Our Generational Model of Ingredient Branding got a makeover at the end of 2023. In response to the growing regenerative economy, our model is evolving with the introduction of a third generation. 

The first generation: Performance enhancement

The first generation of Ingredient Brands was rooted in proprietary innovations and technologies that provided significant performance enhancement to the finished products in which they were incorporated. The core mission of first-generation Ingredient Brands was to improve customers' products and provide a better product experience for their end-users.

Performance-driven first-generation Ingredient Brands stem from the “DuPont model” - NYLON, introduced by DuPont in 1938, was the first genuine Ingredient Brand. Other brands from the DuPont cosmos followed, such as Cordura, Teflon, or Lycra. Other American and European companies, mainly from the chemical industry, joined in and established Ingredient Brands like Polartec, Primaloft, Velcro, and Scotchguard were established.

The second generation: Sustainability and purpose

With the second generation, the focus shifted from performance improvement to sustainability and purpose-driven solutions. Materials companies began to address environmental issues by recycling specific waste streams and making products more sustainable. In this way, second-generation Ingredient Brands help their customers better achieve and demonstrate their sustainability goals such as ESG or SDG targets. However, matching the performance of the materials brands are trying to replace with the performance of less sustainable solutions remains crucial.

The next generation: Towards a regenerative future

What we saw happen in 2012 with the rise of sustainability, the world is now witnessing in regards to regenerative economy. The concept of a regenerative economy goes beyond sustainability and the mere circularity of materials. While sustainability aims to maintain and reuse existing materials, the regenerative economy strives to additionally improve the local environment and societies. This approach involves actively restoring ecosystems, supporting communities, and creating products that biodegrade or serve multiple purposes. The role of this third-generation Ingredient Brands will be to help its customers contribute to the regeneration of the planet’s environmental and social situation.

One of the very first representatives of this next generation is the Canadian company Bast Fibre Tech with its sero® Ingredient Band (learn about their journey in this episode of the HeroInside podcast). They produce affordable natural performance fibers from hemp and bast to accelerate the availability of next-generation materials. Hemp for example does not only regenerate soil and promote biodiversity but also offers opportunities to revitalize communities disadvantaged by structural change, such as former tobacco or cotton farmers. Access to and use of brown-field production capacity and the use of material in existing infrastructures also have a strong regenerative character.

Collaboration is the new keyword

Collaboration between sustainable material innovators and brands is key to successfully navigating this new landscape. As the world looks for solutions that go beyond maintaining the status quo, Ingredient Brands have the potential to lead the way in regenerating our planet and communities while delivering products that align with these principles. Ingredient Brands will need to act more holistically and not think only about the full lifecycle of their materials but also the regenerative aspects for communities and the planet. 

The Boston Consulting Group predicts a materials gap of 130 million tonnes of next-generation fibers for the textile industry by 2030. The group says that "materials are the key to the castle" -  meaning that there is a huge opportunity for manufacturers of sustainable and more regenerative materials. However, these materials need to be scaled up quickly and integrated into existing manufacturing infrastructures. This will require a mindset shift away from the competitive thinking of the linear economy towards greater collaboration and shared solutions between start-ups inventing NextGen materials and established players with the capacity and know-how to manufacture them. We also observe that many brands rush head over heels into all kinds of collaborations without having a clear strategy of what this means for their own brand and its positioning.

Challenges and opportunities

With increasingly strict legislation and increasing consumer awareness, brands are faced with new challenges and prompted to commit to change, be it through SDGs, Extended Producer Responsibility (ERP), re-evaluating the supply chain, et cetera. Greenwashing, or making false claims about sustainability, is becoming riskier as legal consequences loom. The transition from a linear, competitive economy to a regenerative one does not come without challenges, and companies accustomed to growth-driven models may need to rethink their strategies.

Learn directly from the key players

To see how the model is acting in real-time, follow our HeroInside Ingredient Branding Podcast and listen to how Ingredient Brands are responding to the shifts in their priorities.