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Cellugy Secures €8.1 Million EU Funding to Scale Microplastic Alternative for Cosmetics Industry

7 days ago4 min read
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Key Insights

  • Danish biotechnology company Cellugy has secured €8.1 million in EU LIFE Programme funding to accelerate commercialization of EcoFLEXY, a biofabricated cellulose-based rheology modifier designed to replace fossil-derived microplastics in cosmetics.

  • The BIOCARE4LIFE project aims to prevent the release of 259 tonnes of microplastics annually by project completion, with projections rising to 1,289 tonnes per year by 2034.

  • EcoFLEXY targets the €2.8 billion global rheology modifier market, where approximately 70% of products are still based on fossil, non-degradable ingredients that face increasing regulatory scrutiny under EU REACH regulations.

Danish industrial biotechnology company Cellugy has secured €8.1 million in funding from the EU LIFE Programme to accelerate the commercialization of EcoFLEXY, a biofabricated cellulose-based rheology modifier designed to replace fossil-derived microplastics in cosmetics. The funding will support the scale-up of EcoFLEXY production as part of the BIOCARE4LIFE project, enabling the company to expand its impact across the personal care sector.

Addressing Microplastic Contamination in Cosmetics

EcoFLEXY is engineered as a high-performance alternative to synthetic carbomers, widely used in skin care and cosmetic formulations but increasingly scrutinized for their microplastic content and environmental impact. These fossil polymers are considered microplastics in the cosmetics industry and are classified as particularly problematic under the EU REACH Regulation.
"With growing regulatory and consumer pressure around microplastic use, especially in rinse-off products, EcoFLEXY offers brands a way to stay ahead of legislation without compromising product performance," said Dr Isabel Alvarez-Martos, CEO and co-founder of Cellugy.
The company is targeting a significant market opportunity, as approximately 70% of the global €2.8 billion market for rheology modifiers is still based on fossil, non-degradable ingredients. According to Cellugy, the EU-wide ban on microplastics and restrictions on "forever chemicals" such as PFAS threaten the cosmetics industry with sales losses of up to €12 billion.

Superior Performance Through Biotechnology

Developed using fermentation-based processes, EcoFLEXY is said to deliver enhanced stability, compatibility, and sensoriality compared with existing bio-based alternatives, bridging the performance gap between fossil-derived modifiers and natural materials. The ingredient is designed for use in creams, gels, and other beauty formulations.
"An alternative material that simply aims to be more sustainable is not enough; the critical challenge is about delivering bio-based solutions that actually outperform petrochemicals in performance parameters like texture, functionality, and user experience," Alvarez-Martos explained. "Good intentions won't drive industry change; we need higher-quality alternatives like EcoFLEXY that make it easier, not harder, for brands to choose sustainability."

Environmental Impact Projections

Through BIOCARE4LIFE, Cellugy aims to prevent the release of 259 tonnes of microplastics per year by project completion, with projections rising to 1,289 tonnes annually by 2034. This is equivalent to removing millions of contaminated beauty products from the global market, according to the company.

Strategic Partnerships for Scale-Up

To support the scale-up, Cellugy has partnered with two key organizations: The Footprint Firm (TFF), a circular economy consultancy, and Sci2sci, a Berlin-based data optimization startup.
Will Nunn, Manager at The Footprint Firm, said: "Our role is to validate the environmental impact and ensure the best alignment with circular economy principles. The project's combination of technical innovation and sustainability validation positions EcoFLEXY very strongly for market adoption and supports the EU's broader transition to a more resource-efficient economy."
Angelina Lesnikova, CEO of Sci2sci, added: "Scaling a biotech solution is never simple, but it's where the real value lies. Our role is to optimize every layer of production, from fermentation parameters to supply chain predictability, so that EcoFLEXY can compete with petrochemical alternatives not just on environmental benefits, but on cost and performance metrics that matter to manufacturers."

Commercial Timeline and Market Entry

The €8.1 million grant will be allocated over four years and cover process optimization, commercial validation, and industrial scaling of the ingredient. Cellugy plans to achieve significant sales within three to five years, with CEO Alvarez-Martos stating: "We want to displace fossil ingredients from an industry worth billions and now we have the means to do so."
The biotech company positions the ingredient as both scalable and operationally efficient, making it commercially viable for large-scale adoption in the personal care industry. EcoFLEXY represents what the company describes as the world's first high-performance, fully bio-based and biodegradable rheology modifier.
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