Page 60 - Plastics News Issue June 2025
P. 60
BUSINESS NEWS
mium of approximately €270 billion, the report wagon. Early adopters will later reap rewards,
says. That premium includes the sum of price according to Bain & Company, citing Eastman’s
premiums that would be paid by customers, reg- investment in its Kingsport plant as an example
ulatory mechanisms, and margin investment by of early conviction paying dividends in ‘multiple
the value Bain & Company’s analysis suggests it ways’.
would take at least 20 to 30 years to reach cost
parity in Europe. The exact timing will depend Eastman’s plant achieved on-spec initial produc-
on several factors, including the price dynamics tion and started generating revenue in March
of virgin polyolefins, the pace of global adoption 2024. Note, however, that the Kingsport facil-
of chemical recycling, technology advances, and ity uses depolymerisation technology to recycle
any systematic changes in the waste manage- PET, not pyrolysis.
ment landscape (e.g., economic models).
Bain & Company’s report argues that refraining
As volumes of chemically recycled plastic will the public dialogue around plastics is as impor-
be too limited for a long period of time, chemi- tant as being an early adopter.
cal recycling won’t achieve cost parity with vir- “For years, the industry has taken a defensive
gin material production through market forces posture as consumer sentiment toward plastic
alone, the report says. Policy support and public has worsened,” the report reads. “The opportu-
subsidies could play a significant role in closing nity now is to go on offence, not only advocat-
the supply-demand gap.
ing for circularity but also reminding stakehold-
Like the sustainable diesel and aviation fuel man- ers of the material’s unique value and critical role
dates, European plastic companies could start in modern life, from reducing food spoilage and
small and gradually increase recycled material enabling medical safety to providing conveni-
blending requirements, the report says. For in- ence.”
stance, country-level or regional blending man- The report also advises producers to be flexible:
dates that increase chemical recycling market experiment with new business models, novel
penetration by 1% to 2% annually could unlock sourcing strategies, and unconventional partner-
over 15% share of the plastics market by 2040.
ships. That could mean forming 10-year offtake
“Moving the needle will require a systems ap- agreements with dynamic pricing mechanisms,
proach with regulatory support,” Porter said. for example.
“Once scale reaches critical mass, chemical re- “For companies navigating this period of uncer-
cycling can transition from a subsidy-reliant tainty while the market ramps up, flexibility and a
push to a demand-driven pull. That inflexion willingness to challenge the status quo will be es-
point could fundamentally shift the economics, sential to staying ahead,” the report concludes.
turning chemical recycling into a competitive,
market-driven solution.” Source – Sustainable Plastics
The report argues that plastics producers can-
not wait 20 to 30 years to jump on the band-
60 PLASTICS NEWS June 2025
