Ayhan ÇATALKAYA
Kayseri Plastic Operators Association (KAYPİDER)
Vice President of the Board
Fluctuations in energy prices and rising raw material costs have led to an increase in production costs in the plastic sector. High inflation rates, particularly observed in our country, have emerged as a key factor increasing the cost pressure on the sector. This situation has also reduced demand as a consequence of a slowdown in industry. Additionally, high-interest rates in our country have impacted production.
The year 2024 has passed as a complex and uneasy one under the influence of global economic uncertainties, wars in different geographies, and concerns about possible conflicts.
Fluctuations in energy prices and increasing raw material costs have caused production costs in the plastic sector to rise. This situation has put pressure on plastic manufacturers, which have high energy consumption, and has led to a narrowing of profit margins.
In our country, high inflation rates have emerged as a key factor increasing cost pressure on the sector. This has reduced demand as a consequence of a slowdown in the industry. Furthermore, high-interest rates in our country have affected production.
Despite all these adversities, the year 2024 saw demand not significantly decrease. The restrictions imposed by European countries on single-use plastic products, especially in food packaging products, where paper and cardboard are used for cups, straws, and boxes, served as a measure against waste. However, even in this implementation, the plastic lamination applied to these products is proof of how indispensable plastic is.
The year 2024 also saw an increase in the use of recycled plastics and more conscious separation of plastic recycling.
Recovery in the supply chain may increase competitiveness
The expected stabilization in energy prices and recovery in the supply chain in 2025 may lead to a decrease in production costs, enhancing the competitiveness of the sector. In particular, the European Union's circular economy regulations regarding sustainable recycling may increase the demand for the plastic sector, thereby contributing positively to the process. Although sustainable recycling regulations appear problematic in the short term, they could lead to lower-cost production processes in the long run.
This would enhance energy efficiency in the sector and could enable the achievement of higher quality and standardized recycling due to increased demands for recycled materials.
In 2025, when the usage of recycled materials is expected to be much higher, established recycling standards will become of higher quality. New regulations have started to emerge in our country for plastics that need careful separation.
Hence, in 2025, the plastic sector may turn more eco-friendly and conscious. Businesses with lower carbon footprints may have greater competitive advantages.
The gradually changing habits of plastic production and consumption are likely to increase even further. Companies that convert these changes in the process into opportunities will experience competitive advantages.
I hope these ongoing processes lead to a more conscious, environmentally friendly, and responsive industry among stakeholders and consumers, who often scapegoat plastic and the plastic sector. I desire for the sector to grow further by creating value-added products, increasing environmental awareness.
