The European bioeconomy continues to grow, but the transition from innovation to large-scale production remains challenging. This picture emerges from the 2025 Annual Report of the Bio-based Industries Consortium (BIC). The sector is expanding, attracting new members, and receiving increased attention in Brussels. At the same time, the question remains how new bio-based processes and products can move beyond the pilot and demonstration phase.
According to BIC, this is the crux of the problem. Europe has the knowledge, technology, and partnerships, but too few projects reach factory scale. As a result, part of the economic and social potential remains untapped.
Growth in network and ambitions
By the end of 2025, BIC had a total of 375 industrial members and 340 associate members. The consortium represents companies, knowledge institutions, and other parties working on biobased industries in Europe. In 2025, BIC consolidated its work under three main themes: innovation and scaling up, access to finance, and policy development.
This classification shows where the organization believes the real challenge lies: not only developing new technology, but also ensuring that technology finds a place in the market and within the industry. This is precisely where the sector often struggles.
Two difficult phases
In its annual report, BIC describes two critical transitions. The first lies between research and demonstration. The second, between demonstration and commercial production. This last step is particularly challenging. Investments rise rapidly during this phase, while risks for companies and financiers remain high.
This is also the line of reasoning in Agro&Chemie's reporting on the report. The European bioeconomy is growing, but scaling up remains a stumbling block. This raises a well-known issue in the sector. While there is often support for research and development, less so for the phase in which new facilities actually need to be built and scaled up.
Capital for factories remains scarce
To bridge this gap, BIC partnered with the Tech Tour investor platform in 2025. Dozens of companies presented themselves to investors, banks, and industrial partners at meetings in Ghent and Wuppertal. According to the annual report, approximately 80 investors were involved. In Ghent, there were 36 companies, and in Wuppertal, 38.
With this, BIC is trying to address a persistent problem. Many biobased companies fail not because of technology, but because of financing. A pilot or demonstration project is still manageable, but a first commercial plant requires much more capital. As long as financiers consider this step too risky, scaling up will not happen.
BIC therefore published a separate policy paper on financing biomanufacturing in Europe. The message is clear: without targeted funding for the transition to industrial production, part of the sector will remain stuck in pilot projects.
More attention in Brussels, now implementation
In 2025, the new European Bioeconomy Strategy was a key theme for BIC. The consortium considers it positive that the strategy includes not only an analysis but also an action plan and a timeline. At the same time, the annual report makes it clear that this is just the beginning. The real question is whether European policy actually leads to investments, market demand, and clear framework conditions for companies.
In 2025, BIC participated in consultations on topics including the Bioeconomy Strategy, the Biotech Act, the Circular Economy Act, and the new European budget for the period 2028-2034. The organization also advocated for an Important Project of Common European Interest for the biobased industry. This demonstrates that the sector is not only asking for support for research, but also for an industrial policy that helps build production in Europe.
Biomass also gets a strategic role
The report's emphasis on strategic autonomy is striking. According to BIC, sustainable biomass can contribute to European competitiveness and reduce dependence on fossil and imported raw materials. The consortium cites starch, sugars, and oilseed crops for non-food applications, without jeopardizing food security.
BIC also points to a study conducted with the Renewable Carbon Initiative and the Nova Institute. According to the consortium, this study shows that agriculture and woody biomass can meet at least 20 percent of the future carbon demand of the chemical and materials industries by 2050. This broadens the discussion about biomass beyond sustainability. It also encompasses raw materials policy, industrial choices, and the question of which applications should be prioritized.
2026 must make the difference
The annual report looks to 2026 with cautious optimism. According to BIC, the continuation of the Circular Bio-based Europe Joint Undertaking (CBE JU) remains important for the transition from research to demonstration. However, the next step requires additional measures. These include market development, risk sharing, and financing for the first commercial installations.
Organizationally, 2025 also marks a transition year. Dirk Carrez, the face of BIC for many years, is stepping down as Executive Director. He will be succeeded by Philippe Mengal, former director of BBI JU, the predecessor of CBE JU. The consortium has thus chosen someone with extensive experience in both policy and scaling up.
This is precisely what will be judged in the coming years. Europe has the plans, the networks, and the ambitions. Now it remains to be seen whether these will actually lead to factories, markets, and large-scale production.
Sources: BIC Annual Report 2025 & Agro&Chemistry
