Plastech: The plastics processing industry in Poland is currently operating in a complex economic and regulatory environment. On the one hand, there are signs of stabilising demand in key sectors of the economy. On the other, companies continue to face high energy costs, increasing regulatory pressure and an economic slowdown in parts of Europe. As a result, the sector finds itself at a delicate point of balance between stabilisation and growing challenges to its competitiveness.

Stable demand from the food sector
One of the main stabilising factors for the industry remains the good condition of the food sector, which is one of the most importantcustomers for plastic products, especially packaging. The sector’s consistently strong performance translates into relatively stable demand for both primary and transport packaging. Thanks to this, plastics processors have been able to maintain production volumes at a satisfactory level, even though some other sectors of the economy are still feeling the effects of the slowdown.

Weaker economic situation in Germany
At the same time, the economic situation in Germany – Poland’s most important trading partner – remains a challenge. The German plastics processing sector has recorded declines in output and employment, pointing to continued cost and demand pressure. The weakening of the German economy directly affects the number of export orders received by Polish companies. Other important European markets – such as the Czech Republic, France and Italy – are only gradually emerging from the downturn, which means that any improvement in foreign trade is likely to be gradual rather than rapid.

Energy costs remain a major challenge
One of the most serious issues continues to be the high cost of energy in Poland. For energyintensive plants, this means the need for further cost optimisation and faster investment in energy efficiency. An increasing number of companies are modernising machinery, implementing energy recovery systems and automating production processes. Although this requires significant capital expenditure, in the longer term it may improve operational efficiency and strengthen the competitiveness of individual businesses.

Raw material prices are stabilising
After a period of considerable volatility, prices of the basic raw materials used by the industry – plastics resins – are now remaining at a relatively low level, although gradual stabilisation and slight increases can already be seen. This situation supports sales growth while allowing finished product prices on the domestic market to remain stable. In response to changing market conditions, companies are increasingly diversifying their product portfolios and looking for new market segments.

Packaging under regulatory pressure
The packaging segment, which accounts for more than one third of demand for plastic products, is under particularly strong regulatory and reputational pressure. One of the issues generating the greatest concern in the industry is the proposed Packaging and Packaging Waste Regulation (PPWR). Its aim is to reduce the environmental impact of packaging by limiting packaging volumes, promoting reusable systems and increasing the use of recycled content. Although the overall direction is consistent with the principles of the circular economy, some of the proposed measures raise serious concerns among businesses. One example is the restriction on single-use plastic transport packaging in favour of reusable systems, despite analyses suggesting that such solutions may generate higher costs and a greater environmental footprint in some applications. Another challenge is the obligation to use specified levels of recycled content in packaging, while the price of recyclates still remains significantly higher than that of virgin raw materials. This may lead to higher production costs and additional pressure on company margins.

EU industrial competitiveness at the centre of the debate
The problems faced by the plastics processing sector form part of a broader debate on the competitiveness of European industry. In the report published in 2024 under the leadership of Mario Draghi, attention was drawn to the deteriorating competitive position of EU industry and the need for deregulation and pro-growth measures. The proposed solutions include simplifying regulations, supporting industrial investment and strengthening a common industrial policy. One of the concepts under discussion is “Made in EU”, which would give preference to products manufactured within the European Union, especially in public procurement. For companies, such an approach
could mean greater protection against unfair competition from third countries, where production costs are lower due in part to weaker environmental requirements or state support.

Declining ability to compete
Industry data nevertheless show that, in the short term, companies continue to feel strong market pressure. The competitiveness indicator fell from 53.15 to 50.31, suggesting a deterioration in the conditions for business development. At the same time, a positive sign is the 3% increase in sold production across Polish industry as a whole. Stabilisation in sectors such as construction and automotive – important customers for plastic components – may in the coming quarters translate into higher demand for technical parts, profiles and structural components.

Innovation as a condition for further growth
In response to changing market conditions, companies are investing more intensively in product innovation, process automation and workforce development. However, without a clear improvement in demand, it is difficult to expect dynamic growth in the sector’s performance. In the longer term, the key factor will be the ability of companies to respond flexibly to regulatory change and rising environmental requirements. It is this combination of cost efficiency, innovation and environmental responsibility that may become the foundation of a lasting competitive advantage for the plastics processing sector in Europe.