Plastics Advice 2026
Sustainability
Sustainability targets are tightening, and materials are evolving to match. Acting early to implement circular solutions will separate tomorrow’s market leaders from the pack.
What sustainable plastic trends will most significantly shape the market in 2026?
Sustainable plastics are shifting from nice-to-have to non-negotiable as regulators around the world tighten requirements for recycled content, extended producer responsibility and circular economy practices. In Europe, policies tied to the Circular Economy Action Plan (CEAP) and upcoming packaging rules are pushing companies to design packaging that is reusable or recyclable well before 2030. In the United States, momentum is building at the state-level with regulations, including extended producer responsibility laws and minimum recycled content requirements that are already influencing packaging design and material sourcing in major markets.
Similar dynamics are unfolding in other regions. Asia-Pacific and Latin America are rolling out new producer-responsibility frameworks and recycled-content requirements. India’s 2026 packaging rules, for example, will require brand owners and converters to rethink how they source, design and recover plastics. Implementation will vary, especially in regions where waste management systems lag, but for many major applications, sustainable materials are becoming a practical requirement for market participation.
Global brands are reinforcing this push. Many are setting aggressive targets for post-consumer recycled (PCR) content or pledging to use recyclable or compostable packaging across their portfolios. These commitments are creating real demand signals throughout the plastics value chain.
Fortunately, supply and cost structures are beginning to shift, though not uniformly. While virgin resin prices are currently low due to oversupply, making them attractive in the near term, bio-based and recycled plastics are scaling as new capacity comes online. Over time, these materials are expected to benefit from greater supply stability and less exposure to energy-price volatility, even as short-term price pressure continues to favor conventional resins in many applications.
Collectively, these trends show that sustainable plastics are no longer a niche, premium option. They are quickly becoming the expected standard. Companies that delay transition risk falling behind on cost, compliance and customer expectations.
What promising developments will most impact sustainability in plastics in 2026?
The most promising developments are those making sustainable materials easier to specify, process and scale. On the materials front, bio-based and biodegradable polymers are gaining momentum. Markets for polylactic acid (PLA), polyhydroxyalkanoates (PHA) and other renewable-based resins are growing rapidly as performance improves and more drop-in grades are developed that run on existing equipment with minimal modification. PHA, in particular, is emerging as one of the fastest-growing material segments thanks to its performance profile and environmental benefits. For converters and brand owners, that means biopolymers are becoming more practical for applications such as trays, single-use items, and select packaging formats.
Recycling technologies are evolving in parallel. Mechanical recycling remains crucial but is constrained by contamination, multilayer structures and color limitations. New investments in chemical and enzymatic recycling aim to overcome those challenges by breaking plastics down to their molecular building blocks and rebuilding them into near-virgin material. As more of these plants reach commercial scale around 2026, manufacturers will have better access to consistent, high-quality PCR streams that can meet demanding performance and regulatory standards.
Design practices are evolving in tandem with these technical shifts. Circularity is increasingly becoming an engineering requirement, rather than a downstream consideration. Brand owners are simplifying structures and shifting toward mono-material formats such as all-polyethylene (PE) or all-polypropylene (PP) packaging. Designers are rethinking labeling, closures and additive choices to improve recyclability. Digital tools are also entering the picture, from AI that helps optimize formulations to digital product passports and traceability systems that document recycled or bio-based content.
Together, these developments are reducing barriers to adoption. Sustainable materials are becoming easier to qualify, source and track, helping manufacturers align regulatory, performance and brand requirements more effectively.
How are shifts in global trade dynamics affecting sourcing decisions about sustainable plastics?
Sustainable plastics are navigating a complicated trade landscape, and that complexity is reshaping sourcing strategies. Regionalization and nearshoring are accelerating as manufacturers work to reduce exposure to supply chain volatility. For sustainable plastics in particular, that often means investing in regional PCR production, local recycling partnerships and bio-based resin facilities located closer to demand centers in North America, Europe and key emerging markets. While regionalization may increase unit costs in some cases, it reduces logistics risk, shortens lead times and improves transparency — all critical factors when traceability and chain of custody are part of regulatory or customer requirements.
These evolving requirements are also influencing which suppliers and regions are viewed as reliable partners. Companies are evaluating regions not only on price but also on environmental regulations, waste management infrastructure, access to certified feedstocks and compliance standards. In many cases, the lowest-cost global source is no longer the best choice once tariffs, transport, emissions, certification, inventory and reputational risk are evaluated together.
As a result, sustainable plastics procurement is becoming more sophisticated in 2026. Sourcing teams are evaluating trade policy, logistics, carbon impact and traceability alongside traditional price considerations. In that environment, local or regional recycled and bio-based materials may gain a stronger foothold, even if the sticker price is slightly higher.
What advice would you give plastics manufacturers to drive success in 2026?
Invest now in circularity. Not just as a compliance obligation, but as a core business strategy.
Manufacturers that treat circularity as a strategic priority will be better positioned to manage risk and capture growth. That starts with understanding where recycled or bio-based content can be integrated across the portfolio. Conducting a material roadmap and trialing applications can help translate broad sustainability ambitions into practical implementation.
No company can build a circular system alone. Working closely with resin suppliers, recyclers and brand owners unlocks access to new materials, improves feedstock security and accelerates learning curves for emerging technologies. This could mean co-developing applications with biopolymer producers, securing long-term PCR supply contracts from advanced recycling facilities, or redesigning packaging with customers to improve recyclability or reuse.
Ultimately, success will depend on embedding lifecycle thinking into everyday decisions. Design, procurement, operations and quality teams should all consider recyclability, recycled content, carbon impact and end-of-life pathways when evaluating new products and processes. Digital traceability systems that document material origin and composition will play an important supporting role for both compliance and brand commitments.
Visit our Sustainability market page for more information on M. Holland’s products and services and subscribe to receive the latest news and updates from M. Holland.
