The Future of French Biosourced Construction: Balancing Regulation and Industrial Capacity

France’s construction sector is navigating a pivotal transition as the industry shifts toward more sustainable building practices. At the heart of this evolution is the biosourced materials market, a sector currently balancing significant industrial potential with the realities of a sluggish construction landscape and evolving environmental mandates.

Understanding the Biosourced Market Landscape

The French biosourced construction industry—encompassing materials like hemp, wood, straw, and cellulose—has spent the last decade scaling its production capabilities. With 18 dedicated manufacturing facilities and approximately 4,000 direct and indirect jobs, the sector has benefited from 150 million euros in investment over the past ten years. Despite this capital infusion, the industry currently operates well below its full capacity.

According to Yves Hustache, delegate general of the Association of Biosourced Construction Manufacturers (AICB), the disconnect between production capacity and market demand is largely tied to broader challenges in the construction economy. While these materials accounted for 8.2% of the insulation market by volume and 11% by value in 2025, the sector remains sensitive to fluctuations in new building starts.

The Impact of RE2020 and Future Thresholds

The primary driver for the future of the sector is the RE2020 environmental regulation. Since May 2026, the regulation has expanded its scope to include various tertiary, industrial, and artisanal building categories. Industry stakeholders are now looking toward 2028, when the carbon indicator for construction (IC construction) is scheduled to tighten to 490 kg CO₂/m² over a 50-year period, down from 640 kg CO₂/m² at the regulation’s inception.

For collective housing, this represents a 22% reduction in carbon thresholds compared to the standards established in January 2022. This shift is expected to necessitate a move toward materials with lower carbon footprints, potentially favoring the biosourced sector.

However, the transition is not without friction. Vincent Hannecart, president of the AICB and head of the biomaterials branch at the Cavac agricultural cooperative, notes that the current RE2020 framework does not strictly mandate the use of biosourced materials to meet carbon goals. Adoption currently relies heavily on the conviction of professionals regarding the long-term benefits of these products.

Public Procurement as a Growth Catalyst

While private market adoption has been inconsistent, the public sector has emerged as a reliable engine for growth. Biosourced materials are gaining significant traction in projects led by social housing providers, as well as in the construction of public infrastructure such as schools and childcare facilities.

Market data reflects this uneven but upward trajectory:

• Revenue Growth: The market generated 97.7 million euros in 2025, up from 89.6 million in 2024 and 91.6 million in 2023.
• Volume Increase: The volume of materials implemented reached 32.6 million square meters in 2025, compared to 30.9 million in 2024 and 28.2 million in 2023.

Semi-rigid insulators currently dominate the market, representing 54% of volumes in 2025, primarily for interior wall and roofing applications. Vulk-based insulators, such as cellulose wadding and hemp fiber, follow as the second most popular segment.

Looking Ahead: Challenges and Opportunities

The path forward for the industry rests on two pillars: technical certification and workforce education. The ongoing integration of biosourced materials into official technical documentation and standardized building processes is helping to de-risk these products for mainstream contractors. There is an industry-wide push to improve training for artisans, who act as the ultimate prescribers of materials on the job site.

The industry remains cautious regarding the political and regulatory environment. Following a 2025 evaluation mission regarding the RE2020, there have been discussions concerning the feasibility of the proposed 2028 thresholds. As leadership within the housing ministry evolves, the biosourced sector remains focused on ensuring that environmental standards remain ambitious enough to support the transition to a lower-carbon built environment.

Key Takeaways

• Industrial Underutilization: Current manufacturing capacity in the French biosourced sector is estimated to be double the present production levels.
• Regulation-Driven Demand: The 2028 tightening of the RE2020 carbon thresholds is the industry’s primary long-term growth catalyst.
• Public Sector Leadership: Public procurement, particularly for social housing and educational buildings, is currently outpacing private sector adoption.
• Market Composition: Semi-rigid insulators remain the most widely used biosourced products, accounting for over half of the market volume.