There’s a bit of a chicken-and-egg scenario between commercialization and brand commitments when it comes to next-gen materials, but what can move the needle? Three next-gen material experts give us their take.
Hannes Schoenegger
Co-founder and CEO
Bananatex, a plant-based and plastic-free fabric made from abacá plants in the Philippines.
“We believe the real issue lies behind the question itself. The materials that dominate today’s markets appear affordable but their prices do not reflect their true costs. The environmental and social consequences—from microplastic pollution and the impacts of conventional cotton farming to the widespread use of harmful chemicals linked to illness, infertility and other serious health issues—are largely externalized. Future generations will ultimately bear these costs.
Truly sustainable next-generation materials are likely to be more expensive because they account for these impacts up front rather than passing them on to society and the planet. This creates an inherently uneven playing field, where unsustainable solutions benefit from hidden subsidies in the form of unpriced environmental and social damage.
The challenge, therefore, is not simply commercialization or brand commitment. Even when sustainable materials are available at scale, brands, consumers and investors will need to adapt to new ways of calculating value, planning supply chains and measuring success. This transition will take time and will require thoughtful regulation and policy frameworks that help align market prices with real-world costs.
At Bananatex, we have already demonstrated proof of concept across multiple product categories and industries in collaboration with global brands. Our materials are available at commercial scale. However, moving from limited capsule collections to widespread adoption requires more than technical readiness. Brands operate within economic systems that prioritize shareholder value, and we fully understand that reality.
Without meaningful structural changes that reward sustainability and account for true costs, progress will remain incremental. To create real impact, the rules of the game must evolve—not just the materials.”
Arshiya Lal
VP, Business Development & Marketing
Circ, 100% recycled textile waste, specifically post-industrial and post-consumer polycotton blends
“Circ has maintained from the start that the solution to scaling next-gen materials lies in building confidence across the value chain rather than waiting for one stakeholder to move first. Brands don’t need millions of pounds of recycled fiber tomorrow; they need confidence that commercial supply is coming. Simultaneously, project developers and investors need confidence that long-term demand can be translated into commercial commitments.
A core consideration in our thinking is the way market fundamentals have shifted. Demand for high-quality recycled fibers will exceed available supply—brand commitments, regulatory requirements and market expectations are growing while commercial-scale recycling capacity remains limited. The question is shifting from whether demand exists to who can scale to meet it.
With that in mind, Circ has validated the technology at demonstration scale, partnered with globally recognized brands to launch commercial products, and worked with industrial engineering partners to de-risk commercial deployment. Each milestone reduces uncertainty for the next stakeholder. Rather than waiting for a single catalyst to unlock the market, Circ is solving it through progressive de-risking.
Commercialization starts with confidence rather than capacity. Circ gives brands confidence that it can consistently deliver commercial-quality material, which gives financiers confidence that demand will hold once capacity comes online. That’s the trust Circ has been building: enough for the industry to move forward together. Every successful product launch, engineering milestone and strategic partnership builds credibility, reduces uncertainty and unlocks the next stage.”
Tessa Callaghan
Impact Entrepreneur / Industry Expert
(former Co-Founder and CEO of seaweed yarn maker Keel Labs)
“I’ve been speaking with companies across the sector to understand the crux of the problem, which is threefold: infrastructure, financial mechanisms and scale.
The textile supply chain—from fiber production to finished garment—is optimized for mass production, and there’s a disconnect between brands’ sustainability ambitions and the realities of manufacturing.
Most brands have little direct interaction with raw materials, while manufacturers sit at the center of the system—fiber becomes yarn, yarn becomes textile, textile becomes garment. Although next-gen fibers don’t require entirely new machinery, introducing new materials still creates cost, risk and disruption through recalibration, testing and production downtime.
And manufacturers are already operating under intense cost pressure. Meanwhile, alternative fibers are competing against cotton and polyester—industries benefiting from decades of infrastructure investment and government support.
Recent oil price volatility has made polyester more expensive and underscored the need for diversified material supply chains and, hopefully, greater curiosity about alternatives. We’ve seen a similar dynamic in the energy sector, where policy has accelerated the adoption of renewables like solar, wind, geothermal, hydro and electric technologies.
What’s needed is a reevaluation of the financial system supporting material innovation. Subsidies could play a transformative role, as well as patient capital and grant funding. Much of the agriculture and petrochemical sectors already benefit from significant subsidies, though brands don’t always realize that—they just see the final cost. Until innovators can deliver solutions that meet brands’ economic requirements, this tension will persist—particularly for public companies driven by financial performance over impact.
I don’t see that changing in the near term, which is why I’ve been thinking about what other levers could help bridge the ‘valley of death’ that so many potentially transformative companies—including Keel Labs—struggle to cross.”
This article ran in HGI’s Fiber Report. To download the full report, click here.
