The Baltic Sea Region (BSR), lying in the north-eastern region of Europe, consists of 9 countries (Denmark, Estonia, Finland, Germany, Latvia, Lithuania, Poland, Russia, Sweden), of which only Russia is not an EU Member State and is therefore not considered. In this report, however, also Germany and Poland – normally considered as part of the BSR – have been taken out of the analysis as they are covered separately by the reports analysing the Western and the Eastern European countries, respectively.

These countries are considerably varied in terms of the size and population. Table 9 shows the size and population of the BSR countries. The largest of the BSR countries, covering 447,430 sq. km, is Sweden, while Denmark is the smallest, having around 42,944 sq. km. The largest population (10.5 million people) lives in Sweden.

The second most populous country is Denmark, with ca 5.9 million inhabitants, and Finland comes in the third place, having a population of 5.5 million. The population in the remaining three countries each does not exceed 3 million and Estonia has the smallest population, of just 1.4 million. While the total area of the Baltic Sea region (around 1 million sq. km) represents 23.7% of the total EU-27 area, its total population (28 million) is only 6.2% of the total EU-27 population (Eurostat, 2023). Hence, the BSR has a large land area available for a relatively low number of inhabitants.

SWOT Analysis of the Baltic Sea Region

In the SWOT analysis below, an overview of the region’s strengths, weaknesses, opportunities and threats are provided. As you can see, the analysis shows among others that the Baltic Sea Region is rich in natural resources (wood, agriculture, fisheries), which it can provide to bioeconomy.

Existing high activity in bioeconomy (wood, agriculture, etc.), well-educated workforce, many capable institutions, expertise in innovation, and a strong tradition of intra-regional cooperation serve as a good base to start further development.

Below is a map summarising the main strategies, collaborative structures and policy instruments in the Baltic Sea macro-region (Estonia, Denmark, Finland, Latvia, Lithuania, Sweden).

• Biomass Availability: The BSR is rich in biomass, particularly wood, which is predominantly used by the forest industry.
• Bioeconomy Sectors: Key sectors include agriculture, food, biotechnology, and bioenergy, with a strong chemical industry linked to forestry.
• Value Chains: There’s a lack of smart, sustainable value chains in the Baltic States, leading to raw materials export and import of processed products.
• Value Added: The BSR’s value added per person in bioeconomy is high but lower in Estonia, Latvia, and Lithuania due to simpler export products.
• High-Tech Hubs: Numerous biotech hubs and national associations exist, with a focus on forestry.
• Biorefineries: Biomass from forestry is converted into timber, biomethane, pulp, paper, chemicals, and biofuels.
• National Strategies: Countries like Finland have dedicated bioeconomy strategies, while others like Lithuania and Denmark do not.
• EU Influence: The EU bioeconomy policy, Green Deal, and Paris Agreement shape national strategies.
• Policy Development: Different ministries handle bioeconomy policy, affecting development and intersectoral collaboration.
• Regional Integration: Bioeconomy is part of various regional strategies, with Sweden and Finland showing intense strategic action.
• EU Strategy for BSR: Provides a cooperation platform but has gaps, such as underemphasis on food and governance structure challenges.
• Research and Development: Strong infrastructure supports R&D across the bioeconomy, but knowledge transfer to industry is often lacking.
• Cooperation Levels: High among Scandinavian countries but low in the Baltic States, with a preference for closed-loop solutions within companies.
• Cluster Structure: Well-developed clusters exist for biotechnology, energy, food, paper, pulp, and waste management.
• Environmental Concerns: Environmental organizations often criticize forest policies and industry practices for insufficient protection measures.
• Youth Involvement: Initiatives like Estonia’s “Edu ja Tegu” aim to engage youth in bioeconomy activities.

Country fact sheets to be downloaded!

• Estonia - Download
• Finland - Download
• Denmark - Download
• Latvia - Download
• Lithuania - Download
• Sweden - Donwload

If you’re curious to know more about the bioeconomy sector in the Baltic Sea Region, you can read the recently published report called ”Report on macro-regions – Mapping of initiatives, structures, instruments and key challenges for EU’s macro-regions