Plastics today: low cost, convenient and still primarily linear

Despite well-documented impacts on the environment and human health – including an estimated 2,000 truckloads of plastic entering nature each day and growing concern over micro- and nano-plastics in the human body – plastics remain deeply embedded in global supply chains.

In 2023, global plastic production reached approximately 400 million metric tonnes, with fossil-based plastic accounting for the vast majority. Recycled plastics constituted about 36.5 million tonnes, while bioplastics represented 3 million tonnes, highlighting the continued dominance of fossil-based plastics in the global market.

Virgin fossil-based plastics continue to dominate global markets largely because they offer businesses low costs, operational convenience, and strong commercial returns – making them a more commercially attractive option for packaging and other applications than sustainable alternatives.

New regulation is shifting the equation towards sustainable alternatives

However, a growing body of legislation and intensifying public scrutiny is making it increasingly difficult for companies to sustain a ‘business-as-usual’ approach when it comes to the use of such plastic. External pressures are creating a tension between short-term commercial incentives and longer-term compliance and reputational risks for businesses.

In Europe, following the EU Council’s recent adoption of the Packaging and Packaging Waste Regulation (PPWR), new rules will require packaging placed on the market to meet recyclability performance requirements by 2030 and will ban certain single-use plastic packaging types by the same year, with the regulation applying from August 2026.

​Other regulatory mechanisms are also on the horizon. From 2026, polymers are expected to be considered for inclusion under the EU’s Carbon Border Adjustment Mechanism (CBAM), which would impose carbon costs on oil- and gas-derived materials produced outside the EU. Importers would face carbon costs aligned with the EU Emissions Trading System (ETS), likely raising prices for companies reliant on such materials for packaging and other applications – reinforcing the business case for exploring sustainable alternatives.

Some EU Member States are already taking action to reduce plastic production and consumption. Spain, for example, has introduced a €0.45/kg tax on non-recycled plastic used in non-reusable packaging. The tax targets companies involved in the manufacture, intra-community acquisition, importation, or irregular introduction of such products into Spain. It is designed to create a financial incentive for businesses to shift away from virgin, single-use materials and towards recycled content, with exemptions for medical products and low volume uses.

Plastics: from cost-effective material to future liability

Together with rising public scrutiny, these regulatory developments are creating urgent pressure for businesses to reassess their dependence on virgin fossil-based plastics. The challenge, however, lies in balancing short-term operational advantages with the growing necessity to manage future compliance and reputational risks.

So, what strategic steps can businesses take to break the cycle of over-reliance on virgin fossil-based plastics and transform compliance obligations into a competitive advantage?

Thinking outside the plastic box: strategies for change

As an initial step, companies reliant on virgin fossil-based plastic for packaging and other applications should consider integrating alternatives such as post-consumer recycled (PCR) plastics. Although these materials come with their own set of challenges – including limited government-backed funding for recycling infrastructure in the EU and inconsistently applied legislation leading to imports of lower-quality materials – partnering with reputable suppliers can help secure access to high-quality PCR sources.

Securing robust certification for the origin and quality of recycled plastics is equally critical. With regulations like the PPWR mandating specific PCR content thresholds, certifications such as ‘RecyClass’ will be essential for businesses to demonstrate compliance with recycled content requirements and to verify the authenticity and traceability of materials used. Such certifications are not only a compliance matter but also help meet growing expectations from both regulators and customers, strengthening stakeholder trust.

However, as prioritisation of PCR plastics intensifies, competition for these materials is likely to increase, potentially driving up prices and sourcing costs. To mitigate this risk, companies should adopt a broader strategy that includes exploring alternative materials to plastic such as bio-based options (including pulp, paper, cardboard, cellulose, seaweed and mycelium) and even rethinking product packaging designs to reduce packaging requirements altogether.

Finding value in sustainable alternatives

One forward-thinking company that has found strategic value in moving away from virgin plastic for its packaging is LUSH, driven by its mission to “leave the world Lusher than we found it.” Well ahead of industry trends, the global business has used fully recycled and recyclable polypropylene (PP) to create its iconic black pots for products such as facemasks and creams since 2008, with thousands returned through its shops each year.

Recognising that black plastics are typically difficult for recycling facilities to detect and sort, LUSH has turned this challenge into an opportunity by using 100% PCR black plastic. Since its packaging is intentionally black, the company can make use of lower-grade recycled material that might otherwise be discarded, without needing to be selective about colour.

Supporting this approach, its ‘Bring it Back’ customer recycling programme incentivises customers to return used packaging in exchange for rewards, such as free fresh face masks – reinforcing the brand’s commitment to circularity and strengthening customer loyalty. In 2022 alone, 720,000 items of LUSH packaging were returned to its UK shops.

Beyond its use of PCR plastics, LUSH has taken its commitment to circularity and sustainability even further by inventing the packaging-free or ‘naked’ solid shampoo bar – selling over 57 million globally and avoiding the use of 167.5 million plastic bottles – and by developing a 100% natural, reusable, and biodegradable cork pot for storage.

Through a comprehensive strategy combining multiple alternatives to virgin plastic packaging, LUSH has positioned itself as a global industry leader in sustainability and circularity. Its approach has helped build a loyal customer base and offers a practical model for businesses looking to shift away from virgin fossil-based plastics.

Breaking the dominance of virgin plastics can deliver positive commercial, environmental and social impacts

While there is no single solution to the plastic paradox many businesses face – grappling with the tension between short-term commercial gains and long-term regulatory and financial risks – combining material innovation with greater use of recycled materials and circular design can support regulation readiness and offer a viable path forward.

These actions are more than just compliance. They can cut emissions, improve human health, reduce long-term costs and strengthen brand positioning in an increasingly sustainability-conscious market.

Author: Elodie Irons, Consultant, Simply Sustainable