Bioeconomy Investments: Market Considerations

The introduction into the forestry sector of a bioeconomy has led to the search for new high value-added bio-products that can be produced using the woody biomass residue from timber harvesting. Any introduction of new bio-products must be justifiable from economic, socio-economic, and technological points of view. For successful commercialization, one important consideration is the market potential for such products. In this paper, a methodology for decision-making to evaluate three existing forest by-products for market potential in Latvia has been developed using the GE-McKinsey Nine-Box Matrix, considering market attractiveness and product competitive advantage. The methodological algorithm has been modified to include different factors such as process and product sustainability as well as competitive advantage. The analysis calculates the market attractiveness and competitive advantage of a specific product. As well, the application of this methodology makes a clear and presentable way of determining the viability of investing in new bio-products possible.