New materials for regenerative business: A practical guide for SME manufacturers

As sustainability has become the norm, regenerative business practices are emerging as the next evolution, going beyond “doing less harm.” Regeneration focuses on creating systems that restore, renew, and revitalise their own sources of energy and materials. For SME manufacturers, this offers not only a compelling ethical direction but also a clear competitive advantage through innovation in materials and product development.
 
New materials derived from nature, including algae, bacteria, fungi, bamboo, hemp, and other bio-based resources, are unlocking novel pathways for sustainable design and manufacturing. This article explores the five most promising of these materials and how to integrate them into NPD strategies that meet both market and environmental demands.
 
1. Algae: The photosynthetic powerhouse
 
Algae is one of the most versatile and rapidly renewable materials available. It grows quickly, requires minimal inputs, and absorbs CO₂ during its growth cycle:

  • Bioplastics: Algae-derived polymers can replace petroleum-based plastics in packaging, disposable products, and even components for electronics and automotive interiors.
  • Textiles and inks: Algae pigments are being used in the fashion and printing industries for biodegradable dyes and colourants.
  • Foams and insulation: Algae-based foams are emerging as a lightweight, sustainable alternative to polyurethane.

NPD Tip: partner with algae farms or biotech startups to co-develop low-footprint materials tailored to specific product applications, and look at Made in Britain member AllScope Projects, which have launched a Bio Resin GRP solution.
 
2. Bacteria: Microbial manufacturing on the rise
 
Harnessing bacteria for material production might sound futuristic, but it’s already being done. Bacteria can be engineered or guided to produce:

  • Bioplastics (PHA/PHB): These are made by feeding bacteria with waste biomass, yielding fully compostable plastics.
  • Textiles and leather alternatives: Microbial cellulose, produced by bacteria such as Acetobacter xylinum, is being used to create durable, biodegradable fabrics and leather-like materials.
  • Self-healing materials: Some engineered bacteria can be embedded into concrete or coatings to automatically repair micro-cracks.

NPD Tip: Explore collaboration opportunities with synthetic biology startups or university labs. Low-batch prototyping is increasingly accessible for SMEs in this space.
 
3. Fungus: Mycelium-based innovation
 
Mycelium: the root structure of fungi is emerging as a superstar of regenerative materials. It grows in days on agricultural waste and can be molded into various forms.
 
Applications include:

  • Packaging: Mycelium-based packaging can replace polystyrene for protective inserts and containers.
  • Building materials: Insulation panels, acoustic tiles, and even bricks made from mycelium offer strong performance with low embodied energy.
  • Fashion and accessories: Mycelium leather alternatives are biodegradable, strong, and visually appealing.

NPD Tip: look at what Made in Britain member AllSfär have achieved by partnering with packaging manufacturer the Magical Mushroom Company (MMC) and creating a new range of acoustic wall tiles called FIKA
 
4. Bamboo: The fast-growing functional giant
 
Bamboo grows rapidly, up to a metre a day and is one of the most productive land plants. It’s strong, flexible, and requires no fertiliser or pesticide, making it a regenerative raw material.
 
Applications include:

  • Textiles: Bamboo fibres (processed mechanically or chemically) are used in clothing, towels, and linens.
  • Composites: Bamboo mixed with bioplastics or resins creates durable, lightweight materials for packaging and consumer goods.

NPD Tip: Tap into established bamboo supply chains or invest in community-based sourcing programs to build local resilience and traceability.
 
5. Hemp: The ultimate regenerative workhorse
 
If there’s one material that embodies regeneration, it’s hemp. Fast-growing, carbon-sequestering, and able to thrive with little water or pesticide input, hemp offers an exceptional combination of environmental and industrial benefits.
 
Applications:

  • Textiles: Hemp fibres are strong, breathable, and naturally antimicrobial, making them ideal for clothing, upholstery, and industrial fabrics.
  • Bioplastics and composites: Hemp hurds (the woody core) can be mixed with biopolymers to produce biodegradable plastics and lightweight panels.
  • Construction: “Hempcrete,” a mix of hemp hurds and lime, is an energy-efficient building material with excellent insulation properties.
  • Paper and packaging: Hemp can replace wood pulp in paper production, reducing deforestation and water use.

NPD Tip: Start with low-risk integrations, hemp-based packaging, inserts, or fabric components can be piloted without retooling your entire production line. Made in Britain member Jersey Hemp who are a leading British organic grower is a good place to look.
 
Getting Started with Regenerative NPD

  1. Material scan: Evaluate current materials for their environmental footprint and identify viable regenerative substitutes.
  2. Rapid prototyping: Use small-batch runs or test components to evaluate performance and customer acceptance.
  3. Local partnerships: Source materials regionally where possible to reduce transportation impact and support local economies.
  4. End-of-life design: Choose materials that can be composted, reused, or easily recycled to support product circularity.
  5. Customer engagement: Communicate the value of regenerative materials to build brand trust and differentiation

Final thoughts
 
Integrating regenerative materials into your manufacturing processes is not just an environmental decision; it’s a strategic one. It drives innovation, aligns with global market trends, and positions your business for long-term relevance and resilience. Whether you’re experimenting with algae-based packaging or introducing mycelium components, the time for regenerative NPD is now.
 
For more reading, you can download my new book ‘Business as a force for Good: Regenerative Practices for Lasting Change’ for free here.
 
Professor Chris Harrop OBE is Visiting Professor of Sustainable Business at the University of Huddersfield Business School and founding chairman of Made in Britain.

By Made in Britain 3 days ago | By Made in Britain

Back to News

Share this page: