Renewcell Bankruptcy Casts Shadow Over Next-Gen Materials Boom
Renewcell, an early pioneer in recycled textile-to-textile fiber, has filed for bankruptcy, casting a shadow over the next-gen materials sector. Meanwhile, consumer demand for sustainable fashion is surging, with 92% of U.S. respondents open to purchasing next-gen materials, and 70% in China likely to buy them.
The global market for next-gen materials is booming, with 141 companies now operating in the space. Seven of these focus on creating next-gen fur, while 92 work on next-gen leather alternatives. The potential market share for next-gen materials in the fur segment is a substantial 64%, indicating a significant shift in consumer preferences.
The trend towards ethical fashion is being driven by increasing awareness of animal cruelty in the industry. A staggering 64% of people are aware of this issue, and 86% believe brands should assure animal welfare in their supply chains. This has led to a growing demand for fur alternatives, with faux fur outerwear becoming a popular trend, championed by the Mob Wife Aesthetic on TikTok and influencing runway fashion.
Despite the promising market potential, there is currently no information available about specific companies producing next-generation fur. However, several companies are making strides in creating sustainable leather alternatives, such as Mycoworks, Ecovative Design, and Gozen. Infinited Fiber, a recycled fiber competitor, recently closed a $43.8 million funding round, demonstrating the investment potential in this sector.
The bankruptcy of Renewcell serves as a reminder of the challenges facing the next-gen materials industry. However, the strong consumer demand for sustainable fashion and the potential market share of next-gen materials suggest a promising future. As awareness of animal cruelty in the fashion industry grows, the demand for ethical fur alternatives is set to increase, presenting a significant opportunity for innovative companies in this space.
