A revised EU Bioeconomy Strategy is expected by the end of 2025, as the European Commission seeks to boost strategic autonomy, advance its climate and circularity goals, and reduce dependence on fossil resources. At the heart of this transformation lies the agri-food sector, a major user and producer of biological resources, and a critical actor in enabling a sustainable and competitive bioeconomy.
In recent months, a wide range of stakeholders across the agri-food value chain responded to the Commission’s public consultation, offering a comprehensive picture of what they hope to see in the forthcoming EU Strategy. Their contributions reveal both shared priorities and sector-specific needs.
This article explores the future direction of the EU Bioeconomy Strategy, drawing on key policy recommendations gathered through the recent public consultation and organised according to the position of agri-food businesses within the value chain. But agri-food is not the only sector set to be shaped by this transition. The textile sector, increasingly exploring bio-based innovations, also stands to benefit from a stronger policy framework. Since Ohana works closely with clients across both agri-food and textiles, this article brings together the most up-to-date and useful insights for our audience.
But first, let’s define what the bioeconomy is and what the EU has already done to advance the sector.
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EU’s Efforts To Advance the Bioeconomy
The bioeconomy has long been a key subject in EU policy discussions, but recent developments highlight its growing importance. The European Commission defines the bioeconomy as the sustainable production and conversion of renewable biological resources, such as crops, forests, fish, animals, microorganisms and organic waste, into food, feed, bio-based products and bioenergy.
The EU adopted its first Bioeconomy Strategy in 2012 and updated it in 2018 to align with climate neutrality and the circular economy. A recent progress report highlighted strong growth in bio-based products, particularly polymers and packaging, where substitution of fossil-based materials has been most significant. Yet, the report also points to the lack of a coherent regulatory framework. Clear and consistent policies are needed to create long-term demand and market leverage for bio-based products, something the 2025 Strategy is expected to address.
From Soil to Shelf: Key Asks for the EU’s Bioeconomy Strategy
As outlined in the Vision for Agriculture and Food, the upcoming Strategy aims to position the EU as a global leader in the fast-growing bioeconomy market. It is expected to benefit farmers by diversifying value streams, valorising residues, strengthening their role in the value chain, and creating new jobs in rural areas.
Beyond farming, the Bioeconomy Strategy will also shape the wider agri-food sustainability and food value chain. With around 30% of all food produced globally lost or wasted, the Strategy might have the potential to turn this challenge into an economic and environmental opportunity.
But now, let’s look at what key stakeholders ask. We analysed all responses submitted during the Strategy’s public consultation, which ended in June, and summarised them below, grouping stakeholders according to their position in the supply chain. From farmers to biotech innovators and NGOs, the consultation highlights both common priorities and sector-specific needs.
Primary Production: Putting Farmers at the Centre of the Bioeconomy
Farmers, cooperatives, and rural stakeholders broadly welcome the EU’s ambition to develop a circular and resilient bioeconomy. But they stress that primary production must be recognised as a foundational pillar of that system, not only as a source of biomass, but also as a driver of climate mitigation, biodiversity protection, and rural development.
They call for policies that reward sustainable farming practices such as crop diversification, agroforestry, and organic production. These practices not only support soil health and ecosystem services, but also improve farmers’ resilience to climate and market shocks. Several stakeholders argue that the bioeconomy should help revitalise rural areas, create decent jobs, and empower the next generation of farmers.
Processors and Biomanufacturers: Enabling Innovation and Investment
For bio-based industries and processors, the success of the Strategy hinges on creating a stable and coherent policy environment. Respondents highlight the need for regulatory clarity, particularly around biomass classification, sustainability criteria, and the end-of-waste status, to unlock investment and reduce uncertainty.
Biomanufacturers stress the importance of maintaining flexibility to serve multiple markets simultaneously, from food and feed to materials and energy. They point out that biorefineries depend on economies of scale and feedstock diversity to remain viable and competitive. To scale up sustainably, they need access to clean energy, dedicated infrastructure support, and long-term policy signals that reduce investment risk.
Feed and Pet-Food Industries: Prioritising High-Value Use of Residual Biomass
Sectors that rely heavily on by-products and residual biomass, such as animal feed, pet food, and insect farming, call for stronger policy support to reinforce circularity. They emphasise the role of these industries in turning co-products and former foodstuffs into valuable resources, thereby reducing waste and pressure on primary inputs.
Many actors urge the Commission to ensure that biomass is directed first to food and feed uses, in line with the cascading use principle. Concerns are raised about competition between feed and energy sectors, especially in light of increasing demand for bioenergy. Feed and pet-food stakeholders call for science-based assessments and legal clarity to determine which materials can safely and sustainably be used in feed, and for greater coherence between circular economy and food safety rules.
Biotech Innovators: Level the Playing Field
Companies in the plant-based and food innovation space see themselves as key contributors to a greener, more resilient bio-based system. They call for harmonised EU rules to address fragmentation in labelling, marketing, and taxation, which currently create barriers to scale and trade across borders.
These stakeholders also ask for investment in infrastructure and public-private partnerships to support the processing, distribution, and export of bio-based products. Many highlight the untapped potential of circular business models that valorise food waste and by-products.
Accelerated approval procedures for bio-based materials and a clearer regulatory path for biotech innovations are also seen as crucial to foster growth and international competitiveness.
Textile Innovations in the Bioeconomy Transition
These demands are also shared by companies advancing bio-based textile materials, believing that the EU Bioeconomy Strategy can play a similarly transformative role. By recognising the diverse contributions of textile materials to the bioeconomy and supporting their sustainable development, production, and use, the Strategy can accelerate the renewal of Europe’s textile and fashion industries, helping them become more circular, resilient, and competitive.
Civil Society: Embedding Environmental and Social Integrity
NGOs and civil society organisations want the Strategy to reflect a deeper commitment to long-term sustainability. They stress that biomass should be treated as a finite resource and that its use should not undermine biodiversity, soil health, or climate goals.
Several respondents propose shifting subsidies and fiscal incentives away from intensive, polluting practices and toward those that offer ecosystem services and long-term resilience. They argue for stronger safeguards against greenwashing and clearer sustainability metrics that go beyond carbon to include biodiversity, land use, and social fairness.
Public procurement is seen as a lever to stimulate demand for sustainable bio-based products, including organic and local food.
Supporting biodistricts, local value chains, and young entrepreneurs is considered essential to making the bioeconomy both inclusive and future-proof.
A Summary of the Key Takeaways for the Agri-Food Sector
The Bioeconomy Strategy’s consultation responses converge on a shared ambition: a more coherent, inclusive, and forward-looking EU Strategy that empowers all parts of the agri-food chain to contribute, from soil to shelf.
While stakeholders naturally bring diverse perspectives, there is broad alignment on the need for regulatory clarity, investment certainty, and policies that strike the right balance between sustainability, innovation, and competitiveness.
Once published by the end of the year, the Strategy will pave the way for concrete legislative proposals, opening avenues for stakeholder engagement and advocacy. Now is the time for actors across the value chain to prepare, align priorities, and make their voices heard in the debates that will shape Europe’s bioeconomy for the decade ahead.
How The Bioeconomy Strategy Could Impact The Textiles Sector
Textiles have been on the Commission’s radar since the 2018 update of the Bioeconomy Strategy, when bio-based textiles, including natural fibers, man-made cellulosics and bio-synthetics, were identified as key to reducing reliance on fossil-based materials.
The 2025 Strategy update could shape the textile sector by embedding bio-based materials into the EU’s push for sustainable consumption, investment security, and circularity, accelerating the scale-up of alternatives to fossil fibers. In the recent Bioeconomy consultation, stakeholders urge the EU to keep the sector in focus through stronger support for production, circular business models, and market uptake.
While other bio-based sectors such as forestry, bioplastics, and agri-food are also competing for attention, the Commission’s continued references to bio-based textiles in Bioeconomy publications suggest that the sector is set to remain a clear priority in the 2025 update.
The outcome for textiles will depend on whether the Strategy provides regulatory clarity, with harmonised definitions of ‘bio-based textiles’, targeted support to scale alternatives competitively, and alignment with other legislation, such as Ecodesign for Sustainable Products Regulation (ESPR).
The revised EU Bioeconomy Strategy is expected by the end of 2025, with further milestones likely to emerge after its publication. Ohana will continue to monitor developments closely and share timely updates once the Strategy is published.
In the meantime, if you have any questions about what the forthcoming changes could mean for your organisation, don’t hesitate to reach out.