The tide has turned against plastics. The public has reacted to images of oceans teeming with toothbrushes and birds tangled in fishery nets by increasing efforts to reduce or even ban plastics and increase reuse and recycling. No longer a niche concern, plastics are firmly in the sustainability spotlight.
How might this impact the long-term growth outlook for the petrochemicals industry, which looks to plastics to replace the demand for transportation fuel? There are three key factors at play:
- If not plastic, then what? Plastics remain one of the world's most efficient and cost effective materials with applications across every industry. And substitution with materials such as glass and metal comes at a cost – both environmental and actual.
- What of the "circular plastics economy"? The circular plastics economy aims to address the problem of plastics waste. But factors such as increased median income and growing populations will continue to drive demand for plastic, which will in turn drive chemical demand.
- Recycling presents its own set of challenges. While we are strong believers in recycling, technology and costs have yet to deliver on the promise of the circular plastics economy.
Visit woodmac.com/circular-plastics-economy to get our analysis on these three key factors – and access your free copy of the report, "A circular plastics economy: long on intentions, short on solutions."
HF Sinclair Corp.
