2025 was a dynamic year for the biobased sector, with important developments across regulation, innovation, and investment.
Overall, scaling momentum continues to grow, particularly in Asia, while biotech investment also showed signs of recovery.
We review the biggest themes from the year, starting with innovation.
Innovation
New biopolymers
Biopolymer innovation was a major theme this year, with both brands and labs unveiling new renewable materials.
The LYCRA company announced its new corn-based fibre in April, a 70% renewables-based alternative to conventional Lycra. The company says it may reduce the carbon footprint of the material by up to 44 percent.
Another biopolymer launch came from Covation Biomaterials. Its bioPTMEG replaces an ingredient usually made from petroleum that goes into manufacturing spandex, polyurethanes, and thermoplastic elastomers.
Fashion was not the only target for new plant-based swaps. Planet Smart came out with its biobased super-absorbent polymer, meant to replace petroleum-based absorbers in menstrual pads and diapers.
Lab innovations were full of industry potential. Researchers at the Max Planck Institute reported on an enhanced bacterial strain that produces renewable materials more efficiently. The bacteria increased biomass production rate by 15-20% in the lab, the sort of bio-engineering that could support cost-effective biomanufacturing.
Recyclable bioplastics have been a major theme in research output this year. Purdue University researchers focused intensively on developing recyclable corn-based bioplastics made using enzymes. At Northeast Forestry University in China, researchers reported on a bamboo plastic that fully biodegrades in soil within 50 days. They also say the material can be recycled with 90 percent of its original strength maintained.
Fashion demands better
2025 saw an uptick in fashion brands reaching for renewable materials, particularly in categories like sports, where sustainable alternatives have been hard to develop.
Under Armour and UNLESS launched an entirely plant-based line of athletic apparel – a technical feat in a segment where fossil-based polymers dominate for their light-weight functionality.
Stella McCartney is now using Balena’s new industrially compostable BioCir material in the soles of its S-Wave trainers. Soles are one of the most environmentally impactful elements of footwear, a problem that Fashion for Good is trying to tackle in its new R&D project on biobased polymers.
Meanwhile, Hugo Boss introduced its own recycled polyester yarn made from textile waste this year. The company is exploring licensing options that may eventually allow other companies to use the material as well.
In the lab, too, biomaterials for sportswear got mounting attention. Donghua University developed a biobased and PFAS-free waterproof fabric. This is the holy grail of sustainable outdoor apparel design, which currently relies on harmful chemicals to make waterproof gear.
Still, high prices are inhibiting wider uptake of renewable materials in fashion. To mitigate the problem, Fashion for Good launched a pricing process this year that aims to keep novel textiles competitive with legacy materials – the Price Parity Toolkit.
According to this method, end-retailers and brands pay a fee upfront to fabric producers right at the start of the supply chain. This enables the fabric producer to sell to the next company at a lower price, meaning a less rapid mark-up as the material moves further down the supply chain.
Regulation & policy
Trump’s overhaul
One policy story dominated in early 2025: the return of a Trump-led administration to the White House.
The administration quickly revoked Executive Order 14081 issued by the previous administration to advance the US bioeconomy. This meant far more uncertainty for US biomanufacturers this year than in 2024. Yet some US lawmakers pushed back, proposing new laws to sustain biomanufacturing growth.
Senators Amy Klobuchar (Democrat, Minnesota), and Jerry Moran (Republican, Kansas) introduced the Agricultural Biorefinery Innovation and Opportunity (Ag BIO) Act in March. It seeks to improve support for advanced biofuels, renewable chemicals, and biobased products, including competitive grants.
The National Biotechnology Initiative Act, introduced in April, could bring back some of the coordinating functions provided by the revoked Executive Order. It aims to bring biotech-relevant agencies and policies, covering every sector from agriculture to defence, under a single national strategy.
Other proposed laws aim to offer sustained support to US foodtech innovation. Senator Adam Schiff (Democrat, California) recently introduced a bill in the US Senate to directly fund research, manufacturing, and training in novel proteins.
Some policies from the new government have benefited certain bio-producers. In June, the Trump administration proposed to raise the amount of US biofuels that petroleum refiners must blend into the domestic fuel supply over the next few years.
A new EU bioeconomy strategy
The EU’s Bio-based Industry Consortium responded to White House policy shifts by calling on US companies to move to Europe, a sign that biomanufacturing remains high on the agenda in the region.
Nonetheless, the role of the EU bioeconomy is changing. During the 2020s, climate and sustainable food production were key drivers of biobased policy. Now, with the EU’s manufacturing sector facing high energy prices, US tariffs, and reduced demand from China, biomanufacturing is seen as a pathway to economic competitiveness.
The economic potential of biomanufacturing was at the fore in the EU’s updated bioeconomy strategy released in November.
The strategy promised to harmonise regulations and tackle the funding gap for biomanufacturing. It said it would also target support at high value-add, market-ready segments, such as bioplastics, biobased textiles, biochemicals, construction, and biobased plant products.
Foodtech matures
Foodtech funding was down almost 60% year-on-year. Yet as established players mature, the industry faces new challenges, such as securing regulatory approvals.
More companies than ever before are re-shaping the future of food production, forcing countries to catch up with their legislative processes. This is the case in the UK, whose small but growing insect bioconversion industry is finally getting serious regulatory attention.
In May, Innovate UK got £326,610 to develop new safety evaluation procedures for the UK insect industry. As elsewhere, the UK must develop systemic measures of risk, safety, and regulatory compliance of insect-derived feed, food, and oils before they can go on the market. This is especially where insects are fed on waste.
Other foodtech products already enjoy a much more certain regulatory environment. Early in the year, Onego Bio, Finnish-US food ingredient company, submitted a notification to the US Food and Drug Administration for its non-animal egg protein.
Biobased farming inputs continue to gain confidence from regulatory bodies. Biotalys got the go ahead from the US Environmental Protection Agency for its protein-based biofungicide in December. In June, ProGro BIO announced plans to seek EPA approval for biocontrol products that target crop pathogens and insects with all-natural ingredients.
Investment
The pandemic ‘sugar rush’ in sustainable biotech investment came back down to earth with a bump in 2023. Ever since, industry players have been watching for signs of a rebound
Positive indicators abounded this year. In the first quarter of 2025, there were some indications that the worst of the funding drought could be over when Net Zero Insights reported a surge in biomaterials investment during the period.
Over the year, the iShares Biotech Exchange Traded Fund (ETF) jumped in share price nearly 29%. There was a 37% jump for the SPDR S&P Biotech ETF. Overall, funding activity in biotech finally exceeded 2019 levels after the post-pandemic slump.
Patterns of investment have changed from the pandemic peak, however. Fewer biotech companies were getting larger amounts of capital this year. This suggests investors are placing safer bets on more established companies with proven processes.
Western biotech funding may have bottomed out but the major growth prospects now lie in Asia Pacific. Here, juggernauts like China and India, as well as emerging players like Thailand and Vietnam, are building domestic biobased industries to lock in future growth.
Despite the disruptions of a trade war with the US, Chinese biotech deals in 2025 increased slightly to 2024, indicating the sector’s resilience to external shocks. Other Asian governments are investing into biobased infrastructure in a bid to attract private investment.
In Asia, bioeconomy policies are embedded into national growth strategies. Indonesia, for example, is trying to strengthen national energy self-sufficiency by expanding its domestic biofuels production.
Thailand has tied biomanufacturing to its national development strategy for years, resulting in a stream of major capacity investments. Foreign investments into Thailand’s biobased sector continued in 2025. BASF announced an expansion there in December while Braskem entered a joint venture for a bio-ethylene plant with SCG Chemicals in August.
Singapore is a hotbed of innovation in the biobased sectors, supported by government investment. The bioeconomy is set to see a significant portion of the new 5-year $37 billion package for research, innovation, and enterprise.
With major public investments, local raw materials, and competitive costs, Asia is shaping up to become the site of the next phase in biobased scaling.
