Green Shirt producers now account for 79% of all man-made cellulosic fibre (MMCF) producers assessed, up from 70% in 2025, while the number of Next Generation product lines on the market has risen to 20 from 16 over the same period. These are among the findings of the Hot Button Progress Report 2026, released by environmental non-profit Canopy.
- 22 of 28 producers hold Green Shirt status this year, though total Green Shirt capacity as a share of global MMCF production has edged down to 53% from 54% in 2025.
- 12 of the 20 Next Generation product lines now on the market are offered by Chinese producers, following research and development into feedstocks ranging from recycled textiles to certified bamboo.
- Two producers, Yibin Grace and Xinxiang Bailu, have each developed their own technologies to produce fibre from recycled textile feedstocks.
- Two producers ceased MMCF production this year, and one new producer has joined the Hot Button list for the first time.
- Canopy's Hot Button Progress Report 2026, released Tuesday, is a simplified annual assessment of MMCF producers covering the sector's progress on forest protection and Next Generation fibre development.
THE 2026 ASSESSMENT: The Hot Button Progress Report 2026 is a simplified version of Canopy's annual assessment of MMCF producers, using a shirt-colour rating system to help brands understand supply chains by evaluating producers on their commitment to eliminating Ancient and Endangered Forests from their supply and their progress towards more circular inputs. The 2026 edition follows the tenth edition published in 2025.
- Producers were sent surveys requesting updates on meaningful progress in key areas including Next Generation fibre products, conservation initiatives, and audits; the simplified format gives producers time to provide feedback and become acclimatised to the updated criteria before full implementation in 2027.
- Shirt colours are largely carried over from 2025 and will continue to guide brands in their purchasing decisions.
- Three producers are exceptions: two held rainbow shirts in 2025 and one held a white shirt; all three have since signed a CanopyStyle policy and undergone their first independent third-party audit.
- Any changes to the ZDHC (Zero Discharge of Hazardous Chemicals) ratings of all producers are also reflected in the 2026 progress report.
- The full 2025 Hot Button Report, complete with buttons earned, remains available for reference, while the 2027 edition will be based on updated criteria and provide the detailed results and profiles that partners rely on.
THE NUMBERS:Total Green Shirt capacity has edged down to 53% of global production from 54% in 2025, while two producers ceased man-made cellulosic fibre production over the year and one new producer joined the assessment. Chinese producers have been particularly active in Next Generation fibre development, with their lines drawing on feedstocks such as recycled textiles, on-purpose crops and certified bamboo.
- Yibin Grace and Xinxiang Bailu have developed their own technologies for making fibre from recycled textile feedstocks, a distinct technical route within the broader Next Generation category.
- Several producers have invested in scaling up lyocell production now that the patent on the technology has expired and lyocell is available to all.
- Chinese producers have explored a range of feedstocks and technologies, including recycled textiles, on-purpose crops and certified bamboo, in developing their Next Generation lines.
- Next Generation capacity is being expanded year on year, but actual volumes produced will depend on market demand; the sector is dynamic and growing, and the 20-line figure may increase in the coming months.
- ZDHC programme ratings for all producers have been updated over the year.
UNDER PRESSURE: Conventional forest-based fibre supply faces several interacting pressures, and a consistent, reliable and cost-effective flow of forest fibre to market is increasingly uncertain. The northern hemisphere summer of 2026 has seen fires across Canada, Scotland, Spain, and Greece, and a predicted super El Niño in 2027 could further destabilise the situation, with brands and producers urged to invest in and promote responsible products made with recycled textile-to-textile fibres, alternatives derived from agricultural residues, and other innovative types of Next Generation fibre.
- Global trade dynamics including export measures, tariffs, sanctions, transport disruptions, and due diligence requirements have contributed to an operational environment where consistent forest fibre supply is harder to guarantee.
- Climate change and resulting drought are exacerbating forest fires, and declining forest stability is one of the interacting pressures exposing conventional MMCF supply to growing volatility.
- The MMCF sector is in flux in 2026, with conventional supply exposed to volatility from a closed and contested land base, demand growth across sectors, and a more fragmented trading system affected by geopolitics and developing regulatory oversight.
- 2026 has been a challenging and often hard year for many brand and producer partners, with supply chain instability across the MMCF sector driven by a combination of climate and trade factors.
- Supply chain instability across the MMCF sector in 2026 has only increased the importance of growth in a stable, reliable supply of Next Generation fibres.
WHAT THEY SAID
The Hot Button Progress Report 2026 update shows that MMCF producers have built real capacity for a more resilient, circular future. Forest fibre supply is becoming less and less reliable every year because of climate change, regulations, and geopolitical uncertainties. Brands and producers need to shift meaningful volume to Next Gen fibres in order to future-proof their supply chains. Economic modelling reinforces that acting now is a no-regret pathway.
— Nicole Rycroft
Founder and Executive Director
Canopy
