The Polish plastics industry faces challenges stemming from EU regulations and increasing consumer environmental awareness. Implementing circular economy principles is becoming a necessity, which means costs and investments in new technologies for companies. On the other hand, investing in a circular economy can bring long-term benefits, both in terms of resource savings and strengthening market position. However, access to financing and the readiness of companies to implement changes remain crucial.
“The Polish plastics sector, one of the key industries in the national economy, faces serious challenges resulting from legislative changes that affect it as a whole. That is, all regulations and changes related to the introduction of the European Green Deal are fundamentally linked to the plastics sector,” says Agnieszka Zdanowicz, Vice President of the Circular Economy and Recycling Cluster.
The European Green Deal and EU regulations concerning the circular economy (CE) require plastics companies to implement innovative recycling technologies and optimize production processes. These changes pose the biggest challenge for small and medium-sized enterprises (SMEs), which make up approximately 90% of the sector and often have limited investment capacity.
“When we talk about the circular economy, it is, in fact, one of the largest components of this transformation in companies, especially in the SME sector,” says Agnieszka Zdanowicz.
The plastics industry is a vital branch of the Polish economy. According to data from the Plastics Europe Foundation, this sector employs about 225,000 people and continues to grow steadily: the average annual growth rate (CAGR) of sold production at current prices from 2011 to 2022 was 8.7% (compared to 7.8% for the entire industrial processing sector). Domestic plastics production is estimated at approximately 1.7 million tons, with the main consumers being the packaging sector (34% of total consumption), construction (19%), and the automotive industry (11%). However, the demand for plastics among Polish processors continues to grow and, according to Plastics Europe, currently reaches around 4.1 million tons, meaning a significant portion of this demand is met with imported raw materials. Transforming the sector towards a circular economy is therefore crucial – both to reduce its environmental impact and to increase resource independence.
Another driver of change is the growing awareness among consumers, which in turn translates into greater demands on manufacturers. Research shows that customers are paying increasing attention to whether the packaging of the products they buy is recyclable.
“Growing consumer awareness is most visible in relation to this sector and affects it the most,” says the Vice President of the Circular Economy and Recycling Cluster. “Consumers are increasingly making conscious choices regarding packaging and products that can be reused, repaired, or simply returned. In some ways, they are also obligated to do so through selective waste collection systems and evolving regulations that impact the average citizen.”
The increasing involvement of Poles in environmental issues is evident. According to last year’s SW Research survey, 92% of respondents declared adherence to selective waste collection rules (a 13% year-over-year increase). Meanwhile, the “EcoBarometer” study, conducted by SW Research in collaboration with the Akomex Group, found that 69% of Poles started sorting waste regularly over the past six years. Moreover, 71% of Polish consumers consider what happens to packaging after disposing of the product. At the same time, Poles indicate that their primary motivation for ecological actions is the “desire to do something good for the environment” (40% of responses). To meet these expectations, companies in the plastics sector are implementing circular raw material strategies and seeking innovative solutions to minimize their environmental impact.
“The circular economy is always a costly process because it initially requires investment. Few actions can be implemented solely through optimization,” says Agnieszka Zdanowicz.
She points out that implementing a circular economy in companies involves high costs, especially in the initial phase. In addition to investments in recycling technologies, changes in business models, production lines, and data management methods are also necessary. According to Plastics Europe, the average return on investment in new recycling technologies is approximately 7–10 years, which presents a challenge for smaller firms.
“The first steps toward CE undoubtedly involve costs,” says the expert. “It cannot be done in a simple and inexpensive way; technological changes are costly, as are the necessary R&D activities, collaboration with research centers, or consulting services that support companies in implementing these changes. Initially, this is an absolutely costly process, and these costs are spread over several years. However, in the long run, the goal is to optimize production and close the loop, not only in terms of raw material flows but all other resources as well. That is why there are also opportunities. When new business models and products based on closed-loop materials emerge, or when resources from other companies are utilized as part of CE-driven industrial symbiosis, then we start talking about revenue. However, all of this requires investment and costs, not only technological but also personnel-related.”
As she emphasizes, the circular economy is not just a cost and challenge but also an opportunity. One long-term benefit is the reduction of production costs, as well as the development of new products based on recycled materials. The ability to use secondary raw materials in innovative business models allows companies to generate additional revenue and increase their market competitiveness. In practice, this means that companies investing in circular economy initiatives today may reap significant financial benefits in the future.
“The biggest challenge in implementing CE solutions is undoubtedly the costs, which must somehow be passed on to the customer, which is not always desirable,” says Agnieszka Zdanowicz. “Often, companies need to rely on external funding, loans, or grants, which are increasingly available.”
Another challenge is the readiness of companies and their employees to implement changes. In many cases, cooperation with experts who can identify the most effective solutions tailored to the specific needs of a business becomes essential.
“Teams are often unprepared to implement these changes. High environmental awareness does not always go hand in hand with an understanding of how to optimize technological or business processes in a company,” adds the Vice President of the Circular Economy and Recycling Cluster.
