Macroeconomic strategy

Adress macroeconomic barriers & opportunities

Be aware of the different factors influencing the economical viability of the market, for its development but also its durability over time.

Be aware of the different factors influencing the economical viability of the market, for its development but also its durability over time.

Scientific based reccomendations and insights for practical applications
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Consider possible rapid drops in crude oil and gas prices: an accent on the product's added value.

Low oil and natural gas prices make it cheaper to produce virgin plastics: the pre-existing consumer base for low-cost plastics. This hinders efforts to foster sustainability.

Be prepared for global trade disruptions: adopt shorter localised supply chains.

Consider new methods of employment.

Consider tariff wars: a need to adopt shorter supply chains.

As the COVID-19 crisis has shown, immediate disruptions of global transport flows are possible.

Huge spikes in unemployment, restrictions for personal contacts, and limitations in movements between different locations.

For example, a trade war between the largest economies in the world, e.g. USA and China, might lead to trade barriers on different consumer goods.

Be prepared for a continuous urbanization trend: accent the product's added value.

Consider the availability of raw material supply: a need in local supply.

Urban lifestyles in compact cities encourage convenient habits that might challenge a circular plastic economy.

Arrangements with local raw materials providers might be more sustainable and reliable than globalized supply chains that show more vulnerability, especially in the last years.

Be prepared to present the value of sustainable packaging in a situation of intensified discussions regarding the competition for agricultural land.

Currently, a share of bioplastics production is relatively low; respectfully, the agricultural land used to produce raw materials for bioplastics is not significant. However, food security issues might appear with time and a high increase in bioplastics production.

Make detailed research on infrastructure availability, incl. existence of the infrastructure for end-of-life treatment.

A bioplastics industry is not as well structured and harmonized as the traditional plastics industry due to the lack of experience and a much shorter period of existence. The entrance of specific markets needs a detailed study on the availability and readiness of local/regional infrastructure.

Entering a specific market requires consideration of the level of competition within markets segments.

Fully functioning with a high market share of a specific fossil-based plastic within the specific market segment creates strong competition and might complicate entering this market segment.

Consider alternative markets for your product.

Prepare a more expanded business plan for your product (e.g. packaging) with an option for entering alternative markets.

Consider legislative and regulatory frameworks.

Study the situation with the investments and support for R&D.

More and more countries are supporting sustainable development and green products. Also, often this support is still not sufficient. 

Investment programs might speed up the development and increase the chances of entering the market.