The Bio-based Industries Consortium (BIC) is calling on European policymakers to introduce stronger demand-side measures, arguing that the region's bio-based products sector is being held back by market conditions rather than technology or innovation.
A new BIC study concludes that Europe has the industrial capacity and technical expertise to become a global leader in bio-based products, but lacks the regulatory framework needed to create predictable market demand and encourage large-scale investment.
Market potential remains underused
The report examines four major sectors—bio-based chemicals, plastics and polymers, fibre-based packaging, and textiles—and identifies significant growth opportunities across each of them.
According to the study, Europe's chemicals industry generates approximately €655 billion in annual revenue, yet only about 8% of its output is currently bio-based.
In plastics, European production capacity for bio-based materials is projected to nearly double to 4.7 million tonnes by 2030, while the region already accounts for 43.1% of global production capacity.
The report also highlights the strength of Europe's fibre-based packaging industry, which generates €110 billion in annual revenue and supports approximately 710,000 jobs.
In textiles, Europe remains the world's leading producer of natural fibres such as flax and hemp, accounting for 64% of global flax production and more than half of worldwide hemp fibre output.
Creating demand through policy
BIC argues that bio-based products often carry a price premium compared with fossil-based alternatives because their environmental benefits are not fully reflected in today's markets.
To address this gap, the consortium recommends a package of targeted demand-side measures, including binding bio-based content requirements and stronger incentives to encourage market adoption.
The study also urges the European Union to integrate these measures into legislation currently under development or revision, including the Biotech Act II and the upcoming revision of the Public Procurement Directives.
According to BIC, such policies would provide the market certainty needed to attract private investment and accelerate the commercialization of bio-based solutions across Europe.
A strategic opportunity for Europe
Philippe Mengal, Executive Director of BIC, said Europe has an opportunity to strengthen both its competitiveness and strategic autonomy through the deployment of bio-based industries.
He noted that this potential will remain largely untapped without clear market signals to stimulate demand and added that BIC is ready to work with policymakers as the relevant legislation is being developed.
The consortium believes that rewarding the full environmental value of bio-based products will be essential if Europe is to maintain its leadership in the global bioeconomy while advancing its climate and industrial objectives.
The Bio-based Industries Consortium (BIC) is the industry association representing the European bio-based industries sector. It brings together companies, research organizations, universities and regional clusters to advance innovation, investment and the development of a competitive circular bioeconomy in Europe.
