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In response to increasing environmental concerns and the search for sustainable local resources, this study investigates the emergence of bio-based micro-sectors through the example of sheep wool valorization in France. Traditionally viewed as waste – particularly from meat breeds – raw wool remains largely underexploited outside the textile industry. However, its intrinsic properties offer promising potential for alternative uses such as thermal and acoustic insulation, agricultural mulching, and eco-friendly composites. Drawing on a literature review and a case study of Vert Laine, a start-up based in Burgundy, the research explores the structuring of these niche sectors, the actors involved, and the barriers they face. Using the BM3C2 framework, the study analyzes business models aligned with circular economy principles. It aims to identify the innovation dynamics and territorial partnerships necessary for scaling such initiatives. This research contributes to the broader discussion on sustainable production models, local resource valorization, and the transition toward a circular bioeconomy.