According to the “Next Generation Natural Fibers Market Report 2026-2036” published by Research and Markets, next generation material companies have received over $3 billion in investment since 2014. Robust demand for these materials, driven in part by major brands such as Nike, Adidas, and Stella McCartney, is forecast to continue over the next ten years.

The report highlights that investment activity in the sector has demonstrated remarkable resilience. Despite a broader venture capital downturn that saw global funding decline by over 40% in 2023, next generation materials companies experienced a 10% increase in investment, reflecting sustained investor confidence in the category’s long-term potential.

Top-funded innovators include Spiber, Newlight Technologies, Bolt Threads, MycoWorks, Modern Meadow, and Spinnova, which have attracted substantial capital to scale production capabilities. The investor base spans venture capital firms, corporate venture arms from major brands, impact investors, and strategic acquirers seeking to secure sustainable material supply chains.

Global regulations such as the EU’s sustainability directives and rising consumer demand for eco-friendly products are driving market growth. Plant-based fibers suit automotive, construction, and consumer goods applications, while mycelium and bacterial cellulose lead advancements in textiles.