A farmers field viewed from above, with a farmer cutting crops in rows

Bioeconomy

Scotland's bioeconomy includes the parts of the economy that use renewable biological resources from land, water, and air such as crops, forests, fish, animals, and micro-organisms and the conversion of these resources into products such as food, feed, materials, and energy for economic purposes.

A 2024 Scottish Government study researching the importance of natural capital to the Scottish economy found that, in 2019, Scotland’s nature‑dependent industries, excluding non-renewable industries such as oil and gas, generated around £40 billion in economic output - about 14.4% of the country’s total. This includes agriculture, fishing and aquaculture, forestry and wood products, water and sewage services, drinks production, and electricity generation.

Since 2015, Zero Waste Scotland has played a key role in supporting the development of a circular bioeconomy, identifying opportunities to extract greater value from bio‑based wastes and by‑products. By creating interest among producers and off-takers, and by facilitating the right connections, support and expertise, it has helped accelerate the development and delivery of more sustainable, commercially viable solutions.

What is a circular bioeconomy cycle?

The circular bioeconomy applies circular economy principles to the use of biological resources, ensuring they are managed efficiently throughout the entire value chain. At every stage - from design and production to processing, use and end‑of‑life - materials are kept at their highest possible value for as long as possible. When products can no longer be reused or repurposed, their nutrients are returned to the biosphere.

The diagram below illustrates a circular bioeconomy cycle, showing how biological resources move through a renewable, regenerative system. It presents a loop of interconnected stages focused on minimising waste and maximising value through efficient use, recovery and recycling of biomass.

Infographic showing the processes of the bioeconomy

Driving Scotland’s circular bioeconomy forward

If you're involved in the bioeconomy in Scotland, especially in leadership or strategic roles, this is a prime time to:

Embed circular economy principles throughout the entire value chain - from design and production to use, reuse and valorisation - to minimise waste and maximise the value of by‑products.
Collaborate across government, industry, academia and support agencies to share knowledge, access funding, build capability and identify new partnership opportunities.
Form strategic partnerships to scale solutions, strengthen feedstock and market security, and enhance the credibility of funding applications and emerging business models.
Champion and publicise innovation to build visibility, credibility and confidence among funders, partners and wider stakeholders.

Social and environmental impact

Beyond their significant economic contribution, nature‑dependent industries also play a vital role in sustaining Scotland’s social wellbeing and environmental health. Supporting a circular bioeconomy in Scotland can further enhance its positive impact on society, the economy, and the environment while helping to address pressing challenges such as climate change and biodiversity loss.

Social

The Importance of Natural Capital to the Scottish Economy study published by the Scottish Government in 2024 estimated that nature-dependent sectors in Scotland such as agriculture, fishing and aquaculture or forestry and wood products (excluding non-renewable sectors) have supported around 261,000 jobs in 2019. Additionally, the Scottish Government allocated up to £100 million through the Green Jobs Fund in 2022 to address skills challenges and opportunities, supporting sectors including the bioeconomy.