After China Bans Waste Plastic Imports, Europe's Plastics Recycling Market Changes
- AMI Consulting reported on 26 July 2018 in Bristol, UK, that given the impact of China's ban on waste plastic imports, the plastics recycling industry must be vigorously developed to meet the EU's 2030 plastic packaging recycling targets.
- Although polyethylene is currently the most recycled polymer in Europe, PET has the highest capture rate in waste plastics because PET waste comes mainly from post-consumer PET beverage bottles; after beverage container deposit legislation, PET beverage bottle collection rates reached as high as 96%.
- The development of mechanical recycling technology is changing the plastics recycling industry and improving closed-loop recycling to preserve maximum value, but currently unstable quality and supply mean large amounts of recycled plastics are downcycled into lower value-added applications.
- The European plastics industry employs about 1.45 million people at 62,000 companies—mainly SMEs in plastics processing—and generates annual turnover of more than EUR 350 billion.
- About two-thirds of Europe's plastics demand is concentrated in five countries—Germany 25.4%, Italy 14.3%, France 9.7%, UK 7.6%, and Spain 7.5%—which produce about 570,000 tonnes of plastics a year while Europe's demand in the same period is only 460,000 tonnes.
Applied Market Information Ltd. (AMI Consulting) released the following information on 26 July 2018 in Bristol, UK: a leading consulting firm in the industry, Applied Market Information Ltd. (AMI Consulting), recently published a research report stating that the plastics recycling industry must be vigorously developed, because given the impact of the ban on China's imports of waste plastics coming into effect, only in this way can the EU's 2030 plastic packaging recycling targets be met.
Although polyethylene is currently the most recycled polymer in Europe, PET has the highest capture rate in waste plastics (the percentage of recyclable material diverted from the waste system, i.e. the amount of recyclable material divided by the total amount of recyclable material generated). This is because PET waste comes mainly from post-consumer PET beverage bottles. Many countries collect such bottles extensively and have long-established, solid collection systems. After legislation on deposits for beverage containers, the collection rate of PET beverage bottles reached as high as 96%; this approach encourages consumers to participate in the plastics recycling system by providing economic incentives.
The development of mechanical recycling technology is changing the shape of the plastics recycling industry and improving the ability to recycle plastics in a closed-loop manner, helping to preserve maximum value. However, at present, due to unstable quality and supply, large amounts of recycled plastics are downcycled into lower value-added applications. For those looking to take advantage of changes and developments in the industry, these new opportunities can be seized.
What is today's European recycled plastics market like?
According to PlasticsEurope, the European plastics industry employs about 1.45 million people, working at 62,000 companies (mainly small and medium-sized companies in the plastics processing industry), generating annual turnover of more than EUR 350 billion.
About two-thirds of Europe's plastics demand is concentrated in five countries (Germany 25.4%, Italy 14.3%, France 9.7%, UK 7.6%, Spain 7.5%). These countries produce about 570,000 tonnes of plastics a year, while Europe's demand in the same period is only 460,000 tonnes a year, so for recycling companies looking to source and invest in Europe, the room available is enormous.
Advantages of Sourcing and Investing in Europe
- Superior geographic location
Europe borders the Arctic Ocean to the north, the Atlantic Ocean to the west and the Mediterranean to the south. Owing to its strong geographic advantages, it has been a trading power since ancient times. Its superior trading system has attracted plastics entrepreneurs from all over the world, and over time it has become the largest plastics distribution centre.
- A well-developed recycling system
As a developed Western region, Europe has a very complete and sound recycling system. As early as many years ago, Germany's plastic bag sorting machinery could ensure that sorted plastic carrier bags would not remain in the environment.
- Strong policy support
Besides being the largest trading market, Europe also has some characteristics that cannot be ignored. Take France, for example: since 2010, the French government has implemented a number of tax reduction measures for productive investment. It is also conducting comprehensive research on simplifying the patent application system and improving tax credits, in order to attract more people into France's recycling sector.
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