In the face of increasing scrutiny over environmental issues and labor practices within the fashion industry, H&M and Inditex have made significant investments in lab-grown cotton through a partnership with Boston-based startup Galy. This investment represents a pivotal shift in how major clothing retailers are addressing the sustainability challenges tied to traditional cotton production.
Traditional cotton farming has long been criticized for its heavy environmental toll. The process involves a multitude of steps—ginning, carding, spinning, and so on—which collectively contribute to a significant carbon footprint. Moreover, the cultivation of cotton drains enormous quantities of water and requires extensive use of pesticides and fertilizers. To illustrate the severity of this issue, consider that for every t-shirt washed, about 50 times the amount of water is consumed during the cotton-growing process itself. Cotton accounts for 16% of all insecticide sales globally and takes up approximately 2.3% of the world’s arable land.
Enter Galy, which promises a revolutionary solution. Through lab-grown cotton technology, Galy has presented a method that, at an industrial scale, claims to reduce water use by 99%, land use by 97%, and the negative impact of fertilizers by 91% when compared to conventional cotton farming. This staggering reduction in environmental impact can position lab-grown cotton as a viable alternative in an industry often marred by ecological concerns.
Galy was founded in 2019 by Luciano Bueno, whose journey began in the textile world during high school, selling t-shirts to make ends meet. Following his tenure at Deloitte, where he worked with textile companies, and after attempting to create moisture-wicking shirts with his startup, Bueno shifted his focus to lab-grown products after observing the growth of lab-grown meat ventures. His vision culminated in Galy’s innovative lab-grown cotton process, which involves taking cotton plant cells, feeding them sugar, and manipulating their genetic makeup to produce cotton fibers.
The traction gained by Galy in the investment community reflects a broader trend of sustainability-driven initiatives within the fashion sector. These efforts have garnered commitment not just from H&M but also from Zara-owner Inditex, both of which are significant consumers in the cotton market.
Martin Ekenbark, head of H&M’s circular innovation lab, noted a rising consumer preference for cotton-based fabrics due to their tactile appeal. This demand is juxtaposed against the backdrop of H&M’s decision to cease sourcing cotton from China’s Xinjiang region, due to allegations of forced labor, which brought accusations from critics of contributing to human rights violations. This pivot illustrates the urgent need for sustainable cotton sources free from ethical dilemmas.
Inditex’s long-term commitment to environmental innovation is evidenced by its investment in over 300 startups aimed at discovering environmentally friendly materials. Collaborative efforts with Galy focus on enhancing fiber quality, ensuring that lab-grown cotton maintains the integrity and attributes of traditional cotton while reducing its ecological footprint.
However, challenges remain. Lab-grown cotton production is still in its infancy, with Galy only capable of producing small quantities today. To transition from experimental phases to scalable production, significant financial backing is essential. Galy recently announced a $33 million funding round led by Breakthrough Energy Ventures, with participation from industry giants H&M and Inditex. This brings its total funding to $65 million, crucial for advancing research and development.
Despite the enthusiasm and infusion of capital, the startup landscape for lab-grown cotton is still fragile. The hurdles include navigating the complexities of biological processes and addressing market dynamics that might favor conventional cotton due to its lower price point. For context, cotton prices hover around $1 per kilogram, while the meat market, which has experienced significant investment rapid growth in lab-grown options, has far greater financial resources—exceeding a trillion dollars globally.
Galy’s unique approach benefits from simplicity—plant cells require only sugar for growth, which sidesteps the expensive bioprocessing seen in lab-grown meat. Moreover, since cotton is not a food product, Galy’s production process does not need to adhere to the same stringent hygiene standards, potentially lowering production costs further.
The future of lab-grown cotton is promising yet uncertain. Experts believe that competitive ventures are likely to emerge as the sector gears towards commercialization, echoing the trajectory observed in lab-grown meat industries. For instance, in 2013, the debut of a lab-grown hamburger prompted a rapid influx of investment and innovation—an evolution that could mirror Galy’s journey in the cotton domain.
As the fashion industry gears up to respond to consumer calls for transparency and sustainability, the collaboration between Galy, H&M, and Inditex could serve as a model for others. The integration of lab-grown materials lies at the intersection of ethical responsibility and innovative design, reflecting a wider commitment to a sustainable future in fashion.
As these brands push towards greener alternatives and strive to redefine what’s considered ethical in the industry, stakeholders and consumers alike will be watching closely. The implications of their success—or lack thereof—could reshape how we think about sustainability in fashion for generations to come.