Urbanisation and positive growth in end-use sectors such as construction and infrastructure, electronics, automotive and home and personal care are expected to support demand for plastics, which in turn drives demand for petrochemicals. However, we believe that the single-use plastic segment could experience a decline given the increased environmental awareness, strengthened government regulations and voluntary reduction in use by commercial entities.
Various international organisations such as the United Nations, non-government organisations and the media have brought attention to plastics pollution. Globally, 70% to 80% of marine litter is contributed by single-use plastics, partly due to irresponsible disposal. In addition, petrochemical-based plastics cannot degrade organically and can last for years in the ecosystem.
In this report, we would like to highlight government regulations and voluntary reduction around the world which could ultimately lead to a decline in the use of single-use plastics. The European Union's rule on 10 single-use plastic products was the most prominent rule passed in 2018.
In our region, governments are also increasingly acting against single-use plastics through the imposition of levies, roadmaps for progressive bans and public education. Consequently, in our view, (a) cutlery, plates, straws and stirrers; (b) plastic bags; (c) cups and lids for beverages and (d) food containers are four categories of single-use plastics that will most likely face reduction in demand.
As for single-use plastics such as drink bottles, we hold the view that more waste collection networks and recycling efforts will be an increasing focus among drink producers, retail outlets and residential households.
UOB is able to offer the Plastics Converters Solution to companies in the plastics processing industry, plastics collection networks or plastics recycling. For more information, please contact us here.