Ignoring pressure to shift away from plastics could cost businesses up to $100bn annually by 2040 according to a new report which identifies the measures that brands and retailers can put in place today to accelerate diversification from the material.

The Post Plastic Economy report from Plastic Free & Fashion Snoops says the shift to natural plastic alternatives and incorporating reuse and right-to-repair models is paramount and businesses must get on board before legislation is passed requiring them to do so.

By 2025, a legally binding UN Global Plastics Treaty will also be in force, applicable to all 175 nations currently involved in its negotiations.

Why has plastic become the pariah material?

The report’s authors say: “The advent of plastic— or fossil fuels in solid form — catapulted us into the giddy, hyper-consumptive world we now live in. It broke the system, pivoting us away from a restorative culture of take- take-make-reuse-repair-share to a linear one of take-make-waste-take again. A throwaway culture by design.

“Delivering a level of protection, convenience, and affordability we had never seen before, plastic quickly won us over. In under 30 years, it went from being seen as a valuable commodity to a disposable one, reframed as a material so easy to make and discard that we don’t need to worry about caring for it.

Over two-thirds (69%) of the fibres used in fashion are synthetic. More than half of

the world’s plastic has been created since the early 2000s.

“The consequences of this homogenous reliance are far-reaching — our planet is

now contaminated with plastic chemicals, microplastics, and plastic waste, while the

production of these materials is projected to consume one-fifth of the earth’s remaining carbon budget in the near future.

“Over 16,000 substances are used to make plastic, and more than 4,000 of those are known to be hazardous to human health.”

According to the report, these chemicals – including endocrine-disrupting ‘forever chemicals’ (PFAS) – are linked to increases in cancers, heart disease, infertility, and immune diseases. Recycling can heighten the health impact by concentrating chemicals, the reort adding it is a “false solution”.

Only 9% of plastic has ever been given a second life and the report suggests plastic production is expected to treble by 2060.

“We must go back to the drawing board and use our collective creative power to finally innovate beyond the plastic perimeter.”

Recently, Gherzi Textile Organization partner Robert P. Antoshak and Grey Matter Concepts SVP of production and sourcing Radhika Shrinivas pointed out despite the apparel sector’s focus on sustainability, recycled polyester still only accounts for 15% of the total polyester textiles used today.

He said: “The industry learned that polyester fabric thrown away could last in a landfill for hundreds of years without degrading. With millions of metric tons of fabric ending up in landfills, our industry has realised that it helped to create a mammoth polyester fabric waste problem.

“So, how does using polyester made of recycled plastic bottles change this? Unfortunately, it doesn’t. What it does do is redirect plastic bottles from landfills and convert them into another product that can be used — if only for one time.

“The most prominent case in favour of using recycled polyester made from plastic bottles is to reduce the number of bottles in landfills and oceans and reduce the negative impacts on our environment. The most significant criticism remains that this only eliminates discarded polyester garments that end up in landfills for hundreds of years without degrading. This can be a big dilemma for many consumers and manufacturers alike. Yet, for many brands, using recycled polyester is still a better or more sustainable option than virgin polyester, and the focus should remain.”

Sian Sutherland, co-founder, PlasticFree & A Plastic Planet notes: “Plastic has become a toxic default for a model of business predicated on ecological degradation and an inherent disregard for its impact on not only the planet’s health but our own. But it doesn’t have to be this way.

“The past decade has seen an upward trend in consumer demand for change, legislators are increasingly drafting policy to tackle the crisis and yet many businesses are still wedded to a take, make, waste attitude. Ultimately, change is coming, and I now ask brands this simple question – ‘do you wish to be the last to move? Businesses globally face a choice; whether to be a leader, grabbing the opportunities in the post-plastic revolution or to be a future dinosaur.”

What is the business incentive to shift away from plastics?

The report suggests that proactively transitioning away from plastic is a strategic move to maintain profitability and competitiveness in a changing market. In fact, it outlines five wins for businesses from going plastic-free.

1. Net zero market: Brands that secure lower-carbon-impact materials now

will capture an average 6% profit uplift after five years. This equates to an average of $100m over the full-time period. 88% of consumers are ready to pay a premium for products that are manufactured with net-zero emissions. Respondents to this survey say they are willing to pay at least a 0.4% green premium.

2. Regulatory compliance: Reducing or removing plastic at the product design phase will reduce financial compliance risk. Investment costs in a “new plastics economy” are expected to be less than the current investment trajectory, at $65bn per year to 2040, as opposed to $113bn. Adapting to upcoming Extended Producer Responsibility (EPR) policies by designing packaging for reuse in the home could lead to 80-90% packaging savings and 25-50% packaging cost savings, offering incentives for both businesses and consumers.

3. Early adopter advantage: Appeal to the early-adopter consumer market by becoming a plastic-free brand. This consumer group offers a two-tier value proposition: they purchase quickly, and they’re more likely to promote the product through their sphere of influence. Actively publicising your mission to reduce and/or eliminate plastic is key. In the five years to 2023, products making ESG-related claims accounted for 56% of all growth, with a 28% cumulative growth compared to 20% for brands with no such claims.

4. Investor resilience: 77% of individual investors globally are planning to invest in companies or funds that aim to balance market-rate financial returns with positive social and environmental impact, with 54% saying they will boost their allocations to sustainable investments in the next year. Investors’ top four sustainability investing issues are climate action (15%), healthcare (13%), water solutions (11%) and the circular economy (11%), all of which plastic-free design contributes to. Removing plastic would support the improvement of and/or mitigation of all the areas.

5. Wellness wealth: The global wellness market is worth more than $1.5trn, with annual growth of 5-10%. Consumers are prioritising health more than ever, with 42% citing it as a top priority in the last 12 months. The plastic-free movement is a health movement. Plastic plays a part in all wellness markets from fitness clothing and yoga mats to health food packaging. The wellbeing properties of these products will quickly decline as consumers become wary of plastic’s impact. Plastic-free brands should market the health benefits associated with its absence.

Jenna Guarascio, head of content and innovation at Fashion Snoops, says: “Eliminating plastic is more than a sustainability strategy — it’s a lucrative business manoeuvre that will future-proof companies and unlock opportunity. The best part? An abundance of ground-breaking, cost-effective innovations are ready and waiting to be harnessed.”

Four strategic actions to take toward plastic-free

• Invest in a full and robust traceability system to understand your materials’ true impacts. Explain CO2 equivalent savings to the end consumer, navigating accusations of greenwashing.

• Develop a global plastics legislation tracker to stay ahead of impending change. Pair this with the development of rigorous impact data sets for every product, so you know if and when they will be at threat from regulation.

• Adopt a ‘start clean, stay clean, end well’ material philosophy throughout your entire supply chain, challenging all suppliers to comply. Improve consumer trust by increasing transparency of the chemicals used in all products and materials

• Avoid greenwashing traps by backing all claims with third-party verified data. Offer rewards and incentives for early-adopter consumers that engage with your plastic-free offering.