Plastic News’ Frank Esposito interviewed NOVA Chemicals’ Sarah Marshall, John Thayer, Doug Biela, and Alan Schrob for perspectives on the trends shaping the plastic industry as 2026 approaches.
When asked about the role of sustainability, Sarah Marshall, Interim Senior Vice President of Sales and Marketing said “We see plastic circularity not just as good business but as a long-term strategic imperative for the plastics industry. That’s why we’re investing in mechanical recycling and recycled product designs that support circular systems. We continue to see interest from our customers in incorporating recycled materials into their products, and we remain confident in the long-term viability of PCR despite near-term market challenges.
We’re also advancing mono-material packaging, including high density biaxially oriented PE and all-PE sealant webs designed for recycling. These solutions can provide replacements for multi-material laminates, enable downgauging, and help generate more high-quality feedstock for recycling processes.
At the same time, we are pursuing lower carbon footprint solutions through multiple pathways, from mechanically recycled SYNDIGOTM resins to emissions reduction opportunities in our virgin PE production.”
John Thayer, SVP of Olefins, Feedstock, Supply Chain & Procurement, answered the question about the impact of tariffs on business and the changes he has made to supply chain processes. “Supply chain and logistics challenges have been prevalent, particularly in the last several years, ranging from labor disruptions and shortages to geopolitical and environmental factors. These issues in many cases have driven up costs and added a significant amount of complexity to the supply chain. At the same time, however, it has also presented opportunities for teams that can quickly adapt to the changes and turn potential challenges into opportunities to support our customers.
Our teams have shown remarkable resilience in navigating these adverse circumstances by continuously looking around corners and developing agile models that allow us to quickly react and manage these impacts.
We keep a close eye on costs while ensuring our primary focus remains on delivering an exceptional customer experience to continue to be the first and best choice for our customers.
Global interdependencies and geopolitical risks have introduced varying levels of disruption to global supply chains. For instance, the availability of specialized additives and catalysts, often sourced internationally, has been impacted by worldwide port congestion and shipping delays, in addition to some of the current risks and implementation of trade wars and tariffs.
These supply chain challenges have also contributed to inflationary pressures, resulting in escalating costs. While some easing is now apparent, our focus remains firmly on building resilience, diversification, and agility in our supply chain to manage our costs and support our customers’ growth.”
What’s the outlook on the flexible films market? NOVA’s Interim Director of Polyethylene Marketing, Doug Biela says “We expect steady long-term growth for the flexible films market though moderate gains in the short term. The industry will continue to prioritize lightweighting, using post-consumer recycled materials, and shifting from multi-material to mono-material film structures. Extended producer responsibility (EPR) laws, both existing and new, will continue to drive developments across the packaging value chain.”
As for mechanical recycling, Alan Schrob, NOVA’s Director of Mechanical Recycling, says “Low virgin resin prices will continue to put pressure on the recycling industry for the next 12-18 months, but the entire plastics packaging value chain needs to stay focused on incorporating recycled materials into packaging applications during this period. EPR legislation and consumers’ desire for more sustainable packaging will continue to play a key role in driving long-term demand for recycled plastics.
Post-consumer materials are an essential part of building the plastics circular economy. Expanding recycling infrastructure and upgrading existing recycling facilities with the latest sortation and washing technologies, supported by strategic investment and effective public policy, will help increase the supply and reliability of PCR materials and keep plastics out of landfills and the environment.
In our view, mechanical recycling will remain essential to achieving circularity at scale. Mechanical recycling has the technical capability to meet the needs of high value end use applications. Recyclers will need to continue to work on improving feedstock quality and PCR product performance to align their offerings with end market needs.”
And, with regard to what end markets have done well? Biela says “Some less discretionary end markets such as food packaging, trash and can liners, and agricultural film tend to be more stable regardless of overall economic activity. They will tend to do well even in slow market conditions like we have seen in 2025. Segments like stretch film, building and construction and non-food packaging are more closely tied to economic activity and are therefore more volatile.”
We expect 2026 to be another competitive year in the market,” says Marshall, “as more new North American polyethylene supply is introduced. At NOVA, we differentiate by focusing on the value we deliver to our customers. Our emphasis is on customer experience, consistent quality, and continuous innovation.
For example, that includes deep applications development expertise to help customers design solutions for demanding end markets with flexible interactions through our digital portal and our customer experience team. We also provide unmatched research and testing capabilities at our Centre for Performance Applications and Centre for Applied Research.
Customers can count on NOVA for reliable, high-quality PE supply. Our new PE manufacturing facility in Sarnia, Ontario strengthens our core business and builds our supply network, offering high performing products for our customers’ most demanding applications.
We are also optimistic about the opportunities ahead as part of Borouge International, pending the closing of the transaction. In the days ahead, we expect to have new opportunities to meet growing global demand while accelerating the transition to a circular economy for plastics.”
With 2030 approaching, Schrob says “Over the next four years, the plastics industry must make it an imperative to scale the use of PCR. We must work together to build the policies, end markets, and infrastructure that keep recycling plants open and incorporate reliable supplies of PCR into the plastics value chain.
A major question as we near 2030 is to address whether EPR structures inadvertently incentivize avoidance. In the current economic climate, some brands are choosing to pay fees and penalties rather than buy and incorporate PCR into their packaging, which undermines the intent of EPR laws. If EPR policies are meant to transform how plastics are recycled and repurposed, then the ultimate goal should be to reward packaging that is recyclable and enables the use of PCR wherever feasible while steadily reducing reliance on non-recyclable formats. Penalties and alternative options can serve as transitional tools where technical and regulatory barriers exist, such as in food or medical applications, but they must not become long-term substitutes for progress.
Brand owners must also be proactive about expanding the use of PCR to bring 2030 sustainability goals within reach. Brands and retailers need to commit to integrating PCR even if it requires initial cost differences. Long-term purchase agreements, stronger downstream commitments, and collaboration across the supply chain will stabilize demand and justify continued investment in collection, processing, and scale. Industry partnerships involving recyclers, resin producers, converters, and brand owners will be essential to maintain momentum and build resilient recycling systems.”
Read the full article on Plastics News here.