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Demand for recycled plastics in Europe is increasing, driven by legislation, economics and the need for sustainable use of resources. However, the recycling sector has not yet been able to fully benefit from these favorable fundamentals due to quality issues and a lack of investments in recycling processes.

The production and disposal of plastics put an enormous burden on the environment. Despite the demand for recycled plastics increasing, the recycling sector remains very fragmented and relatively immature, which is holding back recycling efficiency, quality and profitability.

In this report, we outline three key obstacles holding back a decisive breakthrough;

  1. Recycled plastics are inferior to virgin plastics.
  2. Virgin plastics remain price-competitive given relatively low oil prices.
  3. Regulatory restrictions for food packaging.

In a highly fragmented market, these dynamics present unique investment prospects for consolidation. Everybody’s talking about recycling – now is the time to grab the moment.

Download the full report below for an examination of these obstacles in detail as well as an outline of the central arguments in favor of consolidation.