2025 Plastics Industry Trends & Predictions
Sustainability
In the plastics industry today, sustainability continues to be a key focus across the board. Packaging, especially personal care products and medical packaging, stands out as one of the largest opportunities for sustainable plastics to gain market share due to the close relationship between OEMs and sustainably minded consumers along with ongoing regulatory efforts.
The automotive industry is also making strides toward sustainability, with a focus on defining corporate policies and future goals. Expect to see more sustainable materials making their way into the automotive industry and other industries soon.
Help or hinder: What sustainable plastics trends do you expect will help manufacturers the most in 2025? Which trends might hinder them, and why?
Public opinion and regulation are two major drivers of sustainable changes. The next year will bring more clarity on the impact of recent elections and changes to plastics regulations. We can expect new policies that affect sustainability, recycling and energy use. These policies may favor expansion of crude oil or natural gas extraction and petrochemical production, creating economic momentum for growth for virgin plastics. Trends for cheaper, freely available virgin plastics could further increase the price gap between virgin polymers and their sustainable counterparts, further expanding the economic barrier to a sustainable future.
Many people assume that sustainable or recycled products should be cheaper than virgin plastics, but in reality, they often cost more. The price difference will continue to be an obstacle in the near-term.
Larger OEMs are embracing sustainability, especially because they are required to report on tangible actions. Right now, the challenge to meeting the common mantra of "People, Planet, Performance" is balancing quality and necessary material characteristics with sustainability.
Will sustainable materials perform as well as virgin materials? Historically, performance was evaluated on a lot-by-lot basis, but recyclers are now creating dedicated feed streams to reduce contamination and improve the quality of recycled resins. M Holland and it’s supply partners have developed dedicated and certified feed streams for many of its sustainable products — ensuring consistency and high-end properties that expand the range of applications for recycled plastics.
Trends to reduce virgin polymer modifications that inhibit plastic recycling are on the rise. Many OEMs are looking for ways to reduce or even eliminate polymer addivation (color and additives), alloying and multilayer applications that make it difficult or even impossible to convert their end-of-life products into sustainable recycled plastics for reuse. Embracing this trend will divert more plastic waste away from landfills and the environment to recycling operations, growing the circular economy and decreasing the price gap between virgin and sustainable polymers.
What are your tips for developing a sound sustainable resin purchasing strategy in 2025?
Price volatility will continue to be an issue for sustainable materials where demand still outstrips supply. While new plants are being built, force majeure events and stockouts are still concerns. Spot buying can be risky, so having a strong relationship — and a contract — with your distributor can make all the difference in securing the sustainable materials you need.
To ensure materials are available when needed, focus on developing a solid relationship with your plastics supplier. Understand their capabilities and their range of products to determine if they can meet your sustainability needs both now and in the future. Then, balance the value of this service with material cost.
When evaluating a distribution partner, consider whether they’re a specialty or broad supplier. Can they source different material grades from various sources to avoid availability issues and ensure a steady supply? If not, it will impact the consistency of your materials and the quality of your final product. Also, consider additional services. Does the partner offer technical support to help with material processing? Can they assist with regulatory compliance, especially as sustainability regulations become more complex? Distributors like M. Holland are allies in navigating these challenges and ensuring that you meet all requirements, especially those from agencies like the U.S. Food and Drug Administration (FDA).
Which materials or services will be instrumental to sustainability in 2025? What factors are influencing this demand?
Navigating complex regulations will be essential, because compliance is critical. Not only do companies need to ensure their communications with government agencies are documented and in order, but even certified products must be thoroughly vetted to ensure they meet all regulatory requirements.
Technical support is also crucial when integrating sustainable plastics into products. It’s valuable to have a material expert available to visit your facility and help process the materials on your equipment. Lab support for mechanical testing and color matching is equally important to ensure the final product meets all functional and aesthetic requirements.
What advice would you give sustainability stakeholders to drive success in 2025?
Stay informed about market trends and make strategic decisions based on where the market is headed. Is there a slowdown on the horizon, or should you ramp up production to meet growing demand? The difference between a successful quarter and a challenging one often comes down to communication and forecasting. Stay closely connected with your customers to understand their needs further into the future and ensure that information is passed along to your suppliers. This will help you anticipate any supply and demand imbalances and position your business for success.
Visit our Sustainability market page for more information on M. Holland’s products and services.
