In June, Lux Research participated in World Bio Markets 2025 in The Hague, Netherlands — a leading event for the bioeconomy sector focused on advancing biobased innovation and sustainable materials. This international conference brought together startups, corporates, investors, and plant operators to explore critical topics such as biomanufacturing for personal care, food, packaging, and construction; strategies for scale-up; and ways to strengthen the downstream market.
Across two days, the event featured 30 expert presentations and panel discussions, spotlighting artificial intelligence (AI), commercialization hurdles, lessons from scale-up efforts, and the realities of building a biobased business. While the tone remained optimistic, conversations consistently returned to persistent industry challenges, including complex scale-up pathways, regulatory uncertainty, and difficulties aligning goals across the value chain.
Here are three major themes shaping the future of the biobased economy:
1. Biobased Products Must Compete on Performance, Not Just Sustainability
A recurring message from World Bio Markets 2025 was that sustainability alone no longer justifies a price premium. Market adoption of biobased products increasingly depends on meeting or exceeding the performance of incumbent materials. Attendees from the chemicals, personal care, and packaging industries emphasized that biobased alternatives must deliver technical performance, reliability, and product quality on par with conventional solutions.
Panelists from Evonik and L’Oréal shared insights on integrating biomanufactured ingredients into their supply chains, noting that customers expect functional benefits such as enhanced biodegradability alongside sustainability. Fabien Deswarte, Head of Strategic Partnerships for Sustainability at L’Oréal, stated that performance gains beyond sustainability are now essential to win customer adoption.
Michelin’s Aymeric Denoeud, Chief Revenue Officer at Michelin ResiCare, discussed the company’s investment in producing hydroxymethylfurfural from fructose at Le Péage-de-Roussillon, France, aimed at improving resin quality, stabilizing supply chains, and meeting sustainability goals.
Startups echoed this sentiment. Isabel Alvarez, CEO of Cellugy, highlighted that demonstrating comparable or superior functionality to traditional materials is key to attracting strategic partners. She noted that without validated, consistent performance — proven through testing and real-world applications — customers remain hesitant to switch to biobased products.
2. CDMOs, Investors, and Partnerships Are Crucial to Scaling Biobased Technologies
The importance of risk reduction in biobased scale-up and commercialization was a central theme at the event. Contract development and manufacturing organizations (CDMOs) emerged as vital partners in accelerating deployment. They offer operational reliability, process expertise, and infrastructure to reduce the risks of scaling first-of-a-kind facilities.
Startup leaders emphasized that working with CDMOs allows them to focus on core priorities such as process optimization, product validation, and go-to-market strategies. Jan Weernink, Chief Commercial Officer at GFBiochemicals, shared how CDMOs have helped them produce novel biobased molecules like levulinic acid by leveraging established industry networks and mitigating downstream market gaps.
Investor sentiment was also a focus of discussion. Participants noted that banks and venture capitalists prefer funding startups that demonstrate early traction through secured grants, revenue, or strategic alliances. To attract institutional capital, early-stage biobased companies must first establish credibility.
The event also underscored the importance of securing strong value-chain partnerships. Collaborations among technology developers, corporates, and downstream customers help reduce uncertainty, improve resource allocation, and accelerate commercialization. Localized supply chain partnerships were also highlighted as critical to enhancing feedstock access, regional resilience, and market readiness.
3. Artificial Intelligence Enhances Efficiency in Biomanufacturing, Not Disruption
AI’s role in biomanufacturing was addressed during a panel moderated by the nova-Institut, emphasizing that AI is not replacing traditional R&D but is helping make it more targeted and efficient. AI is currently being used to streamline experimental planning, optimize workflows, and accelerate strain and process development.
However, challenges remain. Many attendees noted that AI’s effectiveness is limited by data quality and infrastructure gaps. Inconsistent documentation of key variables — such as yield, purity, and reaction conditions — hinders the development of reliable machine learning models. Without access to robust pilot facilities and skilled personnel, AI-generated insights cannot easily translate to scalable solutions.
Damien Perriman, Chief Commercial Officer of eXoZymes, stated that AI is less about molecule discovery and more about reducing physical iterations in early development by narrowing experimental ranges. The consensus was that AI holds real promise for biomanufacturing efficiency — but success depends on proper integration with lab infrastructure, team capabilities, and scale-up strategies.
Lux Take: Strategic Partnerships and Execution Discipline Will Drive Biobased Commercialization
World Bio Markets 2025 showcased accelerating momentum in the bioeconomy but also highlighted the uneven pace of commercialization. Lux recommends clients prioritize trilateral partnerships involving technology developers, manufacturing partners, and downstream customers. These collaborations are best positioned to turn technical validation into procurement commitments.
Investor caution persists, especially toward unproven scale-ups. As a result, clients should engage early but with clear scale-up objectives and market-fit indicators in place to guide support and reduce risk exposure. The path to successful biobased commercialization will depend less on radical technology breakthroughs and more on disciplined execution, strong stakeholder alignment, and phased development.
Each partnership, funding milestone, or technical achievement must directly support the transition from development to market deployment. Only with this level of coordination and strategy will the biobased economy achieve widespread commercial traction.
To discuss these trends further, reach out to schedule a meeting with the Lux Team.