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10MARKETS AND COMPETITION
DNA AND THE TEXTILE INDUSTRY: FROM RAW MATERIAL TRACKING TO BRAND PROTECTION.
HOW GENETICS IS CHANGING TEXTILE PRODUCTION
DOI: 10.52174/2579-2989 2024.6-29
Keywords: DNA tagging systems, sustainable fashion, environmental, social and governance (esg), premium markets, circular fashion, brand trust, scalability, genetically modified fibers, biodegradability, material efficiency, consumer demand for transparency, product authentication
Adopting DNA technologies in the textile industry requires significant initial investment for infrastructure and system integration. However, the return on investment (ROI) is achieved through reduced counterfeit risks, enhanced supply chain efficiency, and access to premium markets that prioritize sustainability and ethical sourcing. Smaller manufacturers may face challenges with high upfront costs, but strategic partnerships with technology providers can help mitigate financial burdens and enable gradual adoption. DNA-certified supply chains attract investors focused on Environmental, Social, and Governance (ESG) metrics, increasing market appeal. The main economic factors to consider include initial investment, ROI, scalability, and consumer willingness to pay a premium for ethically sourced products. Effectively balancing these elements can drive long-term profitability, reshape market positioning, and help companies comply with sustainability regulations, positioning them for success in the evolving ethical fashion market. DNA tagging systems enhance brand trust, ultimately boosting sales and market share among eco-conscious consumers. .
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| NA technologies have emerged as transformative tools across various industries, including textiles. The integration of genetics into fabric production is a revolutionary development, significantly impacting the textile industry. From genetically engineered fibers to DNA-based traceability, the economic benefits are becoming more apparent as new technologies reshape supply chains, manufacturing processes, and consumer
Tereza SHAHRIMANYAN
Administrator of the Amberd Research Center, ASUE
In 2010 she graduated with honors from Armenian State University of Economics by specialty "State and Municipal Administration", and in 2012 she graduated with honors from the magistracy of the same specialty and received master's degree in management. In 2012-2015she was an applicant for the Department of Crisis Management and Tourism Management.
Since 2013 she has been working at "Amberd" research center, ASUE.
She has authored 4 scientific publications, being a co-author of one monograph.
CD
https://orcid.org/0000-0001-8888-045X
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demand. Their applications range from ensuring supply chain transparency and product authentication to enabling sustainable practices and advancing material science. The economic implications of integrating DNA technologies into the textile industry are profound, influencing production costs, market dynamics, and regulatory compliance. Adopting DNA technologies offers a significant competitive advantage in the textile industry by enabling brand differentiation, improving global trade facilitation, and driving product innovation. Companies leveraging DNA-based solutions for sustainability and traceability can stand out in a crowded marketplace, attracting socially responsible consumers. DNA-enabled traceability simplifies compliance with international trade laws and certifications, reducing trade barriers and expanding market access. Furthermore, the integration of genetic modifications and biofabrication allows textile companies to introduce innovative products with unique qualities, such as higher durability, biodegradability, and sustainability, thereby commanding premium prices'.
The growth of genetic technologies in textiles is driving innovation and creating job opportunities, particularly in bioengineering, genetic research, and textile manufacturing. As genetically engineered fibers and sustainable textiles gain traction, there is an increasing demand for skilled professionals in biotechnology and materials science. This growth is expected to lead to the establishment of new industries focused on sustainable fashion technologies, further advancing the sector.
For SMEs adopting genetic technologies, investing in workforce training and development becomes essential. As new production techniques are integrated into manufacturing processes, employees will need to acquire the necessary skills to work with these advanced technologies. This shift
not only fosters a more skilled workforce but also opens up educational opportunities for both current and future employees, driving innovation and enabling SMEs to play a key role in the evolution of the industry2.
DNA technologies also bring significant cost benefits. By enabling in-situ production of high-performance fibers through microbial synthesis, these technologies can reduce the resource-intensive processes traditionally involved in textile manufacturing. Genetically modified crops, such as Bt cotton and hemp, can produce fibers with higher yields per acre, lowering raw material costs and increasing the availability of cost-effective, high-quality fibers. Additionally, bio-based fabrics like mycelium leather and spider silk reduce dependency on petroleum-based materials, offering a more stable cost base and insulating manufacturers from price volatility in the oil market. The ability to engineer crops for greater efficiency—such as water-efficient GM cotton—can reduce the strain on water resources, lowering agricultural costs and improving the sustainability of the supply chain. Moreover, DNA technologies enable the production of biodegradable and recyclable fibers, which help reduce the environmental impact of textiles and lower costs related to waste management and recycling. From an economic standpoint, these advances help companies meet eco-regulations more efficiently, reducing costs associated with environmental compliance and potentially lowering tax burdens. As consumers increasingly demand verified sustainable practices, regulatory bodies are incentivizing these efforts with subsidies and tax benefits. DNA-tagged sustainable materials simplify compliance, positioning companies to benefit from both regulatory support and consumer preference for eco-friendly products.
High-performance fibers, produced through DNA-modified organisms, offer
Ellis K., Applied DNA Sciences: DNA Technology & Tagging Shines the Light on Trade Rule Evasion and Labor Abuse in Supply Chains December 13, 2022, https://textilesinthenews.org/applied-dna-sciences-dna-technology-tagging-shines-the-light-on-trade-rule-evasion-and-labor-abuse-in-supply-chains/
Sustainable Textiles: Role of Biotechnology In Eco-Friendly Fashion, https://www.globaltextiletimes.com/articles/sustainable-tex-tiles-role-of-biotechnology-in-eco-friendly-fashion/
TABLE 1 ^— Cost-Benefit Analysis of DNA technologies in the textile industry
Category Costs Benefits
Initial Setup * DNA tase ne equ i >men1 and systems _ , , . . ♦ Brand protection from counterfeiting installation .... . . , _ , ,.,. , . , + Heher ROI through premium pricing. tor * R&D expenses tor DNA-modified materials . t ■ ■ j j cc authentic products v Tra n ne and education for staff 1
Operational Coils ♦ Regular testing and tagging *> Licensing fee; for DNa technologies ♦ Maintenance of systems •> Improved supply chain efficiency •:* Avoidance of penalties for non-compliance Yvith environmental laws
Scalability Cosls Upgra<ling systems to handle 'ncreased •:* Entry into niche markets like luxury or eco-producticn conscious consumers Integrating DNA tech into diverse product •:* Long-term cost savings from reduced fraud lines and waste
Market Risks Corsurner reluctance to pay premiums •> Competitive pressure to lower prices *:* Enhanced customer loyalty ♦ Increased investor interest in ESG-compliant brands
exceptional properties such as enhanced strength, elasticity, and moisture-wicking capabilities. These advanced fibers cater to specialized markets, including sportswear and protective clothing, where performance and durability are critical. For example, bio-based spider silk, a high-performance fabric, presents a superior alternative to traditional materials, appealing to both luxury brands and niche high-tech markets that prioritize sustainability and innovation3. In addition to performance, DNA technologies enable greater transparency and authenticity in material sourcing. Applied DNAS ciences, for instance, uses molecular tagging for cotton to ensure its origin, helping combat the prevalence of fraudulent organic cotton. This technology not only protects brands from counterfeit goods but also supports their sustainability claims, fostering trust with consumers. Through partnerships with global brands like Himatsingka, DNA tagging has contributed to increased revenue by enhancing brand credibility and securing premium market positions4. Bioengineered silk is another significant innovation in the textile industry. Spider, a leader in bioengineering, developed Brewed Protein™, a silk alternative synthesized through DNA-
modified microbes. This technology enables the creation of environmentally friendly outdoor wear, in collaboration with brands like The North Face. Although the initial production costs for such bioengineered fibers are high, they are offset by the strong demand from eco-conscious markets willing to pay premium prices for sustainable, high-quality products. These developments in bioengineered fibers, such as spider silk, are not only biodegradable but also have a low carbon footprint, aligning with the growing consumer preference for sustainable fashion solutions5. Overall, DNA technologies are playing a pivotal role in the creation of high-performance, sustainable fibers that are shaping the future of the textile industry. By offering superior quality and supporting sustainability claims, these fibers are enabling brands to tap into premium markets, drive revenue growth, and meet the increasing demand for eco-friendly and ethically sourced products.
As consumer demand for sustainable and ethically produced goods grows, textiles made from genetically engineered fibers and bio-fabricated materials are commanding higher prices. Leading brands such as Stella McCartney and Patagonia have capitalized on
Fernández C.R., Biotechnology is Changing How We Make Clothes ,February 25, Updated on June 24, 2022, https://www. labiotech.eu/in-depth/biofabrication-fashion-industry/
STONY BROOK, N.Y. Applied DNA Enters into Multi-Year Commercialization Agreement with Indus Group for Large-Scale Implementation of CertainT Cotton Traceability,July 25, 2024, https://certaint.com/applied-dna-indus-agreement-certaint-cot-ton-traceability/
Peters A. This jacket's threads were inspired by spider silk and 'brewed' in a factory, 10-31-2019.
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this trend by positioning their products as eco-conscious, appealing to environmentally aware, high-end consumers. For instance, Stella McCartney uses mycelium-based, DNA-tagged leather to ensure traceability and enhance the sustainability of its luxury fashion lines, giving it a competitive edge in the eco-conscious market6. DNA technologies contribute to sustainability by reducing waste, improving material efficiency, and promoting eco-friendly production methods. Through DNA analysis, companies can optimize raw material use, minimizing waste and lowering production costs. Additionally, DNA-based fibers like spider silk and algae textiles are biodegradable and attract consumers willing to pay a premium for sustainable options. Moreover, DNA technologies support regulatory compliance by enabling companies to meet tightening environmental regulations. These advancements help businesses comply with sustainability requirements, reducing penalties and gaining access to government subsidies for sustainable practices. By incorporating genetic improvements into production, companies can adhere to stricter regulations on chemical use, waste reduction, and environmental impact, driving both compliance and profitability. DNA-based traceability aligns with global shifts towards sustainability in the textile industry. By using genetic markers to verify the origin and type of fibers, companies can meet the rising consumer demand for transparency, which is crucial for building brand loyalty and enhancing market reputation. As consumers increasingly prioritize ethical practices and sustainability, DNA technology serves as a
TABLE 2
valuable tool for brands to showcase their commitment to these values.
Fashion brands are ready to change the game with the ultimate goal of 'good for people and planet'. The global ethical fashion market is expected "to grow to $9.81 billion in 2025 and $15.17 billion in 2030 at a CAGR of 9.1 percent" as per the numbers by sustainable fashion industry statics6, driven by this surge in demand for eco-friendly products. Moreover, over 60% of millennials and Gen Z consumers prefer sustainable products and are willing to pay a premium for apparel made with environmentally friendly practices. Luxury buyers, in particular, are willing to pay 25-30% more for products with traceable origins, underscoring the financial potential for brands that embrace DNA-based traceability7. Additionally, DNA technologies are facilitating circular practices in the textile industry, enabling textile recycling and reducing waste. This further aligns with the broader push for sustainability in fashion, creating new opportunities for companies to enhance their offerings while contributing to a more sustainable future.
Below is a comparative analysis showing estimated costs and benefits for implementing DNA technologies (Charts for Cost-Benefit and ROI Analysis).
ROI Summary (Sustainable Apparel)
• Initial Investment: ~$100,000 -$200,000 (equipment + setup).
• Annual Benefits: ~$300,000 -$750,000.
• ROI: Achieved within 1-2 years, depending on market reach and scale.
Demographie \ Preferences | Implications for SMEs \
Eco-Conscious Shoppers Prioritize sustainability certifications Market products with eco-labels and DNA tracking.
Luxury Bayers Demand authenticity in premium materials Focus on DNA-tagged high-value items like silk.
Gen Z & KSUenniats Prefer brands that are transparent and ethical Leverage traceability as a marketing strategy.
Wightman-Stone D.,Stella McCartney to launch first commercial luxury bag crafted from mycelium, May 23, 2022, https://fash-ionunited.com/news/fashion/stella-mccartney-to-launch-first-commercial-luxury-bag-crafted-from-mycelium/2022052347742 V. Sharma,Why Retailers are Betting Big on Sustainable Fashion? Mar 11, 2021, https://www.indianretailer.com/article/sec-tor-watch/fashion/why-retailers-are-betting-big-on-sustainable-fashion.a6887
Noori K ,The Sustainable Fashion Industry Statistics 2024 July 18, 2024 https://creedvintage.com/blogs/blog/sustainable-fash-ion-statistics
TABLE 3
Cost-Benefit Chart for Sustainable Apparel Sector
Training and Integration
Maintenance and Testing Sustainable Fiber Production
Annual Cost Ra
$50,000 - 00.000 $10.000 - $15.000 Î20.000 - £50.000 $75,000 -$150.000
msssmsEsmm
Premium Pricing Brand Protection (Anti-Fraud) Market Access via Compliance Reduced Resource Costs
Annual Ben el it Ro
TSMH
$150,000 - $300,000
$200.000 - $500.000 $100.000 - $250.000 fftO.OOO - $200,000
TABLE 4
ROI Deep Dive: DNA Technologies in Sustainable Apparel9
Organic Cotton Certification
Circular Fashion Implementation
Fraudulent claims of organic cotton inflate costs Consumers demand circular practices: brands
face challenges in verifying recycled content. DNA markers tag recycled fibers to ensure
and erode trust.
DNii tagging ensures transparency.
Investment:
Outcome:
• $75.000 for DNa tagging systems in the fir st year.
■ $20.000 annually for maintenance.
■ Secures contracts with retailers demanding verified organic materials.
■ Adds $250.000 annually in premium contracts and reduced fraud costs.
First-year ROI of 200%
authenticity.
■ $100.000 setup for DNA-tracked recycling systems.
■ $^0.000 annual operational costs.
■ Access to $500,000 annual revenue from sustainable fashion markets.
■ Savings of $100.000 in raw material costs annually.
First-year ROI of 470%
ROI Breakdown for Sustainable Apparel (Investment vs. Benefits over time).
CHART 1
' Cost-Benefit Analysis for DNA Technologies in Apparel
A cumulative comparison of investment and benefits over five years, showing significant returns by year two.
By Fashion's new must-have: Sustainable sourcing at scale| Report
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CHART 2
Cost-Benefit Analysis for DNA Technologies in Apparel
C«tt Benefits
MOOC
Setjp Costs Ope rational Costs Testing Costs
Market Trends: Growth in Sustainable Textiles by Region
Cost-Benefit Analysis for DNA Technologies in Apparel (Initial and operational costs vs. gains)
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Cost-Benefit Analysis for DNA Technologies in Apparel:
Side-by-side comparison of setup, operational, and testing costs versus benefits like fraud prevention and market access.
Market Trends: Growth in Sustainable Textiles by Region
Rest of World
North America
Asia
Europe
CHART 3
6 3 10
Annual Growth Rate (%)
Market Trends (Growth in sustainable textiles by region) Global Trends in Sustainable Fashion
12
11
The adoption of sustainable textiles is experiencing rapid growth globally, with notable trends emerging in both Asia and Europe. In Europe, high adoption rates of sustainable textile practices can be attributed to strict environmental regulations, such as the EU's Textile Strategy, which aims to make the textile sector more sustainable and circular. These regulations are driving brands and manufacturers to adopt sustainable practices, including DNA tagging and other traceability technologies, to meet compliance standards and cater to increasingly eco-conscious consumers. Europe's leadership in sustainable textile adoption is fueled by these policy-driven initiatives, which encourage businesses to innovate and prioritize environmental responsibility.
In Asia, the interest in sustainable textiles is also growing, particularly in key textile hubs like India and China. These regions are increasingly adopting sustainable practices as a way to attract international buyers and access premium markets. Countries like India and Bangladesh are exploring DNA technology to enhance their competitive edge in the global textile market. By certifying compliance
with ethical labor and environmental standards, these countries aim to meet the rising demand for transparency and sustainability from global consumers. The adoption of DNA tech is seen as a critical step for these regions to build trust with international buyers, ensuring that products are not only ethically produced but also meet high sustainability standards. This growing interest from Asian textile hubs reflects the broader global shift toward sustainable fashion and the increasing importance of traceability in gaining access to premium markets.
Hence, combining DNA technology with blockchain to create an immutable record of sustainability claims is important. DNA tagging is increasingly integrated with blockchain for end-to-end supply chain transparency. Provenance, a supply chain transparency provider, uses DNA markers alongside blockchain to authenticate organic wool. Brands like Adidas H&M, Stella McCartney are experimenting with tagged materials that can be reprocessed into new garments. While DNA technologies offer significant opportunities in the textile industry, they also
TABLE 5
Impact of DNA Technologies on Sustainable Fashion Initiatives by Adidas, H&M, Stella McCartney
Implementation
Economic Impact
Adidas Sustainable Apparel
Initiative"1
Reduce reliance on virgin polyester and ensure recycling n a circular economy.
Used DNA markers to track the origin and lifecycle of materials
Achieved 90% recycled content n ¿elect product I'nes by 2023.
Reduced raw material costs by $1.2 million annually while commanding higher pr ices for sustainable collections.
Address allegations of fraudulent organic cotton sou rc ng.
Partnered with DNa tagging firms to certify all organic cotton us«! in their "Conscious" line. Improved consumer trust and expanded the market share of sustainable products by \5%. Avoided potential losses from reputation damage i $10 million) and gained access to premium markets.
Integrate bioengineered, sustainable alternatives into luxury fashion.
Adopted Bolt Threads' DNA-engineered Mylo, made from myc elium.
Enhanced brand positioning as a sustainable pioneer.
Allowed a 25% price premium on new product lines, covering initial costs within the first season.
Sustainable Fashion Market Report: Trends, Forecast and Competitive Analysis to 2030, https://www.researchandmarkets.com/
reports/5988879/sustainable-fashion-market-report-trends
The same place.
Sustainable Fashion Market size, share, trends & competitive analysis by product type (Apparel, footwear, accessories, jewelry, bags) By material (organic cotton, recycled fabrics, hemp, tencel, eco friendly dyes) By end-user; By regions,and industry, forecast, global report 2023-2030. Report: https://www.futuredatastats.com/sustainable-fashion-market, https://www.research-andmarkets.com/reports/5988879/sustainable-fashion-market-report-trends
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TABLE 6
Technical Textiles
Home Textile
Sustainable and
Eco-friendly Textiles
Luxury or High-End Textiles
Impact of DNA Technologies on Specific Textile Sectors: Challenges and Opportunities:
11 the fast fashion sector, DNA technologies pi a, a crucial role in dnvit^ change by addressing both cost efficiency and ethical exp=ctaltons. As consumers increasingly demand low-cost options that are ethically sotirced. DNA technology provicfesa solution by assuring the authenticity of materials like cotton and po!yesler, while maintaining production cost efficiency This is particularly important in an industry wliene price sensitivity and ethical soLrcing must gp Ivand in haiid. DNA tagging ensures that materials are not only geiitun? but also tneet sustai nobility standards. which appeals to the growing number of eco-constious consumers. Fast fashion relies oil rapid production cycles, and DNA technology supports this by enablir^ fast verification of materials. alloivng for quieter sou rang and production. The ensures that brands can nisei tlieir last-paced delivery tinelines witlmit oonpromising on the quality or authenticity of tie iraterials used. As tlie industry faces increasing pressure to reduce waste, DNA tagging helps in improving textile recycling and reuse efforts. By making it asier to track the lifecycleof materials. DNA technology supports the circularity I liar is becoming a oornerstorB of sustainable fashion practices, ensuring that materials can be efficiently recycled and reused, rat Ik r than discarded.
Technical textiles include materials for industries such as construction, healthcare, and defense. DKA technologies enable these sectors to improve performance and reliability. Protective Textiles
Fibers embedefed with DNA markers can confirm the quality atrl authenticity of materials used in life saving applications, such as bulletproof vests or fre-resistant uniforms. Here, economc benefit in ensuring compliance with safely standards, which reduces liability risks and increases market competitiveness Medical Textiles
DNA.based b»polymers ¡eg. spider silk) are being explored for wound dressings anci surgical sutures due to their biocompadbility and strength Researchers areengineering microbes to produce an if rial silk for sutures, potentially reducing costs compared to synthetic alternatives
The use of DNA techittlogies in horns textiles such as beetling, curtains, ard upholstery addresses consumer demand for ethical and sustainable praditts.
Traceable Organic Cotton DNA tagging can confirm 1 Ik use of organic cotton h bedding, an essential feature for em iromnentally const bus consuirers.
The Economic impact is, that Brands offer 11^ verified sustainable products gam access to nthe markets and nay charge premium prices. DNA-mxlified textiles with enhanced properties, such as resistance to bacteria or allergens, have growing demand in health-focused households. For example, antimicrobial fabrics
DNA teclmologies align closely with sustainability goals, especially in eco-friendly textile production While initial RAD costs are hjgh, tliese materials often lower long-term production costs by reducing reliance on petroleum-based synthetics For example. Bolt Threads' Uylo leatlier offers a sustainable alternative to animal leather, gaining adoption by lutury brands
For example. Synthetc biolcgy enables thecreation of biodegradable materials likespider silkaiici a/gae-lxasecl fibers, which .are less polluting than traditional materials. DNA technolcgies also contribute waste red uction DNA markers track textile waste rec yc ling, ensuring materials are reused a|jpropriately and meet rig circular econoiriy standard;
Luxury fashion houses are adoring circular production ncdels. using DNA tracking to ensure the ail hart city of recycled materials. By ntegratu^ DNA-based traceabilily. brands appeal to eco-conscious and sot ally responsible consumers while protecting against counterfeit products—a significant issue that costs luxury brands billions annually
DNA markers authenticate high-value materials like cashmere, silk, and leather, offering assurar>;e to discerning customers and enhancing transjiaiency Tins alien« brands to emphasize traceafcihty for susta nability and exclusivity. reducing revalue loss and strengthening brand equity.
Smart textiles further benefit from DNA-modified fabrics with acfcled functionalities like UV protection or temperature regulation DNA tagging and barcoding have- revolutionised the textile supply chain by providing verifiable irethods for product authentication. Economic benefits include:
• Counterfeit Prevention: DNA-based taggirg ensures product authentic<y. reducing economic losses and preserving brand equity.
• Supply Chain Transparency: DNA markers enable precise tracing of nvterials, boosting consumer trust and commanding premium prices for verified sustainable products.
present economic challenges. The initial the maintenance of DNA-based systems and
investment required for integrating DNA tagging systems or establishing bioengineered textile production facilities can be substantial. Additionally, the ongoing costs associated with
regular testing contribute to operational expenses. Furthermore, convincing consumers and stakeholders to embrace DNA-verified products necessitates investment in marketing
and educational efforts to build awareness and trust. These factors must be carefully managed to ensure the long-term viability and success of DNA technologies in the market.
The global luxury fashion market is projected to grow from $70 billion in 2023 to $120 billion by 2030, with over 30% of luxury goods expected to integrate DNA technology by then. This integration not only supports sustainability goals but also fosters brand loyalty, as consumers are willing to pay a premium for authenticated, sustainable products. DNA technology thus reduces counterfeiting, protects brand value, and aligns with emerging trends like increased transparency, exclusivity, and the shift to circular fashion,3.The global fast fashion
market is expected to grow significantly, from $40 billion in 2023 to $55 billion by 2030. DNA-based traceability is expected to become more prevalent, with over 20% of fast fashion brands integrating DNA technology into their production processes by 2030. This shift is being driven by both consumer demand for transparency and the growing regulatory pressures for sustainability14.
Economically, DNA technology offers long-term cost efficiency. By reducing waste, improving supply chain efficiency, and ensuring the authenticity of materials, DNA tagging helps fast fashion brands streamline their operations. Furthermore, as more countries implement sustainability regulations for textile products, DNA technology assists brands in complying with these certifications
TABLE 7
Refining the Cost-Benefit Model for Specific Sectors
Sector I Cost Drivers Êenefit Drivers Example ROI Metrics 1
Luxury Textiles DNa tagging of high-value fibers Integration with blockchain Premium pricing fa1 authenticated material s Improved customer loyalty 20-Î05É increase in revenue due to reduced counterfeits
Sustainable Apparel Biomanufacturing setup Access to eco-conscious 15% cost savings in material Waste management systems markers soun: ng via recjcl ng Subsidies for sustainability practices
Technical Textiles R&D in bioengineered fibers Testing for safety compliance Expansion into niche markets (e.g.. defense) Reduced liability risks 25% reduction in liability с lai ms due ю authenticated protective gear15
TABLE 8
Challenges and Opportunities for SMEs
Challenges Opportunities
> High Initial Costs: SMEs often struggle with the upfront investment required for DNa technology integration. > Limited Technical Expertise: Smaller firms may lack in-house capabilities to manage and implement advanced systems. > Supply Chain Complexity: SMEs often operate within larger supply chains, making independent verific at ion c ha 1 le n g i ng. > Access to Premium Markets: DNA-based certifications enable SMEs to target eco-consciais consumers willing to premium prices. > Government and NGO Sup|x>it: Many regions offer grants, subsidies, cr collaborations to promote sustainable practices. > Partnerships with Large Brands Collaborating with larger firms that use DNa technologies allows SMEs to integrate affordable into compliant supply chains.
13 Luxury Goods Market Size, Share & COVID-19 Impact Analysis, By Product Type (Watches & Jewelry, Perfumes & Cosmetics, Clothing, Bags/Purses, and Others), By End-user (Women and Men), By Distribution Channel (Offline and Online), and Regional Forecast, 2023-2030, https://www.fortunebusinessinsights.com/luxury-goods-market-103866
14 Global Fast Fashion Market to Surpass $99.84 Billion by 2030 | Exclusive Report by Coherent Market Insights, December 12, 2023, https://www.globenewswire.com/news-release/2023/12/12/2794957/0/en/Global-Fast-Fashion-Market-to-Surpass-99-84-Billion-by-2030-Exclusive-Report-by-Coherent-Market-Insights.html
15 Jensen B., Stoneburner M., Martinez-Pardo C., Wilkinson J., Khodabocus H., Durbiano L., Faist M., Frehland S., Meister P., Vargas-Gonzalez M., Sustainable Raw Materials Will Drive Profitability for Fashion and Apparel Brands, OCTOBER 25,2023, https://www.researchandmarkets.com/reports/5988879/sustainable-fashion-market-report-trends
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at a low cost, reducing the risk of penalties and boosting brand reputation.
Practical implementation of DNA tagging for SMEs begins with identifying priority areas within their operations. It is essential to focus on high-impact zones where the technology can deliver the most value. For example, SMEs can start by implementing DNA tagging for natural fibers like organic cotton or wool to meet certification requirements. From there, they can expand the use of DNA markers for authenticity in high-value products such as silk or cashmere. This phased approach ensures that the business addresses key product categories first, paving the way for broader adoption. Starting small and scaling gradually is crucial for minimizing risk and managing costs. SMEs can test DNA tagging on a limited product line, such as their most popular or high-demand items, before expanding to other products. This approach
allows businesses to gauge the effectiveness and return on investment before making larger commitments. Additionally, partnering with certified labs for initial testing can reduce the need for costly in-house infrastructure, helping SMEs keep their costs down during the early stages of adoption. Seeking funding opportunities is another important strategy. SMEs should look for grants and subsidies to help offset the costs of implementing DNA tagging. Regions like the EU, for instance, offer grants under programs such as Horizon Europe, specifically for SMEs adopting sustainable technologies. NGOs also often provide financial support for certification costs, especially for fair-trade or organic textiles. By tapping into these funding sources, SMEs can make the adoption of DNA tagging more affordable and accelerate their transition toward sustainable and transparent practices.
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TABLE 9
Global Funding and Support Programs for DNA Technologies in Sustainable Textiles
European Uaha
Horizon Europe -Green Dea! Ca!!
Supports SMEs innovating in sustainability, including
sustainable textile and traceability solutions.
Grant: of up to C2 ni II on for R&D and
mplementation.
Submit proposais detailing how DHÀ technologis enhanc e sustainability in supply chains. Leverage partnerships with EU-basecl research
institutions.
Small Business innovation Research (SBIR)
Provides fui>:lmg for te: hnoiogy-driven SMEs. including those in textile:.
Phase I offers up to $150.000: F'liase II extends up to Í1 million.
Sustainable manufacturing, mutative materials. ai>:l traceability.
F;egi:ter with grant:.g3v and p resent feasib I ty studies for DNA technology Lise.
.' echnology Africa Enterprise
Development Board Challenge Fund (TDB) ' (AECF)
Promotes eco-friendly technologies 111 tit tea i le sector.
Funds SMEs adopt i rg inii'3vative technologies in agriculture and textile:
Offers soft loans cover ng up to 50% of project costs for adopting DNA teihnologies.
Grants and loans rargii'g from $100.000 to 1.1.5 ill llion.
Eligibility: SMEs Sustainable fibers like focusing 'I'll organic organic cotton and or recycled textile:. their traceability.
Submit a proposal ■lleta I ng the environmental and economic h-ei>ef its of DNA tech adopten
Propose scalable projects integrating DNA tagging into supply chain:.
Textile Exchange -Corporate Partner Program
Provides financial and technical assistances SMEs integrating DNA technologies to ensure sustainable material sourcing. Offers mentor-ship and marketing support for certified brands, https: /textileeMchange.org
Fashion for Good Innovation Fund
Supports textile SMEs innovating in circularity and transparency, inc luding DN A-tagging solutions.
Offers e:n i ity-f ree fundi ng and connects SMEs with global fashion brands, https: :':fas hio riforgood. co 111
íps://harizon-cu .e u https ://wmv.s bir.gov https://td b.gav. i n hitt|5s ://www.aocfafr ica .org
To adopt DNA tagging effectively, SMEs should focus on partnering with technology providers that offer tailored and affordable solutions. Companies like Applied DNA Sciences cater specifically to small and medium businesses, providing shared testing facilities, training, and support. Subscription-based models are particularly advantageous, enabling SMEs to spread costs over time and reduce financial burdens, making the technology more accessible. Exploring funding opportunities and subsidies can further ease the financial challenges of implementation. For example, an SME in India producing organic cotton baby apparel faced difficulties in verifying organic claims and navigating rising competition. By partnering with a local lab offering subsidized DNA tagging, the SME launched a pilot program focused on its best-selling baby blankets. This strategic move helped them build credibility and authenticity in their product line. Integrating DNA technology into marketing efforts proved highly impactful. By adding QR codes to products, consumers could trace the journey of materials, fostering trust and engagement. Transparency became a key selling point, and the SME amplified its message through social media campaigns, showcasing its commitment to sustainability and authenticity.
The results were remarkable. Within the first year, the SME experienced a 30% increase in sales, gained certifications that
attracted international premium retailers, and recovered its initial costs within nine months. Such outcomes illustrate the financial viability and long-term benefits of adopting DNA tagging16.
Globally, various funding programs, grants, and subsidies support SMEs in implementing DNA technologies. By leveraging these resources, along with strategic partnerships and innovative marketing, SMEs can position themselves as leaders in sustainability and transparency, unlocking access to premium markets and fostering enduring consumer trust.
DNA tagging is revolutionizing the fashion industry by providing verifiable data on product origins, enhancing transparency, and fostering consumer trust. Brands like Patagonia leverage traceability as a core component of their sustainability strategies, offering consumers easy access to product authenticity through tools like QR codes. SMEs adopting DNA technology can differentiate their products, justify premium pricing, and recover costs more quickly. Integration with blockchain further enhances transparency, creating accessible, tamper-proof records.
In circular fashion, DNA-tagged materials boost the appeal of recycled products by ensuring authenticity. DNA tagging is becoming a critical tool for reducing waste, promoting recycling, and building brand loyalty. SMEs can implement circular practices by collaborating with suppliers using DNA-
TABLE 10
Cost Breakdown and Optimization Strategies for SMEs Implementing
DNA Technologies
| Cost Category17 | Estimated Cost far SMEs (USD) | Strategies to Reduce Costs \
$10,000 -520,000 Opt for shared systems or rent equipment
Testing and Certification $5,000 -510,000 annually Collaborate with third-party labs.
Training and Integration19 $2,000 $5,000 Access online training programs or workshops.
Operational Costs30 $2,000-$7,000 annually Focus on limited product lines initially
Decker E., What's Now And Next In Sustainable Textiles? July 27, 2023 https://www.textileworld.com/textile-world/fea-tures/2023/07/whats-now-and-next-in-sustainable-textiles/
FMT Team,What are the startup expenses for a mobile DNA service?November 1, 2024 (Read more at: https://financialmodel-
templates.com/blogs/capex/portable-dna-testing-service
The same place.
Ochoa D, How to Develop Cost-Effective Training: Maximize Impact & Minimize Costs,August 21, 2023,https://www.thinkific.
com/blog/cost-effective-training-and-development-methods/
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tagged recycled fibers, tracking materials throughout their lifecycle, and showcasing the recycling journey to eco-conscious consumers. For example, an SME adding DNA markers to recycled denim successfully earned eco-certifications, demonstrating its commitment to sustainability21. DNA technology's low entry barriers make it accessible to SMEs, with scalable solutions and collaborative cost-sharing models available. By starting small-tagging select high-demand products-SMEs can gradually expand implementation while building consumer trust. Partnerships with larger companies or technology providers enable access to certifications, reduce initial costs, and enhance credibility. Companies with DNA-backed traceability will be better positioned to mitigate reputational risks, protect revenue, and strengthen long-term brand equity.
Beyond individual businesses, DNA technologies offer long-term benefits for the textile industry. By enabling the tracking of fibers through multiple life cycles, DNA tagging facilitates circular production, reduces dependence on virgin materials, and lowers environmental impacts. It also supports the global standardization of traceability, simplifying international trade and easing compliance in high-value markets like the EU. Precise tracking of carbon and water footprints allows brands to quantify and showcase their sustainability improvements, further boosting competitiveness. The combination of DNA tagging, blockchain, and AI creates fully automated supply chains that reduce costs, fraud, and inefficiencies. These innovations drive demand for sustainable products and open new opportunities in high-skill areas such as testing, software development, and supply chain management.
For SMEs, adopting DNA technology offers a pathway to premium market access, operational efficiency, and consumer trust, enabling them to thrive in an industry increasingly driven by sustainability and transparency.
In conclusion, DNA tagging is a transformative technology for the fashion industry, offering unparalleled transparency, traceability, and sustainability. By ensuring product authenticity and enabling circular practices, it helps businesses reduce waste, enhance operational efficiency, and meet growing consumer demand for ethical products. For SMEs, DNA technology provides an accessible entry point to differentiate products, build brand loyalty, and tap into premium markets. Through scalable solutions, collaborations, and gradual implementation, SMEs can leverage DNA tagging to align with sustainability trends, comply with regulations, and gain certifications that enhance credibility. On a larger scale, DNA tagging promotes global traceability standards, facilitates circular production systems, and supports precise tracking of environmental footprints. Paired with blockchain and AI, it creates efficient, automated supply chains that reduce fraud and improve transparency. As consumer preference for sustainable, traceable products grows and the market for circular fashion expands, DNA technology positions businesses to thrive while driving industry-wide progress in sustainability and innovation.
BBMG & Recurate, Report: Circular Fashion Is Now, 08.15.22, https://bbmg.com/recurate-bbmg-circular-fashion-is-now/
21
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https://www.labiotech.eu/in-depth/biofabrica-tion-fashion-industry/
7. FMT Team, What are the startup expenses for a mobile DNA service? November 1, 2024 (Read more at: https://financialmodeltemplates. com/blogs/capex/portable-dna-testing-service)
8. Global Fast Fashion Market to Surpass $99.84 Billion by 2030 | Exclusive Report by Coherent Market Insights, December 12, 2023, https://www.globenewswire.com/news-re-lease/2023/12/12/2794957/0/en/Global-Fast-Fash-ion-Market-to-Surpass-99-84-Billion-by-2030-Ex-clusive-Report-by-Coherent-Market-Insights.html
9. Jensen B., Stoneburner M., Martinez-Pardo C., Wilkinson J., Khodabocus H., Durbiano L., Faist M., Frehland S., Meister P., Vargas-Gonzalez M., Sustainable Raw Materials Will Drive Profitability for Fashion and Apparel Brands, OCTOBER 25, 2023, https://www.researchandmarkets.com/re-ports/5988879/sustainable-fashion-market-re-port-trends
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of Benefits and Risk of Genetically Modified Plants and Products: Current Controversies and Perspective.
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12. Noori K., The Sustainable Fashion Industry Statistics 2024 July 18, 2024, https://creedvintage.com/blogs/blog/sustain-
able-fashion-statistics
13. Ochoa D, How to Develop Cost-Effective Training: Maximize Impact & Minimize Costs, August 21, 2023,
https://www.thinkific.com/blog/cost-effective-train-ing-and-development-methods/
14. Peters A. This jacket's threads were inspired by spider silk and 'brewed' in a factory, 1031-2019,
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16. STONY BROOK, N.Y. Applied DNA Enters into Multi-Year Commercialization Agreement with Indus Group for Large-Scale Implementation of CertainT Cotton Traceability, July 25, 2024,
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Report: https://www.futuredatastats.com/sustain-able-fashion-market
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Тереза ШАГРИМАНЯН
Администратор исследовательского центра «Амберд», АГЭУ
РЫНКИ И КОНКУРЕНЦИЯ
ДНК И ТЕКСТИЛЬНАЯ ПРОМЫШЛЕННОСТЬ: ОТ ОТСЛЕЖИВАНИЯ СЫРЬЯ ДО ЗАЩИТЫ БРЕНДА. КАК ГЕНЕТИКА МЕНЯЕТ ПРОИЗВОДСТВО ТКАНЕЙ
Внедрение ДНК-технологий в текстильной промышленности требует значительных первоначальных инвестиций в инфраструктуру и системную интеграцию. Однако окупаемость инвести ций (ROI) достигается за счет снижения рисков подделки, повышения эффективности цепочки-поставок и доступа к премиальным рынкам, которые отдают приоритет устойчивости и этическому источнику. Небольшие производители могут столкнуться с проблемами из-за высоких первоначальных затрат, но стратегическое партнерство с поставщиками технологий может помочь смягчить финансовое бремя и обеспечить постепенное внедрение. ДНК-сертифицированные цепочки поставок привлекают инвесторов, ориентированных на экологические, социальные и управленческие показатели (ESG), повышая привлекательность рынка. Основные экономические факторы, которые следует учитывать, включают первоначальные инвестиции, ROI, масштабируемость и готовность потребителей платить премию за этичную продукцию. Эффективное уравновешивание этих элементов может обеспечить долгосрочную прибыльность, изменить позиционирование на рынке и помочь компаниям соблюдать правила устойчивости, позиционируя их для успеха на развивающемся рынке этической моды. Системы маркировки ДНК повышают доверие к бренду, в конечном итоге увеличивая продажи и долю рынка среди экологически сознательных потребителей.
Ключевые слова: системы ДНК-маркировки, устойчивая мода, окружающая среда, социальная сфера и управление (ESG), премиальные ры/нки, циркулярная мода, доверие к бренду, масштабность, генетически модифицированные волокна, биоразлагаемость, эффективность материалов, потребительский спрос на прозрачность, идентификация продукта
