On's LightSpray: A Carbon-Cutting Revolution in Footwear Manufacturing

The footwear industry is on the brink of a sustainability-driven transformation, and On is leading the charge with its LightSpray™ technology—a breakthrough that could redefine manufacturing efficiency, environmental impact, and consumer demand. By slashing carbon emissions by 75%, cutting production time to a mere six minutes, and enabling on-demand customization, On is positioning itself as a disruptor in a $130 billion global footwear market still dominated by legacy players like Nike and Adidas. But can this Swiss startup scale its vision fast enough to capture a growing eco-conscious consumer base? And what does this mean for investors?

The Carbon Efficiency Breakthrough

Traditional shoe production is a wasteful, multi-step process. On estimates that conventional methods involve over 200 steps across global supply chains, generating significant emissions and material waste. LightSpray™, however, eliminates these inefficiencies by spraying a single 1.5-kilometer filament of recyclable TPU onto a foot form in three minutes—a process that reduces carbon emissions by 75% compared to On's own racing shoes. The use of a single material and fully automated production further minimizes waste, aligning with circular economy principles.

For context, On's carbon footprint per shoe now rivals that of leading sustainable brands like Allbirds, but with a performance edge. This is critical as consumers increasingly prioritize eco-friendly products without compromising quality.

Speed Meets Sustainability: The Manufacturing Revolution

LightSpray's six-minute total production time (including ink-jet branding) is a staggering improvement over the days or weeks required by traditional methods. This speed isn't just about efficiency—it's a gateway to scalable, localized production. On's vision of robots manufacturing shoes tailored to race conditions (e.g., wet vs. dry terrain) on-site at events like the Boston Marathon could redefine supply chains.

The first LightSpray™ facility in Zurich, launched in July 2025, uses four robots and marks On's first in-house upper production. With plans for global expansion, this model could bypass outsourcing to low-cost regions, reducing logistics emissions and enabling faster time-to-market.

The Olympic Catalyst and Brand Differentiation

On's partnership with the 2024 Paris Olympics was a masterstroke. The Cloudboom Strike LS, worn by marathon star Hellen Obiri, became a symbol of performance and sustainability. On capitalized further by opening its On Labs Paris space, where visitors witnessed LightSpray™ in action—a brilliant blend of education and experiential marketing.

This visibility has fueled brand equity. On's “Dream Together” messaging resonates with eco-conscious millennials and Gen Z, who are willing to pay a premium for sustainable products. The Cloudboom Strike LS's $330 price tag—double that of many competitors—suggests On's premium positioning is paying off.

Risks and Roadblocks

The upfront costs of LightSpray™ facilities are steep. A single robotized production line likely requires millions in capital, and scaling globally demands significant investment. Competitors may also replicate the technology over time.

Yet On's four-year R&D lead and patent portfolio create a moat. More importantly, the long-term ROI is compelling: reduced waste, lower logistics costs, and higher margins from premium pricing could offset initial expenses.

The Investment Case

On is uniquely positioned to capitalize on two megatrends: sustainability and on-demand manufacturing. Its Olympic success and consumer demand for eco-friendly products create a tailwind, while LightSpray's scalability could drive exponential growth.

Catalysts include:
- Q4 2025 Cloudboom Strike LS restock: Targeting marathons like New York City.
- Global LightSpray™ facility launches: Scaling production in key markets.
- Partnerships with events and governments: Expanding into customized, localized production.

While On's stock has risen 28% year-to-date (as of July 2025), it remains undervalued relative to its growth potential. With a market cap of $3.2 billion versus Nike's $150 billion, On has room to grow.

Conclusion

On's LightSpray™ isn't just a manufacturing tweak—it's a blueprint for how sustainability and tech can disrupt legacy industries. The risks are real, but the rewards for investors who bet on On's vision are enormous. With a growing eco-conscious consumer base and the infrastructure to scale, On could soon be the go-to for athletes and everyday runners seeking high-performance, low-impact footwear.

For investors, the question isn't whether sustainability will dominate—it's already happening. The question is: Will you own a leader in this shift?