →
World Business Council for Sustainable Development · 2024
Circular Transition Indicators
Assesses fashion's circularity performance through a created framework.
Access report →
Ellen MacArthur Foundation · 2024
Pushing the Boundaries of EPR Policy for Textiles
Written for policymakers and focusing on EPR schemes.
Access report →
Circularity Economy + H&M Foundation · 2024
Circularity Gap Report Textiles
First-of-its-kind industry-level Circularity Gap Report.
Access report →
World Economic Forum, Bain & Company, University of Cambridge · 2025
Circular Transformation of Industries: The Art of Scaling Circular Supply Chains
Provides a practical roadmap for moving from ambition to execution, outlining methods for prioritisation, circular supply chain design, and key enablers for scale.
Access report →
Circular Fashion Federation and KPMG France · 2025
Circular Fashion Market Study in Europe – 2025 Edition
Explores the key drivers of the circular transition through four structuring pillars: Reinvent, Reuse, Repair and Recycle.
Access report →
Boston Consulting Group and ReHubs · 2026
Advancing Textile Circularity: Europe’s Textile Waste Challenge
The report establishes a unified fact base on textile waste and recycling in Europe. The analysis assesses what it would take to scale textile-to-textile (T2T) recycling.
Access report →
European Investment Bank · 2026
Transitioning to a Circular Economy: Closing the Investment Gap in Europe
Joint research by the European Investment Bank Group and European Commission assessing the circular economy investment gap in the European Union.
Access report →
Consumer, Communication & Advocacy
UNEP · 2023
Sustainable Fashion Communication Playbook
Practical guide for fashion communicators on contributing to sustainable change.
Access report →
Changing Markets Foundation · 2024
Fashion's Plastic Paralysis: How Brands Resist Change and Fuel Microplastic Pollution
Survey of 50 companies finds major fashion brands are increasing their use of polluting synthetic textiles.
Access report →
Acknowledgements
Thank You to Our Survey Respondents
This report would not exist without the 200+ innovators, investors, brand leaders, suppliers, and supporters who gave their time and insights across two survey rounds.
About This Research

The Next Gen to This Gen comparative survey is the first study of its kind in the fashion materials innovation sector. By replicating the 2024 survey methodology exactly in 2026, we are able to track genuine shifts in confidence, commercial progress, and strategic priorities across the same five stakeholder groups, rather than comparing different populations.

Both survey rounds were conducted in partnership with innovators, brands, suppliers, investors, and supporters who shared their real commercial experience, including failures and setbacks, not just success stories. The open-ended responses are some of the most valuable data in the study, and we have quoted them anonymously.

Survey Respondents

The following is a list of companies that took the survey across 2024 and 2026 and agreed to be publicly listed.

Innovators
Algaeing · Azolla · BioFluff · Biomr Ltd. · Biophilica · Biothread · BlockTexx · Blue Hummingbird · Circ, Inc. · ClimaFibre · Colorifix · Dimpora AG · EVRNU · FastFeetGrinded · FreyZein Next-Gen Textiles · Haelixa · IDELAM · Ioncell Oy · Kintra Fibers · NFW · NOOSA · OceanSafe AG · OnceMore from Södra · PACT · PEELSPHERE · Pitri Ltd. · Planet of the Grapes · Polybion · Private Ltd. · Qorium · RBX Créations · Reishyo · Resortecs · SAGES · Simplifyber · SINBIOSYS · Sortile · Sparxell · Spiber Inc. · Strung Bioengineering · Tereform, Inc. · Unspun · Upcycle Labs · Virent · Yugen Company
Supporters
AAB_DESIGN_MODA · Accelerating Circularity · Apparel Impact Institute · Avant-green · Barbara French/dba Merchants First, LLC · Canopy · Central Saint Martins UAL, Maison/0 · Centre for Environment Education · Cocircular Lab · Cradle to Cradle Products Innovation Institute · Dana Davis Consulting · End Textile Waste Alliance · Fashion for Good · Felder Felder, Future Fashion Concepts · Future of Textiles · Inside Fashion Design · ITA Institut für Textiltechnik der RWTH Aachen University · Konekti · Liz Alessi Consulting · Metamorphosis LLC · Mind the Chain · National Fashion League Hungary Association · Performance Days · Plug and Play · Quantis · Re:Sourced · Simone Seisl · Stating the Obvious · Tatiana Laschuk LTDA · Textile Exchange · The Fabric Consultancy · The Footwear Collective · The Humane Society of the United States · The NEST · The Right Project · The Spire Agency · The Sustainable Angle · Treadle Tree · University of the Arts London
Investors
Alante Capital · At One Ventures · Circularity Capital · Good Fashion Fund · IndieBio & SOSV · ISKO · Lyra Ventures · Makesense · Newfund · Plug and Play · REFASHIOND Ventures · Regeneration.VC · Safer Made · The Mills Fabrica · Transition · Volta Circle /Indorama Ventures Ltd.
Suppliers & Manufacturers
Alpine Group / Paradise Textiles · Chlorohemp Agrotech · CKG · Dynawash Ltd. · Lenzing · POSITIVE MATERIALS · RDD TEXTILES · SYAAHI UNIFORMS · TexEarth · Tintex Textiles, S.A. · Toyota Tsusho Corporation · Usha Yarns · Veshin Factory
Brands
ASICS · Balenciaga · BESTSELLER · BY DESIGN · Houdini Sportswear · House of Hackney · Just Brands · Kering · Levi Strauss · LPP SA · Mela Alta Inc. · Moose Knuckles · New Balance · Ralph Lauren · Richemont · Social Fashion Company · SYAAHI UNIFORMS · TAMAYO · Tapestry
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Looking Ahead
What the Data Tells Us to Watch
The 2024 roadmap described exactly the right priorities. Two years later, the same asks appear. This page grades what was called for in 2024 against what the 2026 data shows, re-states the three pillars with sharper specificity, and defines three measurable tests that the 2028 survey will use to assess whether the industry has made genuine progress.
Three Pillars for 2026 to 2028: Re-Framed with Sharper Specificity
The same three priorities, re-stated with the urgency and precision the 2026 data demands
01
From Information to Infrastructure
Stop convening. Start building.

The 2024 report called for a neutral entity to harmonise standards. The 2026 data confirms no such entity has delivered. The ask from all five stakeholder groups is not for another working group or a report. It is for a specific output with a specific delivery date: an open-source sector LCA methodology for next-gen materials; a performance benchmarking protocol by material category; and a shared JDA and conditional offtake template library.

What the data supports: Clear standards are rated the most helpful resource by 81% of supporters and 85% of brands in 2026. The 2024 figures were 73% and 81% respectively. The demand is rising, not falling.

What 2028 will test: Does a harmonised LCA methodology exist that industry leading brands have agreed to use? That is the binary question. Not whether a working group met. Whether a tool was built and adopted.

02
From Relationships to Commitments
The relationship infrastructure has been built. The conversion infrastructure has not.

LOIs surged from 48% to 72%. Supplier partnerships grew from 64% to 82%. JDAs and supply agreements each rose 12 points. The ecosystem is more deeply connected than at any point in this research series. And yet offtake agreements, the only commitment that actually moves volume, are flat at 16% across both survey years. The pipeline is full. The tap is closed.

The barrier is now structural, not relational. Bad past experiences tripled from 11% to 35% as a barrier to signing offtakes. Brands have scar tissue. The answer is not more persuasion. It is better legal architecture: conditional offtake structures with performance triggers and defined exit clauses, modelled on the Circ Fibre Club and the power purchase agreements that unlocked renewable energy investment before the grid was ready. The 2024 report called for catalytic funding mechanisms. The 2026 data shows the specific mechanism that is needed: conditional commitment templates that brands can sign without taking traditional supply risk.

What 2028 will test: Has the conditional offtake rate moved from 16% to above 25%? Has the bad past experiences barrier stabilised or fallen from 35%? Those two numbers tell the story of whether the sector built the commercial infrastructure or kept building the relationships.

03
From Advocacy to Regulatory Alignment
The window of regulatory alignment is open. The sector must act within it.

The 2024 report called for a sector voice in Brussels and a dedicated next-gen materials association. Neither exists in 2026. But the external regulatory environment has moved significantly in the interval: ESPR textile implementing regulation, CSRD mandatory scope 3 materials reporting, and EPR fee modulation are either in force or imminent. These regulations create exactly the external pressure the sector asked for, but only if they are implemented in ways that actually reward next-gen materials adoption.

What the data supports: Innovators cite regulatory compliance challenges with suppliers rising from 20% to 26%, reflecting expanding EU regulatory complexity. Supporter respondents rate emerging legislation and regulations as very important to driving adoption at 88% in 2026. Investors cite lack of multi-sector applicability rising from 15% to 27%, suggesting innovators that can serve industrial markets alongside fashion are increasingly attractive as regulatory pressure tightens in both sectors simultaneously.

What 2028 will test: Has EPR fee modulation in any major market created a measurable price signal that reduces the cost gap between conventional and innovative materials? One concrete example of a regulatory mechanism working at commercial scale would represent a structural shift. No example would mean the window was missed.

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Appendix
Methodology and Data Limitations
To support this comparativestudy, a survey was conducted of major stakeholder groups involved in sustainable material innovation in fashion, including innovators, brands, suppliers, investors and support organisations.
Survey Design and Execution

Instrument: Both the 2024 and 2026 surveys used an identical question structure, with tailored question sets for each of five stakeholder groups: innovators, brands, suppliers/manufacturers, investors, and supporters (NGOs, consultancies, academics). Questions covered sustainability priorities, commercial agreements, obstacles, strategies, resources, and an open-ended section on what respondents would change if they had a magic wand.

Fielding periods: The 2024 survey was conducted between January and April 2024. The 2026 survey was conducted between February and April 2026.

Recruitment: Respondents were recruited through Sustainabelle Advisory Services’ professional network, industry events, partner organisations, and direct outreach. The sample is a non-probability, purposive network sample, not a random or stratified probability sample of the fashion industry. Respondents are people who are already engaged with the materials innovation ecosystem.

Language: Both surveys were conducted in English only, which may under-represent practitioners whose primary working language is not English.

Anonymity: Responses are anonymised. Open-ended quotes are attributed only by stakeholder group. No individual or company is identified in the quantitative data.

Expert interviews (2024 report only): The 2024 report was supplemented by 62 expert interviews conducted in English and French, covering the same stakeholder groups. The 2026 comparative study is survey-only; no additional expert interviews were conducted for this edition. This means qualitative depth in the 2026 findings relies solely on open-ended survey responses.

Analysis: Quantitative data was analysed as percentages of respondents selecting each response option. Where questions used rating scales, “very significant,” “high priority,” “very effective,” and equivalent top-box responses are reported. The 2024 report used Spearman correlation analysis for innovator sub-group analysis; this comparative edition focuses on descriptive year-on-year comparisons rather than inferential statistics.

Data cleaning: Responses coded “N/A,” “Prefer not to disclose,” and blank entries were excluded from percentage calculations. Total respondents completing each question therefore varies by question.

Sample Composition
Stakeholder Group 2024 2026 Change 1-point swing =
Innovators 56 43 −13 1 respondent ≈ 1.8 to 2.3pts
Brands 27 20 −7 1 respondent ≈ 3.7 to 5.0pts
Suppliers / Manufacturers 19 13 −6 1 respondent ≈ 5.3 to 7.7pts
Investors 23 13 −10 1 respondent ≈ 4.3 to 7.7pts
Supporters / NGOs 34 26 −8 1 respondent ≈ 2.9 to 3.8pts
Total usable responses 159 115 −44 Overall sample
Total submissions received 223 156 −67 Includes incomplete / uncategorised

The 64 excluded 2024 submissions and 41 excluded 2026 submissions were incomplete responses.

Geography: 2026 respondents
United States (30), United Kingdom (18), France (13), Netherlands (9), Portugal (6), Belgium (4), Canada (4), Spain (4), Germany (4), Switzerland (3), Denmark (3), Sweden (2), Austria (2), Italy (2), India (2), Singapore (2), plus 6 others (Mexico, Argentina, Brazil, Australia, 2 unspecified). Strongly concentrated in Europe and North America. No respondents from China, Bangladesh, Vietnam, Cambodia or other major apparel manufacturing nations. Asia-based suppliers are significantly under-represented.
Respondent Seniority: 2026
Innovators: predominantly Founders (42 of 43) and C-Suite (30 of 43), a very senior, founder-led cohort with direct knowledge of their company’s commercial position.
Brands: predominantly Managers (14 of 20) and Directors (6 of 20), with only 1 C-Suite respondent, at sustainability and innovation team level, not always board level. This may explain the gap between stated priorities and actual purchasing decisions.
Investors and Supporters: mixed seniority.
Limitations: What This Data Cannot Support

1. This is not a panel study. The 2024 and 2026 respondents are not the same people. Year-on-year changes reflect shifts in the survey population as well as shifts in the ecosystem. A change from 85% to 75% on any question could reflect genuine behaviour change, a different mix of respondents, or both. All year-on-year comparisons should be interpreted as directional signals, not precise measurements of change within a fixed cohort.

2. The sample is purposive, not random. Respondents are drawn from Sustainabelle’s professional network and the engaged materials innovation community. This population is more sustainability-aware, more innovation-engaged, and more optimistic about materials innovation than the average fashion industry practitioner. The data almost certainly understates how difficult adoption is in the broader industry. If even the most engaged practitioners are struggling with the barriers described here, the average brand or supplier is likely further behind.

3. Small sub-group samples carry margins of error. For the Supplier and Investor groups, a single respondent changing their answer moves a percentage by approximately 7.7 points. The approximate 95% confidence interval for a proportion of 50% from n=13 is ±27 percentage points. This means many of the specific percentage figures shown for these groups are not statistically distinguishable from one another. The direction of movement is probably real; the precise figures are not reliable.

4. Sub-category innovator analysis should be treated as illustrative only. The startup type comparison (recycling vs bio-based fibres vs alternative leather vs dyes) is based on sub-samples of n=2 to 10 per category per year. A single company entering or leaving the survey can swing percentages by 10 to 50 points in these groups. The narrative direction is consistent with qualitative evidence.

5. Sustainability priorities are self-reported and subject to social desirability bias. Respondents may rate topics as “high priority” because they believe they should, rather than because their organisation’s budgets and decisions reflect that priority. The gap between stated sustainability priorities and actual purchasing behaviour is well-documented across industries. The declines shown in this data may partly reflect respondents becoming more honest about real priorities under commercial pressure, rather than genuine de-prioritisation across the board.

6. Geographic bias is significant. Over 80% of respondents are from Europe and North America. Major apparel-producing regions, including Bangladesh, Vietnam, China, Cambodia, India (outside of a few respondents), are essentially absent. The supplier and manufacturer perspective captured here is largely European, which is unrepresentative of global fashion supply chain realities. Brand perspectives are similarly Western-centric.

7. The 2026 edition does not include expert interview validation. The 2024 report was supplemented by 62 expert interviews which allowed the research team to test, deepen, and cross-check survey findings. The 2026 study is survey-only.

8. Percentage deltas under 10 points are within the margin of error for most sub-groups. Given sample sizes, movements of 1 to 8 points in any direction for brand, supplier, or investor questions are not statistically significant. This report highlights large movements (≥10pts) as primary findings and treats smaller movements as directional.

What This Data Is Reliable For

Despite these limitations, this is likely the most comprehensive longitudinal dataset available on the materials innovation ecosystem in fashion, because no comparable study exists. Its value lies in:

  • Large movements across multiple groups simultaneously. When innovators, brands, suppliers, investors, and supporters all point to the same bottlenecks from their different vantage points, that convergence is meaningful evidence even if individual numbers carry uncertainty. The supply chain integration finding (investors: 76%→100%; suppliers: 56%→67%) is robust precisely because it appears from multiple directions.
  • The qualitative data. The open-ended responses are verbatim and unambiguous. 115 practitioners independently naming the same systemic barriers in 2026 that 159 named in 2024 is genuinely significant. No statistical test is needed to read that consistency.
  • Extreme values. A finding of 0% (no brand rates signing offtakes as effective) or 100% (every investor rates supply chain integration as a significant barrier) is robust even from small samples. These floor and ceiling findings are real.
  • The innovator data specifically. With n=56 (2024) and n=43 (2026) respondents who are predominantly Founders and C-Suite executives with direct knowledge of their company’s commercial situation, the innovator data is the most reliable in the study. Findings from this group, particularly on agreements, IP, and supplier partnerships, can be treated with reasonable confidence as directional indicators of the ecosystem.

The appropriate use of this data is as a practitioner intelligence product, not an academic study. It should inform strategic conversations, identify pressure points, and validate or challenge practitioner intuitions, not serve as the sole evidence base for regulatory or investment decisions.

Methodology Notes from the 2024 Report

The following is carried forward verbatim from the methodology section of the original 2024 Next Gen to This Gen report, for reference and continuity:

“There are a few limitations to the survey. First, the number of respondents in each category was relatively small. Ideally, answers would be collected from a larger sample. Also, the majority of respondents were located in Europe and North America. Lastly, the stakeholders who responded to this survey are already engaged in the transition to Next Gen material adoption, so they do not necessarily represent the views of the entire industry.”

Correlation analysis: “The analysis uses Spearman correlations to assess the relationship across variables and between specific innovator groups and variables in the survey. All reported correlations are significant at α<0.05. Spearman correlation is appropriate for assessing relationships across ordinal (scale-like) and binary variables, which is the nature of the majority of the data collected in this survey. Typically, correlations are considered ‘strong’ at absolute values of 0.7 or above, ‘moderate’ at 0.5 to 0.7, and ‘weak’ below 0.5. Because they are statistically significant, the reported weakly significant correlations (ρ<0.5) between innovator groups and experiences/attitudes are still a meaningful reflection of some relationship between specific innovator groups and specific experiences as reported in the survey. However, these relationships might be described as suggestive or likely rather than conclusive. A more robust sample would shed additional light on these relationships.”

Source: Next Gen to This Gen: Scaling Material Innovations in the Fashion Sector, Sustainabelle Advisory Services, 2024, p.127