New business model addresses next-gen fibre price premium

17/11/2025
Fashion For Good is introducing a new business model, launched with a toolkit, that seeks to bridge the price gap between conventional and next-gen materials by decoupling the price premium associated with more sustainable solutions. Price is often cited as the main reason that innovative fibres are slow to be adopted in the apparel industry. The Price Parity model has been tested by Circulose and allowed it to secure several partnerships. 

The Amsterdam-based organisation developed the model with support from Laudes Foundation, Canopy and Finance Earth. It is designed to support innovators that have yet to achieve economies of scale. In the current supply chain, the price premium of a new fibre or process is marked up as the materials move through the supply chain, deepening, at each stage, the price gap. 

In the new model outlined in the Price Parity Toolkit, brands will absorb the premium upfront and fund Tier 4 suppliers directly. This is expected to avoid the traditional compounding effect of traditional systems. 

The toolkit includes step-by-step implementation guidance, operational guidelines for money flow management, legal risk mitigation, and traceability. It also describes real-world case studies across industries.

The Price Parity Toolkit can be downloaded here.