Next-gen materials are shifting from niche experiment to boardroom priority, with a new report showing they could reach 8% of the global fiber market by 2030, or about 13 million tons. For fashion brands, that shift is not just about sustainability messaging—it is increasingly tied to cost, risk, regulation, and long-term competitiveness.
Why next-gen materials matter now
According to BCG, materials currently account for about 91% of the fashion industry’s total emissions and roughly 30% of the cost of goods sold. Replacing conventional fibers with lower-impact next-gen options is therefore one of the most powerful levers brands have to cut carbon and manage cost volatility.
The report estimates that strategically scaling these innovations could deliver around a 4% reduction in COGS over five years compared with doing nothing, as economies of scale and smarter sourcing start to bite. At the same time, growing regulatory pressure, climate-related supply shocks, and shifting consumer expectations mean sticking with the status quo is becoming riskier each season.
From 1% today to 8% in 2030
Next-gen materials currently represent only about 1% of the global fiber market, but BCG projects that share could rise to 8% by 2030. That growth would still likely undershoot overall demand for low-impact textiles, given how fast regulation and corporate climate targets are tightening.
The gap between potential and need is where the risk lies. Without deliberate action to scale supply and reduce costs, brands may soon find that regulatory timelines, investor expectations, and consumer promises outpace the availability of credible, affordable next-gen materials.
The three levers: demand, cost, capital
The report frames scaling as a three‑lever challenge. On the demand side, brands need to send consistent, long-term volume signals—often via demand pooling or multi‑year offtake agreements—to give innovators and manufacturers the confidence to invest.
On cost, engineering, and process optimisation across the value chain are critical to unlocking economies of scale and making next-gen options cost‑competitive with conventional fibers. On capital, financing must be aligned with each phase of the adoption curve, from early‑stage pilots to commercial scale, so that promising technologies are not stranded between innovation and rollout.
“Business imperative,” not just a sustainability play
Katrin Ley, managing director at Fashion for Good, said, “The fashion industry stands at a critical juncture where next-generation materials are no longer just an opportunity but a business imperative,” stressing that bending the adoption curve will require both individual brand commitments and industry-wide collaboration. Sebastian Boger, global leader of BCG’s Fashion & Luxury sector, said, “these materials won’t scale on their own—industry-wide action is key.”
Catharina Martinez-Pardo, a BCG managing director and partner, said that “Brands that act now to embed these materials into their core strategy will win the next era of fashion…” That means integrating material choices into financial planning, performance targets, and accountability systems, rather than treating them as isolated sustainability pilots.
What brands should do next
For brands, the message is clear: understand today’s material mix, map emissions and cost exposures, and build a transition roadmap that links next-gen adoption to both climate goals and margin ambitions. That includes collaborating through platforms like Fashion for Good to pool demand, share risk, and accelerate learning.
Those that move early can lock in supply, shape standards, and position themselves as leaders with regulators, investors, and consumers. Those that wait risk facing higher costs, tighter regulations, and a shrinking window to catch up as next-gen materials move from experiment to expectation.
