Materials

Sustainable Materials Are at Risk—Here’s Why It Matters

(7-10 Minute Read)

By Nuha Siddiqui, CEO & Co-Founder of erthos®

The sustainable materials industry is at a crossroads. For years, bioplastics and compostables have been championed as breakthrough examples of sustainable material solutions to address the escalating plastic pollution crisis. Yet, here we are in 2025, with sustainable materials barely holding 1% of the 400 million-tonne global plastics market (1). This reality isn’t just disappointing—it’s a wake-up call.

How did we get here? One thing is certain: this isn’t due to a lack of innovation.

The real issue lies in a systemic problem—a cycle of stagnation that blocks sustainable materials from scaling to the levels needed to make a meaningful impact.

While the devastating effects of plastic are becoming clearer, production continues to soar. Both consumers and industries, often unknowingly, are enabling this crisis hidden in plain sight. If we don’t address these barriers now, we risk jeopardizing the future of sustainable materials altogether.

The Plastic Crisis: It’s More Than Just Ocean Pollution

It’s easy to think the plastic problem can be overlooked or solved with recycling, community clean-ups, and reusable bags. “We’ll clean up the mess; our oceans will be fine.”

But here’s the truth: plastic isn’t just about cleaning up our oceans—it’s a full-blown human health crisis. Microplastics (2) have infiltrated every corner of our lives: they’re in our water, our food, our bloodstreams, and even in the placentas of unborn children. The long-term health impacts on future generations are still largely unknown, with risks we can’t yet fully comprehend.

And it doesn’t stop there. The connection to climate change is undeniable. From oil extraction to disposal, the plastic lifecycle pumps massive amounts of greenhouse gases into the atmosphere. If the plastics industry were a country, it would rank as the fifth-largest emitter of greenhouse gases globally (3).

Every piece of plastic we produce pollutes ecosystems, accelerates climate change, and is quite literally making us sick (4).

"But it doesn’t have to be this way. Sustainable materials offer a path forward—but their potential remains locked behind a system that clings to the status quo, resisting the change we so urgently need."

A Vicious Cycle: The State of the Sustainable Materials Value Chain

When we talk about sustainable materials, most think of the end product: bioplastic bottles, compostable bags, or biodegradable cutlery. What’s often overlooked is the convoluted and fragmented journey these materials must take to reach commercialization—a path so chaotic it might as well be a flowchart full of scribbles, redlines, and endless "TBDs." See Figure 2 for a high-level overview of the interconnected relationship between each key player.

Each player in the value chain faces unique challenges. We illustrated our own POV, the State of the Sustainable Materials Value Chain, to dive deeper into the complexities of the supply chain (5).

"Limited expertise, outdated infrastructure, fragmented policies, and misaligned priorities often result in sustainable materials being ruled out long before they reach commercialization. The cycle repeats: innovation stalls, plastics continue to dominate, and the path to market for sustainable materials feels increasingly out of reach."

If we focus on sustainable material innovators—those creating new-age plastic alternatives—often depend on global Consumer Package Good companies —those who dominate big retail space — to bring their products to market. These downstream players hold significant influence, dictating evolving demands and preferences that shape, or sometimes stall, the development and scaling of sustainable materials. This dynamic places immense pressure on innovators to adapt their solutions to a turbulent and often unpredictable pathway, frequently at the expense of progress and investment.

This highlights a systemic issue: interconnected challenges within the value chain that widen the gap between innovation and market adoption. The problem isn’t just about sourcing raw materials or managing end-of-life—it’s about navigating the complex journey from invention to commercialization.

A Ripple Effect of Setbacks

Testing and scaling new materials often takes 3-7 years, and by the time a product is market-ready, the target may have shifted. Compliance rules change, policies evolve, or a CPG company may decide the effort is no longer worth pursuing.

The reality is that even CPG companies that champion sustainability often face challenges in driving real progress. Many view material innovators as mere suppliers rather than true partners, expecting ready-made solutions without investing in the collaborative development required to refine and scale these materials effectively.

The result? A ripple effect of setbacks.

In 2024, we saw major companies roll back their sustainability targets (6), shifting focus to recycled plastics instead of embracing alternative materials. When CPGs deprioritize sustainable materials, the entire value chain feels the impact—converters delay system upgrades, compounders lose incentives to invest, and material innovators watch funding and momentum dry up. The message is clear: recycled plastics are easier—and, sadly, that’s often enough to justify complacency.

So, Are We Doomed?

The sustainable materials industry isn’t doomed—but it is at risk. If we don’t act now, we risk losing not just an opportunity but a necessity. The climate crisis demands alternatives to plastic, and the world simply cannot afford another decade of hesitation.

At erthos®, we refuse to follow the path of least resistance. We have seen what’s possible when sustainable materials succeed, and we are not going to wait for the industry to catch up—we are driving it forward.

But this isn’t just about us. The entire value chain must be equipped for success and rise to the challenge.

"Every delay allows the plastics industry to dig its heels in deeper, doubling down with new products, systems, and policies that lock out alternatives. Meanwhile, plastic waste floods our oceans, microplastics invade our bodies, and the climate crisis fuels uncontrollable fires across the globe."

Sustainable materials, like solar energy in its early days, are navigating an uphill battle. While solar energy benefited from policy incentives and technological breakthroughs, bioplastics remain a niche market, hindered by high initial costs, regulatory challenges, and a lack of significant support until recent years. The parallels remind us that systemic change takes time and effort—but it’s possible.

So, how can we rethink how we bring sustainable materials to market and create a system that supports sustainable innovation?

As 2025 unfolds, we’re committed to breaking down these barriers and sharing unfiltered insights, bold ideas, and strategies to foster a system that embraces sustainable change.

Stay with us as we unpack this journey and work toward a future where sustainable materials can thrive.

Sources:

1. European Bioplastics: https://www.european-bioplastics.org/market/#:~:text=Bioplastics%20currently%20represent%20roughly%20half,more%20sophisticated%20applications%20and%20products.

2. Smithsonian Magazine: https://www.smithsonianmag.com/smart-news/scientists-find-microplastics-in-human-brain-tissue-above-the-nose-180985100/

3. Environmental and Energy Study Institute: https://www.eesi.org/briefings/view/120921waste#:~:text=Plastics%20are%20a%20major%20climate,fifth%20largest%20greenhouse%20gas%20emitter

4. BBC: https://www.bbc.com/future/article/20240110-microplastics-are-everywhere-is-it-possible-to-reduce-our-exposure

5. erthos® State of the Sustainable Materials Value Chain: https://pitch.com/v/the-state-of-the-sustainable-materials-value-chain-by-erthos-6exwuw

6. Packaging Europe: https://packagingeurope.com/comment/why-are-so-many-brand-owners-set-to-miss-their-packaging-sustainability-targets/11565.article