Page 53 - Plastics News Issue June 2025
P. 53
INTERNATIONAL NEWS
This comes as the industry has a current valu- Lastly, the report advises producers to be adapt-
ation of over €400bn ($455.5bn) in cumulative able, suggesting they experiment with new busi-
capital expenditures. ness models, sourcing strategies, and partner-
ships such as ten-year offtake agreements with
The report emphasises that despite the current- dynamic pricing, to lay the foundation for future
ly high costs of recycling polyolefins in Europe success.
– more than double the production costs of vir-
gin polyolefins – there is a potential window for As the industry matures, advancements in tech-
plastics companies to become early movers in nology and operational experience are expect-
the market. ed to drive cost efficiencies.
Policy interventions could be instrumental in Achieving cost equivalence with Europe’s mar-
bridging the supply-demand gap, similar to man- ginal producers would necessitate global capital
dates for sustainable diesel and aviation fuels. investments of at least €400bn in a base sce-
The report suggests that the incremental blend- nario, with an additional cost premium of around
ing of mandates could significantly increase €270bn. This premium encompasses the ag-
chemical recycling market penetration, poten- gregate of price surcharges paid by consumers,
tially achieving over 15% of the plastics market regulatory frameworks, and investment in mar-
share by 2040. gins by the value chain.
Bain & Company’s report outlines three key strat- Bain & Company global chemicals practice
egies for plastics producers to lead in chemical head Mark Porter said: “Our analysis shows that
recycling. Firstly, companies should proactively chemical recycling could become competitive
collaborate with value chain partners to create with virgin production once cumulative global
offtake opportunities, securing premium waste volume reaches 650 million metric tons [tonne]
streams and high-value customers. These early of polyolefins recycled through pyrolysis, as-
positions could be difficult for competitors to suming a virgin price of €1,250 per metric ton
replicate. and depending on gate fees and broader mar-
ket conditions.”
Secondly, industry leaders are encouraged to
engage with regulators to influence policies that Source – Packaging Gateway
support their business objectives and reshape
public dialogue around plastics, emphasising
their sustainable potential when managed re-
sponsibly.
June 2025 PLASTICS NEWS 53
