The bioeconomy, rooted in life sciences and biotechnology, aims to replace fossil fuel raw materials with sustainable, renewable bio-based alternatives. The US, China, and Europe—being the three largest markets—are all increasing their investments in this area. Although there is a shared consensus on development goals, the approaches to implementation vary among these regions.

US: Leading in R&D but struggling to scale

The US government has initiated efforts to promote the bioeconomy through an executive order aimed at strengthening supply chains. This plan focuses on building a pharmaceutical and chemical supply chain using bio-compounding technology to reduce reliance on raw material imports from Asia.

Biomanufacturing has emerged as one of the fastest-growing areas within the US bioeconomy, with the country accounting for 40% of global investment in this sector, positioning it as a leader in research and development.

However, a report from the McKinsey Global Institute highlights a critical challenge: the difficulty of scaling biotechnology. This creates a significant gap between the vast potential of biotechnology and its commercial viability.

The US National Biotechnology and Biomanufacturing Initiative (NBBI) has identified the lack of infrastructure for local manufacturing as a major obstacle to developing the bioeconomy. The NBBI recommends increasing investment to address this bottleneck.

China: Catching up with a focus on high-end sectors

China is rapidly advancing in the bioeconomy, particularly in biomanufacturing and bio-based materials, leveraging its strengths in large-scale industrial manufacturing and cost control.

The National Development and Reform Commission has released the 14th Five-Year Plan, which outlines four key areas for development. One of these focuses on green, low-carbon applications of biomaterials, including bioenergy and bio-based products.

This strategic plan aims to support the entire value chain, from fostering innovation and creating high-level bioeconomy platforms to establishing a comprehensive market with legislative backing. It provides robust support for bioeconomy development through a well-regulated environment and adequate capital resources.

According to data from various industry conferences and associations, China's bioeconomy is valued in the trillions of RMB, with continued growth contributing to an increasing share of GDP. For instance, SINOPEC has successfully established an industrial line for converting corn stalks into bio-based polyester, achieving an annual capacity of 100,000 tons. This material is already being supplied to well-known local and global brands.

However, in the high-tech sectors, China still relies heavily on imports, which presents a significant challenge to domestic production of alternative materials. While China has made noteworthy strides in bioeconomy development, further efforts are needed to enhance competitiveness in high-end sectors.

Europe: Proposing a new strategy with breakthroughs on the horizon

Europe's bioeconomy is currently hindered by a lack of market demand and standardization, which obstructs the expansion of bio-based material suppliers. To address this, the EU launched the Biotech and Biomanufacturing Hub at the beginning of 2025 to facilitate technology transfer and the commercialization of innovative products.

European Bioplastics (EUBP) has noted that although Europe possesses leading bioplastics technology, companies are hesitant to scale up due to fragmented regulations, inconsistent recognition of bio-based content, and insufficient demand signals. This situation highlights the need for clearer standards and definitions, streamlined authorizations, and improved metrics as foundational elements for developing the bio-based materials industry.

To overcome these challenges, the EU proposed a new bioeconomy strategy in December 2025 aimed at unlocking market potential and promoting a green transition across industries. This strategy focuses on four major areas: bringing bio-based innovations to life, developing lead markets for bio-based materials and technologies, ensuring sustainable biomass usage, and seizing global opportunities. The impact of this new strategy will take time to assess.

Bioplastics: Key support and driver for bioeconomy

Bioplastics, including polylactic acid (PLA) and polyhydroxyalkanoates (PHA), are pivotal in transforming the bioeconomy. As a primary category of bio-based materials, they are produced from renewable biomass through biotechnology, eliminating reliance on fossil fuels. This aligns with the core principles of the bioeconomy, which emphasize renewal, low carbon emissions, and circularity. Bioplastics bridge the gap between biomass and high-value industrial materials, allowing the bioeconomy to establish a firm foothold in industrial practices.

The industrialization of bioplastics significantly propels bioeconomic development. On one hand, the rising demand for bioplastics drives advancements in critical technologies such as synthetic biology and biocatalysis, facilitating cross-sector applications and fostering collaboration within the industry. On the other hand, the use of bioplastics is expanding from consumer goods into high-end sectors, creating new growth opportunities for the bioeconomy.

However, the integration of bioplastics and the bioeconomy presents both opportunities and challenges, as seen in the practices of the US, China, and Europe. Currently, bioplastics face challenges such as high production costs, underdeveloped technologies for utilizing non-food raw materials, and inadequate closed-loop recycling systems. Addressing these challenges will necessitate supportive policies and collaborative efforts across the industry chain.

According to a market report by Mordor Intelligence, the global bioplastics market reached 2.37 million tons by 2025, with a projection to grow to 5.43 million tons by 2030, reflecting a CAGR of 17.25%. In the future, with technological advancements and improved systems, bioplastics are poised to further unlock industrial potential and deeply integrate with the bioeconomy. This will provide essential support for global bioeconomic development, contribute to green, low-carbon transitions, and help achieve carbon neutrality goals.