What's Happening?
ICIS and CPCIF have released a study examining the effects of the European Union's circularity regulation on global demand for recycled plastics. The study forecasts a significant increase in demand for recycled polyethylene,
polypropylene, and polyethylene terephthalate, driven by the EU Packaging and Packaging Waste Regulation and other upcoming legislation. By 2030, EU producers will need approximately 5.4 million tonnes/year of these materials, doubling to 11.5 million tonnes/year by 2040. The study emphasizes the role of chemical recycling in meeting these demands, particularly for applications requiring food safety and performance sensitivity.
Why It's Important?
The EU's circularity regulation is reshaping global supply chains, influencing industrial strategies and compliance requirements worldwide. As exporters must meet EU recycled content standards, this regulation is driving demand for certified recycled materials globally. 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 both challenges and opportunities for businesses, encouraging innovation and compliance as competitive advantages in the global market.
What's Next?
As the EU's circularity regulation gains momentum, 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.
