Developers of materials with applications across apparel, automobile, home goods, etc.

Developers of non-leather material alternatives such as wool, silk, and viscose—mostly for apparel

Developers of alternatives to plastic and other materials used in packaging

Developers of alternative materials for industrial applications such as sporting goods, electronic components, and automotive parts

Earth-friendly biotech solutions for the textile, packaging and construction industries.

Sustainable Materials

Overview

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 Consumers around the world are demanding more sustainable packaging, clothes, energy, food, and just about anything else available on the market today.
 
 
 Rising awareness around climate change, corporate accountability, and policy support from governmental and international policy bodies all contribute to this movement.
 
 
 In response, a new wave of companies are working to supply brands with renewable and sustainable materials that help maintain equilibrium between business and the environment and key natural resources.
 
 
 Most of the players within the industry rely on biotechnology processes to produce these materials and have been enabled by recent R&D driven advances and resultant products and processes. 
 
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The US market for sustainable materials could reach USD 1.4 billion by 2026

Market Sizing

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 Several sustainable material companies, including Danimer Scientific, Zymergen, and Allbirds endured production delays and store closures due to the Covid-19 pandemic.
 
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 During April and May 2020, around USD 36.7 million in Paycheck Protection Program (PPP) loans were received by sustainable material firms, such as RWDC Industries, Newlight Technologies, MycoWorks, and Ecovative Design, to support payroll and other expenses during the pandemic.
 
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 Allbirds and Zymergen also supported healthcare workers and frontline staff by volunteering and donating during the pandemic’s early days.
 
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COVID19-IMPACT

Market Mapping

We break down the sustainable materials industry into materials derived using bio-based and recycled sources. Within bio-based we looked at companies innovating new types of sustainable alternatives to leather, along with innovations in materials used in textile, packaging and industrial applications. The recycled materials segment includes companies that recycle used clothing, plastic waste, and food waste for materials to be used in textile, packaging, and other applications such as household items and building materials. Each segment represents a wide range of products given a broad diversity of materials and processes employed by competing firms. The segments involved in bio-based materials have the largest number of companies, the leather segment leads in terms of funding and the commercialization of products relative to other textile materials.

The Disruptors

While the startups profiled in this report engage in a great variety of processes and inputs, there are some overlaps between businesses within the different bio-based material segments and even with the segments of recycled materials.Within the bio-based leather market, the most highly-funded startups as of July 2021 are Bolt Threads, Modern Meadow, and Ecovative Design. These companies derive a form of vegan leathers from natural materials such as mycelium, algae, yeast, and other plant-based sources. Bolt Threads is also leading the bio-based textiles space in terms of the highest private funding. However, this segment also includes the listed disruptor Spinnova, and Allbirds—which reportedly filed for an initial public offering in June 2021 and is expected to go public by September 2021.Regarding bio-based packaging materials, Origin Materials, Ecovative Design, and Anellotech are the most highly-funded startups. Origin Materials agreed to merge with a publicly-traded special purpose acquisition company (SPAC) in February 2021, a transaction that resulted in Origin Materials going public at a USD 1.8 billion valuation. This segment focuses on bioplastics and other biodegradable materials for packaging and single-use plastic applications.The recycled materials segments include companies working to solve the global plastic pollution problem by producing recycled alternatives to plastic, textile materials and other materials with applications in household goods, building materials, and furnishing. Common inputs for companies in this space include clothing waste, plastic waste, and food waste.

Disruptor Funding History

The Incumbents

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 Industry incumbents cover a wide range of products and applications from fabrics, to shoes, cosmetics, and industrial uses. Some of these firms have also recognized the importance of having a sustainable partner or business embedded within their value chains.
 
 
 The majority of these companies have entered the industry via acquisition of smaller companies focused on sustainability to gain more control over their own supply chains. Other major companies such as Adidas, Aquafil, and Foss have managed to develop sustainable material businesses in-house.
 
 
 
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Sustainable Materials

Sustainable Materials

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