Bioeconomy Horizons: Transforming the Chemical Industry

The chemical industry plays a key role not only in realizing the EU’s climate targets, but above all in securing value chains. The bioeconomy contributes to the resilience of the European economy, as bio-based raw materials such as agricultural residues or food waste offer alternatives to fossil resources. At the same time, innovative materials such as biodegradable packaging or technologies for recycling biological polymers create closed material cycles and minimize environmental risks. These approaches not only offer ecological advantages, but also economic opportunities: they help companies to position themselves for the future in an increasingly regulated market environment and secure competitive advantages.
But the challenges remain great. According to the World Economic Forum’s latest Global Risk Report 2025, biodiversity loss and the stability of ecosystems are among the greatest long-term risks facing our ­society. These risks emphasize the need to actively drive forward the transition to a bioeconomy — not only as an ecological imperative, but also as a strategic opportunity for innovation and growth.

Overcoming Financing Gaps: The Importance of Specialized Investors

Innovative bioeconomy companies often face complex hurdles, especially in the growth phase. Scaling up biotechnological processes is capital-intensive and requires specialized expertise. Regulatory hurdles and fragmented authorization procedures within Europe often delay market entry and increase costs. In addition, public funding is predominantly focused on early-stage research, while private investors expect quick returns — a discrepancy that slows down many start-ups in the scale-up phase.
Financing such companies requires experienced investors with a deep understanding of the specific challenges of the bioeconomy. In addition to technological expertise, market knowledge and a long-term view of regulatory developments are crucial. Successful scale-ups show that targeted investments not only enable technological breakthroughs but can also open up access to large markets.
One example of this is the Belgian company AmphiStar. With a technology for the production of microbially derived glycolipids from food waste, AmphiStar offers a sustainable alternative to palm oil and petroleum-based surfactants. This innovation enables a CO2 reduction of up to 60 per cent compared to conventional surfactants and at the same time contributes to closing raw material cycles. Such examples illustrate the potential of the bioeconomy to combine both ecological and economic goals.
Another example is the Finnish company Paptic, which has developed an innovative fiber-based packaging to replace plastic in flexible packaging. Paptic combines the recyclability of paper with the functional properties of plastic, such as water resistance and stretchability. The company’s materials are already used in over 50 countries and offer a sustainable alternative for applications such as shopping bags or flexible packaging. With the support of specialized investors, Paptic has been able to expand its production capacities and scale up its technology to an industrial level.
The French company Ecoat also impressively demonstrates how bio-based solutions can transform traditional industries. Ecoat develops sustainable binders for paints and varnishes based on plant-based raw materials that can replace fossil alternatives. The company’s products are characterized by their high environmental compatibility and at the same time meet strict industry performance requirements. Through targeted investments, Ecoat has been able to expand its market presence and establish partnerships with leading chemical companies.

Cooperation as the Key to Success

The transformation towards a bio-based circular economy requires close collaboration between start-ups, established companies and specialized investors. Large companies have strengths in scaling and implementing innovations, while start-ups can often react more quickly to new technological trends. External innovation is therefore becoming increasingly crucial for large corporations — whether through collaborations or targeted investments in young growth companies.
Events such as the ECBForum 2025 on 24 June in Amsterdam offer a platform to promote such partnerships. Stakeholders from industry, research and investment meet here to exchange views on current developments and jointly discuss ways to accelerate the bioeconomy transformation. Topics such as new financing instruments for growth companies and regulatory trends will take center stage.

Strategies for Long-Term Success

In addition to technological innovations, strategic orientation also plays a decisive role in the successful transformation to a bioeconomy. Companies must adapt their business models in order to benefit from the new market conditions. This includes not only the integration of sustainable technologies into existing processes, but also the development of new business models based on circular principles.
External innovation is becoming increasingly important for large ­companies — whether through collaborations with start-ups or through strategic investments in specialized venture capital funds with a focus on bioeconomy technologies. Access to a broad network of innovative players enables established companies to recognize trends at an early stage and adapt their value chains accordingly.

Why Act Now?

Despite the current economic challenges, the bioeconomy remains a key building block for a resilient economy and a response to global problems such as climate change and ­biodiversity loss. The chemical industry has the opportunity to play a leading role — through targeted collaborations with innovative start-ups and by investing in sustainable technologies.
The examples of AmphiStar, Paptic and Ecoat impressively demonstrate how bio-based innovations can not only create ecological benefits, but are also economically viable. These companies exemplify the potential of the bioeconomy to open up new markets and transform existing value chains in a sustainable way.
The next few years will be crucial in driving these developments forward. Strategic partnerships between industry players and specialized investors can help Europe maintain its leading role in the bioeconomy — not only for the benefit of the economy, but also for a more sustainable future for generations to come.