Fluctuations in energy prices and increasing raw material costs led to an increase in production costs in the plastics sector. High inflation rates observed specifically in our country emerged as the main factor increasing cost pressure on the sector. This situation also reduced demand as a result of the slowdown in industry. Furthermore, high interest rates in our country also affected production. For the plastics sector, 2024 was a complex and unsettling year, marked by global economic uncertainties, ongoing wars in various geographies, and potential war anxieties.
Fluctuations in energy prices and increasing raw material costs led to an increase in production costs in the plastics sector. This situation challenged plastics manufacturers with high energy consumption and led to a narrowing of profit margins. High inflation rates observed specifically in our country emerged as the main factor increasing cost pressure on the sector. This situation also reduced demand as a result of the slowdown in industry. Furthermore, high interest rates in our country also affected production. Despite all these negativities, 2024 was a year in which demand did not decrease significantly. European countries' restrictions on single-use plastic products, especially the use of paper and cardboard for products like boxes, cups, and straws in food packaging, was a measure against waste, but even in this application, the plastic lamination applied to these products is proof of how indispensable plastic is. 2024 was also a year where recycled plastics were used more frequently, and plastic recycling was sorted more consciously.
Recovery in the supply chain can increase competitiveness
Expected stabilization in energy prices and recovery in the supply chain in 2025 could lead to a decrease in production costs and increase the sector's competitiveness. Sustainable recycling, especially concerning the European Union's recycling regulations, can increase demand for the plastics sector. Therefore, it can make a positive contribution to the process. Although sustainable recycling regulations appear problematic in the short term, they can facilitate a transition to lower-cost production processes in the long term. This situation can both increase energy efficiency in the sector and bring efforts to obtain higher quality and standard recycling due to increasing demand for recycled materials.
In 2025, when the use of recycled materials will be much more prevalent, established recycling standards will become of higher quality. In our country, new regulations for plastics that need to be sorted more carefully have also begun to emerge. Consequently, in 2025, the plastics sector may become more environmentally friendly and more conscious. Companies with current low-carbon footprint production processes may have greater competitive strength. Our gradually changing plastic production and consumption habits will also likely increase further. Companies that foresee this change in the process and turn it into an opportunity will gain competitive advantages. I hope that these ongoing processes will lead sector players and plastic consumers to become more conscious, environmentally friendly, and sensitive, countering the perception that demonizes plastic and the plastic sector at every opportunity. I wish for the sector to grow further, create value-added products, and have a higher environmental awareness.
This content has been translated using artificial intelligence technology.