What's Happening?
ICIS and CPCIF have unveiled a study detailing the impact of the European Union's circularity regulation on global demand for recycled plastics. The study predicts a sharp increase in demand for recycled polyethylene,
polypropylene, and polyethylene terephthalate due to the EU Packaging and Packaging Waste Regulation and other legislative measures. By 2030, EU producers will require 5.4 million tonnes/year of these materials, with demand expected to double by 2040. The study underscores the importance of chemical recycling to meet these demands, particularly for applications requiring food safety and performance sensitivity.
Why It's Important?
The EU's circularity regulation is transforming global supply chains, influencing industrial strategies and compliance requirements worldwide. Exporters must adhere to EU recycled content standards, driving global demand for certified recycled materials. The study highlights China's strategic role in supplying recycled plastics to the EU, with implications for investment in R&D and standards alignment. This regulatory shift presents challenges and opportunities for businesses, encouraging innovation and compliance as competitive advantages in the global market.
What's Next?
As regulatory momentum builds, businesses and policymakers are encouraged to view compliance as an opportunity for innovation and market access. The regulation is also acting as a catalyst for domestic recycling reforms in China, potentially boosting internal demand for recycled content and improving material traceability and quality. Companies are likely to invest in certified recycled and bio-based materials to differentiate themselves competitively.
