Why we invested in Canvaloop
November 23rd, 2021 - The textile industry is one of the most highly polluting in the world – production of textiles for fashion buyers makes up 10% of global carbon emissions, dries up water sources, and 85% of all textiles go to waste each year. Since 2002, global clothing production has more than doubled, and while the average consumer buys 60% more, each garment is kept for half as long. On the current trajectory, the fashion industry is projected to use 25% of the world’s carbon budget by 2050. Textile waste from the fashion industry is estimated to increase by about 60% between 2015 and 2030. The anticipated total fashion waste in 2030 is 148 million tons — equivalent to an annual waste of 175 kg per capita across the planet.
Rising Consumer Demand for Bio-Based Ingredients
The largest share of materials used by textile manufacturers comprises of plastic-based or synthetic fibres, which include: polyester, nylon, acrylic and elastane. These materials have a wider variety of garment usages; versatile properties such as ease of drying and draping. They are cheaper than other fibres as they do not require agricultural land; they are produced from oil; and they use lower quantities of water compared with other types of fibres. However, these fibres are non-biodegradable, emit nitrous oxides, contributing to greenhouse gases and are energy-intensive during dyeing, requiring high temperatures.
It has been estimated that around half a million tonnes of plastic microfibres are shed while washing these garments, which end up in the ocean annually. With its low rates of utilisation (leading to high levels of throughput) and low levels of recycling, the current wasteful, linear system is the root cause of the expanding pressure on environmental resources.
The Case for Alternative Cellulose-Based Fibres
As an alternative, cotton has been an increasingly used as a natural fibre in the textile industry. There are, however, growing challenges with cotton, such as high usage of water and soil erosion, as a result of intensive cultivation and pesticide usage.
Therefore, sustainable fibre alternatives with similar properties to cotton - such as hemp, nettles, linen, viscose, lyocell, lotus stem, agricultural waste, pineapple and banana fibre - are gaining promising traction. Historically, there have been challenges around the compatibility of these fibres with the dominant spinning and production infrastructure, which was originally designed for processing cotton at scale.
However, recent technological developments have developed by private players, allowing bast fibres like hemp to be processed more efficiently on newer, custom-made, patented equipment. These processes can also improve the material properties and characteristics of these fibres. These materials also use sustainable cultivation practices but also employ less chemically intensive processes for fibre extraction, not utilizing toxic compounds as reagents (e.g. carbon disulphide) and operate in a closed-loop process.
Hemp, one of the bast fibres, is a highly sustainable and one of the strongest natural, cellulose-based fibres which belongs to the cannabis sativa plant family. The hemp plant grows like a weed, eliminating the need for most pesticides, herbicides, fungicides and thriving on 50% less water than most crops such as cotton. It also absorbs carbon dioxide, is anti-microbe and allows nutrients to flow back into the soil. Hemp is often used as a substitute for cotton, and blended with other natural fibres to produce textiles. The ability for hemp to be blended easily with cotton, polyester, viscose and many other fabrics while not losing the texture (similar to cotton) or the aesthetic nature (similar to linen) is another attractive feature for brands and end-consumers. Hemp also conducts heat, is durable, dyes well, resists mildew, blocks ultraviolet light, and has natural anti-bacterial properties, making it useful beyond apparel – for example, automobile companies such as BMW use hemp fibre to reinforce their door panels for better safety standards.
Growing Demand for Sustainable Fibres from Consumer Brands
Global brands such as Gap, H&M and Zara have all pledged to reduce carbon emissions by half by 2025 and made written pledges in their annual reports to substitute cotton and polyester fabrics with hemp, and other cellulose-based fibres.
These brands are seeing the younger generation clientele demanding more sustainable and environmentally responsible products. A consumer survey among 5,000 consumers in five countries conducted by Boston Consulting Group in 2019 found that 75% of respondents rated sustainability as very or somewhat important in their purchasing decisions. This research also shows that 38% of consumers, particularly GenX and millennials, actively switched from their preferred brand to another because it credibly stands for positive environmental and/or social practices.
Canvaloop’s Edge as a BioMaterials Apparel Fibre Company
We chose to bet on Canvaloop for the following reasons:
Strong linkages to the apparel and garment industry from the founder’s family background in the dying industry, as well as their location in Surat, Gujarat – the hub for textile manufacturing.
Custom-built machinery within mechanical tanks for conversion of agricultural waste to textile-grade fibres, and patented enzyme-based softener developed with Canvaloop’s in-house biochemical compound mix.
Large supply network for agricultural waste, from farmer collectives to tie-ups with producer organizations across India, with demonstrable impact on farmer incomes and capacity building development.
Theia Ventures is proud to co-lead Canvaloop Fibre’s pre-seed round of $200K with Social Alpha (an initiative of Tata Trusts), to catapult the move to a circular and sustainable fashion model.