Shaping a strategy to foster a sustainable European bioeconomy

A sustainable, circular bioeconomy: defossilisation and innovation
The bioeconomy is a cross-sectoral concept whose success can help to foster the increased global demand for defossilisation, alongside increased industry investments in sustainability. Within the cosmetics sector, a combination of regulatory and consumer trends continues to shape both the direction of innovation and how the market moves towards a greater environment focus.

Central to a successful bioeconomy is its capacity to leverage renewable biological resources to produce biomass. In cosmetics, biomanufacturing and biotechnology are increasingly used to develop innovative ingredients derived from green, white and blue biotechnology, alongside the more traditional use of natural resources such as plant extracts– most notably the historical use of essential oils for fragrances. More recently, cosmetics ingredients from upcycled waste streams and industrial by-products have also begun to emerge.

Besides primary biomass, there is significant potential to ensure renewable raw materials are used in a truly circular way, reducing impact across the life cycle. Whilst biobased materials usually mean reduced greenhouse gas (GHG) emissions compared with petrochemical alternatives, their benefits may be less clear beyond the manufacturing stage. To this extent, the environmental benefits of biobased products across all sectors may be narrow beyond the simplistic view of GHG emissions. For instance, in any life-cycle assessment one would also need to account for the resources needed to grow, harvest and distribute these products. Equally, it is important not to conflate biobased with biodegradable: although biobased and petrochemical plastics differ in feedstock origin, the resulting polymer can still be chemically indistinguishable.

Therefore, to properly push sustainable innovation towards, renewable origin must therefore be coupled with circular waste management, ensuring that biobased materials can be reused, recycled or biodegradable at the end of life

Sustaining a Strategic Bioeconomy
Following the publication of the EU’s Competitiveness Compass[1], the Clean Industrial Deal[2], and the EU Climate Law[3], the bioeconomy has become central in the intersection between the region’s climate and energy goals by 2030 and its target of climate neutrality by 2050. Although an EU bioeconomy strategy has existed since 2012, with an updated in 2018, a new “Strategic Framework for a Competitive and Sustainable EU Bioeconomy” was only published recently, in November 2025[4]. This updated strategy aims to expand the Union’s bioeconomy, support market scale-up of biobased products, materials and industries, and ensure sustainable sourcing and biomass resiliency.

A factual summary report[5] published in August 2025 had already identified key priorities from stakeholders, including increased circularity in bioeconomy value chains, environmentally sustainable biomass use, halting biodiversity loss, supporting climate mitigation and adaptation, and strengthening the biotech and biomanufacturing sectors. Running in parallel, the proposed EU Biotech Act[6] further underlines the importance of scaling up biotech and biomanufacturing, including derisking upstream investments and support primary producers.

The Strategic Framework sets out a 2040 vision in which sustainable biobased materials and products are widely available, providing fossil-free alternatives at industrial scale. To achieve this, the strategy investigates the need for affordable, competitive, and deployable solutions for biobased supported by appropriate skills, investment certainty, and reliable biomass supply. Given that Europe meets most of its biomass needs through sustainable domestic production, the strategic use of by-products and residues remains essential.

As in other regions, fully realising the bioeconomy’s potential will require more efficient use of biomass to support long-term competitiveness, supply stability, and environmental sustainability. To achieve this momentum, the Framework identifies five: (1) scaling up innovation and investments; (2) developing lead markets for materials and technologies; (3) sustainably sourced biomass; (4) harnessing global partnerships and opportunities; (5) joining forces for delivery across EU Member States, industry, investors, and civil society.

Notably, the 2025 strategy includes measures to increase the uptake of biobased materials, including content targets. Under Regulation (EU) 2025/40 (PPWR[7]), provisions are introduced for bio-based plastics and novel materials, in complementarity with recycled content targets. The strategy also foresees possible bio-based content requirements for certain products utilising biobased chemicals. To this end, cosmetics are explicitly mentioned among the users of these biobased substances alongside pharmaceuticals, food, and textiles. Currently, while the text addresses more the need for stable and resilient biomass supply chains, where food is prioritised, it also recognises the importance of directing biomass towards higher-value applications.

Interestingly, the sustainability of biobased materials and products is also addressed. An example includes enhancing the Product Environmental Footprint (PEF[8]) methodology to better assess and compare biobased materials, chemicals and products; as well as preserving and restoring raw material production areas. Although sustainability criteria are not formally included in the strategy, this issue is reflected in an accompanying Commission communication[9]. In parallel, CEN/TC 411 has published the European norm EN 18027:2025[10], providing guidance for comparing the life cycles of bio-based products with fossil-based equivalents. As such, tools are being developed to support the recognised needs of industry. While standardisation is a meaningful step forward, but additional tools, such as third-party certification and labelling, are likely to be necessary.

Besides biomass, sustainable financing was highlighted by the Framework, with persistent financing gaps across the bioeconomy value chain. The European Investment Bank has pointed to current barriers to scaling-up biomanufacturing, advanced bio-based materials and circular bioeconomy infrastructure, which continue to prevent promising innovations from reaching commercial maturity.

Building Balance, Opportunities and Monitoring Impact
According to data referenced by the Commission, in 2023 the bioeconomy generated up to €2.7 trillion in added value and supported an estimate 60–62 million jobs across bioeconomy-related sectors.

The strategy’s scope remains wide to support and deliver sustainable biobased solutions that create added value across biological resources, including primary biomass (directly harvested biological material), secondary biomass (by-products and residues), as well as biogenic carbon captured through innovative technologies. While the policy document sets the vision for the coming legislative cycle (principally 2026–2028), it does not create new legal obligations. Instead, the Commission is expected to prepare implementing measures, delegated acts and potential legislative proposals to advance the framework’s strategic priorities.

Between 2026–2028, active monitoring of follow-up legislative proposals – especially files linked to product-policy (e.g. packaging) and standardisation (e.g. claims substantiation) – will be essential. The Framework is likely to be most immediately relevant for companies with bio-based dependencies, such as natural products and raw material suppliers, including those involved in scale-up investments aligned with emerging workstreams.

The coming years will bring clarity to whether investment gaps can be closed, biobased innovation scaled, lead markets for bio-based materials and technologies secured, and regulatory complexity managed without overburdening operators, particularly in relation to binding legislation such as the CSRD[11], CSDDD[12], and EUDR[13]. Despite these challenges, for natural cosmetics the transition to a bio-based, sustainable industry is not a passing trend but a structural shift driven by consumer expectations, scientific advancement, and environmental necessity. In this context, the bioeconomy represents a powerful, offering a way to reconcile innovation with responsibility.