Circular.co, an end to end digital supply chain platform that solves the challenges of sourcing and managing recycled plastics, announced a new exclusive report that takes a hard look at the plastics industry – valued at $600 billion today and projected to grow to over $800 billion by the end of the decade(1). “Companies are not meeting their sustainability goals to decrease virgin plastic and increase PCR because of market inefficiencies, pricing, volatility, and poor access to quality material. Positive changes are happening now and we’re starting to push green premiums down to zero,” said Ian Arthurs, founder and CEO of Circular.co. “We wrote this report to address the complexity in the industry including the challenges buyers face, key blockers to sustainable growth, the impact of current and upcoming legislation, and how technology is the key to future circularity,” he added.
Key take-aways of the complimentary report include:
- Sustainability presents an undervalued economic opportunity. Brands making sustainability claims grow significantly faster and have an opportunity to build competitive advantage now.
- Market volatility inhibits long term investment. Prices balloon and plummet regularly with demand variability, supply challenges and global economic headwinds. Volatility makes it challenging for buyers and sellers to plan and invest for the long term.
- Tailwinds driving growth in recycled plastic are strengthening. Primary drivers include consumer demand for sustainability, legislation mandating recycled plastics, improving economics around recyclable materials and new technology advancing sortation, processing and sourcing.
- Headwinds slowing adoption of recycled plastic are weakening. The combination of availability, affordability, and variability of supply have blocked deeper investment and adoption. Despite high and growing demand, reliable sourcing has been incredibly challenging. Technology is stripping out friction and making souring easier.
- Industry needs technology-based solutions to push green premiums down to zero. Buyers and sellers throughout the value chain need to source, distribute, and manufacture sustainable commodities at speed and scale.
This report takes a deep dive into the complexities of the recycled plastics industry, the specific challenges each player faces, and how technology can be the game changer for everyone.