Presented in Brussels on 14 July 2026, the study maps the potential of biobased products across four sectors: chemicals, plastics and polymers, fibre-based packaging, and textiles. A second part outlines the policy measures needed to develop these markets.
According to BIC, there is no shortage of technology or ambition. The main problem is the absence of predictable market signals. As a result, demand remains too low and investment in new production capacity and industrial scale-up is failing to gain sufficient momentum.
Significant opportunities
The economic opportunities are considerable. Production capacity for biobased plastics is expected to almost double to approximately 4.7 million tonnes by 2030. Europe currently holds the largest regional share of this market, at 43.1%.
There is also substantial potential in the chemicals sector. Europe’s chemical industry generates annual revenues of around €655 billion, yet only approximately 8% of this is currently biobased. The European fibre-based packaging sector generates around €110 billion in revenue and supports approximately 710,000 jobs.
Europe also has a strong position in natural textile fibres. The region produces 64% of the world’s flax and more than half of global hemp fibre output.
According to BIC, the full value of biobased products and their environmental benefits is not currently being sufficiently rewarded. These products are often more expensive than comparable fossil-based alternatives. Without binding policy measures and targeted incentives, Europe risks losing its competitive position in the bioeconomy.
The consortium is therefore calling for a package of targeted demand-side measures. One of its key recommendations is the introduction of binding requirements for the proportion of biobased feedstocks used in products. Such obligations could give producers and investors greater certainty about future market demand.
BIC advises the European Union to incorporate these measures into legislation that is currently being prepared or revised. The consortium points in particular to the second European Biotech Act and the forthcoming revision of the Public Procurement Directives.
According to BIC, public authorities can also play an important role by considering not only price in procurement procedures, but also renewable feedstocks, circularity and climate performance.
“The development of biobased industries in Europe can create a genuine competitive advantage while strengthening our strategic autonomy at the same time,” says BIC Executive Director Philippe Mengal. “That potential will remain untapped for as long as the necessary market signals are absent. The legislation needed to change this is being written now.”
For more information, visit the BIC website
Image: Cover Agroi&Chemistry, 2012/1
