At the 2023 FlexPO+ (now incorporated into the ADI Forum), Katy Boettcher, Principal, Ara Partners, and John Griffin, Director, The Sterling Group, joined the investor panel, moderated by Uday Turaga, CEO, ADI Analytics. The investors discussed plastics recycling investment challenges, such as feedstock, pricing, and market fragmentation, key factors when considering investing in plastics. They also talked about opportunities including scaling, consolidation, and proven tech, and stressed that market stability and demand were important for long-term success. Both said they remained committed to scaling and consolidating recycling businesses. However, volatile virgin plastic pricing significantly hurt recycled material margins, especially in the U.S. In contrast, European feedstock markets were viewed as more robust.
Despite these challenges, investors saw opportunities in professionalizing the industry and integrating new technologies that have proven pilot-scale success and customer commitment. They were also exploring broader applications for innovative and engineered materials in sectors like building products and packaging, aiming to shift legacy industries towards sustainable content. While government policies like the IRA hadn’t been a primary driver for past investments, they were starting to influence the evaluation of future opportunities in areas like gasification platforms.
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ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy transition, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
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