According to BIC, Europe possesses a wealth of knowledge, technology and industrial infrastructure, but innovative biobased products are still not penetrating the market on a sufficiently large scale. Targeted demand stimulation is needed to enable investment in new production capacity and ultimately make biobased products competitive with fossil-based alternatives.
The consortium refers to so-called ‘lead markets’: end markets in which Europe can develop a competitive advantage, and where market-oriented measures accelerate the uptake of biobased products. This involves not only subsidising research and innovation, but also favourable investment conditions, clear regulations, and sufficient market demand.
BIC points out that the continuation of the Circular Bio-based Europe Joint Undertaking (CBE JU) under the new European multiannual budget for 2028–2034 is necessary to bridge the initial gap (‘valley of death’) between research and demonstration. However, the subsequent industrial upscaling and the construction of the first commercial plants require a broader combination of market incentives, funding and regulation. This must also address the so-called second ‘valley of death’.
Four key markets
For bio-based plastics, polymers and fibre-based packaging, BIC has identified four key markets: packaging, agriculture and horticulture, the automotive industry, and the construction sector. Globally, production capacity for biobased plastics is expected to double from 2.3 million tonnes in 2025 to 4.7 million tonnes in 2030.
In 2025, Europe accounted for over 43 per cent of global turnover in bioplastics. The European market for fibre-based packaging now accounts for €110 billion in turnover, €26 billion in added value, and 710,000 jobs. In the construction sector, too, the use of biobased insulation foams, pipes, floor and wall products, coatings, adhesives and sealants is growing.
There are also significant opportunities in the chemical sector. The European chemicals industry generates an annual turnover of approximately €655 billion, and employs more than 1.2 million people. However, around 90 per cent of the carbon-based raw materials used by the sector are still of fossil origin. The share of biobased products is estimated at just 8 per cent.
BIC sees particular potential in biobased chemicals for the construction, personal care and agricultural sectors. In addition, biobased platform chemicals and intermediates can be used in, amongst other things, solvents, coatings, lubricants, paints, printing inks and adhesives. Replacing key petrochemical products with biobased alternatives can reduce greenhouse gas emissions by an average of around 45 per cent, according to recent studies by the EU’s Joint Research Centre (JRC).
Natural fibres for textiles
The textiles sector also offers opportunities. Synthetic fibres account for around 67 per cent of global fibre production, with polyester alone accounting for 57 to 60 per cent of this. At the same time, less than 1 per cent of textiles are reprocessed into textile fibres. According to BIC, recycling alone is therefore insufficient to reduce dependence on fossil carbon.
Europe is well-positioned in the field of sustainable natural fibres, including cellulose, flax and hemp, but remains heavily dependent on imports of synthetic fibres and cotton. BIC sees opportunities for European biobased value chains for clothing, footwear and medical and technical textile products.
The consortium will discuss the identified markets further with industry players and other stakeholders. A separate document sets out policy recommendations for concrete measures to stimulate demand for biobased products.
The new BIC reports on key markets for biobased products can be found on the knowledge hub on the BIC website:
- Lead Markets for Europe’s Bioeconomy: Overview and Key Findings
- Lead Markets for Europe’s Bioeconomy: Policy Tools
- BIC Report on Bio-based Chemicals
- BIC Report on Bio-based Plastics, Polymers & Fibre-based Packaging
- BIC Report on Textiles from Bio-based Fibres & Fabrics
Image: BIC
