The European Union (EU) is at an important point for developing its industrial biotechnology (IB) sector, as emerging biotechnologies advances merge with traditional industry. This external expert report reviews the EU's IB sector and associated emerging technologies, looking at its strengths, weaknesses, opportunities, and threats (SWOT) that affect its potential for growth and international competitiveness. The EU's biotechnology sector has strong foundations, including a solid research infrastructure supported by collaborative projects and partnerships, which have historically enabled innovation. These foundations are beneficial for the growing IB sector, with its skilled workforce and alignment with global sustainability goals. The EU's established industrial base and investment support, such as through the European Investment Bank and other funds, provide a strong base for shiſting towards bio-based production. However, several weaknesses limit progress. Slow-moving legislation and a lack of integrated capital markets in the EU make it hard to turn biotech research into market-ready applications. Fragmented regulations and a lack of transparency create uncertainty for investors and developers. Additionally, political debates on biotechnology have led to public misperceptions, creating barriers that slow the acceptance and adoption of biotechnological solutions. Internationally, the EU risks losing ground to faster-moving competitors who are prioritizing their IB sectors. Regions like North America and Asia are scaling up quickly and using targeted policies, highlighting the need for the EU to act decisively to maintain its competitiveness and secure critical supply chains. On the other hand, the EU has a chance to use its research strengths to gain a competitive edge by promoting technology convergence. Developing regional Centers of Excellence and bio-foundries, customized to local economic and scientific contexts, could speed up the commercialization of biotech innovations. Recent initiatives from the European Commission, like the upcoming Biotech Act, signal progress toward a regulatory framework that could foster growth in the sector. The report’s main recommendations include better communication strategies to improve public understanding of IB, targeted investments in scaling-up infrastructure, and more collaboration across sectors. Establishing global standards, metrics, and programs to improve workforce skills is essential to translate EU biotech innovations into economic and social benefits. The report tackles regulatory and legal issues, notably linked to intellectual properties, and approaches the problematics facing the IB sector and its innovation landscape with an integrated view of the whole value chain. In summary, as the EU balances its own capabilities with external pressures, a focused strategy on innovation, addressing regulatory barriers, and strengthening public-private partnerships will be key to securing its role in global IB. The report lays out ideas that could help the EU position itself as a leader in sustainable and economically viable biotech solutions, reinforcing its role in tackling global challenges and driving economic growth.