As Mother Earth struggles to cope with the bazillion pounds of plastic everywhere, rising oil prices may have the impact of reducing manufacturing of plastic.
Is the day coming when big old belching smokestakes of the steel and aluminum mills will be welcome? For example, Goodyear, the tire maker, prefers natural rubber rather than synthetic made from oil. Palm oil is used in soap, instead of fake oil. More products are coming in concentrated form to reduce packaging.
The eco lovers hope this will force recycle rates from a few percent to closer to 90%.
Key Themes Behind This Trend
- Reduced Plastic Manufacturing
- Rising oil prices may lead to a decrease in the manufacturing of plastic, which will drive the search for alternative materials and packaging solutions.
- Shift to Natural and Sustainable Materials
- Companies like Goodyear are favoring natural rubber over synthetic materials made from oil, creating an opportunity for innovative materials and sourcing methods in various industries.
- Concentrated Product Forms
- The trend of products being offered in concentrated form as a means to reduce packaging will create an opportunity for companies to develop innovative packaging designs and distribution models.
Where This Applies
- Plastics and Packaging
- The plastic manufacturing industry will need to adapt and explore alternative materials and packaging solutions as oil prices rise.
- Rubber and Tire Manufacturing
- The shift towards natural rubber as an alternative to synthetic materials presents a disruptive innovation opportunity in the tire manufacturing industry.
- Sustainable Materials and Sourcing
- The demand for natural and sustainable materials, such as palm oil, presents an opportunity for industries involved in sourcing and producing these materials.
