Report shows macroeconomic effects generated by bioeconomy activities in Europe

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Type of post: NEWS. 

In 2017, a study conducted by nova-Institute on behalf of the Bio-based Industries Consortium (BIC) showed for the first time which macroeconomic effects are generated by bioeconomy activities (e.g. turnover and employment for the years 2008 and 2013). Now, the new version of the report is available which spans the whole period from 2008 to 2017. 

Figure 1. Overall turnover and employment of the bioeconomy and its bio-based industries in the EU–28 in 2017 (taken from the report) 

The updated report for 2017 revealed that the bio-based industries contributed 750 billion EUR to the European economy in 2017, a notable increase of 50 billion EUR (+>7%) compared to 2016. The nova-Institute report commissioned by BIC also indicated that the bio-based industries employ 3.6 million people in the EU-28. Figures for the bio-based chemical industry (including plastics) alone reveal a turnover of 60 billion EUR and an increase of the bio-based share to 15%, up from 7.5% in 2008. 

The data shows that the turnover of the total bioeconomy results in just over 2.4 trillion EUR in the EU-28, meaning an increase by 25% since 2008. The primary sectors (agriculture, forestry, and fisheries) and the food, beverage, tobacco and paper and paper products can be considered fully bio-based and are thus fully accounted for in the bioeconomy. For other manufacturing sectors such as chemicals, pharmaceuticals and textiles, the bio-based shares were estimated and included in the report’s assessment. As in the previous reports, Eurostat was used as the main source of data for all sectors of the European bioeconomy. 

The primary biomass production, mainly agriculture plus the forestry and fishery sectors generate a lot of employment (55%) but low turnover (20%). Furthermore, the data shows great differences among EU Member States. Some Central & Eastern European countries (e.g. Bulgaria, Poland and Romania) are stronger in less value-adding sectors of the bio-based economy that generate a lot of employment instead. In contrast, Western and Northern European countries generate a much higher turnover compared to employment. The countries with the largest relative difference between turnover and employment in 2017 are France, Finland and Belgium, while Sweden, Italy and Germany also show a large surplus in turnover.

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