Loop Industries, Inc. (LOOP): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to map out the market strategy for Loop Industries, Inc. as they transition from pilot testing to global commercialization, and honestly, the numbers from their last full fiscal year tell a clear story about this pivot. As a former head analyst, I see a company rapidly monetizing its intellectual property, which is why their Fiscal Year 2025 total revenue hit $10.889 million, with a massive $10.4 million chunk coming straight from that first European technology license upfront payment. That single deal fundamentally shifts how you should view their 'Price' and 'Place' strategy going forward. So, let's break down exactly what they are selling, where they are selling it, how they are talking about it, and what they are charging for it in this new era of global deployment-check out the full four P's below.

Loop Industries, Inc. (LOOP) - Marketing Mix: Product

Loop Industries, Inc. (LOOP) offers products derived from its proprietary depolymerization technology, which breaks down waste PET plastic and polyester fiber into base chemical building blocks, or monomers: dimethyl terephthalate (DMT) and monoethylene glycol (MEG).

Virgin-quality Loop™ PET resin for food-grade packaging

• The Terrebonne Facility has been operating its production for 5 years.
• This resin is suitable for use in food-grade packaging, having received no objection letters from the FDA and Health Canada.
• Sales of Loop™ PET resin produced at the Terrebonne Facility contributed $126,000 in revenue for the fiscal year ended February 28, 2025.
• For the three-month period ended February 28, 2025, sales of this resin generated $46,000 in revenue.

Twist™ branded circular polyester resin from textile waste

The Twist™ branded resin, launched on July 30, 2025, is made entirely from textile waste.

Purified chemical monomers (DMT and MEG) for specialty polymers

The base chemical building blocks recovered are purified and can be used for specialty polymers.

• The global market size for DMT and MEG is estimated at US$28 billion.
• This market is forecasted to grow at a 3.7% CAGR through 2033.
• The Infinite Loop™ India facility is projected to produce 70,000 tonnes of rDMT and 23,000 tonnes of rMEG annually.

Technology licensing for the proprietary Infinite Loop™ process

Loop Industries, Inc. sold its first technology license in December 2024 for deployment in Europe.

Engineering and technical services for joint venture partners

Loop Industries, Inc. entered into an engineering services agreement with its India joint venture, Ester Loop Infinite Technologies ('ELITe').

• Revenue from this engineering services agreement was $368,000 in the fourth quarter ended February 28, 2025.
• The India facility site acquisition cost was $10.5M, which included a $5M reduction from the initial project cost estimate.
• The planned annual production capacity for the initial India facility is 70,000 metric tons.
• The site acquisition provides land for a planned further expansion of an additional 100,000 metric tons per year.
• The capital expenditure projection for the India facility, confirmed by TATA Consulting Engineers, is estimated at $176M.
• Groundbreaking for the India facility is expected in the second half of calendar 2025, with commercial operations projected for calendar 2027.

Loop Industries, Inc. (LOOP) - Marketing Mix: Place

You're looking at how Loop Industries, Inc. gets its recycled polymer products to market, which is entirely business-to-business, or B2B. The Place strategy hinges on deploying its proprietary technology globally through direct facility ownership in key regions and licensing agreements.

Pilot Production and Initial Supply Chain

Small-scale production has been the proving ground for the Infinite Loop™ technology. Loop Industries has been operating its production facility in Canada for 5 years as of late 2025, validating the process over four years of successful operation. This facility's output supports initial supply agreements. For instance, revenues for the fiscal year ended February 28, 2025, included $126 from sales of Loop™ PET resin produced using monomers manufactured at the Terrebonne Facility. This initial output helps secure early customer relationships before the larger facilities come online.

Global Expansion via Joint Ventures and Licensing

The core of the distribution strategy is global scale through partnerships. Loop Industries sold its first technology license in December 2024 to Reed Societe Generale Group for an Infinite Loop™ facility in Europe. This licensing model allows for rapid deployment without full capital outlay by Loop. The India expansion is structured as a Joint Venture (JV), Ester Loop Infinite Technologies (ELITe), with Ester Industries. Loop executed a $1.5 million engineering services agreement with ELITe in June 2025 to support the detailed engineering phase.

The structure of these partnerships dictates the flow of product and revenue:

• The European license is for one facility, with the partnership owned 90% by Reed Societe Generale Group and 10% by Loop Industries.
• Loop retains the right to increase its equity stake in the European facility, and future facilities, up to a maximum of 50% for each.
• Loop received an up-front royalty payment of $10.4 million from the European license in the quarter ending February 28, 2025.
• Loop is also set to receive an additional €10 million in licensing fees based on the successful achievement of project milestones prior to construction for the European site.

Infinite Loop™ India JV Site Development

The Infinite Loop™ India JV secured a foundational site in Gujarat in August 2025 to build out significant capacity. This location is strategic, being near Surat, India's textile capital, ensuring direct access to polyester textile waste feedstock.

Key metrics for the India facility deployment are:

The permitting process for this site is expected to be completed by the end of 2025, with groundbreaking anticipated in the second half of calendar 2025. Commercial operations are projected to commence in calendar 2027. The plant is designed to run on 80% clean, renewable electricity and biofuel, resulting in PET resin with up to 80% lower carbon emissions compared to virgin PET.

B2B Distribution Channels and Offtake Agreements

Loop Industries' distribution is strictly B2B, selling its virgin-quality polyester resin made from 100% recycled content directly to Consumer Packaged Goods (CPG) and apparel manufacturers. The company is actively securing long-term supply agreements, known as offtake agreements, to guarantee demand for the output from its new facilities.

As of late 2025, secured distribution channels include:

• A multi-year offtake agreement, signed in September 2025, with a leading global branded sports apparel company for Twist™ polyester from the India facility.
• An offtake agreement with Taro Plast S.p.A., an Italy-based specialty polymer manufacturer, for the sale of Loop™ DMT from the India facility.
• A strategic alliance with Shinkong (August 2025) to supply Twist™ resin, which Shinkong will transform into yarn and distribute to its network of over 100 customers worldwide.
• A strategic alliance with Hyosung TNC (September 2025) to combine Loop's resin with Hyosung TNC's textile expertise.

The product is certified as Food-Safe with no objection letters from the FDA and Health Canada, and is REACH certified for Europe, supporting distribution across these major markets.

Loop Industries, Inc. (LOOP) - Marketing Mix: Promotion

The promotion strategy for Loop Industries, Inc. (LOOP) centers on communicating major commercial milestones and the verifiable environmental impact of its technology, directly addressing regulatory shifts and brand demand for circular materials.

Multi-year offtake agreement with Nike as the India facility's anchor customer

The announcement of the multi-year offtake agreement with NIKE, Inc. serves as a primary promotional vehicle, validating the commercialization strategy for the Infinite Loop™ India manufacturing facility.

The agreement, announced in November 2025, secures a major buyer for the output of the joint venture with Ester Industries Limited.

Strategic alliances with global partners like Hyosung TNC for yarn production

Promotional efforts highlight strategic alliances that build out the supply chain for Loop Industries, Inc.'s recycled material.

• Alliance with Hyosung TNC announced in September 2025.
• Loop transforms waste into Twist™ resin.
• Hyosung TNC converts Twist™ into performance yarns under the Regen™ portfolio.
• Prior collaboration in February 2025 produced 100% recycled drawn textured yarn.

Marketing centers on the circular economy and verifiable 100% recycled content

Financial and operational metrics are used to promote the company's role in the circular economy, often tied to recent financing milestones.

Key financial data points related to commercial validation and operational status as of early 2025 fiscal year reporting:

Focus on 'textile-to-textile' recycling to meet circular fashion demand

The promotion emphasizes the technology's ability to handle challenging waste streams, positioning the company ahead of regulatory mandates.

Regulatory context driving demand:

• EU textile collection mandate effective: January 2025.
• Harmonized EPR rules effective: October 2025.
• Addressable market created by a 5% shift to mandated recycled content: $20 billion.

The technology breaks down waste PET into base chemical building blocks, specifically DMT and MEG.

Public relations driven by press releases on new partnerships and project milestones

Recent operational and financial performance data are used to signal progress and manage investor expectations.

Selected financial performance metrics for the third quarter of fiscal year 2025 (ended November 30, 2024):

The expected run-rate cash burn for the fourth quarter of 2025 is approximately $900,000 per month.

Loop Industries, Inc. (LOOP) - Marketing Mix: Price

Loop Industries, Inc. (LOOP) employs a hybrid revenue model that structures customer payments across several distinct streams, reflecting its technology licensing and joint venture manufacturing strategy.

The pricing structure is fundamentally tied to the monetization of its intellectual property and the eventual sale of its circular polymer products. The company's strategy for its manufactured product, branded as Twist™, aims for competitive pricing levels against virgin polyester, leveraging the low-cost feedstock access and manufacturing base in India for its Infinite Loop™ facility, which has an expected annual production capacity of 70,000 MT.

The financial results for the year ended February 28, 2025, illustrate the current weighting of these revenue components:

The largest single component of the Fiscal Year 2025 total revenue was the upfront payment from the first technology license sold to Reed Societe Generale Group for the European Infinite Loop™ facility. This single transaction accounted for $10.395 million of the total revenue.

The pricing strategy for technology deployment includes contingent payments, which represent potential future revenue streams based on performance milestones. For the European license, Loop Industries will receive an additional €10 million in licensing fees upon the successful achievement of project milestones prior to construction.

Additional revenue streams are generated through engineering services, particularly related to the development of the Infinite Loop™ India facility, a joint venture with Ester Industries, Ltd. (ELITe). This project has an estimated capital expenditure of $176 million. Loop Industries executed a $1.5 million engineering services agreement with ELITe in June 2025 to support the detailed engineering phase.

The current pricing and revenue realization strategy is characterized by:

• Technology Licensing Fees: Large, upfront payments securing the right to deploy the proprietary depolymerization technology.
• Engineering Services Fees: Payments for providing detailed engineering packages and support services for facility construction, such as the $0.368 million recognized in FY2025.
• Product Sales: Revenue from the sale of Loop™ PET resin produced at the Terrebonne Facility, which totaled $0.126 million in FY2025.
• Milestone Payments: Future, performance-based payments tied to the advancement of licensed projects, such as the €10 million contingent on the European facility's progress.

Finance: draft 13-week cash view by Friday.