24. Jul 2026
Europe's biobased product potential – lead markets and demand-side measures
For the first time, a new study provides an evidence base on Europe’s bio-based products lead markets, showing that there is no shortage of technology or ambition but the absence of a regulatory framework which would stimulate demand.
The study, produced by the Bio-based Industries Consortium (BIC), is in two parts: the first maps the lead markets for bio-based products across chemicals, plastics and polymers, fibre-based packaging, and textiles, while the second sets the policy measures to overcome them.
As outlined in the EU bioeconomy strategy, Europe has a real opportunity to lead globally in biobased products, and the potential reaches across the economy.
• Biobased plastics capacity alone is set to nearly double, to about 4.7 million tonnes by 2030, and Europe already holds the largest regional share of that market, at 43.1%.
• Europe's chemicals industry is worth around EUR 655 billion a year, yet only about 8% of it is currently biobased;
• Its fibre-based packaging sector generates EUR 110 billion in revenue and supports some 710,000 jobs;
• Europe leads globally in textile fibres such as flax and hemp, producing 64% of the world's flax and more than half of global hemp fibre.
That potential can be realised by rewarding the full value of biobased products and their environmental benefits. Biobased products, like other renewables, often come with a green premium compared to their fossil-based counterparts. Without binding policy measures and incentives to drive demand, Europe will miss an opportunity to remain a global leader in the bioeconomy. Lead market measures are needed to attract private investments and scale-up biobased solutions in Europe.
To overcome this, the report calls for a package of well-designed, targeted measures to create predictable demand, such as binding biobased content requirements. It recommends the EU to build these into the legislation already being prepared or revised, including the Biotech Act II and the forthcoming revision of the Public Procurement Directives.
BIC Executive Director Philippe Mengal said: "The deployment of the bio-based industries in Europe can be a real competitive advantage, and strengthen our strategic autonomy at the same time. That potential stays untapped, without the market signals to unlock it. The legislation to do this is being written now, and we are ready to work with policymakers to get these measures into it." AT
biconsortium.eu