According to AMI Consulting’s latest report, Polymer Demand in Europe 2019, European polymer demand is set to grow by 1.5%/year to 2023.
The firm believes this subdued forecast masks a myriad of changes that the industry is facing. First and foremost, public outcry against plastic waste has intensified and policymakers have proposed a raft of measures to tackle the issue.
For example, the EU Commission is aiming to make all packaging recyclable by 2030, asking for the industry to voluntarily lead the way.
In addition, in March 2019, the European Parliament signed off on legislation banning single-use plastic items such as plates, cutlery, straws and cotton bud sticks. The ban will come in to force in 2021.
Plastic bottles will also have to contain at least 25% recycled content by 2025 and 30% by 2030.
Aside from packaging, change is also being caused by factors specific to end-use sectors. The automotive industry is going through a structural transformation with the rise of electric cars.
The report suggests Building & infrastructure and other sectors appear not to be facing such dramatic adjustments, but material substitution, changing consumer preferences and new technologies among other factors are still important trends influencing polymer demand.
Although there is change afoot in some respects, many fundamental trends remain. Western Europe is a mature market where economic progress can’t be relied on for driving growth; producers must continue to innovate and position themselves differently to succeed.
Central Europe appears to have a faster economic growth and rising disposable incomes helping to drive domestic demand.
The report concludes, with the market facing clear long-term change to 2030, it is important to understand Europe’s market structure by country, polymer, process and end-use application.
The granularity of AMI Consulting’s data enables a clear picture of which markets are relatively susceptible, and which are relatively secure.