By Citi GPS,
August 27, 2018Posted InCiti
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Responding to a sea change in consumer behavior
Roughly half of global consumer packaging is made of plastic and over a third of resin that is produced by Chemical companies goes into packaging end markets. Plastics have become a staple of daily life in the modern world, steadily gaining share from other packaging materials over the last 50 years based on their low cost, durability, convenience, and malleability.
However, environmental concerns around landfill contamination have grown steadily alongside increased plastics use, with a great deal of recent attention on ocean contamination and the growth of microplastics.
As plastics face increased regulatory and consumer scrutiny, substrates including metal, glass, and paper may potentially be positioned to gain back some market share.
We see a few potential ‘battleground’ packaging products, including soft drink bottles, coffee cups, protective packaging for e-Commerce, and retail bags. However, consumer choices are not always clear cut, as other substrates may offer more favorable recyclability and waste performance at the expense of plastics’ cost and performance advantages.
To find out the risks and opportunities in single-use plastics click here.