The annual production of forest-derived fabrics rose in 2024 so the Man-Made Cellulosic Fibre (​MMCF​)​ sector is being urged to make Next Gen solutions a priority in 2025.

The latest Hot Button report published by non-profit environmental organisation Canopy has revealed nearly all MMCF producers engaged with the company are either actively using Next Gen products or are working on R&D.

However, it also states that at a time when pressure on forests needs to be dramatically reduced, it is “unfortunate that the annual production of forest-derived fabrics is increasing”.

The report explains that based on volumes disclosed to Canopy, MMCF production has increased by almost half a million tonnes over the last year.

While some of these increases have been from what Canopy classifies as “green shirt producers”, which means they are embracing CanopyStyle commitments, the largest increase in capacity came from a company with a red shirt, which means it is at high risk of sourcing from ancient and endangered forests and is not engaging with Canopy.

Canopy notes this result is largely due to this so-called “red shirt” acquiring other mills.

It adds: “Now more than ever, it is vital that Next Gen fibre solutions begin to displace forest fibre in MMCFs in a significant and accelerated way.”

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2024’s key findings

Canopy has rated 80% of the world’s MMCF (Man-Made Cellulosic Fibre) producers using its red to green shirt colours in its 2024 Hot Button Report and it received contributions from 28 producers globally.

Of these 28 producers, 71% have earned ratings of green, partial dark green, or dark green shirts, which is consistent with 2023.

A dark green shirt is the highest score and shows a producer is leading in CanopyStyle commitments, a light green shirt is the second highest score and shows a producer is embracing CanopyStyle commitments. While light green with red shows a producer is embracing CanopyStyle commitments but with known risk in supply.

Lower down the spectrum a yellow shirt shows a producer is initiating CanopyStyle commitments and a red shirt indicates a producer is at high risk of sourcing from ancient and endangered forests and not engaging with canopy.

The other classifications are white which means a producer is not yet assessed or newly engaged and rainbow which is a producer that is newly engaged and taking action.

This year has seen an increased level of commitment, with four producers who previously earned green shirts being upgraded to partial dark green shirts in recognition of their progress. 

When analysing total global fibre production, almost all (97.5%) of the total tonnage is now covered by the producers assessed in the report.

Canopy explains the trend has shown a steady increase in the percentage of production from green shirt producers, rising from 50% in 2021 to 53% in 2022, and 54% in 2023.

However, in 2024, the proportion of production from green shirt producers represents 53% of total MMCF output.

As previously outlined this slight decline is attributed to consolidations (purchasing of other producers) and capacity expansions by red shirt producers, which led to a reduction in fibre volumes in the green shirt category. 

Canopy is also proud to reveal that companies representing 78% of global MMCF production have signed onto a letter to all member states, calling for “immediate leadership to strengthen — not weaken — the policies, incentives and legislation that will drive the necessary business action to halt and reverse nature loss by 2030.”

In addition, 10 MMCF producers supported conservation projects in 2024, and five more reached out to local forest conservation organisations to learn how they can provide support in the future.

The best scoring MMCF sector producers

Canopy says that for the first time, it has three producers tied for first place in its Hot Button rankings.

Indian multinational conglomerate Aditya Birla, Austrian chemical industry company Lenzing, and Chinese chemical industry firm Tangshan Sanyou all earned the highest number of buttons (scores) and dark green shirts, which it says shows that sustainability is a priority across the globe and in multiple markets. 
 
Canopy notes that China has once again showed remarkable leadership in this area with Chinese MMCF producers Yibin Grace and Xinxiang Chemical Fiber Co. achieving the second-highest number of buttons due in large part to their deep commitment to scaling up Next Generation fibre solutions.  
 
Other companies with notably high button counts and dark green shirts include China’s Jilin Chemical Fiber, US’ Eastman, and Taiwan’s Acegreen.

It was also keen to give a shout-out to concerted improvement efforts by Zhejiang Huafeng, which moved from having a rainbow shirt to achieving a partial dark green shirt. Plus, three other producers have moved from green to partial dark green, which means a deepened engagement with the CanopyStyle initiative. 

The state of the MMCF sector and next gen solutions

The Hot Button report admits some smaller producers have faced challenges in overcoming technical obstacles with alternative fibre integration. However, they are continuing with testing, and leading producers (in collaboration with Canopy) are developing new tools and supply chain collaborations to boost quality, reduce costs, and foster transparency. 
 
It is also keen to point out the bankruptcy and sale of Renewcell caused disruption in the supply of Next Gen, but it provided many learnings for what it is going to take to scale Next Gen through the long value chain.

The report reads: “We have seen numerous brands and producers step up their efforts, including stronger collaborations across brands, as well as between producers and brands, producers refining production to run new materials”.

It explains that a couple of producers bought the existing Renewcell product, Circulose, on the market and Circulose is now rebuilding its team and will begin commissioning and full production in 2025.

Canopy shares that MMCF producers are also supporting other Next Gen innovators such as Sodra, Circ, Evrnu, and BlockTexx, and integrating their fibre into their products. 
 
​​Crucially, Canopy is keen to play an enabling role in developing the market for new Next Gen products, and is currently supporting numerous projects that will help optimise production of early-to-market products throughout the value chain, reduce costs, and secure market pull-through from brands.​ 

Since the last report was published, six producers have either published or have started CanopyStyle audits to assess the risk of sourcing from ancient and endangered forests. 

In 2024, 20 MMCF producers increased their use of FSC Mix fibre. Canopy says it recognises the importance of using FSC Mix for MMCF, although it continues to push for an increase in the use of FSC 100%, which is fibre that meets all of FSC’s principles and criteria.

Since 2022, FSC 100% dissolving pulp has been available from LD Cellulose, and it says it is now seeing an uptick in the use of FSC 100% by MMCF producers across regions.

This year 14 producers have traceability systems across multiple MMCF lines, which allow brands and retailers to trace the fibre from MMCF facility to final garment. Producers are using internal systems (such as DNA markers), as well as external traceability providers to deliver this transparency to customers.  

What’s next for the MMCF sector and Next Gen solutions?

Canopy plans to engage with any producers that have red in their shirts to encourage them to reduce sourcing risk, and have their sourcing verified through CanopyStyle audits.

It explains that it has new brand partners in China and India so it is confident its CanopyStyle initiative’s continued momentum will reach these producers and encourage improvement. 
 
Canopy highlights that its criteria is designed to foster progress year-over-year so it hopes to see progress continue into 2025.  
 
Plus, 2025 will mark the 10th edition of its Hot Button Report, so Canopy will be reflecting on the progress achieved in the MMCF sector so far and will continue to collaborate with MMCF producers and global brands to drive change in the years ahead.

By Just Style