This study proposes a market-driven methodology for investing in materials innovation. This methodology is the counterpart of a technology-driven methodology, the investment methodology for materials (IMM) proposed in 2005. The two methodologies complement each other in guiding materials investment in the early stages of innovation. This methodology consists of three modules (market, technology, and commercial) and 12 elements in the three modules. An overview of each element is provided, as are the associations between and among them. Furthermore, two unique challenges of materials makers in implementing a market-driven approach are highlighted: 1) materials makers are located upstream in the value chain, and 2) process innovation is a key constituent of materials innovation. A case study is provided to clarify the methodology for practitioners.