Circular

bioeconomy:
The business opportunity
contributing to a sustainable world

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Contents

Executive summary | 3

1 Introduction | 4

2 Circular bioeconomy as a basis for a sustainable

economy | 10

3 The business case for a circular bioeconomy | 16

4 Significant opportunities and high growth rates across

industries | 20

5 Current obstacles and suggested solutions | 46

6 Concluding remarks | 61

7 Further resources | 64

8 Appendix and references | 66

Circular bioeconomy: The business opportunity contributing to a sustainable world 2

Executive summary
The economic One solution is a transformation to • Mindset and values, due to
opportunity for bio- a new economic system based on the existing negative public
extending the use of resources to perception of bio-based
based products to
a maximum, via a circular economy materials
complement or even “take/recycle-make-reuse/
substitute conventional recycle” principle. In a perfect To change the public perception
ones is estimated to be circular economy, resources are and evaluate potential trade-offs,
USD $7.7 trillion by 2030 endlessly cycled in a closed loop four principles were developed
to guide companies in assessing
for food and feed waste,1 through continuous reuse and
the sustainability performance
recovery. However, in practice,
products, and energy. and economic viability of a new
some resources are lost through
Transformation toward inefficiencies and technological product: circular bioeconomy
a circular bioeconomy or physical limitations. Replacing principles, environmental value,
is crucial to solving non-renewable resources with societal value and corporate and
our most pressing renewable resources, while stakeholder value. These principles
are broken down into a high-level
societal issues, ensuring ensuring that the new resources
checklist that provides companies
used can be regenerated by earth
companies have the with the critical questions to ask—
in a sustainable manner, has the
required resources to potential to allow us to stay within ranging from the evaluation of the
produce goods and the limits of our planet’s capacity. circularity3 to potential negative
services and continuing This solution is called a circular environmental externalities to
to create value in the bioeconomy. safeguarding societal values to
ensuring economic viability.
long-term. From an economic perspective,
Despite the increasing awareness a transformation toward a circular Companies that adjust their
of a need for a more circular bioeconomy makes business businesses now not only
economy, our world is only sense. Expected growth is show responsibility toward the
8.6% circular, with this number particularly high within non-food environment but also create
notably below 9.1% in 2018.2 industries, such as products and a long-lasting competitive
The predominant economic energy, where growth from 2018 advantage when externalities are
systems remain based on a to 2030 is expected to be 3.3% priced in. Ultimately, this translates
“take-make-waste” mentality and per annum, leading to USD $5.5 into benefiting from an untapped,
the increasing overexploitation trillion by 2030. This growth is growing business potential. This
of resources. This extends into based on an increase in the use report includes examples of such
non-renewable resources such of biomaterials within different front-runner companies, and acts
as minerals and fossil fuels as well product industries, the main ones as a roadmap for companies who
as renewable resources such as being pharmaceutical, textiles, are ready to join these leaders
wood. Using natural resources building materials, and packaging. on the journey toward a circular
beyond the regenerative capacity bioeconomy.
of our planet poses devastating However, despite the vast
economic and environmental However, businesses alone will not
risks for all living organisms. be able to generate lasting change
Climate change, biodiversity loss, benefits of a circular bioeconomy,
certain barriers still stand in across all sectors. Regulators,
land-use change, food loss and investors, and consumers must
waste, as well as resource scarcity the way of the necessary
transformation. Based on several also support this journey toward
are some of the most urgent closing resource loops. Only
societal issues our generation is interviews with businesses
engaging in the industry, we found by working together can the
facing and demonstrates the finite urgently-needed societal benefits
nature of our planet’s biocapacity. that the main barriers are:
and substantial USD $7.7 trillion
We are exceeding our planet’s • Financial flows (particularly economic opportunity of bio-
limits and a thoroughly changing additional costs) based products be realized.
of the way we produce and (re)use
resources to survive is needed. • Technology

• Policy and regulation

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingto
toaasustainable
sustainableworld
world 3 3
1 Introduction

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingto
toaasustainable
sustainableworld
world 4 4
 1 Introduction
THE WORLD IS MORE are deteriorating on a global To reduce carbon emissions and
THAN 90% LINEAR AND level - dropping by on average enable sustainable production
0.25% points over the last two cycles, we need to act with
NEEDS TO BECOME years5 - and the trend of increased urgency and move away from
MORE CIRCULAR overexploitation of natural the traditional “take-make-waste”
Our current economic systems resources is expected to worsen economic model toward one that
are based on linear value chains due to further population growth, is regenerative by design. The
that depend on a continuous increased income and spending goal is to retain as much value as
and increasing extraction of raw power, as well as technological possible from resources, products,
materials and a disregard for them advances. parts, and materials to create a
after use. Currently, only 8.65 system that allows for long life,
Our linear systems have optimal reuse, refurbishment,
billion tonnes of raw material—an devastating impacts on
equivalent of 8.6% of total material remanufacturing, and recycling/
biodiversity loss, ecosystem recovering - a circular economy.9
extracted—is cycled back into the services, and climate change. The
economy, closing our resource loss of species is estimated to be Businesses have a major
loops. The other 92 billion tonnes between 1,000 and 10,000 times responsibility to act. To support
of raw materials required to fuel higher than the natural extinction the circular change, they can
our economies are extracted from rate.6 A total of 62% of global transform their value chains into
earth, processed, used, and then greenhouse gas emissions are true value cycles at five different
discarded without any opportunity emitted during material extraction steps, (see Figure 1).
for recovering the materials.4 One and processing, and the trend is
result of low recycling rates is increasing.7 To reach the 1.5°C
the pollution of our environment target of the Paris Agreement, we
with products and materials need to ensure net zero emissions
that do not biodegrade. Despite by 2050.8
the increasing environmental
awareness, the levels of circularity

Figure 1: Business can tackle the value cycle at five steps Growing, development and
sourcing: Use innovative
technologies to develop
Design and innovation: Apply materials and product
circular ideas or technologies ingredients with less resources,
when developing new products. Design & Growing, energy, and chemicals.
innovation development,
& sourcing

1 2

Processing and
Recycling and recovery: production: Enable the
Repurpose waste from one 5 production of goods with
used product to feed into Recycling 3 fewer resources, lower
& recovery Processing
the production of another, & production emissions, and based on
fully functional product of renewable (energy) sources.
4
similar or higher value, thereby
leveraging what is considered
waste as valuable secondary Use
raw material or byproduct.

Use: Allow increasing the life span of a product, repurpose used

products for other applications, and move away from traditional
ownership to service models.

Circular bioeconomy: The business opportunity contributing to a sustainable world 5

THE INCREASING
IMPORTANCE OF BIO-
BASED PRODUCTS IN
THE FUTURE
Starting to circulate the
resources we extract from earth
is only solving part of our current
problem. The type of materials
used play a crucial role in
safeguarding future sustainability.
Based on current estimations,
we will need twice the amount
of today’s materials by 2060—
estimated to be 167 billion
tonnes.10

COVID-19 has an ongoing effect are reasonably well understood, world in which businesses can
on global economic activity they are discussed in this report. thrive with longevity and where
and will continue to do so in In all other cases, pre-COVID-19 nine billion people live well within
the near future. As the world projections were left in place, the boundaries of the planet by
is learning to adapt, reliable as they illustrate the expected 2050. There are positive signs
projections about the mid- and developments. that, in some countries, bailouts
long-term effects on economic and stimulus packages have
growth, resource needs, and Apart from the general influence been designed with these criteria
greenhouse gas emissions in on economic growth, COVID-19 in mind. Additional challenges will
a post-COVID-19 world are also presents challenges and include the increased awareness
not yet available. Even though opportunities for the circular for hygiene standards. These
the COVID-19 outbreak has bioeconomy. As global supply will be applied to renewable and
slowed down economic growth chains are under pressure, non-renewable materials alike,
momentarily and might decrease sourcing locally produced but non-renewable materials,
the amount of resources needed renewable materials as including plastic, are often
in the next years, it has not opposed to globally sourced perceived as more hygienic.
fundamentally changed the non-renewable materials has Consequently, increased
linear nature of our economic become more favorable, and the awareness of hygiene standards
system. This unchanged principle pressure to “build forward better” may be leading to an increased
means that economic growth is incentivizing companies to demand for non-renewable
will in most cases correlate change. An inclusive and green materials such as those used for
with increased resource needs. recovery is vital if we are to create personal protective equipment.
Where the effects of COVID-19 more resilient economies and a

Circular bioeconomy: The business opportunity contributing to a sustainable world 6

For the shorter-term growth until animal feed, while the remaining The benefits of a circular
2030, biomass as raw material is 30% are used for energy bioeconomy are multifold
expected to increase by 13% to production and products. Within and the substitutional and
26.1 billion tonnes, while fossil- the latter category, biomass usage complementation potential for
based materials are expected to for construction is expected to food and feed waste,12 products,
increase by 20%, equaling 82.8 almost triple and for packaging and energy is estimated to
billion tonnes.11 It is likely that to more than double, thus create a USD $7.7 trillion
this trend will not be essentially representing the categories with business opportunity by 2030.
changed by COVID-19. Our the highest growths (see Figure 2).
current and future economic Improved financial
systems are not only of linear THE CIRCULAR performance. For businesses,
nature but also highly dependent BIOECONOMY a circular bioeconomy can help
improve financial performance
on finite biocapacities. There is a PROVIDES MULTIPLE and company growth rates, for
certain carbon budget available to ECONOMIC AND example through serving new
limit global temperature increase
to 1.5°C and avoid the worst
ENVIRONMENTAL markets and customer segments
effects of climate change. Scaling BENEFITS or increasing market share in
up the use of bio-based materials existing industries. A pulp and
A circular bioeconomy is paper company expanding
across industries is critical to stay
based on renewable, biological its business by selling wood
within our existing carbon budget.
materials and at the same time cellulose to a textile company
Bio-based raw materials come maintains the value of materials to make compostable or fully
from three main sources. Over at their highest level, for as long recyclable clothes allows the
80% come from agriculture, as possible. The concept aims forest company to expand
18% come from forestry, and at enhancing the core value of into a new market, while the
only around 1% are based on a circular economy – resource textile company taps into the
aquaculture ingredients. This loops can be fully closed, environmentally-conscious
ratio is expected to remain similar secondary biomass usage will customer segment.
during the next years. Currently, be maximized, and new raw
70% of bio-based raw materials materials can be regenerated by
are utilized for food, beverage, and nature without depleting existing
stocks.

Figure 2: Role of bio-based materials in shaping the future of production across industries

Bio-based materials expect lower Large majority of Largest non-food biomass usage in
growth than fossil-based ones biomass from agriculture bioenergy; highest growth in construction
in B Tonnes in B Tonnes in B Tonnes

0.1
2,419 Bioenergy (1.6% p.a.)
Aquaculture 0.1 4.6
26.1 Forestry 4.0
Bio-based materials 23.1
CAGR 1.02% 2,011
989 Construction (8.8% p.a.)

525 Motor vehicles (6.2% p.a.)

21.4
82.8
361 310 Forest products (3.5% p.a.)
Fossil-based Agriculture 19.0
69.0 255 352 Packaging (6.7% p.a.)
materials: 1.53%
Textiles (3.8% p.a.)
206
Pharmaceuticals (2.4% p.a.)
Electronics (5.0% p.a.)
Machinery (4.6% p.a.)
2018 2030 2018 2030 2018 2030

Source: Eurostat; OECD; WU Vienna; BCG analysis

Circular bioeconomy: The business opportunity contributing to a sustainable world 7

Risk mitigation. By engaging in a Customer attraction and Employees actively respond
circular bioeconomy, companies retention. Circular bioeconomy to this vision; they are more
can actively mitigate risks as their business models have likely to join a company with a
supply chain is more resilient. the potential to lower the higher meaning, as well as more
They are less dependent on finite environmental impact of a product motivated and willing to stay
resources, and they are prepared and enable constant customer longer. Employees that derive
for upcoming regulations in interactions. This potential image meaning and purpose from their
areas such as climate change shift and new engagement work and are inspired by company
or waste management. It also model can significantly support leadership are 2.25 times more
enables companies to anticipate companies in attracting new and productive, and purpose-oriented
shifts in public demand due to retaining existing customers. In companies enjoy 40% higher
abrupt material bans or changes a recent survey, 73% of global levels of retention.14
in investors’ expectations. consumers stated that they
For example, with the new would alter their buying habits for Social balancing. The renewable
Circular Economy Action Plan environmental purposes.13 resources feeding into the circular
regulation the EU proposes to bioeconomy can help with social
reward products based on their Employee attraction balancing of industrial centers
sustainability performance and is and retention. Through and rural areas. Many renewable
setting new standards to reduce a transformation toward resources such as agricultural and
the carbon and environmental business models that are forestry products are grown rurally,
footprint of products. based on principles of a circular bringing jobs, social security, and
bioeconomy, companies are opportunity for development to
following a unique purpose with these areas outside of urban and
the ambition of improving the industrial centers.
current economic systems.

Circular bioeconomy: The business opportunity contributing to a sustainable world 8

Environmental performance. • Land-use change is reduced
Finally, circular bioeconomy through the improved
business models offer a utilization of existing
solution to some of our greatest resources, such as secondary
sustainability challenges, as biomass, and the sustainable
illustrated in Figure 3 and outlined sourcing of new resources
below: • Food waste and loss is
• Climate change is mitigated reduced through its utilization
as carbon emissions as production input or through
are reduced through the composting
substitution of fossil-based • Resource scarcity is
materials and the introduction mitigated through the
of efficient circular production continuous cycling of existing
processes resources in closed loops
• Biodiversity is protected
through sustainable farming
and forestry practices

Figure 3: Role of bio-based materials in shaping the future of production across industries

Climate change​ Biodiversity loss​

We know that harnessing the power Without drastic action to conserve
of natural climate solutions to improve habitats, the rate of species extinction
decisions related to land use can provide at — already tens to hundreds of times
least 30% of what is needed to keep climate higher than the average across the
change under 2º C. past ten million years — will
only increase.
The Nature Conservancy
Nature​
THE CIRCULAR
BIOECONOMY
SOLUTIONS
Resource scarcity​ Land use change​
Global resource use has more than Land degradation ​negatively impacts
tripled since 1970, and global​material 3.2 billion people, and represents an
productivity has not improved in the economic loss in the order of 10% of
last 20 years. annual global gross product.
UN IRP IPBES

Food loss & waste

Each year, one-third of all food produced
in the world for human consumption never
reached the consumer’s table.
FAO

Circular bioeconomy: The business opportunity contributing to a sustainable world 9

2 Circular bioeconomy as a
basis for a sustainable
economy

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world10
10
 2 Circular bioeconomy as a basis
for a sustainable economy
A circular bioeconomy tackles In the following subchapter, the
two of the major societal different possible resource loops The cascading use of
questions our generation is within a circular bioeconomy are materials maximizes resource
facing: what type of resources outlined. The second subchapter effectiveness by using
we are using, and how are we provides an overview of existing biomass in products that
(re)using them across multiple material flows from the biomass create the most economic
lifetimes. source toward possible end uses. value over multiple lifetimes.
This means that preference for
A sustainable, low-carbon 2.1 A CIRCULAR biomass use should be given
circular bioeconomy SYSTEM OF to higher-value applications
describes the sustainable BIORESOURCES AND and continuous reuse. Energy
production and maximum THE PRODUCTION recovery should be the last
option.
value capture of (secondary) CYCLE OF PRODUCTS,
biological renewable
resources.
FOOD AND FEED, AND
It supports a shift toward a ENERGY
circular, low-carbon economy Figure 4 visualizes the flow
that counterbalances global within the circular bioeconomy.
warming and meets society’s Resources are initially harvested
current and future needs for and processed into products, food
food, products, and energy and feed, or energy, then reused
within planetary boundaries and cascaded over multiple
by complementing or periods, to ultimately be recycled
substituting existing non- or composted to give the nutrients
renewable materials. back to the soil.

Figure 4: Flows within the circular bioeconomy

RECYCLE
(secondary raw
material) COLLECT

INPUTS

Agriculture
HARVEST/
PROCESS CASCADING USES USE
PLANT (Incl. reuse)
Forestry

Aquatic

od
Fo

OUTPUTS y
&f rg
BIOGENIC
eed e
/ En
EMISSIONS
/ Products
COMPOST

Circular bioeconomy: The business opportunity contributing to a sustainable world 11

Nutrient cycle: Materials are eliminated completely. In such while GHG emitted from burning
harvested and processed into cases, the biomass fed back into fossil fuels is non-biogenic CO2,
products, food and feed, or the cycle is often referred to as increasing the total amount
energy; composted materials feed secondary biomass or secondary of carbon in the biosphere-
nutrients back into the cycle. bio-based inputs. atmosphere system.15 Given their
different nature, according to the
Product cycle: Products are End of life: At the end of its GHG protocol, biogenic emissions
cascaded multiple times during useful life cycle, a product within are not part of Scope 1, 2, or 3
their use phase and at the end the circular bioeconomy has emissions, but corporations are
of their lifetime collected to be two possible loops to follow: to report on biogenic carbon
recycled/recovered or composted. either it is collected and the emissions in a separate memo
materials are recycled/recovered item. Other emissions (such as
Waste: One of the key principles to remain within the product
of a circular economy is to design CH4 or N2O) from the combustion
cycle, or the materials feed back of biomass should, however, still
waste out of the system. This is into the nutrient cycle through
crucial in the circular bioeconomy, be accounted for.16
biodegradation or composting.
as new resources can only be The ability to return nutrients via Within the first described loop,
replenished sustainably in limited biodegradation or composting mechanical as well as chemical
amounts. Nevertheless, certain is a key advantage of the circular recycling are viable options.
waste streams might occur at bioeconomy relying on renewable For example, a plastic bag made
different stages of the life cycle. inputs. Whether products should from bio-based material could
During production and processing, be designed to biodegrade or be recycled mechanically for
waste can include raw material (industrially) compost depends on multiple periods or brought back
leftovers, rotten biological the expected path at the end of to its base materials via chemical
materials, or emissions from usable product life. In the technical recycling.
energy consumption. cycle, the main path to return raw
During the use phase, solid materials once all options to reuse, For the second loop, materials
materials (such as food refurbish, and repair have been are biodegraded until they can
leftovers), emissions from energy exhausted is through recycling. be used as nutrients for new
consumption, or utilized products resources, which can then be
without a recycling option can As illustrated in Figure 4, biogenic harvested and used for the
become waste. These waste emissions can be released product cycle again. All three
streams include mixed waste during the product cycle from the biomass sources—agriculture,
streams that are challenging to combustion of biomass. Biogenic aquaculture, and forestry—can
recycle efficiently, especially if they emissions are emissions that be used for all three end uses—
have non-organic components. come from natural, non fossil- product, food and feed, and
The aim of a circular bioeconomy based sources. These biogenic energy—and feedback vice versa.
is to keep these waste streams emissions emit carbon dioxide For details on the processing
to a minimum and to feed them which has previously already flows, see Chapter 2.2.
back into the input side of the been part of the carbon cycle
cycle wherever they cannot be - for example, stored in trees -

Circular bioeconomy: The business opportunity contributing to a sustainable world 12

Altogether, in a circular 2.2 A VARIETY OF
bioeconomy the total, non- Upcycling is the recycling BIOMASS MATERIAL
renewable, virgin resources fed of products in such a way
into the cycle are minimized as as to create a new product
AND PRODUCTION
most of the resources are either with superior value. For FLOWS
cycled in the product cycle or example, old truck tarpaulins In 2018, 23.1 billion tonnes of
used as nutrients to plant and repurposed into fashion biomass went into the processing
harvest new raw materials. In bags or used wooden pallets and production of bio-based
balancing these cycles, overall into furniture. On the other products. The main source of
resource efficiency per usable hand, recycling that creates biomass was agriculture with 19
product is crucial to ensure the products with inferior value billion tonnes, followed by forestry
use of renewable materials occurs is called downcycling. An with 4 billion tonnes, and lastly,
at a sustainable rate. In an optimal example is the waste from aquaculture with 0.2 billion tonnes.
scenario, the circular flow is infinite products or food and feed (See Figure 5.) More than 100
and mimics the natural circle of life. that is utilized for biofuel different material flows connect
production. the three biomass sources
with the end uses as bio-based
products, food and feed, and
energy.17

Figure 5: Biomass flows from three primary sources into end-uses

Food & feed

• Food and
beverages
• Animal feed
Sources of
biomass
~ 17B Byproducts
Food
tonnes & waste Products

~ 19B Agriculture BIOMASS

& feed • Building materials
tonnes • Forest products
PROCESSING • Paper packaging and
recyclable bioplastics
~tonnes
4B Forestry AND • Motor vehicles and
Products ~ 4B
PRODUCTION
components
tonnes
0.18B
tonnes
Aquatic • Machinery and
Energy Byproducts equipment
& waste • Electronics and
~ 2B electrics
tonnes
• Pharmaceuticals
Bi
om

ss Energy
lin
a

re Biogenic
-u cyc emissions
• Bioenergy
se re including biofuels
, re ic)
-com gan
posting and (or

Source: Eurostat; Freedonia; OECD; WU Vienna; WBCSD; BCG analysis; Member companies.

Circular bioeconomy: The business opportunity contributing to a sustainable world 13

Sourcing and harvesting Processing and end use of material can be used—for
of biomass: The two main biomass: The majority of biomass example, the plastic can contain
agricultural raw material groups is processed into food and mixtures of synthetic and natural
are cereals—for example, wheat, feed products, equaling around polymers like starch or derivatives
maize, or barley—making up 17 billion tonnes. The smallest of naturally occurring polymers
around 28% of the biomass, and portion of the biomass, around 2 like cellulose. Additionally,
plants harvested green—for billion tonnes, is used for biofuel synthetic polymers produced
example, green maize, temporary production. As Figure 6 shows, from bio-based building blocks are
green grasses, or Lucerne— there is a huge variety of raw included. The bio-based building
making up another 28%. A material flows and processing blocks used for the production
complete overview of the raw steps that connect the biomass of bioplastics are made from a
material groups can be found in sources with the respective end broad variety of naturally occurring
Figure 6. uses. Biomass leaving the circle as chemical substances such as
waste at any point can be returned sugars, which are produced
Raw materials from forestry mainly to the beginning of the cycle as from starchy crops or cellulosic
consist of saw log and wood secondary input. This connection wood, casein from dairy, or oils
pulp, followed by other forestry was not explicitly included in the from oil-bearing crops. Produced
extractions and forestry residues. figure but can potentially occur bioplastics find a variety of
For aquaculture, the main material with any biomass. applications, ranging from bio-
groups are fish catch, by-catch, yarns for the textile industry to
and other aquatic animals and One major processing category technical polymers for vehicle
plants. is bioplastics, which can consist components, packaging materials,
either fully or partially of renewable or drug capsules. Refer to the
carbon. Within this category, industry chapters within Chapter 4
different kinds of bio-based for application examples.

Circular bioeconomy: The business opportunity contributing to a sustainable world 14

Figure 6: Variety of biomass materials and production flows

Sustainable raw materials Industrial biomass processing Bio-based products end use
Crops & other raw material for food use, nutrient additives, & dietetic preparations

Cereals Biodiesel
(i.e., wheat, maize,
barley, other) Glucose Bioethanol

Bioethers

Biogas Food, beverages,

& tobacco products
Other biomass for fuel use
(including animal feed)
Other Resins

Construction resins & boards

Plants harvested green
(i.e., green maize, temporary
Bioyarns (i.e., lyocel, modal)
green grasses, lucerne, other)
Agriculture

Bioplastics as packaging
Biopolymers
Starch (including Bio
Polyethylene
Sugar & starchy crops
Casein Terephthalate, Bio Biofuels
Polyamides, Polylactic Bioplastics vehicle components

Copyright © 2020 by Boston Consulting Group. All rights reserved.

Oil-bearing crops Acid, Bio Polyethylene,
Soy & other protein Other bioenergy
starch blends, and
Permanent crops other biopolymers)
Building materials & construction
Vegetables & fruits Latex & natural rubber (i.e., civil engineering, installation)
Drug capsules/other pharma
Industrial crops (mainly fibers)
Wood products & furniture
Energy crops
Other biopolymers products Electronics & electrics (i.e., computers, motors &
Dairy & other animal raw material generators, communication, batteries)
Animal fibers Paperboards (i.e., kraftliners)
Animal leather/skins Pulp & paper products (including packaging)
Paper (coated & uncoated)
Animal waste/manure
Cellulose (i.e., cellulose ethers) Wrapping & other packaging Machinery & equipment
Panels (i.e., particle-/fiberboards)
Saw log
Dextrins Other wood extractions Textiles, wearing apparel, & leather products

Wood pulp Locust bean gum Adhesives/binders/thickeners

Forestry Motor vehicles, components, & other transport
Tall oil Dyes/inks
Other forestry extractions Lignin Emulsifiers Chemicals & bioplastics (including packaging)
Forestry waste/manure Vegetable oil Lubricants
Tannins Antiseptics & other pharmaceutical use Pharmaceuticals
Fish catch
Aquaculture Tires & other rubber-based products
Bycatch
Other bio-based products
Other aquatic animals & plants Pharmaceutical equipment

Circular bioeconomy: The business opportunity contributing to a sustainable world 15

3 The business case for a circular
bioeconomy

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world16
16
 3 The business case for a circular
bioeconomy
3.1 SIGNIFICANT total market – 2.4% per year until
GROWTH UNTIL 2030 The industry segment of food 2030, reaching USD $7.7 trillion
and feed can be categorized in 2030. The highest increase is
FOR BIO-BASED into two sub-segments: expected in the market segment
PRODUCTS (INCLUDING of bio-based products and
• Food and feed
FOOD) consumption/end use energy alone, excluding food
and feed consumption as well as
The total market for bio-based • Food and feed waste
waste. Although this segment is
food and feed, products, and
When evaluating comparably small – only making
energy is expected to grow from
the substitution and up $3.4 trillion in 2030 – it is
USD $10.3 trillion in 2018 to USD
complementation opportunity expected to grow by 3.3% per year
$12.8 trillion in 2030, representing
of a circular bioeconomy, we until 2030 and will reach $5 trillion
a 1.8% annual growth over this
assess the potential in three in 2030. Hence, the substitutional
time. The required biomass to
ways: including the whole food and complementation potential for
fuel this growth is expected to
and feed industry, including the circular bioeconomy is largest
increase from 23.4 billion tonnes
only the food and feed waste, within this market segment of bio-
in 2018 to 26.7 billion tonnes in
and excluding the whole food based products and energy.
2030. (See Figure 7.)
and feed industry segment.
Across the three market
When evaluating the substitutional (See Figure 7).
segments analyzed above, the
and complementation potential of
required biomass is expected
a circular bioeconomy, food and
Bio-based products and to grow similarly, with increases
feed play a different role compared
energy, excluding food and feed of 1.1% to 1.4% per annum until
to bio-based products and energy
consumption, is expected to 2030.18
as they generally do not replace
grow stronger compared to the
any nonbiological goods.

Figure 7: Circular bioeconomy growth opportunity until 2030

Including all food & feed Excluding food end use, Excluding all food & feed
Including food waste

2018 2030 2018 2030 2018 2030

Market size +24% +33% +47%

(in USD 10,330 12,819 5,730 7,642 3,430 5,054
$billion) +1.8% CAGR +2.4% CAGR +3.3% CAGR

Biomass +14% +15% +17%

tonnage 23,369 26,613 11,983 13,798 6,259 7,348
(in M tonnes) +1.1% CAGR +1.2% CAGR +1.4% CAGR

Note: The second set excludes food but includes food waste
Source: European Commission; Oxford Economics; BCG analysis

Circular bioeconomy: The business opportunity contributing to a sustainable world 17

 3.2 A MULTITRILLION Packaging and motor vehicles
The business opportunity GROWTH and components follow with a
is based on the estimated USD $550 billion opportunity,
continuous growth rate prior
OPPORTUNITY ACROSS respectively. Additional
to COVID-19 of bio-based INDUSTRIES opportunities – ranging from
resources used within the USD $100 billion to USD $200
respective industries, including The USD $7.7 trillion business billion each – are seen in other
the expected substitutional opportunity of bio-based forest products,19 electronics and
and complementation products, energy, and food waste electrical products, machinery and
potential. It includes the value is based on the potential of ten equipment, as well as biomass
of both virgin and secondary main industries: energy and biofuels. (See Figure 8.)
bio-based materials with the Food and feed waste is the largest
opportunity to be cycled in category, estimated to reach USD Details on these opportunities and
closed resource loops. As $2.6 trillion in 2030. Amongst bio- examples for each industry are
this is a wide focus included based products, pharmaceuticals provided in Chapter 4.
in the business opportunity in are expected to have the highest
this publication, the size of the potential with USD $750 billion The chemical industry is a
overall business opportunity in 2030, followed by textile crucial enabler for the circular
is anticipated to be higher and wearing apparel as well as bioeconomy across all industries
than in studies focusing on building material and construction and is incorporated in the other
direct revenues from circular with USD $700 billion each. industry groupings.
business models alone.

Role of the chemical industry Examples of the use of renewable very different industries, as well
raw materials in the chemical as developing new bio-based
As bio-based chemicals are industry and its enabling role for products such as surfactant with
often vital precursors for many the other industries can be found advanced properties.
industries, the chemical industry across the industry chapters of
takes a crucial enabling role in this report and on the WBCSD Replacing fossil-based raw
the circular bioeconomy. Two website. The bio-based plastic materials with bio-based raw
chain of custody models are additives developed by Clariant materials aids in closing the
applied: In segregated value and Neste enable the electronics loop in the chemical industry,
chains, a biobased feedstock is and electrical industry to make as regaining the required basic
used in a specific plant and the their products more sustainable; molecules for chemicals from
product from this production the additives rely on renewable recycling the complex finished
plant contains the carbon atoms hydrocarbons from Neste. (See products is often difficult and
from the renewable feedstock. Chapter 4.7.) DSM is using energy-intensive. Renewable
In the mass balance approach, biowaste-based feedstock for materials can employ the nutrient
the renewable feedstock is the production of high-tech cycle, hence enabling a closing of
introduced into the chemical fibers. (See Chapter 4.2.) BASF the loop. (See Chapter 2.1.)
production “Verbund” and is using the biomass balance
allocated to the various end approach to produce a broad
products. range of products for

Circular bioeconomy: The business opportunity contributing to a sustainable world 18

Figure 8: Circular bioeconomy growth opportunity until 2030
Total Products

Total circular
bioeconomy Textiles & Building Motor
Market size (in (excl. consumed Pharmaceu- wearing materials & vehicles &
$billion) food and feed) ticals apparel construction Packaging component

2018 5,750 250 400 350 400 250

Current
+9.2% +4.1% +6.2% +3.2% +6.2%
p.a. p.a. p.a. p.a. p.a.
Substitutional 2030 7,650 750 700 700 550 550
potential

Vaccines from High-tech fibers Circular wooden Recyclable Natural fibers for
Examples medicinal plants made from structures flexible packaging body parts
& herbs biomass or paper & paper
biowaste Composites board Compostable
Cancer reinforced with interior lining
treatment Plant-tanning natural fibers Paper packaging based on
synthesized from agents replacing plastics bioplastics
plant substances Circular bio- (e.g.,
Compostable based insulation Tires based
Blockchain textiles materials Liquid Packaging on dandelion
technology Board for in closed loop
to produce Compostable beverages) system
protein-based lyocell, modal
medication Recyclable
bioplastics

Biodegradable
starch blends and
biodegradable
plastic

Products

Electronics
Market size Other forest & electrical Machinery & Bioenergy & Food & Feed
(in $billion) products products equipment biofuels waste

2018 150 100 50 150 2,300

Current
+3.5% +5.1% +5.3% +2.3% +1%
p.a. p.a. p.a. p.a. p.a.
Substitutional 2030 200 200 100 200 2,600
potential

Biolubricants Recyclable Bioprocess Solid bioenergy Food &

Examples bioplastics engineering including wood feed waste
Enzyme-based pellets (from repurposing
additives Polymers Agricultural byproducts)
reinforced by engineering Organic nutrient
natural fibers Liquid biofuels upcycling
incl. biodiesel,
Bio-based biomethane, Bioenergy,
casings cellulosic biofuels, and
ethanol, chemicals out of
Lignin for renewable “drop- food waste
recyclable in” fuels
battery parts

Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies; Based on rough estimations and rounded market sizes,
sorted by substitutional potential in 2030

Circular bioeconomy: The business opportunity contributing to a sustainable world 19

4 Significant opportunities and
high growth rates across
industries

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world20
20
 4 Significant opportunities
and high growth rates across
industries
This chapter provides an followed by an examination of the
overview of the relevant food and feed waste industry. For Many end consumers
industries within the circular this industry, we focus specifically have a strong demand for
bioeconomy and case on the composting of food “naturalness” regarding
examples of companies and feed waste; the discussion products they take into their
successfully implementing of upcycling and energy bodies like pharmaceuticals
pertinent strategies. opportunities can be found in prior and nutrients, or that get into
chapters. contact with their body like
To begin, relevant bioeconomy cosmetics and shampoo.
product industries are discussed This demand presents a
in decreasing order by expected high growth potential in the
potential in 2030. Next, details of health and care industry
the biomass energy and biofuels for bioeconomy products
industry are elaborated upon, like biopharma as well as
bio-based cosmetics or
surfactants. The latter are
not included in the scope
of pharmaceuticals in this
chapter.

Circular bioeconomy: The business opportunity contributing to a sustainable world 21

4.1 THE BIOECONOMY IN PHARMACEUTICALS20
Figure 9: Growth opportunity in the pharmaceutical industry

• Total market size is

Market Size estimated at USD $264
(in USD Biomass Biomass billion
Pharmaceuticals $billion) (in M tonnes) Share * (in %)
• 21% of material used in the
industry is estimated to be
2018 264 68 21% biomass, equaling 68 million
tonnes of biomass
+9.2% +2.4%
p.a. p.a. • Market value is estimated
2030 760 91 38% to grow by 9.2% per annum
and the biomass by 2% per
annum until 2030, clearly
*
On overall material use in industry showing that the relative
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies value is superior

SPECIFIC INDUSTRY BIOECONOMY INDUSTRY disorders. Chamomile, flax,

CONDITIONS AND TRENDS lady’s thistle, peppermint, and
ENABLERS buckthorn together represent
Innovative bio-based the largest share of plants used
Biopharma refers to pharmaceuticals for pharmaceuticals; 75% of
pharmaceuticals that are Biopharmaceuticals are large medicinal plants are used for
manufactured from biological biological molecules, such as phytopharmaceuticals and the
processes. Existing synthesized proteins, used to treat diseases remainder are used for health food
medication faces various that cannot easily be addressed (18%) and cosmetics (7%).
challenges that biopharma can by chemical molecules, such as
profit from, such as it is not always autoimmune diseases or cancer. Semisynthetic pharmaceuticals
tolerated by patients, has more Currently, the introduction of In order to meet demand for
side effects in specific cases, blockchain into the production of biopharmaceuticals, especially
and can be more expensive in biopharma is increasingly being for agents with limited
production. Biopharma is therefore discussed. natural availability, certain
playing an increasingly important pharmaceuticals are produced
Plant-made pharmaceuticals through semi synthesis with
role in accessibility—for example,
In recent years, pharmaceutical chemicals.
biopharma makes it possible to
research has found new
supply insulin for the number of
innovative agents based on
patients who need it.
biomass, such as an HIV vaccine
from tobacco plants, or carrot
cells to treat certain metabolic

Circular bioeconomy: The business opportunity contributing to a sustainable world 22

BASF: BIOTECHNOLOGICAL PRODUCTION OF RIBOFLAVIN (VITAMIN B2)

Vitamin B2 is an essential B2 by fermentation had already route. Besides the environmental

micronutrient for humans and started in 1940. By using a advantage of a 30% decrease in
animals. The global world market fungus-based system, BASF CO2 emissions and a reduction
for vitamin B2 more than doubled achieved the industrial-scale of hazardous substances, a
from 4000 tonnes in 2002 to fermentation of vitamin B2 in significant economic advantage
9000 tonnes in 2015. Vitamin 1990, starting from vegetable oil was shown, with a 40%
B2 is an example of a complete as the main carbon source. reduction in production costs.
shift from chemical synthesis
to exclusive biotechnological A comprehensive eco-efficiency Today, 100% of vitamin B2 on
production in less than 15 years. analysis conducted by BASF the global market is produced
in 2003 determined that the by fermentation using
For almost five decades, fermentative process is more biotechnology.
commercial vitamin B2 was sustainable than the chemical
produced almost exclusively by
chemical synthesis. The main
Figure 10: Main biomass sources and value chain stages in focus
disadvantages were the low yield
of about 60%, as well as the use
Main Biomass sources Value Chain stages in focus
of toxic agents such as amalgam
and xylidine and thereby the
production of waste products Design &
innovation
Growing,
development,
& sourcing
that required environmental Agriculture
1 2
control and special effluent
treatment. For these reasons,
first attempts to obtain vitamin Forestry
Recycling
5
3
& recovery Processing
& production

Aquatic Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 23

4.2 THE BIOECONOMY IN TEXTILES & WEARING APPAREL21

Figure 11: Growth opportunity in the textiles & wearing apparel

• Total market size is

estimated at USD $417
Market Size billion
Textiles & (in USD Biomass Biomass
Wearing Apparel $billion) (in M tonnes) Share * (in %) • 46% of material used in
the industry is estimated to
be biomass, equaling 119
2018 417 119 46% million tonnes of biomass

+4.1% +3.7%
• Market value is estimated
p.a. p.a. to grow by 4.1% per annum
2030 686 185 45% and the biomass by 3.7%
per annum until 2030,
showing that the relative
*
On overall material use in industry value stays similar
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

SPECIFIC INDUSTRY BIOECONOMY INDUSTRY use. Unlike cotton fibers, natural

CONDITIONS AND ENABLERS TRENDS and chemically produced viscose
fibers are characterized by greater
There is an increasing demand Traditional natural fibers variation in their fiber geometry,
for textiles and wearing apparel Natural fibers make up an and as a result, they have more
due to a growing world population approximate 41% share in the extensive application.
expected to reach 10 billion textiles market, behind synthetic
In recent years, replacements for
people by 2050. Circular, bio- fibers (59%). The largest share
traditional animal-based fibers
based textiles can help reduce among natural fibers comes from
have been developed. Synthetic
the 60 million tonnes of textiles cotton (61%), with the rest being
spider silk relies on the same
that are thrown away every year shared by other plant-based
proteins as natural silk but is
– a number that equals about a fibers (34%) and animal-based
created via fermentation spun
quarter of all textiles produced per fibers such as wool and silk (less
into yarns. Similarly, protein-based
year. than 5%).23 One of the major
replacements for fur, leather, and
disadvantages of the largest
Over 50% of textile fabrics are wool are being developed.
conventional natural fiber, cotton,
currently fossil-based, yet these is its high water and chemical Man-made cellulosic fibers
materials are experiencing public consumption in the production (MMCF)
scrutiny. Based on a recent survey, process. Man-made cellulosic Among natural fibers, man-made
84% of consumers are open to fibers address this issue (see cellulosic fibers such as viscose,
sustainable fashion, and 71% below for details) and in recent modal, and lyocell have some
would even pay more for it.22 This years, technologies have been of the highest growth rates
presents a valuable opportunity developed to recycle cotton into (CAGR of about 7% to 15%) with
for circular, bio-based materials viscose fibers. The introduction an expected revenue of USD
as a sustainable alternative to of multiple use cycles through $20 billion in 2030. These are
fossil ones. Man-made cellulosic recycling reduces the impact made from cellulose found in
fibers (MMCF) can tap into this of initial water and chemical eucalyptus or beech wood, for
opportunity twofold, as they are consumption. example. Prominent drivers for
often more resource- and cost-
this development are the growing
efficient in combination with Innovative natural and synthetic
acceptance of viscose and
satisfying the consumer’s desire bio-based fibers
lyocell fibers, growing preference
for sustainable alternatives. New natural fibers include jute, flax,
toward biodegradable fabrics, and
and hemp, which primarily serve
increased acceptance of viscose
as technical textiles for industrial
and lyocell-based home textiles.

Circular bioeconomy: The business opportunity contributing to a sustainable world 24

DSM: HIGH-TECH FIBERS FROM BIO-BASED FEEDSTOCK
DSM has introduced bio-based DSM aims at least 60% of the to address the recycling of
feedstock into the production of Dyneema® fiber feedstock to be products made with Dyneema®
Dyneema®, the world’s strongest bio-based by 2030. fiber at the end of their use.
fiber. Dyneema® invites multiple An end-of-life program has
uses, from ropes and lines to In addition, DSM Protective been set up with a goal for
lightweight high-performance Materials has established an the materials to be cycled in a
fabrics for outdoor and sports industry coalition consisting of closed loop through continuous
use, such as cycling jerseys, customers, waste processors, use and recovery.
tents, and backpacks. Due and recycling companies
to their extreme robustness,
garments made with Dyneema® Figure 12: Main biomass sources and value chain stages in focus
last longer than comparable
traditional products, lengthening Main Biomass sources Value Chain stages in focus
the cycle lifetime. By introducing
bio-based feedstock, the use
of fossil-based resources can Design &
innovation
Growing,
development,
& sourcing
be reduced. For every metric Agriculture
1 2
ton of bio-based Dyneema®
that is produced, DSM is saving
5
approximately 5 metric tonnes Forestry
Recycling
& recovery
3
Processing

of CO2 equivalent compared to & production

4
fossil-based Dyneema®.
Aquatic Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 25

BIRLA CELLULOSE: RESPONSIBLY PRODUCED VISCOSE, MODAL, AND LYOCELL FOR
SUSTAINABLE FASHION

Birla Cellulose as part of Aditya Fifth, full biodegradability of fresh raw material needs, which
Birla Group is deriving viscose, viscose, modal, and lyocell in is a crucial aspect for the circular
modal, and lyocell fibers from four to six weeks in land, water, bioeconomy.
wood sourced from sustainably and marine conditions, while Through this comprehensive
managed forests and produced synthetic fibers stay in the strategy, Birla Cellulose was
by closed loop processes. In environment for hundreds of ranked number one in Canopy’s
doing so, they achieve six key years, creating land and water Hot Button Report that ranks
impacts: pollution. viscose producers based on
First, a drastic reduction in Sixth, the use of recycled sustainable wood sourcing and
water use, as water required for cellulosic waste in the forestry practices—a strong
viscose production is about 1% production of innovative competitive advantage when
of the equivalent cotton water Liva Reviva viscose fibers, in satisfying the growing market for
consumption. combination with wood-based sustainability-aware fashion.
Second, a drastic reduction of pulp. This partial reuse reduces
pesticide and fertilizer use in
comparison to the growth of
Figure 13: Main biomass sources and value chain stages in focus
cotton.
Third, the ability to recycle Main Biomass sources Value Chain stages in focus
between 90% to 99.7%
of solvents used in the
manufacturing of Livaeco Design &
innovation
Growing,
development,

viscose fibers and Excel lyocell Agriculture

& sourcing

2
1
fibers.
Fourth, carbon neutral
Forestry 5
operations, as the forests Recycling
& recovery
3
Processing
& production
directly managed by Birla 4
Cellulose sequestered 3.44
Aquatic
Mt CO2e in 2019 as opposed
Use

to only 3.22 Mt CO2e emitted

through its entire global
operations.

Circular bioeconomy: The business opportunity contributing to a sustainable world 26

4.3 THE BIOECONOMY IN BUILDING MATERIALS & CONSTRUCTION24

Figure 14: Growth opportunity in the building materials & construction industry

• Total market size is

estimated at USD $331
Building Materials Market Size (in Biomass Biomass billion
& Construction USD $billion) (in M tonnes) Share* (in %)
• Only 3.5% of material used
in the industry is estimated
2018 331 361 3.5% to be biomass, equaling 361
million tonnes of biomass
+6.2% +8.8%
p.a. p.a. • Market value is estimated
7.0%
to grow by 6.2% per annum
2030 682 989
and the biomass by 8.8%
per annum until 2030,
showing that the relative
*
On overall material use in industry
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies value is slightly inferior

SPECIFIC INDUSTRY waste,28 illustrating the opportunity BIOECONOMY INDUSTRY

CONDITIONS AND ENABLERS that the circular bioeconomy TRENDS
provides for the industry to create
Buildings are emitting 39% of innovative, decarbonized, and Increasingly integrate wood-/
energy-related carbon emissions overall sustainable solutions. bio-bbased products in
globally, with a breakdown of structural elements of buildings
28% from operational emissions Wood as a building material, for Bio-based construction materials
(including heating, cooling, and example, has the advantage of such as wood are increasingly
powering the buildings) and the continuing to store the carbon replacing conventional building
remaining 11% from materials sequestered during tree growth materials. In 2017, over 60% of all
and construction of buildings. In until it is burned or composted. bio-building materials came from
addition, as the world’s population Therefore, it is able to significantly forestry. Modern wood products,
approaches 10 billion toward contribute to a lower carbon such as laminated veneer lumber
2050, the global building stock is footprint of buildings and is (LVL) or cross laminated timber
expected to double in size. Thus, increasingly gaining attention (CLT) can be used to create load-
the construction sector has a high within the industry. (See bearing walls from large sheets
and increasing carbon footprint,25 Bioeconomy Industry Trends and allow offsite premanufacturing
making the sector one of the below.) to increase construction
largest contributors to climate efficiency when compared to
change.26 The recognition of healthy working more traditional wood frame
and living environments is steadily construction onsite. Through
With a global material use of growing, and material choice these new material developments,
84.4 billion tonnes in 2015,27 is increasingly affected by this it is now possible to produce a
the building and construction awareness.29 Many renewable multi-story building from bio-
industry is a major consumer of materials hold the potential to
based materials.
non-renewable resources such fulfill this demand, creating a
as stone, sand, and minerals. The strong opportunity for the circular
resulting waste streams account bioeconomy.
for 25% to 30% of European

Circular bioeconomy: The business opportunity contributing to a sustainable world 27

Bio-based interior construction Recent trends, such as biophilic as compared to conventional
The use of biomass-based design promoting the connection chemical plasticizers. Wood-
building materials for interior of interior spaces to the natural cement composites exhibit good
finishing includes, among environment, heavily rely on bio- bending and shear stiffness and
others, natural fibers and resins based materials. can make use of recycled pulp and
for insulation, lining, and floor solid wood waste. Polymer-based
coverings. Bio-based interior Wood fibers and lignin in biocomposites combine bio-
building materials often require biocomposites based fibers and polymers to form
less energy in production and Composite materials can give high strength materials. Polymers
through good insulation properties high strength to complex shapes. can be conventional, recycled, or
can further reduce building lifetime In recent years, wood fibers and biobased. (See Chapter 5.4.1 for
energy use. lignin, a fraction of biomass, have additional details on bioplastics)
seen increased use in composite
Healthy living conditions are driven
materials. Lignin from biomass
by the right use of materials in
waste is used as a plasticizer
interior construction. Bio-based
in concrete production, which
materials can contribute to this if
reduces water use by 15%
kept free from harmful additives.

ARCADIS: RESOURCE AND ENERGY EFFICIENT BUILDING STRATEGY USING ORGANIC

CONSTRUCTION MATERIALS

Arcadis and MVSA Architects of reuse at the building’s end- consumption and cost,
designed the Holland Casino of-life. photovoltaic film captures
Venlo to reduce energy and In daily operations, rainwater solar energy, visitors generate
resource use, employing several is collected for use in the energy through the interactive
of the principles detailed above. greywater circuit and later entrance floor, and light tubes
The design incorporates the purified by a living sand–reed direct daylight into the interior,
previous casino structure, helophyte filter, reducing the reducing the need for artificial
reducing the need to replace need for external sewage lighting during daytime.
what is still usable and hence treatment. To reduce energy
saving the associated cost and
CO2 emissions. The building’s Figure 15: Main biomass sources and value chain stages in focus
skeleton consists of removable
and reusable wooden beams Main Biomass sources Value Chain stages in focus
and the insulation is made of
100% hemp fiber, keeping the
carbon captured during growth
Growing,
Design & development,
innovation & sourcing

in the material. Many of the Agriculture

1 2
materials used have residual
value, increasing the likelihood
Forestry 5
Recycling 3
& recovery Processing
& production

Aquatic Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 28

NESTE: TURNING SUSTAINABLE WASTES AND RESIDUES INTO A BUSINESS OPPORTUNITY

Neste Renewable Polymers in its production and the of plastics and chemicals. Key
and Chemicals is promoting corresponding production focus is on creating a valuable
circular bioeconomy by of the bio-based fuels and use for plastic waste that is
bringing sustainable waste and materials helped the users otherwise destined to landfill or
residue-based feedstock for of these products reduce incineration, as it has low or no
the chemicals and polymers greenhouse gas emissions value in mechanical recycling,
industry. The feedstock is by 9.6 Mtonnes, equaling due to e.g. challenging material
suitable for use in any typical the carbon footprint of 1.5 combinations, complex
plastic application including million average EU citizens. structures, or use of adhesives,
the ones covering building From 2030 onwards, Neste’s inks or additives. Chemical
materials and construction. The target is to process over 1 Recycling complements
company currently supplies million tonnes of plastic waste mechanical recycling and
the market with its bio-based annually helping to further accelerates the shift to a
feedstock from its current reduce the use of fossil circular plastics economy.
production facilities while it resources in the production
develops Chemical Recycling
technologies and capacity Figure 16: Main biomass sources and value chain stages in focus
together with several value
chain partners. Neste aims to Main Biomass sources Value Chain stages in focus
enable reduction of the use
of virgin fossil resources in Growing,
Design &
production of polymers and innovation
development,
& sourcing
Agriculture
chemicals by offering high- 1 2
quality, drop-in alternative
hydrocarbons based on, for 5
Forestry 3
example, bio-based wastes Recycling
& recovery Processing
& production
and residues as well as plastic 4
waste. In 2019, Neste used
Aquatic Use
2.9 Mtonnes of sustainably
sourced bio-based feedstocks

Circular bioeconomy: The business opportunity contributing to a sustainable world 29

4.4 THE BIOECONOMY IN PACKAGING30

Figure 17: Main biomass sources and value chain stages in focus

• Total market size is

estimated at USD $375
Biomass
billion
Market Size (in Biomass
Packaging USD $billion) (in M tonnes) Share* (in %) • 43% of material used in
the industry is estimated to
be biomass, equaling 161
2018 375 161 43%
million tonnes of biomass
+3.2% +6.8% • Market value is estimated
p.a. p.a.
to grow by 3.2% per annum
2030 544 352 44% and the biomass by 6.8%
per annum until 2030,
showing that the relative
*
On overall material use in industry value is inferior
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

SPECIFIC INDUSTRY far faster than pre-pandemic a vital role in protecting the
CONDITIONS AND ENABLERS estimates, even after the crisis encased products and preventing
ends.31 product waste—for example
One of the main drivers for food waste in logistics—hence
increased packaging is the Another major driver is the enabling the saving of resources.
rising mass e-commerce sector increasing food home delivery Hygienic considerations and
in which packaging was worth market that currently equals 4% of potential biological reactions
USD $28 billion in 2017, a the food produced in restaurants, concerning food contact need
number expected to double by is expected to increase by 9% until to be considered to allow for safe
2023. Most of this packaging 2023, and has seen a spike as a packaging options in line with
comes from corrugated paper, consequence of the COVID-19 regulations.
fibre-based board formats pandemic.
(about 80%), but bioplastics
is also gaining importance. The ongoing public
Even before the COVID-19 trend away from
pandemic, e-commerce had single-use plastics
been experiencing impressive provides a vast
growth, with a global growth opportunity for bio-
outperforming brick-and-mortar based feedstock
sales by a factor greater than as input material.
ten, and retail sales online were This segment is
expected to rise from just 12% in expected to grow
2017 to 22% of total retail sales by almost 18%
(equal to USD $6.5 trillion) by 2023. per annum until
During the COVID-19 pandemic, 2021, with a focus
Credits: Stora Enso

e-commerce has increased even on substituting

further, and a BCG study predicts conventional rigid
that online sales as a percentage plastic types.
of the total will continue to grow Packaging plays

Circular bioeconomy: The business opportunity contributing to a sustainable world 30

BIOECONOMY INDUSTRY 3D formed fiber 5.4.1 DEEP DIVE: BIOPLASTICS
TRENDS 3D formed fiber or pulp forming AS A FAST-GROWING
Flexible packaging paper packaging present a promising OPPORTUNITY
(fiber-based) alternative to fossil fuel-based
packaging materials for food, Over one-third of all packaging is
Flexible paper is used for food, currently plastics-based, with a
tobacco, medical, pharma, cosmetics, and a wide range of
products. Formed fiber can be growing trend. Unfortunately, only
cosmetics, and personal care a small portion of around 9% of
packaging due to its light weight used for the production of most
3D shapes achieved in plastic the material used is being recycled
and low production and freight at the moment, as opposed to
costs; it is among the fastest today and has the potential to
replace more than 90 billion around 60% for paper and board.33
growing packaging materials To tackle this issue, various fast-
with a CAGR of 3.4% until 2022 single-use plastic items in Europe
alone, a market estimated at USD moving consumer goods and
(compared to a CAGR of 2.9% in beverage companies have begun
the overall packaging industry and €2 billion.32 These wood-based
packaging materials are plastic- to use recycled post-consumer
a CAGR of 2.8% for paper board). conventional plastic waste as
free, biodegradable, renewable,
recyclable, and food and hygiene input material for new plastic
Board-based packaging safe. packaging and are looking into
(fiber-based) bioplastics as alternatives.
Three types of packaging board Bioplastics makes up only around
Bioplastics in packaging
are currently in use: corrugated 1% of total packaging but offers
board (for example for online Only about 1% of all packaging
currently covers bioplastics (such a huge untapped business
trade, food & drink, and industrial opportunity due to its expected
products), folding cartonnes (for as Bio-PET for drinking bottles or
Bio-PE for food, cosmetics, and growth of 18% per annum
example for food or pharma), and until 2021—by comparison,
liquid packaging board (mainly pharma packaging). Nevertheless,
this segment is expected to grow conventional plastics is expected
for dairy, fruit drinks, and more to grow only 3.6% per annum
recently cosmetics); these are rapidly. Bio-based polymers are
overall advantageous compared expected to grow at a CAGR of Within the plastic packaging
to plastics due to lower production 18% until 2021. Please see the segment, we differentiate between
costs. Paper board represents a following deep dive for more rigid and flexible packaging.
large share of about 35% in the detailed information. Bioplastic is mainly used for rigid
global packaging market. packaging, making up 1.3 million
tonnes, versus flexible packaging
with 0.9 million tonnes.

Bioplastic is a term that is used which microorganisms 3. Bio-based plastics that are
for three different types of that are available in the biodegradable, meaning
plastic:34 environment convert plastics that are based on
materials into natural or derived from biological
1. Bio-based plastics,
substances such as feedstock and can be
meaning plastics that
water, carbon dioxide, decomposed in a specified
is (partly) derived from
and compost (artificial timeframe.
biomass (plants). Biomass
additives are not needed).
used for bioplastics stems In this report, we define
Biodegradation does not
from corn, sugarcane, or bioplastics as bio-based
depend on the resource
cellulose, to name a few. plastics, or plastics based
basis of a material but
2. Biodegradable plastics, is rather linked to its on biological feedstock.
meaning plastics that can chemical structure. Thus, Biodegradability or industrial
be decomposed by bacteria biodegradable plastics can compostability are strongly
or other living organisms be based on biological or desired for certain products,
in a specified amount of fossil fuel feedstock. but not at all tolerable for others,
time. Biodegradation is a depending on the application of
chemical process during the bioplastics.

Circular bioeconomy: The business opportunity contributing to a sustainable world 31

Rigid bioplastic packaging Flexible bioplastic packaging but are more frequently used
Bio-PET is the main type of rigid Flexible bioplastics is mainly as structural components for
bioplastics with 870,000 tonnes based on starch blends, making electrical equipment or vehicle
being used per year, and has the up 414,000 tonnes, and followed components. If the employed
largest expected growth potential by Bio-PE with 220,000 tonnes. polymers are bio-based, the
of 34% per annum from 2016 Less widely used bioplastic resulting composite is entirely bio-
to 2021; it is mainly (81%) used materials are PBAT (81,000 based. Conventional composite-
for plastic bottles. This type of tonnes), PLA (77,000 tonnes), plastic materials such as glass
plastic is followed by Bio-PE with PBS (72,000 tonnes), and PHA fiber- or carbon fiber-reinforced
117,000 tonnes and PLA with (39,000 tonnes).35 plastics are challenging to
116,000 tonnes. Other bio-based recycle as the different materials
materials that are less widely Depending on their composition, are difficult to separate and
used are starch-based plastics polymer-based biocomposites mixed material recycling often
(63,000 tonnes), PBAT (35,000 can be classified as bioplastics, yields products with degraded
tonnes) and PHA (16,000 tonnes). too. These composites combine material properties, limiting
bio-based fibers, such as lignin future applications. Composites
or cellulose, and polymers to entirely relying on biodegradable
form high strength materials components solve this issue but
that can be used in packaging are not yet widely spread.

MONDI GROUP: MONO-BIOMATERIAL DESIGN EMPLOYING HIGH PAPER RECYCLING RATES

Mondi partnered with Austrian In practical terms, the packaging The sturdy design is more
fruit preserves company Darbo is easier to open than the durable in transportation,
to develop a more sustainable previous design, saving time at reducing food waste due to
packaging solution. Fruit the point of sale, yet it uses the damages during transport.
preserves are delivered to the existing production processes.
point of sale in shelf-ready trays
of multiple glass jars, traditionally
Figure 18: Main biomass sources and value chain stages in focus
made from a corrugated base
and covered with a plastic film. Main Biomass sources Value Chain stages in focus
Mondi developed a packaging
solution that eliminates the use
of plastic. The new packaging is Design &
innovation
Growing,
development,
& sourcing
100% corrugated board, bearing Agriculture
1 2
multiple advantages. Being
mono-material, the likelihood of
5
incorrect disposal is reduced. Forestry
Recycling 3 Processing
& recovery & production
Focusing on cardboard, the
4
solution taps into the high 60%
global recycling rate for paper Aquatic Use

products.36 The packaging itself

is also made from 65% recycled
content and 35% fresh fiber.

Circular bioeconomy: The business opportunity contributing to a sustainable world 32

INTERNATIONAL PAPER: CORRUGATED ALTERNATIVE TO RETURNABLE PLASTIC CONTAINERS

International Paper developed a compared to the prior multi- and ultimately significant cost
custom corrugated alternative use solution, mainly due to savings. Freight costs savings
to replace Returnable Plastic the use of renewable input of onion growers, for example,
Container (RPC) trays for the materials and reduced losses in are estimated at USD $760,000
transport of packaged raw logistics. The use of corrugated annually, while back-hauling
protein. trays over RPCs results in RPCs can incur over USD $1
The materials used are less transportation, improved million in costs for shipping,
renewable, recyclable, and ergonomics for packing handling, and washing.
compostable. The corrugated employees, faster run rates,
packaging does not need to
be returned to be washed,
eliminating food safety concerns Figure 19: Main biomass sources and value chain stages in focus
and the considerable resource
Main Biomass sources Value Chain stages in focus
consumption in RPC logistics.
This effect is amplified by the
reduced weight and 70% lower Design &
Growing,
development,
freight space requirements of Agriculture
innovation & sourcing

2
the corrugated alternative. For 1

every trailer of corrugated trays

unloaded, producers would have Forestry 5
Recycling 3
to unload 3.5 trucks of RPCs & recovery Processing
& production

to move an equal amount of 4

packaged raw protein. Aquatic Use

Contrary to initial instincts,

this single-use, recyclable
solution is more sustainable

Circular bioeconomy: The business opportunity contributing to a sustainable world 33

4.5 THE BIOECONOMY IN MOTOR VEHICLES & COMPONENTS37

Figure 20: Growth opportunity in the motor & vehicle components industry

• Total market size is

Motor Vehicles & Market Size (in Biomass Biomass estimated at USD $255
Components USD $billion) (in M tonnes) Share* (in %) billion
• Only 4.6% of material used
in the industry is estimated
2018 255 255 4.6%
to be biomass, equaling 255
+6.2% +6.8%
million tonnes of biomass
p.a. p.a.
• Both market value and
2030 526 525 5.0% biomass volume are
estimated to grow by 6.2%
per annum
*
On overall material use in industry
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

SPECIFIC INDUSTRY BIOECONOMY INDUSTRY of carbon fibers from lignin to be

CONDITIONS AND ENABLERS TRENDS used in automotive composite
materials.
The automotive and transportation Biopolymers for automotive use
sector is facing unprecedented Different types of biopolymers Tires made from dandelion or
disruption linked to environmental such as PLA and PBS are used guayule
and societal challenges: 20% of in motor vehicles to replace While conventional tires for motor
greenhouse gases are attributed conventional plastics and even vehicles consist of about 30%
to this industry. Over 50% of the metal car components, with caoutchouc from rubber trees,
global petroleum is consumed the advantage of reducing newer innovations include the
by the transport sector, including vehicle weight due to innovative ongoing development of tires
fuels, lubricants, and vehicle lightweight biopolymers and other made from dandelion or guayule,
components. Automotive bio-hybrid materials. The global which provide benefits in terms of
manufacturing is a highly bio-based polymer market in land use and transportation. Other
resource- and energy-intensive automotive is expected to grow at circular initiatives in tires include
process with 15% to 20% of a CAGR of 6% until 2025. Please using silica derived from rice husk
the carbon emissions occurring refer to Chapter 4.4 for more ash as an alternative source for
during the production process.38 information on bioplastics. silica, and the use of alternative
Around 10% of all global plastics is oils, as outlined below.
used for motor vehicles. Moreover, Natural fibers in motor
the role of automotive in urban vehicles
mobility systems is changing, for Various natural fibers are used
example due to emerging players in innovative automobiles, such
of digital mobility services. The as hemp for specific boards and
bioeconomy provides a vast vehicle steel parts, or sisal fiber
opportunity for the sector to for floor mats. Currently, around
reduce their carbon footprint, 400,000 tonnes of innovative
respond to requests for stringent wood-plastic composites
emissions and pollution reduction, are being produced in the
move away from fossil-based global automotive sector—for
materials, and be part of the instance, researchers are
growing public and governmental currently analyzing production
trend toward greener mobility.

Circular bioeconomy: The business opportunity contributing to a sustainable world 34

GOODYEAR: REPLACING MINERAL OILS WITH PLANT OILS
Goodyear replaces petroleum- the environment, but also tire business segment more
based oils with soybean oils in performance. For example, accessible. This highlights the
their tire production. Besides soybean oil helps keep a tire’s value of continued research
replacing a fossil raw material rubber compound pliable in and use of this innovative
with a bio-based material, changing temperatures. This technology going forward.
the use of soybean oil also has proven beneficial in the Goodyear aims to replace all
promotes resource efficiency. production of all-weather tires, petroleum derived oils by 2040.
Goodyear’s tests have shown helping to make this important
rubber made with soybean
oil mixes more easily in the Figure 21: Main biomass sources and value chain stages in focus
silica-reinforced compounds Main Biomass sources Value Chain stages in focus
used in manufacturing certain
tires, improving manufacturing
efficiency and reducing energy
Growing,
Design & development,
innovation & sourcing

consumption. Agriculture
1 2
As only 65% of the soybean
oil produced in the US is 5
Forestry
used in food applications, a Recycling
& recovery
3
Processing
& production
significant surplus is available 4
for valorization. Goodyear’s Aquatic Use
innovation proves that research
and development in sustainable
materials can benefit not only

STORA ENSO: FROM TREE TO BATTERY

Stora Enso is developing a Lignin-based graphite in mobility and other markets.

technology that uses dry lignin replacements not only gain a The global battery market is
from wood to manufacture a sustainability advantage, but projected to increase tenfold
graphite replacement material they also help in improving in the next five years.39 Using a
for the needs of consumer battery performance to enable renewable raw material that is
electronics and the automotive more effective solutions for abundantly available—wood—
industry, among others. Using batteries. This supports the is crucial to finding more
biocarbon from wood as an penetration of sustainable sustainable and affordable
alternative to fossil carbon energy storage solutions, a alternatives to fossil-based,
sources not only helps to key in using renewable energy scarce, and expensive materials.
substitute fossil-based materials
with renewables, but also Figure 22: Main biomass sources and value chain stages in focus
enables carbon capture from the
Main Biomass sources Value Chain stages in focus
atmosphere, helping to create
a low net-carbon emission
economy. To satisfy the soaring Design &
innovation
Growing,
development,
& sourcing
demand from e-mobility and Agriculture
1 2
electronics, Stora Enso is
investing in their Sunila Mill
plant, which is already producing Forestry
Recycling
5
3
Processing
50,000 tonnes of kraft lignin
& recovery
& production

4
annually, making it the largest
facility of its kind globally. Aquatic Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 35

4.6 THE BIOECONOMY IN OTHER FOREST PRODUCTS40

Figure 23: Growth opportunity in other forest products industry

• Total market size is

estimated at USD $133
billion
Other Forest Market Size (in Biomass Biomass
Products USD $billion) (in M tonnes) Share* (in %) • 27% of material used in
the industry is estimated to
be biomass, equaling 206
2018 133 206 27% million tonnes of biomass
+3.5% +3.2% • Market value is estimated
p.a. p.a.
to grow by 3.5% per annum
2030 201 310 29% and the biomass volume by
3.2% per annum until 2030,
showing that the relative
*
On overall material use in industry value is almost the same
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

SPECIFIC INDUSTRY industrial roundwood production End-of-life of forest products

CONDITIONS AND ENABLERS in the world being certified.44 As Wood fiber is a renewable
the demand for wood is expected and biodegradable material;
Forests have multiple benefits to triple by 2050,45 more of the with a global recycling rate of
for the environment and society world’s productive forest needs approximately 60%,46 paper is one
besides providing wood as raw to be brought under sustainable of the most recycled materials
material: they can prevent land management to meet this growing globally. For fiber to reach its full
erosion, provide drinking water demand sustainably and counter recycling capacity (around seven
and oxygen, and are home to over the forces that drive deforestation. times), the input of virgin fiber is
80% of terrestrial biodiversity.41 necessary at each cycle. Forest
In addition, they play an important products should be first used and
role in climate change mitigation reused as materials before being
as forests and forest products BIOECONOMY INDUSTRY
recycled or burnt for energy.
store carbon for the duration TRENDS
of their lifetime and substitute Bio-based chemicals
non-renewable, fossil-based A variety of wood uses Through the processing of lignin
materials.42 Apart from wood use for and cellulose from wood, bio-
construction, packaging, or based chemicals represent a
There are about 4 billion hectares bioenergy outlined in previous promising new market for forest
of forest worldwide, with about chapters, material use of wood products with multiple applications
30% being used primarily to includes traditional products such as bio-based aromas for
produce wood and non-wood such as paper, furniture, or fragrances and flavors, lubricants,
products.43 As of today, around care products, as well as more natural fertilizers, or cleaners and
10.7% of the total forest areas innovative biomaterials such as solvents.
are either Forest Stewardship microfibrillated cellulose to be
Council (FSC) or Programme used in specialty papers and the
for the Endorsement of Forest use of wood fibers in composite
Certification (PEFC) certified, materials. (See Chapter 4.4.1.)
resulting in only 30% of the total

Circular bioeconomy: The business opportunity contributing to a sustainable world 36

THE NAVIGATOR COMPANY: VALORIZATION OF CARBONATE SLUDGES
The Navigator Company colocalization result in several management for the partner;
recycles carbonate sludges, win-win benefits: minimized and avoidance of transport cost
a waste product of their pulp sludge deposition in industrial and emissions associated with
processing and production landfills and reduced associated a traditional sludge disposal and
stage. The sludges are partially cost for Navigator; reduced PCC production chain for both
fed into the lime kiln, to produce mining of limestone (the fossil sides of the partnership.
white liquor, which, in turn, is raw material equivalent) and the
used in the production of pulp. associated need for supplier
The surplus of carbonate
sludges is used as a raw Figure 24: Main biomass sources and value chain stages in focus
material to be incorporated in
the production of Precipitated Main Biomass sources Value Chain stages in focus
Calcium Carbonate (PCC),
one of the main components Design &
Growing,
development,
of Navigator’s wood-free Agriculture
innovation & sourcing

paper, reducing the overall 1 2

consumption of fresh raw

materials. Forestry 5
Recycling 3
& recovery Processing
The PCC production takes place & production

4
onsite through a cooperation
Aquatic
partner. The partnership and Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 37

4.7 THE BIOECONOMY IN ELECTRONICS AND ELECTRICAL PRODUCTS47

Figure 25: Growth opportunity in the electronics and electrical products industry

• Total market size is

estimated at USD $117
Electronics billion
& Electrical Market Size (in Biomass Biomass
Products USD $billion) (in M tonnes) Share* (in %) • Only 5.3% of material used
in the industry is estimated
to be biomass, equaling 37
2018 117 37 5.3% million tonnes of biomass

+5.1% +5.0%
• Market value is estimated
p.a. p.a. to grow by 5.1% per annum
2030 217 67 7.2% and the biomass volume by
5.0% per annum until 2030,
showing that the relative
*
On overall material use in industry
value is similar
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

SPECIFIC INDUSTRY fabrics, smart packaging, toys, make use of bio-based materials,
CONDITIONS AND ENABLERS and radio-frequency identification mainly biopolymers such as PLA
tags used in building key cards are and PBS. While PLA is expensive,
There is an increasing demand most promising for future research it has been designed to provide
for consumer products such within organic electronics.48 superior properties such as
as electronics and electrical combined shape memory and
appliances due to a growing Conventional plastics is currently recyclability, a combination that
world population that will reach used to satisfy the request for currently available petroleum-
nearly 10 billion people in 2050. new technologies and appliances. based plastics cannot offer.
A shift from the current, largely Bioplastics create a huge
inorganic electronics industry opportunity for the sector to move Bio-casings, enclosures, and
(predominantly metal and silicon away from fossil fuels and respond others
based) to organic electronics to public pressure. Design Applications of biomass-based
offers a sustainable option improvements and innovations materials in electronic and
in regard to future resource regarding heat resistance, fire electrical products include
management. Organic electronics behavior, and longevity can further casings, enclosures, sensors,
use carbon-based materials enable bio-based materials to actuators, optics, shielding,
to transmit electricity, such as gain market share in this industry. photovoltaics, and displays;
polymers. Organic electronics use In addition, price reductions can one major advantage of the use
less or no toxic materials and often make bio-materials, such as PLA, of biopolymers is their lower
less energy. At the end of their more competitive compared to production temperature as
life span, these can be recycled conventional alternatives. compared to conventional ones.
and/or biodegraded. They also
provide a range of other benefits, Bio-household appliances
including flexibility, printability, Household appliances such
and potentially more access to BIOECONOMY INDUSTRY as toasters, coffee machines,
affordable electronics, not least in TRENDS electric kettles, and vacuum
the medical sphere. According to cleaners based on biopolymers
Bio-based electronics and are currently being developed for
a study conducted by Lancaster electrics
University, unobtrusive biosensors commercial use.
Producers of electronic and
for medical health applications electrical products increasingly
(robotics and wearables), smart

Circular bioeconomy: The business opportunity contributing to a sustainable world 38

CLARIANT: INNOVATIVE PLASTIC ADDITIVES FROM RENEWABLE FEEDSTOCK ENABLE
RECYCLING

Clariant and Neste teamed up to processing and Performance The drop-in replacement
offer a wide range of additives Polymers (LPP) as hot melt products for traditional additives
based on Mass Balance- adhesives for bonding and reduce the use of crude oil
certified ethylene and propylene debonding, allowing for the and hence the associated
from renewable feedstock, cradle-to-cradle recycling CO2 emissions, posing as an
including waste and residue oils. of postindustrial and attractive option for customers
The derived products from the postconsumer waste, such as to reduce the environmental
Terra line, such as Exolit OP Terra carpets. impact of their plastic product.
or Licocene Terra, feature at
least 50% renewable carbon.
Exolit OP Terra is used as a
flame retardant to engineer Figure 26: Main biomass sources and value chain stages in focus
plastics for electronic and
electrical equipment and Main Biomass sources Value Chain stages in focus
automotive components. The
flame retardant has the added Design &
Growing,
development,
benefit of not interfering with Agriculture
innovation & sourcing

the plastic recycling process, 1 2

overcoming an issue common

with traditional flame retardant Forestry 5
3
additives, and enabling Recycling
& recovery Processing
& production

enhanced recycling rates. 4

The Licocene Terra range Aquatic Use

includes waxes for plastic

Circular bioeconomy: The business opportunity contributing to a sustainable world 39

4.8 THE BIOECONOMY IN MACHINERY AND EQUIPMENT49

Figure 27: Growth opportunity in machinery & equipment industry

• Total market size is

estimated at USD $52 billion
Machinery & Market Size (in Biomass Biomass
Equipment USD $billion) (in M tonnes) Share* (in %) • Only 4.0% of material used
in the industry is estimated
to be biomass, equaling 34
2018 52 34 4.0% million tonnes of biomass
• Market value is estimated
+5.3% +4.6%
p.a. p.a. to grow by 5.3% per annum
5.5%
and the biomass volume by
2030 96 58
4.6% per annum until 2030,
showing that the relative
value is slightly superior
*
On overall material use in industry
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

SPECIFIC INDUSTRY USD $183 billion in 2025,50 this facilities, ranging from bio-based
CONDITIONS AND ENABLERS is a major business opportunity chemicals and pharmaceuticals
in the face of growing consumer to food additives and cosmetic
The machinery and equipment awareness and bears the ingredients. Additionally, with the
industry, including large facilities advantage of disconnecting from aid of new production cultures
such as biorefineries and fluctuating oil prices. such as microorganisms and
biochemical facilities, play a vital algae, bioreactors produce new
role in the circular bioeconomy. To enable increasing use of bio- types of biomaterials.
The increasing use of bio- based materials, biorefineries
based materials impacts the and biochemical facilities play Biopolymers in engineering
requirements for machines, a vital role. (See case study in About 20% of all biopolymers are
plants, and processes as they Chapter 4.9 for further details.) used in industrial engineering, with
have to be specifically developed 2015 forecasts predicted that the application comprising water
to handle biological materials in the US and Europe, 300 to pipes, cable jacketing, coating
where the latter are not drop-in 400 biorefineries are required to cables, and injection molding.
replacements. enable an industrial bioeconomy51 The global biopolymer market
—almost double the number of for industrial use is expected to
Resource efficiency, energy facilities identified in the same increase by 5% per year and is
requirements, and sustainability year. It is estimated that globally anticipated to reach 445,000
are major topics within the the same doubling in facilities is to tonnes in 2025.
industry, which, in turn, enable be expected, valued at USD $170
bio-based solutions to have a billion.52 Production of innovative bio-
competitive advantage. This based materials
applies to the machines and New developments in injection
facilities themselves, as well as molding and related processes
supporting materials such as BIOECONOMY INDUSTRY have paved the way to produce
lubricants and other materials TRENDS hybrid bio-based materials, such
applied. For example, bio-based as wood-plastic composites.
lubricants are available and drop-in Novel engineering in Additionally, the production of
replacements for fossil-based biorefineries and biochemical biolubricants, currently only 3%
lubricants are being developed. facilities of the overall lubricants market, is
With the global lubricants market Industrial biotechnology produces increasingly growing.
sized around USD $165 billion in a wide variety of products in
2019 and projected to grow to biorefineries and biochemical

Circular bioeconomy: The business opportunity contributing to a sustainable world 40

SARTORUIS: MONITORING OF PROCESS STATE AND KEY PARAMETERS IN BIOLOGICAL
PRODUCTION
Sartorius has developed a range Traditional processes have often efficiency of new processes
of solutions in their BioPAT, grown over time and are based are of central importance to
Biological Process Analytical on a rich experience base. New, enabling access to the new
Technology lineup. The sensor, innovative processes in the markets created in the circular
controller and software circular bioeconomy require bioeconomy.
lineup allows the continuous re-thinking past approached.
monitoring of process state and Solutions to maximize the
key parameters in biological
production.
Tight, real-time process control
helps to overcome raw material
Figure 28: Main biomass sources and value chain stages in focus
variability and the variability
of biological processes Main Biomass sources Value Chain stages in focus
themselves.
This in turn is a key enabler to Growing,
Design & development,
develop and scale production Agriculture
innovation & sourcing

of bio-based products such as 1 2

biopharmaceuticals. Increased
transparency and control Forestry 5
3
translates to higher yields, Recycling
& recovery Processing
& production

shorter development times and 4

cost savings, lowering some of Aquatic Use
the key hurdles to overcome
when establishing new, bio-
based products.

Circular bioeconomy: The business opportunity contributing to a sustainable world 41

4.9 THE BIOECONOMY IN BIOMASS ENERGY AND BIOFUELS53

Figure 29: Growth opportunity in the biomass energy and biofuels industry

• Total market size is

estimated at USD $143
Bioenergy & Market Size (in Biomass Biomass billion
Biofuels USD $billion) (in M tonnes) Share* (in %)
• 9.7% of material used in the
industry is estimated to be
biomass, equaling 2,011
2018 143 2,011 9.7%
million tonnes of biomass
+2.3% +1.6%
p.a. p.a.
• Market value is estimated
to grow by 2.3% per annum
2030 188 2,419 10.5%
and the biomass volume by
1.6% per annum until 2030,
*
On overall material use in industry showing that the relative
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies value is slightly superior

Renewable and bio-based waste. Biomass for direct energy as they are not always seen
energy production is, for example, wood as a sustainable alternative
residues such as sawdust. For a to conventional sources
Bioenergy—that is, power, complete overview, please see due to their potentially high
heat, or motive power—can the flow chart in Chapter 2. requirement for land, water,
be effectively produced from and primary energy needs for
either biomass or biofuels. The Despite being based on the production itself. Moreover,
main types of biofuels include renewable sources, these potential negative impacts on
biodiesel, bioethanol, bioethers, types of energy generation biodiversity and food production
and biogas. They can be based technologies using biomass or play a role depending on the
on a variety of crops, plants, and biofuels receive public scrutiny type of input material used.

SPECIFIC INDUSTRY change, biofuels can trigger GHG emission from 2.86 kg
CONDITIONS AND ENABLERS technological innovation and to 1.86 kg per kilogram cured
benefit local communities. tobacco by end of 2020.
Around 80% of all energy supply In Yunnan, Guizhou, China, with
is based on fossil fuels that the support of CNTC55 and the One enabler for bioenergy to
significantly contribute to global local government, PMI56 is leading gain more importance in the
warming.54 The science is clear an initiative through its suppliers global energy mix is the shift
on the need for ambitious climate to help local farmers to switch to toward second- and third-
action to keep temperature wood pellets as a primary energy generation biofuels that rely on
increase at a maximum of 1.5°C source in curing barns. The newly food waste and residues. These
above pre-industrial levels to avoid required pellet production facilities input materials decrease the
devastating impacts on people benefit local communities through requirement for land use and utilize
and nature. Scaling up the use of additional employment and the cascading principle explained
low-carbon, renewable sources reduced dependency on coal. The in Chapter 1. In addition, biomass
of energy is a key part of the program has to date converted coming from certified sustainably
solution. In addition to the needed more than 70,000 curing barns managed forests or agriculture
contribution to limiting climate with a significant reduction on can guarantee that there is no
negative impact on biodiversity or
nature.

Circular bioeconomy: The business opportunity contributing to a sustainable world 42

Transport, together with power, is for example in modern heating Alternative technologies include
one of the sectors with the highest systems or industrial applications. the gasification of solid biomass,
global biomass demand at 31% Wood as bioenergy, as well as whereby the biomass is gasified in
each, followed by industry with other types of bioenergy, offer the a high-temperature reaction into
21%, and buildings with 20%. advantage of generating energy a mix of gasses that can be used
when required; as mentioned in in gas engines or for follow-on
BIOECONOMY INDUSTRY the previous paragraph, a focus processes.
TRENDS on cascading use of wood is key
to ensuring the sustainability of Biofuels for transportation
Wood as heating material this biomass source for energy Biofuels obtained from crops (first
Over 50% of all renewable energy generation. generation), residues/agriculture
is from biomass, out of which the waste (second generation),
majority originates from wood that Biogas from fermentation and algae (third generation) are
can be used as heating material Biogas plants transform energy used in automobiles, ships, and
in the form of wood pellets, crops such as maize, animal aircrafts. Biodiesel is currently the
chips, and shavings.57 When manure, and other residuals into most widely used biofuel type;
discussing wood as an energy methane, often referred to as bioethanol and biomethane are
source, traditional wood burning biogas. Organic material waste other relevant biofuel types.
in stoves and fires is considered from this fermentation process
less or not at all sustainable in can be used as field fertilizers.
comparison with modern use,

ENI: A FLEXIBLE BIOREFINERY

Eni continues to give new life to capacity. This allows to flexibly increased returns through
its existing plant with the second change inputs as availability lower raw material cost, and
conversion of a traditional fluctuates and is an integral part reduced competition over
refinery into a biorefinery in Gela of Eni’s feedstock diversification specific materials reducing the
(Sicily). Launched in August strategy. The effect is twofold: likelihood of trade-off effects.
2019, the plant has a processing
capacity of up to 750,000
tonnes a year and will be able Figure 30: Main biomass sources and value chain stages in focus
to treat increasing quantities
Main Biomass sources Value Chain stages in focus
of second and third generation
inputs, such as used vegetable
oil, animal fat, algae, and Design &
Growing,
development,
byproducts to produce high- Agriculture
innovation & sourcing

2
quality biofuels. 1

A pretreatment unit supplies

the biorefinery with the raw Forestry
Recycling
5
3
Processing
materials, enabling it to treat
& recovery
& production

4
advanced and unconventional
loads up to 100% of processing Aquatic Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 43

4.10 THE BIOECONOMY IN FOOD AND FEED LOSSES AND WASTE FOR
COMPOSTING PURPOSES58

Figure 31: Growth opportunity in the biomass energy and biofuels industry

• Total market size is

estimated at USD $2,300
billion
Food & Feed Market Size (in Biomass Biomass
Share* (in %)
• 98% of material used in the
Waste USD $billion) (in M tonnes)
industry is estimated to be
biomass, equaling 5,700
2018 2,300 5,700 98%
million tonnes of biomass
• Both market value and
+1.0% +1.0%
p.a. p.a. biomass volume is
estimated to grow by 1%
2030 2,590 6,400 98%
per annum until 2030,
showing that the relative
*
On overall material use in industry value is the same
Source: European Commission; Oxford Economics; WBCSD; BCG analysis, Member companies

According to the UN’s Food and There are three main enablers to
Food loss / waste: Food loss Agriculture Organization and the address this issue:
refers to any refers to any World Resource Institute, food
product that is discarded loss and waste accounts for 8% of 1. Reduce the amount of existing
before it gets to the end global greenhouse gas emissions. food and feed loss and waste
consumer due to unintended Around 870 million people around
2. Use existing losses and waste
results in the agricultural or the world are undernourished.
as input materials for products
distribution process. “Food Circular bioeconomy practices
and energy generation
waste” refers to the products can thereby support the solution
that are thrown away at of an environmental and social 3. Compost existing food and
the end of the value chain, problem, especially if the saved feed loss and waste to enrich
either at the retailer or final food can be routed to areas of the soil without any negative
consumer. Both classifications undernourishment.59 environmental impacts
can be applied to feed
accordingly. Throughout this
report we refer to food and/or
feed loss and waste.

Circular bioeconomy: The business opportunity contributing to a sustainable world 44

1) BCG has identified five key industry analysis, and detailed composting. To avoid any negative
levers to reduce the amount of information on trends and externalities, effective composting
food loss and waste and save up examples can be found there. management plays a key role in
to USD $700 billion. These levers controlling potential impacts on air
are awareness of the problem 3) The third option for food and water quality.
across the supply chain, improved and feed losses and waste is
supply chain infrastructure,
increased supply chain efficiency,
Figure 32: Key levers for food loss & waste reduction
collaboration among players
across the value chain, and a
favorable policy environment (see Awareness USD $260 billion
Figure 32).

2) As mentioned in previous Supply chain

industry chapters, companies USD $150 billion
infrastructure
start using food and feed losses
and waste as new input materials
Supply chain USD $120 billion
for their products, thus upcycling efficiency
the waste. Different technologies
allow the conversion of food
and feed losses and waste into Policy
USD $110 billion
environment
ethanol, biodiesel, and biogas.
The economic opportunity for
upcycling and energy are both Collaboration USD $60 billion
already included in the respective

BIOECONOMY INDUSTRY Development of new collection Innovation to improve

TRENDS methods and services composting strategies
Separation of food and feed waste Companies also innovate in
Composting to feed the soil at the source is critical to ensure the field of organic or inorganic
The transformation of biological a clean feedstock for composting additives, microbiological
waste into fertilizer through and allow the final product to variations, and the mitigation of
composting is a mature meet quality standards and be gaseous emissions to improve
technology that is performed for suitable for sale or use. Countries food waste composting. These
centuries. Microbes break down and municipals are setting up innovations can decrease the
the organic matter into carbon new, distinct collection methods composting time and increase
dioxide, water, and heat. Once to separate food and feed waste compost quality.
decomposed, the fertilizer can from the general household
be used to improve the physical waste. In addition, companies
conditions of the soil. This is not offer composting services to
only limited to food and feed waste restaurants, cities, or individuals.
and loss but can also extend
to agricultural waste and other
compostable waste, for example
suitable paper, cardboard, or
cellulose fabrics.

Circular bioeconomy: The business opportunity contributing to a sustainable world 45

IFF: FINDING A BETTER USE FOR CITRUS PEEL WASTE

IFF has partnered with a Dutch washed and treated to obtain Utilizing circular design
startup, PeelPioneers, to utilize a high-quality, oil-in-water principles in this way is saving
fresh orange peels that would emulsion via cold extraction. resources and creating a unique
otherwise be discarded from IFF uses the essential oil to marketing advantage for IFF’s
supermarkets, juice bars, and create signature taste designs, Re-Imagine Citrus Upcycled
other quick-service restaurants including natural orange Orange product line.
in the Netherlands. While orange flavorings and extracts.
peels cannot be composted
as easily as other fruits and
vegetables and are not easily Figure 33: Main biomass sources and value chain stages in focus
incinerated due to their high Main Biomass sources Value Chain stages in focus
water content, they are naturally
rich in highly prized essential oils.
Growing,
Thanks to PeelPioneers’ Design &
innovation
development,
& sourcing
Agriculture
agreement with one of the 1 2
largest commercial waste
management companies in
Forestry 5
the Netherlands, discarded Recycling
& recovery
3
Processing
& production
fresh peels are delivered to the 4
PeelPioneers factory within 72
Aquatic
hours of juicing, where they are
Use

Circular bioeconomy: The business opportunity contributing to a sustainable world 46

5 Current obstacles and
suggested solutions

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world47
47
 5 Current obstacles and
suggested solutions
Despite the vast business 5.1 POTENTIAL 1.
benefits and opportunities BARRIERS TO Financial Flows - Weigh
that a circular bioeconomy long-term savings and risk
offers, it has not yet
SCALING CIRCULAR reduction against potentially
developed its full potential or BIOECONOMY high initial costs. To understand
reached the scale needed for AND SUGGESTED the total cost impact of circular
meaningful impact. SOLUTIONS bio-based solutions, companies
need to assess both the expected
Specific barriers impair developing To evaluate potential barriers to additional or initial costs as well
or scaling up bioeconomy scaling a circular bioeconomy, we as cost-saving opportunities.
solutions, such as potential costs, have conducted interviews with Additional costs may occur, for
technological issues, awaiting businesses active in this market example, from investments into
policy support, and ambiguous and prioritized the experienced new assets to process biomass
public perception. Ways to barriers based on the perceived or from higher costs for feedstock
overcome these barriers are company importance. Four for the production of bio-based
outlined in Chapter 5.1. barriers were ranked highest: intermediates suitable for further
processing. However, in the long-
In addition, certain sustainability 1. Financial Flows. The initial
term, cost savings may make the
and economic trade-offs need investments needed for
initial investment profitable. For
to be considered to ensure the a transformation can be
example, the company can incur
economic feasibility and superior considered too high
lower costs for input materials due
sustainability performance of
2. Technology. The to waste recycling, or the cost for
circular bio-based solutions
implementation of technology sewage treatment can be reduced
compared to conventional
or availability of viable based on bacterial treatment of
alternatives. In Chapter 4, selected
technology may not be wastewater. Additionally, a stable
trade-offs were called out on
sufficient material input reduces the risks
an industry basis. Chapter 5
and associated costs related to
provides a general overview of
3. Policy and Regulation. abrupt raw material scarcities and
the sustainability and economic
Required public support and gaps that might occur in the fossil-
principles to consider for a circular
regulation may not yet fully be based supply chain.
bioeconomy and discusses the
in place and subject to policy
topic of trade-offs with a wider 2.
adaptions
view. The high-level checklist Technology - Focus on
provided at the end of this chapter 4. Mindset and Values. Public technological solutions as the
is aimed at supporting companies opinion on bio-based material center of the transformation.
answering the most essential is often still ambiguous and Incorporating new technological
questions concerning these customers are rarely willing to developments as part of the
principles. pay a price premium corporate bioeconomy vision and
strategy supports companies in
In the following paragraphs, we
tackling potential hurdles from the
present recommendations to
beginning. This way, technological
support companies in overcoming
solutions are at the center of the
these four key barriers.
transformation and seen as a
prerequisite the whole company is
working on. Moreover, they open
opportunities for new business

Circular bioeconomy: The business opportunity contributing to a sustainable world 48

models and additional revenue 4. 5.1.1 DEEP DIVE: BIOECONOMY
streams based on service models Mindset and Values - POLICY LANDSCAPE
or product innovations. A hot Educate consumers Policy adaptions can significantly
spot for such innovation is the about higher quality and support companies in the
technology and infrastructure sustainability. The public opinion transition toward a circular
needed at the end-of-life of on bio-based material is often bioeconomy, as stated above.
circular bioproducts to support a still ambiguous and customers The definition, level of detail,
bioeconomy—for example, turning are rarely willing to pay a price importance, and goal of the
waste back into a resource is a premium. Companies can increase strategies vary across the
challenge poorly addressed in the the perceived value-add of their countries.
current economic system. products through educating
consumers about higher
3. In 2018, there were around 50
quality and energy efficiency,
Policy and Regulation - countries with a bioeconomy-
or longer life span of bio-based
Leverage and advocate for related or dedicated strategy.
products compared to fossil
required public support (See Figure 34.)
fuel alternatives. The checklist in
and regulation. Companies Chapter 5.3 provides a starting
can benefit from governmental point for companies to evaluate Definition. Some countries
subsidies or other forms of and communicate the superior explicitly include circularity in their
support, such as taxation, that sustainability performance of definition for a bioeconomy, such
stimulate the utilization of bio- circular bio-based products. as the EU Bioeconomy Strategy60
based materials and the reduction and the EU Circular Economy
of the carbon footprint. This In general, to enable a successful
Action Plan.61 Others include
support can help companies transformation toward a circular
bioeconomy aspects in their
overcoming existing barriers, such bioeconomy, collaborations
broader strategy for sustainable
as initial investments or additional across sectors need to be
development but do not have a
costs. The following deep dive established and strengthened to
dedicated bioeconomy strategy.
gives an overview of existing and benefit from existing expertise
upcoming policies. Additionally, and know-how and ultimately Level of Detail. The
companies can actively accelerate the transition to a implementation details of the
collaborate with regulators and circular bioeconomy. bioeconomy (-related) strategy
NGOs to showcase the positive differ per country, from high-level
impacts of circular bio-based goals and aspirations to concrete
products and further stimulate action plans. A range of countries,
required policy changes. Once such as the UK, Australia, and
decided, policies play a vital role China, have set quantitative
in protecting the investments targets to operationalize high-
made in bio-based solutions, level ambitions. However, only a
and legislation is required to few countries, such as Thailand,
ensure that bio-based solutions France, and Spain, have an action
are subject to the same and not plan in place detailing how to
increased scrutiny over their implement the defined strategies.
conventional alternatives. And even fewer countries, such
as Thailand and Spain, have set
specific budget plans.62

Circular bioeconomy: The business opportunity contributing to a sustainable world 49

Figure 34: About 50 countries around the world already have a (dedicated) bioeconomy strategy or are
currently developing one

Dedicated bioeconomy strategy

Bioeconomy aspects integrated in other sustainability strategies
Bioeconomy aspects integrated, dedicated bioeconomy-strategy under development
No bioeconomy aspects integrated yet, dedicated bioeconomy-strategy under development
No bioeconomy strategy

Goal. Countries foster the industry symbiosis is especially 5. Supporting the demand side.
transition toward a circular important for circular approaches, The demand side of bio-based
bioeconomy through different where waste from one industry products is fostered by public
types of support and goals. We can serve as raw material for procurement policies, supported
identified five focus areas for another. certifications, and standardized
support, with an overview of the labels in many countries. Only a
strategies per country in Figure 34: 3. Supporting capacity few countries offer tax reductions
formation. For capacity building, on a customer-level, quota for
1. Promoting innovation. Public countries mainly offer educational biobased products like biofuels,
approaches fostering innovation programs on various levels, such or ban fossil-based products.
vary, from more traditional as schools, universities, and Interviews and secondary
approaches concerning low-tech postgraduate programs. research analysis allowed the
innovation or open innovation identification of significant gaps
platforms to more advanced 4. Supporting commercialization.
in the existing policy landscape.
technology-driven approaches Commercialization is mainly
The German bioeconomy council,
such as targeting bionics, AI, and supported through early financial
for example, emphasizes the
carbon capture. support—such as angel or
need for more concrete actions
venture capital funding—or
on the consumer-end regarding
2. Supporting infrastructure. facilitation of required marketing,
detailed information on bio-based
Infrastructure support can start scale-up, or export. Only a few
products and related consumer
with educational approaches, countries enable subsides for
benefits. Additional gaps include
for example, by showcasing a goods based on renewable
the lack of bioeconomy-friendly
biorefinery pilot plan as done in resources. An additional driver
framework conditions, for example,
Thailand. And they can go further for commercialization is prizing
the difficulty to remove fossil
by fostering collaboration and in externalities such as GHG
fuel subsides,63 and insufficient
knowledge exchange through emissions.
establishing bioeconomy hubs or international collaboration and
networks. Fostering such cross- knowledge sharing to set up a
favorable policy environment.

Circular bioeconomy: The business opportunity contributing to a sustainable world 50

Figure 35: National policy measures for promoting bioeconomy particularly strong in capacity building, stimulating R&D, and infrastructure...

Americas Asia/Pacific Europe

% of New
countries Key Points Practical and proposed policy measures Argentina Brazil Canada USA Australia China Zealand Thailand France Italy Latvia Norway Spain UK
Public R&D
Traditional knowledge and low-tech
innovations
Promoting Stimulating private actor R&D(e.g., through
64% public–private partnerships)
innovation
Social innovation (e.g., open science,
citizen science)
Research networks, consortia, CoE, etc.

Bioeconomy hubs, networks, cluster

Investment for R&D facilities and

equipment
61% Supporting
Investment in the digital infrastructure
Infrastructure
Urban greening projects
Pilot and demonstration facilities
Biorefinery demo plants

Supporting Capacity building(e.g., trainings for

capacity professionals)
82%
building and Bioeconomy education programs(including
education masters and doctoral programs)
Access to capital for bio-based companies

Tax incentives for bio-based companies

Knowledge and technology transfer

Supporting
45% Access to scale-up facilities
commercia-
lization
Export promotion policy

Development and marketing efforts(e.g.,

feasibility studies)

Subsidies for (increased production and

use of renewable resources)

Note: Proportion of boxes indicative for global biomass shares (2018); smaller shares (<5%) enlarged for visual demonstration
Source: Eurostat; Freedonia; OECD; WU Vienna; BCG Analysis

Circular bioeconomy: The business opportunity contributing to a sustainable world 51

Figure 36: ...But with gaps in framework conditions as well as International collaboration and knowledge sharing

Americas Asia/Pacific Europe

% of New
countries Key Points Practical and proposed policy measures Argentina Brazil Canada USA Australia China Zealand Thailand France Italy Latvia Norway Spain UK
Bio-based public procurement policy
Certification and labels on a product’s life
cycle impact (e.g., footprint)
Consumer information and communication
Supporting campaigns
40% the demand-
Price-setting
side
Tax incentives
Fuel quality standards
Ban of fossil-based products (e.g., plastic
bags)
Removal of fossil fuel subsidies

Policies for sustainable development

Review of IP regulations

Bioprospecting regulations

Global data policies (e.g., open data

commons policies)

Review and harmonization of

Ensuring biotechnology policies
bioeconomy-
19% friendly Regulations for sustainable biomass
framework production and utilization
conditions
Regulatory framework for bioenergy

Carbon tax

Circular economy regulations (recycling

quotes, use of byproducts, ecodesign, life
cycle assessment of patents

Regulations for the uses of bio-based

materials in construction

Development of regional bioeconomy

policy strategies

Note: Proportion of boxes indicative for global biomass shares (2018); smaller shares (<5%) enlarged for visual demonstration
Source: Eurostat; Freedonia; OECD; WU Vienna; BCG Analysis

Circular bioeconomy: The business opportunity contributing to a sustainable world 52

 Americas Asia/Pacific Europe

% of New
countries Key Points Practical and proposed policy measures Argentina Brazil Canada USA Australia China Zealand Thailand France Italy Latvia Norway Spain UK
Interministerial and interregional
cooperation
Monitoring and measuring activities

Evaluation of policy programs

Promoting Public reporting and multi-stakeholder
30% good dialogue
governance
Learning and adaptive policy

Level playing field for bio-based

businesses
Bioeconomy advisory council

Harmonization in international trade and

policy frameworks

Knowledge sharing between industrialized

and developing countries
Enhancing Private investment in developing countries
international
16% collaboration International monitoring (e.g., satellite
in the tracking)
bioeconomy
Interregional policy dialogue

Bi-and multinational cooperation

International R&D cooperation

Country overall measure

55% 41% 48% 56% 27% 53% 35% 36% 54% 44% 47% 34% 51% 48%
coverage

Source: Canada’s Bioeconomy Strategy (2019); German Bioeconomy Council (2018); Presidency of council of Ministers, Italy (2020); BCG analysis

Circular bioeconomy: The business opportunity contributing to a sustainable world 53

5.2 COMMON This quote highlights one of Evaluation should occur over
SUSTAINABILITY several common perceptions and the whole life cycle and possibly
trade-offs that companies need value chain and must include
TRADE-OFFS to consider when ensuring the sustainability aspects such as
IN A CIRCULAR sustainability performance of bio- material type (bio-based versus
BIOECONOMY based solutions. Others include fossil-based), overall resource
agriculture-driven deforestation, intensity, emissions, durability,
The implementation of circular
illegal or unsustainable reuse options, or human behavior,
bio-based business models can
sources of wood, negative and also social aspects such as
lead to sustainability trade-offs.
impacts on biodiversity, and effects on employment, living
A holistic evaluation is required to
the social impacts associated conditions, and food availability.
assess if the overall sustainability
with structural changes in
of a new bio-based product
the economy. The checklist 5.3 KEY
is better than a conventional
alternative, although the
presented at the end of this SUSTAINABILITY
sustainability of individual steps
chapter in Figure 38 will help PRINCIPLES TO
in the value chain or individual
navigate these trade-offs by START THE CIRCULAR
providing a list of sustainability
categories may be worse for
and economic principles
BIOECONOMY
the bio-based product. In many
to consider. A sustainability JOURNEY
cases, such an evaluation should
assessment, such as a life
also include a local aspect to A list of sustainability and
cycle assessment, can help
better understand if a certain economic principles was
gather the required information
trade-off is acceptable or not. created to guide companies
to address the criteria.
For example, if the trade-off of at the start of their journey in
Companies should evaluate
a material use is the increased understanding the relevant
their circular bioeconomy
water consumption, this may be circular bioeconomy principles
decisions understanding the
acceptable in an overall positive and trade-offs. These are built
full environmental and social
sustainability scenario in a around four key pillars: Circular
consequences across the life
location where water is ample, Bioeconomy, Environmental
cycle.
while it is an exclusion criterium in Value, Societal Value and
an arid region. Not all boxes must be ticked Corporate & Stakeholder Value.
for a product to be a viable The list of factors to consider is
One of the best-known examples divided into critical factors and
alternative to existing solutions.
of a trade-off related to the supporting factors. These factors
There are some factors that are
bioeconomy is the competition are not prescriptive and not all
critical and cannot be neglected
for agricultural lands, between of them need to be fulfilled for a
(green circles) and other ones
the use for food and feed and the circular bioeconomy product to
that are supporting the superior
use in biofuels or other industrial be considered sustainable. They
performance of the product, but
feedstock, as illustrated by a should form part of a holistic
do not necessarily all have to be
quote from Bill Gates: trade-off assessment.
checked (orange circles).
“If you’re using first-
class land for biofuels,
then you’re competing
with the growing of
food. And so you’re
actually spiking food
prices by moving
energy production into
agriculture”, Bill Gates64

Circular bioeconomy: The business opportunity contributing to a sustainable world 54

Figure 37: Four key principles to ensure a superior sustainability and economic performance of products
from the circular bioeconomy
ECONOMIC
SUSTAINABILITY PRINCIPLES
PRINCIPLES

1. CIRCULAR BIOECONOMY 2. ENVIRONMENTAL VALUE 3. SOCIETAL VALUE 4. CORPORATE &

STAKEHOLDER VALUE
Biological resources are Environmental services Societal value is maintained
renewable, regenerated and values are maintained, or enhanced for employees, Long-term economic viability is
sustainably, reused, and conserved, and/or enhanced; communities, customers, and maintained or enhanced while
recovered negative environmental consumers across the whole providing value for corporate and
impacts are avoided, reduced, supply chain societal stakeholders
or restored

Bio-based resources Energy and climate Employees/Communities Economic feasibility

a) Use bio-based raw a) Emit less emissions (GHG a) Respect workers’ rights and a) Assess the technical feasibility
materials emissions, air pollution) well-being across the value
compared to alternatives chain b) Ensure a positive business case
Circulara resources
b) Provide opportunities b) Ensure safe employment c) Confirm support by existing and
b) Ensure circularity of product for carbon storage and conditions future policies/regulations
sequestration
c) Design waste out of the c) Provide equal and fair Stakeholder value
system Nature payment
d) Adhere to existing certifications
d) Use resources at highest c) Avoid, reduce, and restore d) Ensure a diverse and inclusive or go beyond
cascading level possibleb any negative environmental workforce
externalities e) Create transparency,
e) Support (impacted) traceability, and establish required
d) Maintain, conserve, and communities collaborations
enhance biodiversity
Consumers
Water
f) Safeguard consumer welfare
e) Improve water management
practices compared to g) Provide accurate product
alternatives transparency

a. Circularity definition: The circular economy is an economic model that is regenerative by design.

The goal is to retain the value of the circulating resources, products, parts and materials by creating a system with innovative business
models that allow for renewability, long life, optimal (re)use, refurbishment, remanufacturing, recycling and biodegrading.

By applying these principles, organizations can collaborate to design out waste, increase resource productivity and maintain resource use
within planetary boundaries.

b. E.g., no downcycling/energy recovery of resources if not required; non-renewable, virgin material only used if there is no suitable
secondary material alternative

Circular bioeconomy: The business opportunity contributing to a sustainable world 55

1. CIRCULAR BIOECONOMY

CIRCULAR BIOECONOMY BIOLOGICAL RESOURCES ARE RENEWABLE, REGENERATED SUSTAINABLY,

REUSED, AND RECOVERED

BIO-BASED CIRCULAR
RESOURCES RESOURCES

a) Use bio-based raw materials b) Ensure circularity of product c) Design waste out of the system

The vast majority of raw materials come Value chain/cycle Minimize waste (sourcing, production,
from sustainably managed, continuously use, end-of-life), ideally less waste is
renewable agriculture, forestry, or aquatic The product is designed in a way that produced compared to non-bio-based
sources makes it repairable, usable for long substitutes (or similar levels)
periods of time, reusable, renewable,
All bio-based resources used are refurbishable, remanufacturable, and Waste to landfill is minimized
regenerated by natural systems at a rate recyclable or compostable at the end
that is securing a constant, productive, of its lifetime d) Use resources at highest cascading
and healthy stock of the raw material/ level possible
population and in line with the Planetary The product cyclability is not destroyed
Boundaries or diminished at a later point in the Resources are used at the highest
value chain/cycle cascading level possible (e.g., no
Make use of secondary biomass where downcycling/energy recovery of
possible During production of the product, resources if not required; virgin material
closed resource loops for energy, only used if there is no suitable
water, and waste are ensured secondary material alternative)

The product life cycle is extended

by repairing, reusing, upgrading, and
reselling

The raw materials of the product are

recovered, recycled, and/or composted
at the end of the product’s total life

Business model

Instead of ownership, paid product

access is offered, allowing the
company to retain the benefits of
circular resource productivity or
ownership to increase product use

Product users are connected to one

another to encourage shared use,
access, or ownership to increase
product use

Critical factors (as many of these as possible should be fulfilled)

Supporting factors (some of these should be fulfilled)

Circular bioeconomy: The business opportunity contributing to a sustainable world 56

2. ENVIRONMENTAL VALUE

ENVIRONMENTAL VALUE ENVIRONMENTAL SERVICES AND VALUES ARE MAINTAINED, CONSERVED, AND/
OR ENHANCED; NEGATIVE ENVIRONMENTAL IMPACTS ARE AVOIDED, REDUCED, AND RESTORED

ENERGY AND
NATURE
CLIMATE

a) Emit less emissions compared to c) Avoid, reduce, and restore any d) Maintain, conserve, and enhance
alternatives negative environmental impacts biodiversity

Energy & GHG emissions Land/Forest/Marine environment Rare and threatened species are
protected
Less scope 1 and 2 GHG emissions are The land use does not compete with
released compared to non-bio-based food production High Conservation Value (HCV) areas
alternatives (or similar levels)1 are protected and/or restored
Deforestation in the supply chain is
Less scope 3 GHG emissions are rigorously traced and eliminated No net biodiversity loss is secured on a
released across the supply chain regional basis
compared to non-bio-based alternatives No natural forest/habitat is converted
(or similar levels)1 to other land uses (e.g., plantations/ Biodiversity, including animal and plant
grazing) species, wildlife habitats, and natural or
Renewable energy sources are used ecological community types, is restored
as much as possible for energy Soil health and productivity is and improvements are measured and
consumption maintained or enhanced to prevent soil managed
degradation
GHG emissions are recycled or captured
Marine environments are protected WATER
Air
Less air emissions (non-GHG) and Chemicals e) Improve water management
nanoparticles are released compared Use of sustainable chemicals as share practices compared to alternatives
to non-bio-based alternatives (or similar of overall chemicals use is maximized
levels) Less water is consumed compared to
Use of fossil-based chemicals is non-bio-based substitutes (or similar
minimized levels)
b) Provide opportunities for carbon
storage and sequestration Use of toxic chemical inputs is Discharged water is cleaner compared
eliminated to non-bio-based substitutes (or similar
Use of natural climate solutions—i.e., levels) as wastewater treatment is
restoration and creation of carbon- implemented
storing environments such as forests,
mangrove swamps, peat bogs, salt The risk of chemical runoffs is
marshes, and seagrass beds—is minimized
maximized
A context-based water stewardship
Carbon storage is measured and approach is applied that conserves and
maximized protects groundwater and surface-
water resources

The capacity of soils to hold water is

measured and improved

Critical factors (as many of these as possible should be fulfilled)

Supporting factors (some of these should be fulfilled)

1. Scope 1,2 and 3 GHG emissions to be considered holistically, e.g. significantly lower emissions in scope
1 and 2 may justify slightly higher scope 3 emissions

Circular bioeconomy: The business opportunity contributing to a sustainable world 57

3. SOCIETAL VALUE

SOCIETAL VALUE IS MAINTAINED OR ENHANCED FOR EMPLOYEES, COMMUNITIES, CUSTOMERS, AND

CONSUMERS ACROSS THE WHOLE SUPPLY CHAIN

EMPLOYEES/COMMUNITIES

a) Respect workers’ rights and well- b) Ensure safe employment conditions e) Support (impacted) communities
being across the value chain
Safe and healthy working conditions Adverse impacts on communities
Human & labor rights in line with the ILO conventions are (from growing, producing, processing,
ensured along the product’s value cycle or sales) are addressed through
Human, labor, land rights, and appropriate remediation processes
fundamental freedoms1 of those
affected by the product are respected, c) Provide equal and fair payment The social and economic well-being
protected, and fulfilled of local communities, including
Salary across the product’s supply farmers, growers, and forest owners, is
No child labor2, forced labor, or human chain is above the living wage— maintained or enhanced through the
trafficking is practiced along the adhering to geographical differences product
product’s value cycle
Fair working hours are respected to
Access to grievance resolution produce product CONSUMERS
mechanisms is ensured for individuals
affected by the product Equal remuneration is ensured
throughout the production process4
Indigenous peoples’ legal and f) Safeguard consumer welfare
customary rights of ownership, use, and For the product, opportunities for
management of land affected by the Consumer welfare is safeguarded
economically disadvantaged individuals
product are identified and upheld3 and considered a top priority when
are created
designing, producing, and selling the
Labor associations and collective product
bargaining are allowed d) Ensure a diverse and inclusive
g) Provide accurate product
workforce
transparency
Well-being
Discrimination on the basis of race,
Product, processing, and raw material
The social and economic well-being of color, sex, religion, political opinion, and
information is comprehensive,
workers and farmers is maintained or national extraction of social origin3 is
accessible, and understandable for
enhanced eliminated
consumers
Local skills of people producing the
product are developed

Critical factors (as many of these as possible should be fulfilled)

Supporting factors (some of these should be fulfilled)

1. At a minimum those expressed in the International Bill of Human Rights and in the ILO’s Declaration on
Fundamental Principles and Rights at work
2. In line with ILO C138 Minimum age and ILO C182 - Worst forms of child labor
3. In line with ILO C169 - Indigenous and tribal peoples
4. In line with ILO C100 - Equal remuneration

Circular bioeconomy: The business opportunity contributing to a sustainable world 58

4. CORPORATE & STAKEHOLDER VALUE

CORPORATE & STAKEHOLDER VALUE LONG-TERM ECONOMIC VIABILITY IS MAINTAINED OR ENHANCED

WHILE PROVIDING VALUE FOR CORPORATE AND SOCIETAL STAKEHOLDERS

ECONOMIC FEASIBILITY STAKEHOLDER VALUE

a) Assess the technical feasibility c) Confirm support by existing and d) Adhere to existing third-party
future policies/regulations certifications or go beyond
Analysis
Law compliance Social: Raw material is certified by
The technical requirements for Fairtrade or a similar certification
the production of the product are The product complies with all
understood and can be realized applicable laws, regulations, and Agriculture: Raw material is certified by
sustainably (e.g., energy needs) nationally-ratified international treaties, the rainforest alliance, UTZ, RSPO, as
conventions, and agreements organic or a similar certification
Production can be scaled up to
fulfill expected demand (without Existing support Forestry: Raw material is certified by
overexploiting natural resources) FSC, PEFC, or a similar certification
The product fulfills current standards
b) Ensure a positive business case (e.g., building material standards, fire Aquaculture: Raw material is certified
standards), enabling potential users to by ASC, MSC, BAP, or a similar
Market demand exists or is created switch certification
through the new solution
The product is supported by existing Beyond: New product standards are
A positive business case exists (e.g., subsidies, tax breaks, etc. actively supported and/or shaped
based on one of the following points)
Future support e) Create transparency, traceability, &
New markets and customer segments establish required collaborations
are entered The product will fulfill future likely
regulations, reducing the user’s risk to Traceability/transparency of the product
A competitive advantage can be switch is guaranteed across the whole supply
established, e.g., through attracting and chain
retaining talents and new customers Future regulations are likely to be
implemented (e.g., alternative to Stakeholder dialogues concerning the
Regulatory, societal, and corporate risks product expected to be banned) product are organized
(e.g., resource risks, supply chain risks,
financial risks) can be mitigated Partnerships established within
supply chain

Partnerships established outside

supply chain

Critical factors (all need to be fulfilled if possible, exceptions have to be part of a trade-off analysis)

Supporting factors (multiple but not all need to be fulfilled)

Circular bioeconomy: The business opportunity contributing to a sustainable world 59

5.4 FOUR HIGH-LEVEL flow (how long the resources Upcycling Alliance created by
ACTION POINTS FOR are used or cycled), outflow Veolia and Yara, in which food
of resources, and selected waste is utilized to produce
COMPANIES TO START qualitative aspects of a high-quality fertilizers and soil
THEIR CIRCULAR company, such as tools and improvers for regenerative
BIOECONOMY processes or participation agriculture.
JOURNEY in cross-industrial initiatives, Collaboration is also at
for example, the WBCSD’s the core of international
Each company is different and Circular Transition Indicators agreements about the shared
has its unique benefits and (CTI).65 use of the biological diversity
challenges—similarly, the circular of our planet, such as the
2.
bioeconomy journey will look Nagoya Protocol.66
Evaluate sustainability trade-
different for each one. To support
offs: • Actively communicate the
companies in their individual
bioeconomy achievements
transformation toward a circular • Conduct assessments of the and celebrate success to
bioeconomy, we developed four sustainability performance motivate employees, attract
high-level action points with of circular, bio-based new customers, strengthen
seven concrete steps, detailed products to understand the existing relationships, and
below and illustrated in Figure 38. underlying trade-offs. To guide satisfy investors.
companies along the most
1. 4.
critical social, environmental,
Identify entry point: Start small, then scale:
and economic considerations,
• Ensure that the CEO and a checklist across four main • Educate and empower
board are supporting the principles was developed and employees across all
circular transformation can be found in Chapter 5.3. business units to ensure
and, as such, represent Sustainability analyses, such that values of the circular
ambassadors for the circular as a life cycle assessment, bioeconomy are lived
bioeconomy. can support the checklist throughout the organization.
completion by providing the
• Set clear targets, identify • Develop new product
data needed to address key
processes and products innovations with clear
questions.
within the company which business cases that pave
are suited for the circular 3. the way for disruptive
bioeconomy, and develop Collaborate: business models. For this,
an actionable roadmap. companies need to evaluate
• Identify partners to turn
This should be based on an the whole value cycle, from
(waste) streams into value
in-depth understanding of design to end-of-life and
streams and collaborate
the company’s baseline level take-back mechanisms. Such
actively with them. One
of circularity. Such a baseline holistic and transformative
example for this opportunity
can be achieved by assessing innovations will help to scale
was shown in the Nutrient
the inflow of resources, slow the circular bioeconomy.

Figure 38: Four high level action points

1 Identify 2 Evaluate sustainability

entry point trade-offs
Set clear targets and identify Conduct assessments that support
processes and products which are the evaluation of sustainability trade-
suited for circular bioeconomy offs (e.g., life cycle assessment)

3 Collaborate 4 Start small,

then scale
Collaborate and find partners to turn Start to develop new product
waste streams into value streams. innovations with clear business
Working with all value chain partners, cases that pave the way for
from sourcing, to product design, to disruptive business models and
policy makers and consumers bring your customers to the circular
bioeconomy

Circular bioeconomy: The business opportunity contributing to a sustainable world 60

6 Concluding remarks

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world61
61
 6 Concluding remarks
In a circular bioeconomy, Environmental urgency. The biological solutions. The
(secondary) renewable, global economy is expected to four principles for a circular
biological resources are cycled grow further due to an increasing bioeconomy provided in this
in closed loops, ensuring a world population and rising report can support companies in
continuous reuse of products average income. Based on this this evaluation as they ensuring
and materials, as well as growth, the amount of resources that:
recycling or composting at the required per year is expected to
1. Biological resources are
end of their life. This alternative double from 2017 to 2050, with
renewable, regenerated
economic system provides 75% of the materials continuing
sustainably, reused, and
a sustainable way to shift to be fossil-based.67 This
recovered.
from fossil-based materials. development is risking that we
It should be supported by reach our planet’s boundaries. 2. Environmental services
public policy and implemented Climate change, biodiversity and values are maintained,
by corporates due to both loss, land use change, food loss conserved, and/or enhanced.
environmental need and and waste, as well as resource Negative environmental
economic opportunity. scarcity are all results of our linear impacts are avoided, reduced,
economic systems. or restored.
Economic opportunity. The
circular bioeconomy offers a Increasing sustainability and 3. Societal value is maintained
significant business opportunity waste awareness, a shift away or enhanced for employees,
with an expected market growth from conventional plastics, and communities, customers, and
of USD $7.7 trillion by 2030. the drive to decarbonize supply consumers across the whole
Approximately one-third of chains all fuel the transition toward supply chain.
this opportunity comes from a circular bioeconomy. However,
4. Long-term economic viability
food and feed waste. The barriers remain.
is maintained or enhanced
remaining potential lies within To ensure the superior while providing value for
product industries—primarily sustainability performance, trade- corporate and societal
pharmaceuticals, textiles, building offs must be evaluated carefully stakeholders.
materials, and packaging. to change
Companies incorporating circular the public
bio-based solutions can expect perception
increased financial performance, toward
improved risk mitigation, and
higher customer as well as
employee attraction and retention.

Circular bioeconomy: The business opportunity contributing to a sustainable world 62

On a micro-level, companies based products in their product companies that operate within
need to prioritize bio-based, portfolio, including in packaging. the regenerative capacity
renewable input materials and In doing so, they can guide of our planet and that can
strive for circularity to capture the customers’ choices and influence increase shareholder value in
benefits of a circular bioeconomy the entire value chain. the long-term.
and contribute to mitigating
Moreover, additional actors of the
environmental and climate issues.
economic system must contribute
To start their journey, businesses
to the required change:
Given the economic
first need to identify an entry point, opportunity and
evaluate sustainability trade-offs, • Consumers must adapt environmental urgency, this
start small and subsequently scale their perception concerning report is a call to action for
up, and collaborate with external bio-based products to allow
companies to transition to
partners. these solutions to flourish and
a circular bioeconomy, with
change from a need to own
To successfully transition to a
products toward a desire of all actors collaborating to
circular bioeconomy, changes
using a service. enable such a transition.
on an isolated micro-level will
not be enough. Collaboration • Governments must continue
is key to successfully integrate setting favorable policies
circular, bio-based solutions, and for companies active in the
active communication is required circular bioeconomy and
to foster an open dialogue and could possibly go as far
shape public opinions. Companies as phasing out regulations
across different industries and supporting fossil-based
value cycle steps must collaborate alternatives.
to understand each other’s needs
• Investors can contribute in
and potentials. For example,
providing the required initial
feedstock suppliers can play a
and long-term finance to
critical role by producing adequate
scale up solutions. Through
accessible, sustainable, and cost-
taking a longer-term
competitive renewable resources
perspective, it becomes
to enable the bioeconomy to grow.
unavoidable to invest in
At the same time, they must have
a fair income. Brand owners must
adjust their business model to give
more room and visibility to bio-

Circular bioeconomy: The business opportunity contributing to a sustainable world 63

7 Further resources

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world64
64
 7 Further resources
For further information on the circular bioeconomy, please reach out to WBCSD and BCG.
BCG’s sustainability experts have extensive project experience with clients across the globe.

As a high-level summary to this extensive report for the circular

bioeconomy, WBCSD and BCG published the CEO Guide to the Circular
Bioeconomy. More details can be found at
https://www.wbcsd.org/ceogcbe

BCG conducted a joint study with WBCSD and approximately 100

leading circular bioeconomy companies across industries, resulting in
publications such as The New Big Circle, on which more details can be
found at https://docs.wbcsd.org/2018/01/The_new_big_circle.pdf

A relevant publication with further insights on bioenergy and biofuels

was published by WBCSD’s New Energy Solutions project at the COP24
and can be found here: https://docs.wbcsd.org/2018/12/WBCSD_New_
Energy_Solutions%20for_1.5C.pdf

On the topic of food loss and waste, BCG published a study on how
companies can tackle the challenge here: http://image-src.bcg.
com/Images/BCG-Tackling-the-1.6-Billion-Ton-Food-Waste-Crisis-
Aug-2018%20%281%29_tcm9-200324.pdf
And collaborated with WBCSD and Sonae on a report here: https://
www.bcg.com/en-us/publications/2020/recipe-to-reduce-food-loss-
and-waste. You may also consult WBCSD’s CEO Guide to Food System
Transformation here: https://www.wbcsd.org/Programs/Foodand-
Nature/Food-Land-Use/Resources/CEO-Guide-to-Food-System-
Transformation.

Circular bioeconomy: The business opportunity contributing to a sustainable world 65

8 Appendix and references

Circular
Circularbioeconomy:
bioeconomy:The
Thebusiness
businessopportunity
opportunitycontributing
contributingtotoa asustainable
sustainableworld
world66
66
8.1
KEY DATA POINTS FROM BUSINESS CASE AND INDUSTRY DEEP DIVES
Overview of business case data

Market size Market growth Biomass Biomass growth

Industry Year
(in USD $ billion) p.a. (‘18-20’) (in M tonnes) p.a. (‘18-20’)

Total industries 2018 10,330 23,369

2030 12,819 1.8% 26,613 1.1%

All industries excluding food

2018 5,730 11,983
end use, incl. food waste

2030 7,642 2.4% 13,798 1.2%

All industries excluding all food

2018 3,430 6,259
and feed

2030 5,054 3.3% 7,348 1.4%

Overview of industry specific data

Market size Market growth Biomass Biomass growth Biomass share

Industry Year
(in USD $ billion) p.a. (‘18-20’) (in M tonnes) p.a. (‘18-20’) (in %)

Pharmaceuticals 2018 264 68 21.0%

2030 760 9.2% 91 2.4% 38.0%

Textiles and wearing apparel 2018 417 119 46.0%

2030 686 4.1% 185 3.7% 45.0%

Building materials &

2018 331 361 3.5%
construction
2030 682 6.2% 989 8.8% 7.0%

Packaging 2018 375 161 43.0%

2030 544 3.2% 352 6.8% 44.0%

Motor vehicles &
2018 255 255 4.6%
components
2030 526 6.2% 525 6.2% 5.0%

Other forest products 2018 133 206 27.0%

2030 201 3.5% 310 3.2% 29.0%

Electronics & electrical
2018 117 37 5.3%
products

2030 217 5.1% 67 5.0% 7.2%

Machinery & equipment 2018 52 34 4.0%

2030 96 5.3% 58 4.5% 5.5%

Biomass energy & biofuels 2018 143 2,011 9.7%

2030 188 2.3% 2,419 1.6% 10.5%

Food & feed losses & waste

2018 2,300 5,700 98.0%
for composting purposes

2030 2,590 1.0% 6,400 1.0% 98.0%

Circular bioeconomy: The business opportunity contributing to a sustainable world 67

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ENDNOTES
1
Excluding food and feed end use keep a GDP growth of 2.8% Database. Retrieved February
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2
Circle Economy. (2020). The decrease in material intensity freedoniagroup.com/); WU
circularity gap report. by 1.3% per year due to Vienna. (2020). Database.
structural and economical Retrieved March 13, 2020 from
3
WBCSD has developed the changes e.g., slowing down in https://www.wu.ac.at/; WBCSD
Circular Transition Indicators to construction boom, then we and BCG analysis
help companies measure their will be consuming twice the
circularity. More information materials as of today, estimated 18
Oxford Economics; European
on this work here: https:// to be 167 billion tonnes in commission; WBCSD; BCG
www.wbcsd.org/Programs/ 2060. Circle Economy. (2019). analysis
Circular-Economy/Factor-10/ The circularity gap report.
Metrics-Measurement/Circular- 19
Excluding construction,
transition-indicators 11
OECD. (2018). Highlights global packaging, and biomaterials
material resource outlook to from already mentioned
4
Circle Economy. (2019). The 2060. industries
circularity gap report.
12
This number is excluding 20
Biooekonomie.de; European
5
Circle Economy. (2019). The the actual food and feed Commission; Frost & Sullivan;
circularity gap report. consumption BCG analysis; further read:
https://biooekonomie.de/en/
6
WWF. (2020). Biodiversity. 13
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us/en/insights/report/2018/
7
Circle Economy. (2019). The unpacking-the-sustainability- 21
Biooekonomie.de; European
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Research; United Nations; BCG
8
United Nations’ 14
Brighthouse and BCG. (2016). analysis; further read: https://
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Global Warming of 1.5°C. An 15
IEA Bioenergy. (2020). Fossil 22
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9
Kenniskaarten. (2020). Definition
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10
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Circular bioeconomy: The business opportunity contributing to a sustainable world 72

 ACKNOWLEDGEMENTS To succeed, organizations must ABOUT WBCSD
blend digital and human capabilities.
Our diverse, global teams bring deep
This document is based on analysis WBCSD is a global, CEO-led
industry and functional expertise and a
by Boston Consulting Group (BCG) organization of over 200 leading
range of perspectives to spark change.
and WBCSD from interviews and businesses working together
BCG delivers solutions through
consultations with WBCSD members to accelerate the transition to a
leading-edge management consulting
that took place between May and sustainable world. We help make our
along with technology and design,
October 2020. member companies more successful
corporate and digital ventures—and
and sustainable by focusing on
We would like to thank the following business purpose. We work in a
the maximum positive impact for
organizations and people for uniquely collaborative model across
shareholders, the environment and
their valuable contribution to the the firm and throughout all levels of the
societies.
development of this Roadmap. client organization, generating results
that allow our clients to thrive. Our member companies come from
all business sectors and all major
CONTRIBUTORS: economies, representing a combined
Members of WBCSD’s Factor10 WBCSD’S FACTOR 10 revenue of more than USD $8.5
trillion and 19 million employees.
program: Arcadis, April Group, BASF,
Our global network of almost 70
Clariant, DSM, GSK, IFF, Neste, Yara Factor10 is WBCSD’s circular national business councils gives our
economy program. It brings members unparalleled reach across
Members of the Forest Solutions
companies together to reinvent how the globe. Since 1995, WBCSD has
Group: Aditya Birla Group, Campbell
business finds, uses, and disposes been uniquely positioned to work with
Global, CMPC, Hancock Natural
of the resources and materials that member companies along and across
Resource Group, International Paper
make up global trade. It will bridge the value chains to deliver impactful
Company, Mondi Group, New Forests,
gap between theory and practice to business solutions to the most
Philip Morris International, Smurfit
help companies identify and remove challenging sustainability issues.
Kappa Group, Stora Enso, Sumitomo
barriers and create scalable solutions.
Forestry, and the Navigator Company.
It is the global business collaboration Together, we are the leading voice of
Other WBCSD Members: Eni, delivering innovative, scalable business for sustainability: united by
Mahindra, The Goodyear Tire & Rubber solutions for the circular economy. our vision of a world where more than
Company For more info, please visit https:// 9 billion people are all living well and
www.wbcsd.org/Programs/Circular- within the boundaries of our planet,
Coordination: Economy/Factor-10 by 2050.
WBCSD: Angela Graham-Brown, Follow us on Twitter and LinkedIn
Brendan Edgerton, Elena Giotto, Luis
Rochartre THE FOREST SOLUTION www.wbcsd.org

BCG: Alexander Meyer zum Felde,

GROUP (FSG)
Carolin Lanfer, Holger Rubel, Jan
Oltmanns, Merle Stepke-Müller WBCSD’s Forest Solutions Group Copyright
(FSG) is the global platform for the
forest sector value chain to build
Copyright © WBCSD, November 2020.
and share business solutions to lead
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CONSULTING GROUP products sector. FSG’s mission is
to advance the bioeconomy and a
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with leaders in business and society healthy productive forests and
to tackle their most important people’s well-being. For more info,
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clients with total transformation—
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bottom-line impact.

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