A circular economy for bio-based materials can unlock new revenue streams, drive innovation, and strengthen supply chain resilience.
Most bio-based materials are still produced and consumed within linear systems. A circular economy approach changes that by enabling regenerative sourcing, keeping materials in use, valorising by-products and residues, and building business models that decouple revenue from virgin resource extraction.
This approach can improve resource productivity, unlock new revenue streams, and strengthen supply chain resilience. For bio-based-material-producing countries, the opportunity is particularly significant. Shifting from commodity exports towards regenerative production, value-added manufacturing, and local recirculation systems can help capture greater economic value domestically, build more diversified and resilient industries, and create skilled jobs across the value chain, from regenerative agriculture and material innovation to repair, recycling, and biorefining. For the purposes of this report, bio-based materials refer to materials derived from renewable biological resources and used in durable applications. These include materials such as wood, pulp and paper, natural textile fibres, rubber, and leather, applied across sectors including construction, furniture, fashion, and automotive manufacturing. The analysis does not cover consumable biological resources such as food, fuels, or cosmetics.