As the biomaterials space navigates a more turbulent landscape marked by tightening budgets, regulatory uncertainty, and investor caution, Biofabricate is adapting its approach. Following last year’s large-scale Paris convention, this year it is reborn across the Channel as Biofab Fair — a smaller and more focused event timed to coincide with the London Design Festival.

“We needed to go back to the drawing board,” said Biofabricate chief executive officer Suzanne Lee, noting the challenges the industry has faced over the past two years. “The fundraising climate has been very tough. Paris was our biggest, most expensive event ever, but as we sought interest for the next edition, it became clear that marketing and travel budgets were seriously hit.”

So Biofabricate, which launched in New York in 2013, made a strategic pivot to London, where an eager sustainability community is concentrated. This year’s edition will run over two days starting Tuesday, with the first day as a traditional industry summit, and the second as a more public-facing exhibition inviting young designers, students, investors and the general public.

“It’s intentionally reaching out to a broader cross section of potential customers and people who are curious,” said Lee.

Whereas prior editions focused on science and business scaling strategies, the upcoming fair puts design and product innovation at the core, hence the timing with London Design Week. “The real goal is to have a design conversation around biology,” said Lee. “What is it that biology can do that petrochemicals and animal products can’t? What does it unlock for designers and brands?”

The luxury sector, long an early adopter and supporter of biomaterials, will continue to support the fair as the industry works to meet its sustainability targets, Lee said. Big names like Kering, LVMH Moët Hennessy Louis Vuitton, Hermès, and French sportswear giant Decathlon will be present. “There’s that sort of luxury sector that is just deeply wedded to this whole field,” Lee said. “They know they’ve got to get off plastic and some of the more challenging animal products they use.”

Investors, many of whom had limited experience in biomaterials, first flocked to the space. But some have since backed away, discouraged by long product development cycles and inflated early valuations. Today, Lee noted, some are asking pre-seed companies to already have sales agreements in place — terms she called “near-impossible.”

Despite this retreat, regulatory pressures around “forever chemicals” such as PFAS are spurring new innovation. Bio-based coatings are being developed as safer alternatives, while other legislative frameworks aim to drive industry-wide change. And big brands, especially those with previously stated sustainability goals, continue to invest.

“They are starting to be a little more pragmatic,” noted Lee. “They got very excited initially and wanted to work with everyone, but you have to match resources to the needs of the innovator.”

Among bright spots is the beauty space, which still has “enormous” potential, Lee said, particularly as brands seek bio-based pigments to replace petrochemical-derived colors.

London-based brand The Unseen, which developed the world’s first mascara using algae-based pigment, is one example Lee cited, and has seen interest from consumers concerned with toxicity and “clean” ingredients. Brewed collagen and peptide-rich fermentation processes are also drawing significant attention from beauty brands.

Other promising innovations include packaging. Living Ink, for example, has partnered with major brands including Nike to use bio-based black ink. Shellworks, creator of compostable bio-plastic Vivomer, has supplied packaging to Unilever brands. Founder Insiya Jafferjee recently won the Veuve Clicquot Bold Future Award.

To bridge the gap between innovation and investment, Biofabricate is extending its reach beyond London. The week following the fair, the organization will partner with Juniper VC during New York Climate Week to cohost an event focused on fashion, beauty, and bio-innovation.

Juniper’s portfolio includes forward-looking companies like Matereal, which produces bio-based polyurethane alternatives, and Simplifiber, which turns organic slurry into shoe materials.

While funding remains available, founders and investors alike are adjusting to a reality where the language of climate or ESG is no longer enough to secure capital, said Juniper’s chief of staff Mackenzie Scurka. It falls under the term “green-hushing,” the new-ish phrase signifying how sustainability messaging is being downplayed.

Biotechnology is “inherently climate technology,” she said, but she acknowledged that current political dynamics have made “onshoring” and “strengthening domestic supply chains” a more effective framing. Start-ups have had more success shifting their narratives away from climate and toward performance, resilience and national interest.

“We’ve noticed a lot of folks trying to go for [Department of Defense] funding, for example,” said Scurka, citing high performance and cost advantages for the military. “That is a really smart way for the companies we work with to lean into their technology.”

Still, the early stage is a difficult one to navigate. “There’s this gap of funding in the middle,” said Scurka. Companies emerging from the lab are often too far along for R&D grants but not far enough to meet the milestones venture capitalists expect. “That valley is getting wider,” she said.

Juniper encourages founders to make the most of grant funding early, diversify their capital stacks, and adopt messaging that aligns with current funding trends — particularly government-backed programs. “Try to shift your messaging so that the grant funding that is available — you can reframe your narrative to try to fit into that.”

“Biology is a remarkable platform for material design. Unlike traditional manufacturing methods, biology allows us to fine-tune properties dynamically — adjusting strength, flexibility and functionality in response to specific needs or shifting demand. That adaptability is the core value proposition biomanufacturing can offer in fashion and personal care,” added Juniper general partner Jennifer Kan.

While investors may be more cautious, Scurka believes consumer interest is still strong. “I think consumers are still interested in making more sustainable fashion choices,” she said. “Having more vegan ingredients or having more sustainable products is something that people care about.”

There’s also an economic incentive. “When [these materials] scale, they will be made for cheaper than current incumbents, and so hopefully that translates into more affordable fashion and more affordable beauty for consumers as well,” she added.

The upcoming New York Climate Week event, cohosted by Juniper and Biofabricate on Sept. 25 at IndieBio, will include a panel moderated by Lee, with Juniper general partner Michael Luciani and Simplifiber chief executive officer Maria Intscher-Owrang. A showcase will include between 10 and 15 companies demonstrating material innovations across different stages of development — from prototypes to market-ready products.