Why environmentally friendly alternatives to plastic are hard to compete with

Only 10 percent of all plastic produced is recycledso most of the plastic will litter the streets, enter waterways and reach the sea. Every year, around 52 million tons of plastic waste enters the ocean, where it lives and impacts more than 4,000 marine species.

A blue whale, the world’s largest mammal, can consume up to 10 million pieces of microplastics every day, the equivalent of about 43 kilograms.

To tackle plastic pollution, material innovation, improving alternatives to single-use plastics, and reducing production are critical, according to a new report World Ocean Assessmentwhich was released on Monday.

Over the past six years, the international community has worked towards a global plastics agreement This could limit plastic production and help “turn off the tap” on an industry worth more than $1.1 trillion by 2023.

Negotiations are ongoing, with the next round of talks scheduled March 13 to 24, 2027.

Meanwhile, sustainable alternatives to plastic can help reduce our global dependence, and reduce the devastating impact of plastic pollution on our oceans. However, existing alternatives still have to overcome several major obstacles.

Tariffs discourage other alternatives

One of the main challenges preventing environmentally friendly alternatives from competing with conventional plastics is whether they can compete on cost in today’s market.

Although global trade in plastic substitutes will reach $485 billion by 2023, the sector’s growth requires action to address tariff and non-tariff policies, limited market access, and weak regulatory incentives.

“The main obstacles are areas of national policy and uneven trade,” the United Nations Trade and Development agency (UNCTAD) said.

The difference in rates is very striking. Tariffs on plastic and rubber products have fallen over the past 30 years, from 34 percent to 7.2 percent.

Meanwhile, alternative products such as paper, bamboo, natural fibers and seaweed are subject to double the average tariff of 14.4 percent, “making environmentally friendly alternatives less competitive,” UNCTAD said.

“Plastics have benefited from market maturity, scale, infrastructure and favorable trading conditions for decades,” UNCTAD said.

In a favorable climate for plastic, production continues to increase.

“The challenge is to change a global packaging system that has been built on cheap, fossil fuel-based plastics for decades,” said Ben Taylor, a representative for Notpla, a UK-based company that works with UNCTAD and makes biodegradable packaging from seaweed and plants.

Biodegradable problem

Another challenge is that substitutes require very specific conditions to break down – conditions that are often not found in the ocean.

“Many new biodegradable plastics actually break down in industrial composting conditions, with controlled temperature, humidity and microbial communities. So when you throw them into the ocean, they don’t necessarily behave the same,” warns Ian Butler, editor-in-chief of World Ocean Assessment.

This is also compounded by concerns that some plant-based plastic substitute products may compete for land use for food production, which could result in greater downstream impacts.

“The belief that biodegradable and plant-based plastics are the solution, unfortunately it gives the idea that we have solved the problem, everything is fine, but in reality that is not the case,” added Mr. Butlers.

How alternatives can compete

Several important steps are needed as a sustainable alternative to challenge plastic on a large scale and “regain market share”, according to UNCTAD.

1. Rebalancing tariff and non-tariff policies
2. Reducing risks in procuring non-plastic materials.
3. Invest in new materials, rewarding materials that benefit the environment
4. Build infrastructure to achieve sustainable scale

Although these changes will incur additional costs, UNCTAD believes that the long-term environmental benefits and socio-economic value in terms of employment, foreign exchange and regional development will offset these.

Rising energy costs speed up the transition?

Meanwhile, one way this transition could be accelerated would be if plastic suddenly became more expensive.

Today, up to 98 percent of plastic comes from fossil fuels, and the volatility of energy and petrochemical prices significantly impacts its cost and availability.

Price of polyethylene resin – the most widely used plastic resin in the world, commonly used in packaging – up around 70-80 percent in the European market between February and April 2026 after the closure of the strategically important Strait of Hormuz.

This has created momentum for its renewable energy-based replacement.

The ocean leads

The ocean itself may be able to provide a solution, helping to alleviate the pollution crisis that is having a huge impact on the ocean.

Seaweed-based materials, which are fully compostable, are now emerging as promising plastic substitutes – especially in packaging. Seaweed is very promising because it is a renewable resource that grows quickly without fresh water, fertilizer or agricultural land.

Global seaweed production has tripled in the past two decades, while exports have quadrupled to reach $3.9 billion in 2022.

“As adoption increases, economies of scale increase and sustainable solutions become increasingly competitive,” Taylor said.

Regulatory gaps slow seaweed trade

However, this path is not easy for many producers, entering the global seaweed trade remains difficult as regulations surrounding seaweed remain incomplete and fragmented – especially for new uses that are not clearly defined in the international trade system.

This creates confusion and makes it difficult for exporters to simply comply with requirements 0.75 million of the 36.3 million tonnes of seaweed produced in 2022 traded internationally.

Ultimately, this increases compliance costs for producers, especially for small businesses seeking to capitalize on the abundance of seaweed in many developing coastal countries, thereby limiting their ability to export.

Some optimism as momentum changes

Without stronger incentives, clearer regulations, and better market access, environmentally friendly alternatives will struggle to compete with conventional plastics.

Shifting momentum and societal pressures can help speed up the transition.

“What gives us optimism is the momentum we are seeing around the world. Consumers are demanding better solutions, businesses are setting ambitious sustainability goals, and policymakers are introducing regulations designed to reduce unnecessary plastic waste,” said Taylor.