Photo source: Bill Oxford
Regulatory uncertainty is the packaging industry’s greatest pain point regarding circular economy
A new study by B+P Consultants identifies the industry’s largest circular economy pain point as the uncertainty surrounding legal regulations. As long as cycles are not closed, the increasing pressure from NGOs and public opinion will ensure that regulations are ever faster, harder and more uncoordinated.
A survey of 270 executives from the packaging industry conducted by B+P Consultants in October 2020 identifies the packaging industry’s biggest pain point when it comes to the circular economy: it is the patchwork of legal regulations and the resulting uncertainty. The pain is not only great for the material fraction of plastic. The other material fractions also suffer. As long as the industry does not take a unified and consolidated position and close the cycle, the pain will not subside – on the contrary. Clear regulations are urgently needed.
The survey carried out by B+P Consultants clearly shows how great the discomfort caused by the uncoordinated and nationally varying legal regulations relating to the recycling industry actually is – regardless of the material used.
- 76 percent of manufacturers of plastic packaging describe the uncertainty caused by the disparate regulations as their biggest pain point with regard to the circular economy
- Across all materials, the figure is still 63 percent. For a clear majority of companies from the packaging industry, the patchwork of different regulations is therefore the main sticking point.
The fact is: We urgently need clear regulations. But unfortunately it is also a fact that there is no improvement in sight. Because the industry still does not have a uniform and consolidated position. But as long as everyone speaks only for themselves and their individual interests, the global “arbitrariness” in regulation will not only continue, it will continue to worsen. Increasing pressure from NGOs and public opinion will ensure that regulation will become ever faster, harder and more uncoordinated. An end with pain is currently not foreseeable, but rather pain without end – unless cycles can be closed.