Has the Long-Term Outlook for the Plastics Industry Changed in Light of COVID-19?

Before the coronavirus pandemic, there were some indications that the U.S. was “poised for a plastics boom of epic proportions.” In February alone, 343 new plastic production plants and expansions were permitted or planned for the near term, per the American Chemistry Council. And, by 2050, the rate of global plastic production was expected to triple.

But now, with the oil industry in a tailspin, the plastics industry is also feeling the impacts, with many construction projects on hold or delayed indefinitely. 

Some industry experts aren’t surprised because, in their view, “the writing was on the wall for the plastics industry before the current crisis.” The plastic-production boom in the U.S. was “based on the bet that there would be ever-growing demand for plastic overseas.” But that demand might not be materializing as more restrictions and bans on single-use plastics have gone into effect.

In recent weeks, industry groups in the U.S. as well as other parts of the world have pushed to roll back these single-use bans, citing public health concerns over the pandemic. They are touting single-use, disposable plastic bags as the “most sanitary choice,” despite evidence that the virus can live on plastic surfaces up to three days.

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