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22/05/2025 CosmeticBusiness

Meet the Start-up: UPM Biochemicals

How UPM is redefining the potential of wood

UPM Biochemicals is rethinking wood as a material: with a state-of-the-art biorefinery in which BioPET is produced from sustainably sourced hardwood. Their goal: to replace fossil raw materials with renewable alternatives and leave a minimal ecological footprint. The CosmeticBusiness editorial team spoke to UPM Biochemicals to find out more about the innovative start-up.

From wood to polymer

UPM has its roots in paper production. However, as markets changed and the global need for environmentally friendly solutions grew, so did the idea of rethinking the potential of wood. The central question was: What else can be made from wood besides paper?

The vision was clear: a bio-based replacement for petrochemically produced plastics. PET in particular, the world's most frequently recycled mass polymer, seemed ideally suited for this. What if this material could be produced entirely from wood?

This idea gave rise to the start-up UPM Biochemicals. A globally unique biorefinery is currently being built in Leuna, Saxony-Anhalt. Here, we extract valuable biochemicals from sustainably managed hardwood. We utilise all components of the wood: cellulose, hemicellulose and lignin without producing waste.

What makes UPM Biochemicals special

We enable a bio-based PET that is identical to conventional PET in terms of its chemical structure. This means that it can be used in existing packaging systems without restrictions and can be fully recycled. Our BioPET has the best carbon footprint on the market (net-zero). Thanks to the European supply chain, we guarantee transparent and short transport routes.

Another decisive advantage lies in the choice of raw materials. Unlike other suppliers who rely on bio-based plastics made from food crops, we use wood as a non-food-related, renewable resource. This creates a sustainable solution that combines ecological responsibility with industrial scalability.

Real added value for cosmetics packaging

Sustainability is becoming increasingly important, especially in the cosmetics industry. However, packaging made from recycled PET (rPET) has technical limitations: These include colour changes, limited functionality and the need to add a high proportion of new PET (virgin PET).

This is where we come in: Our vPET made from wood combines the quality of virgin material with a net-zero CO₂ footprint. In combination with rPET, this results in the most sustainable solution for high-quality cosmetics packaging without compromising on function, design or recyclability.

Good to know: UPM Biochemicals gets to the point

Our BioPET is fully recyclable in all existing collection systems.

UPM Biochemicals
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