In the upcoming decades, the European Union intends to shift its main input from fossil energy towards renewable sources and technologies. Today, over 60% of primary renewable energy in the EU28 is based on biomass produced by photosynthesis cultivated in forestry and agricultural systems. The current dominance of biomass within the renewable energy sector can be attributed to its cost-effectiveness and to its simplicity in providing renewable space and process heat and in providing a liquid fuel for transportation compared to other renewable alternatives. With this thesis I seek to explore the continuing substitution of fossil carbon-based economic activities with those based on biogenic carbon. I analyse the possible development of both the bioenergy sector and also of new branches of the bioeconomy, replacing those currently based on considerable amounts of fossil carbon. I discuss densification technologies and the way in which they could help to overcome limitations with regard to resource allocation of feedstock with relatively low carbon density, high water content and high heterogeneity, in comparison to current fossil feedstock. Lastly I examine the commoditisation process of resulting densified biomass products. To tackle these issues and related questions, I (1) construct scenarios for the demand of advanced biobased materials; (2) outline and apply a generic biomass-to-end-use chain tool capable of estimating densified bioenergy carrier deployment costs for a high variety of possible relevant supply chains; and (3) perform an econometric analysis to quantify the integration and efficiency of the European market for the currently most-traded densified bioenergy carrier. I find that, while primary biomass supply for bioenergy and advanced biobased materials could grow from about 7 EJ today to 11-17 EJ in 2050 in the EU28, the share of this supply for biobased chemicals - especially biobased plastics and bitumen - could reach 6-15%. Furthermore, I find that densification technologies such as pelletisation, torrefaction and pyrolysis could already reduce heating costs in Europe, and has the potential to cut the cost of lignocellulosic biomass-based electricity, transport fuel and chemical production in the future. If biomass is torrefied before pelletisation, savings of up to 3 â*GJ-1 could be achieved for woodchip-to-FT-synthesis supply chains. Costs saving effects of densification efforts are found to be higher for increased storage times than for increased transportation distances. It can, however, also be demonstrated that European markets for residential heating based on wood pellets are not efficiently integrated today, and that liquidity and competitiveness would have to be altered in order to support the commoditisation process of this product. Therefore, data availability and quality has to be improved to increase transparency and public perception with respect to fungibility of same-quality pellets independent of pellet colour or supply-chain affiliation, e.g. whether regionally or internationally traded.