The delta between supply and demand for sustainable materials is growing smaller, with both brands and suppliers upping their commitment to green fibers and fabrics.
Recently released data from the Material Exchange shows that 86 percent of brands requested sustainable material options in 2023—a significant jump from the 52 percent who did the same in 2022. And suppliers have risen to meet the call, with 72 percent of requests fulfilled last year, compared to 57 percent the year prior.
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The Sweden-based group, which helps connect sustainable producers with companies looking to source preferred materials, surveyed 28 suppliers, brands and industry stakeholders across Canada, Brazil, the U.K., Italy, Belgium, India, Pakistan, China and the U.S. for its 2023 Digital Sourcing and Sustainability Survey Report. Findings showed that over one-third (35 percent) of businesses ranked using more preferred fibers and materials as a top-tier goal. Over 57 percent of brands said they often ask for sustainable material options, compared to just 20.6 percent in 2022.
In looking at the breakdown of characteristics that matter most to brands when selecting sustainable materials, 76 percent pointed to recycled content, while 38 percent said they were primarily seeking organic content. One-third said the traceability of raw materials was the most important factor in their decision-making.
Recycled content was also ranked the most important sustainable sourcing factor in 2022, showing that it “continues to be a priority as more brands recognize the importance of reusing what’s available,” the report said. “This can likely be attributed to the fact that recycled fibers are more readily available and cost-effective than other sustainable options.” Traceable and transparent raw materials have also grown in importance, displacing circular materials in rank year over year. “These top choices are no surprise considering global legislation surrounding sustainability in fashion stresses recycled content, organic content, and traceability,” the group wrote.
The trend persisted in companies’ rankings of their top overall sustainability priorities. Supply chain transparency and traceability took the No. 1 spot (60 percent), and finding sustainable Tier 2 and Tier 3 suppliers (55 percent) came in second followed by finding more ethical and sustainable Tier 1 suppliers (40 percent).
Digitization has also emerged as a target for both brands and their supply chain partners, with 81 percent of survey respondents saying they believe digitizing the value chain is an important objective. They also ranked their reasons: increasing speed to market (60 percent), reducing resource waste and transportation emissions due to over-sampling (55 percent) and cutting costs resulting from buying and shipping material samples (50 percent).
Notably, though, analysts have seen a decrease in the belief that digitizing Tier 2 materials, like fabrics, is essential. In 2023, just 25 percent ranked it as an objective, compared to the more than 39 percent that said it was important the year prior. Materials Exchange attributed the shift in attitudes to the return of in-person sourcing, traveling and trade shows, which allow brands to see and feel materials in person. Three-quarters of brand respondents said they prefer to discover new materials and develop new sourcing partnerships at trade shows.
“It’s clear [suppliers] are sharing materials and collections both physically and digitally, but prefer showing materials physically over digitally,” the group wrote. “This speaks to the importance of attributes such as hand feel, which are more difficult to portray digitally.” Still, more than 57 percent have invested in the ability to showcase digital samples via online sourcing showrooms and platforms or email. Most surveyed suppliers (over 57 percent) have become at moderately experienced in connecting with brand clients through digital means, and more than 14 percent characterized themselves as experts in conducting business digitally.
When it comes to bettering their operations from an environmental standpoint, suppliers have been focused on several key objectives, the research found. “Interestingly, the two most popular options are related to water, with 71 percent of respondents having both wastewater treatment and water conservation programs in place,” Material Exchange said. “Water is an incredibly important—and limited—commodity that the fashion industry has traditionally used in excess so it’s inspiring to see so many taking measures to improve its use and treatment.”
More than half (57 percent) of supplier respondents said they’ve worked to establish renewable energy sources, air pollution and emissions remediation measures, waste-cutting programs and third-party social and labor audits or certifications as part of their ongoing sustainability strategies.
