Fashion industry must scale next-gen yarns as demand outpaces supply: Study

Luxury and mass-market fashion brands must act swiftly to scale next-generation yarns and fibers, as demand for sustainable alternatives is expected to exceed supply by 2030, says a Boston Consulting Group (BCG) and Fashion for Good report.

Materials contribute 91 per cent of fashion’s emissions and up to 30 per cent of production costs. Yet, over 80 per cent of brands lack comprehensive sourcing targets for key materials like cotton, polyester, nylon, and man-made cellulosic fibers (MMCFs). Climate change and geopolitical disruptions are already impacting raw material availability, raising financial and environmental concerns.

Next-gen materials such as regenerative cotton and recycled polyester offer a solution, but without accelerated investment, they will account for only 8 per cent of the fiber market by 2030, up from 1 per cent today. High costs and fragmented supply chains hinder adoption, but delaying action could lead to greater expenses and compliance challenges.

Experts emphasize the need for brands to secure supply through demand planning, increase investments in research and development, and collaborate on shared procurement and financing models. As sustainability regulations become stricter, early adopters will gain a competitive advantage. Catharina Martinez-Pardo of BCG highlights that integrating next-gen materials into core strategies will shape the future of fashion.