Europe's bio-economy is worth €2.2 trillion and employs 18.6 million
people across the bloc, but a third of citizens are unaware it exists.
"People are completely unaware that the EU is number one in the world
[for bio-based products] and they don't know it is investing [in the
bio-economy]," said Susanna Albertini, managing director of FVA, the
Italian partner of the Bioways project, at the first stakeholder forum
for the bio-based industries (BBI), which took place in Brussels on 7
December.
The BBI joint undertaking (BBIJU), running from 2014-2020, is a €3.7
billion public-private partnership between the EU and the Bio-based
Industries Consortium. EU funding through Horizon 2020 has committed
€975 million, with the rest coming from private investment.
So far, for every €1 put in by the EU, €2.59 has been invested by the
private sector. Companies outside the EU are "getting interested" in
what is going on here, said Philippe Mengel, executive director of the
BBIJU. "The EU is back on the map as a place to invest in bio-based
industry."
Since the BBIJU started in 2014, 45 new bio-based building blocks have
been developed, exceeding the 2020 target of 30, as well as 90 new
bio-based materials, against a target of 50.
Some 40 new bio-based consumer products have also been launched (the target was 30).
One innovation with considerable potential – not least given the focus
on disposable plastics currently – is PEF (polyethylene furanoate), a
bio-based alternative to PET (polyethylene terephthalate).
Around 70 percent of soft drinks are now packaged in PET plastic
bottles, but PEF is the "first example of a polymer that's better than
the petroleum-based ones", said Tom Van Aken, CEO of Avantium, which has
developed the technology.
Stronger and thinner than its oil-based cousin, PEF also has improved
barrier properties, said Van Aken, so the shelf-life of products can be
extended.
Backed by a €25 million BBI subsidy, the company is part of a consortium
developing a supply chain for FDCA (2,5-furandicarboxylic acid), the
building block for PEF. Coca-Cola and Danone have also invested in
Avantium's research.
For bio-based products, supply chains are critical.
New markets for agricultural and forestry products that are used in
bio-based materials could reportedly create around 700,000 jobs by 2030,
80 percent of them rural, and much has been made of the potential in
the bio-economy to tick a number of boxes in terms of economic and
environmental sustainability.
PEF won't be available commercially before 2020, for example, but it is
part of a global bio-plastics market that is set to grow 20 percent in
the next five years, according to research published at the European
bioplastics conference in Berlin in November.
Asia accounts for the largest share of production (50 percent). Europe
represents 20 percent, but this should expand to 25 percent by 2022,
thanks to the European Commission's commitment to transitioning to a
circular economy model.
A political deal on the circular economy package was struck on Monday (18 December).
A full review of the bio-economy strategy – which is seen as
complementary to the circular economy – is planned for 2018, but a
progress report published in November has already concluded that "there
is great potential in a sustainable circular bio-economy".
With forward-thinking policies in place more investment should follow.
As Europe's science and research commissioner Carlos Moedas has said:
"Private money goes where stability is and where policies are
predictable."
Much less predictable is how consumers view bio-based products. It was
through a couple of new surveys with 500 people that Bioways – which was
set up to raise awareness of bio-based products – discovered just how
poor people's understanding is. "It's a mess," admitted Albertini.
To date, there has been little research on people's perceptions regarding bio-based products.
One of the few academic studies there are suggested a general state of
confusion. Researchers in the Netherlands quizzed 89 people from five EU
countries (a fair-sized study in qualitative terms) and concluded that a
large number of them had questions, felt uncertain or had "mixed
feelings" regarding the whole thing.
"It [bio-based] is very strange. What does it mean?" admitted one of the
consumers involved. Others suggested the whole thing could be a
"marketing gimmick".
Concerns certainly intensified when the products in question are not 100
percent bio-based (one of the products given to them was Coca-Cola's
part-plant bottle), or if they were produced outside the EU in countries
(for example, a hemp-based T-shirt from China).
Companies will need to tread carefully when it comes to marketing their
wares. Whether it's face creams enhanced by cellulose microfibrils,
thistles for compostable packaging or waste milk proteins that are used
to make dresses, the message from the study was to keep things simple
and clear.
The term 'bio-based' doesn't help in that respect. But this shouldn't
stop companies ramping up their efforts to communicate the environmental
benefits and functionality of their products.
MEP Lambert van Nistelrooij, the Dutch Christian Democrat member of the
Europe People's Party, said Europe's design ability isn't always matched
by its selling techniques. He called on the sector to "be visible and
be touchable."
Some already are. In a survey of 40 brands by bio-economy communications
specialists, Sustainability Consult, published in November, 71 percent
said they were already communicating their use of bio-based products
externally.
Consumer demand for environmentally-friendly products was the key driver for their investment.
More and more member states have also adopted bio-economy strategies,
which will help raise awareness at a national level. And the potential
of the bio-based economy will no doubt continue to appeal to a
commission that has made jobs, growth and investment a priority.
"I think 2018 is going to be a turning point for the bio-economy as
it moves from niche to norm," said John Bell, bio-economy director at DG
research and innovation.
At €2.2 trillion and 18.6 million jobs you could say the bio-economy
has already arrived – but many people are still waiting for the bang.
Read more: Europe's 'best-kept secret' - its booming bio-economy