Bio-based Materials and Applications

Trend Definition

What is the essence of this trend? What is its impact?

• Essence: Bio-based Materials are used as more sustainable and renewable materials in manufacturing processes to replace earlier, conventional synthetic manufacturing inputs 
• Impact: The adoption of Bio-based Materials is enhancing the sustainability of manufacturing processes but also requires a detailed analysis of their feasibility for existing processes and finished goods in general

Trend Drivers

Why is this trend emerging now? What’s changing?

• Stringent Environmental Regulations: Legal frameworks (e.g., European Green Deal) require the use of sustainable, Bio-based Materials 
• Circular Economy and Waste Reduction Goals: Growing emphasis on circular economy aims to reduce waste and promote resource efficiency through a shift towards biodegradability and compostability in materials 
• Technological Breakthroughs in Bio-Material Production: Advances in biotechnology enable the creation of Bio-based Materials with enhanced properties, such as increased strength, flexibility, and durability

Use Cases

How to apply this trend?

• Chemical Raw Materials: Replacing conventional HMDA with a plant-based version 
  Example: Covestro and Genomatica announced that they reached a breakthrough in sustainable HMDA, an ingredient of nylon, that they plan to source and market on a full commercial scale in the future 
• Sustainable Leather Alternative: Partnership between Hermès and MycoWorks 
  Example: MycoWorks, producing leather alternatives using mycelium, collaborates with Hermès to manufacture more sustainable handbags to address more sustainability-oriented customers as well

Procurement Relevance & Response Strategies

How should Procurement adapt its Processes, Organisation, and Strategy?

• Market Study: Following assessments in which products Bio-based Materials can be used, procurement teams should conduct market research to identify suitable suppliers 
• Carbon and Cost-based Assessment: Procurement teams must assess the impact of Bio-based Materials on their carbon footprint to identify use cases that are environmentally beneficial without reducing the bottom-line margin