European Plastics Converters (EuPC) urges policymakers to cap energy prices in Europe as geopolitical tensions in the Middle East lead to soaring prices for raw materials, energy, and logistics; unstable supply availability; and reduced predictability for production planning.
Reportedly, just over 50,000 plastics converters and processing companies employ more than 1,600,000 people in Europe with an annual turnover of over €300 billion.
Stakeholders have already committed to transitioning to a circular economy, EuPC explains, which will require further industrial investment and technological upgrades in the coming years.
With the addition of further financial strain, EuPC cautions that the viability of Europe’s plastics value chain is at risk. Small and medium-sized enterprises are expected to face particular pressure.
“Given such extreme volatility in raw materials and energy prices, price increases will have to be passed on along the entire plastic value chain,” said EuPC president Benoit Hennaut.
The supply chain is already operating under ‘severely compressed’ margins, EuPC continues. As profitability decreases, companies are taking ‘significant’ financial risks to acquire materials for strategic sectors.
Plastic converters may be forced to stop or reduce production if polymer and energy costs keep rising. This could have consequences for the packaging sector, as well as healthcare, construction, energy production, and more.
Companies required to absorb high raw material costs without help may also be forced out of business.
“We call today upon all European politicians and States to ensure putting a cap on energy prices in Europe as discussed in the EU Council meeting on 19th March 2026 and use all diplomatic efforts to stop the Energy war in the Middle East,” EuPC concludes.
A similar situation emerged back in 2024, when Flexible Packaging Europe warned that shipping disruptions in the Red Sea, driven by ‘escalating tensions’ in the Middle East, were driving up prices for flexible packaging materials in Europe.
Meanwhile, the Russian invasion of Ukraine led to initial decline in the Ukrainian packaging market, but some sectors have since bounced back. Valery Krivoshey PhD and Veronika Khalaydzhi PhD IAC of Upakovka walked us through the key trends and factors influencing the packaging market.
If you liked this story, you might also enjoy:
The ultimate guide to packaging innovation in 2026
Packaging and Packaging Waste Regulation: what to know in 2026
Everything you need to know about global packaging sustainability regulation
No comments yet