Opportunities abound for Việt Nam’s biodegradable plastics in the Spanish market

Opportunities abound for Việt Nam’s biodegradable plastics in the Spanish market

The Vietnam Trade Office in Spain said that the country has implemented various policies to promote the production and consumption of biodegradable plastics and reduce single-use plastic waste.

Biodegradable plastic products. — Photo thiennhienmoitruong.vn

Việt Nam's biodegradable plastic products have great potential for export to Spain as the country's household plastic market is expected to grow significantly in the next few years, especially with the rise of eco-friendly products.

The Vietnam Trade Office in Spain said that the country had implemented various policies to promote the production and consumption of biodegradable plastics and reduce single-use plastic waste. 

This trend presents opportunities for businesses with innovative capabilities and clean technology applications, according to the office.

Spain's household plastic import turnover reached approximately US$2.4 billion last year, a 56 per cent increase compared to 2021. 

The most common products include PET, PP and HDPE plastics in everyday items like kitchen utensils, food containers, thermal bags and bottles. 

The overall household goods market is projected to grow at an annual rate of 4.7 per cent from 2020 to this year.

Spanish consumers are showing a clear shift in their shopping habits. According to a survey last year, 70 per cent of Spaniards support reducing the purchase of single-use plastic products.

Spain's household plastic market is highly competitive, with domestic and international suppliers. 

European countries like Germany, France and Italy are strong competitors, benefitting from advanced technology and established brands. Meanwhile, China, the world's largest supplier, is rapidly expanding into Spain and becoming one of its major suppliers.

The Spanish government also has enacted strict regulations to reduce the environmental impact of plastic products.

Meanwhile, the household goods market in Spain is expected to grow significantly in the next few years, particularly with new products like biodegradable plastics and smart home appliances.

This market is forecast to reach $5.1 billion by 2033. The EU's tightening policies, along with the green consumer trend, will further drive businesses to innovate and actively pursue sustainable development.

The Vietnam Trade Office in Spain reports that Việt Nam currently exports 8 per cent of its plastic products to the EU, with Spain being one of the potential markets. 

Spain accounts for 2.16 per cent of the global market share for household plastic imports, indicating significant potential for Vietnamese businesses, especially in biodegradable plastics.

The industry’s growth opportunities stem from the development of tourism, e-commerce and policies supporting sustainable development. Spain leads Europe with a 21.7 per cent rate of recycled plastic used in total raw materials, opening up opportunities for collaboration and technology transfer.

However, Vietnamese plastic companies could face several challenges when entering this market, said the trade office. 

Strict regulations on single-use plastics and high recycling requirements would demand significant investment in technology and changes to production processes. 

Moreover, low-cost imported products from China created strong competition for Vietnamese companies, the office said.

Spanish consumers are also increasingly prioritising sustainable products, requiring businesses to adjust their product and marketing strategies, according to the trade office.

Another challenge is the volatility of raw material costs. Fluctuations in global oil prices directly impact plastic production costs, making it difficult to forecast and price products.

Nevertheless, the household plastic market in Spain still holds great potential for Vietnamese businesses to expand. 

The Vietnam Trade Office in Spain advised Vietnamese plastic businesses interested in the Spanish market to conduct thorough market research to enhance exports of household plastic products that meet EU standards, focus on developing biodegradable and eco-friendly plastic products, invest in eco-friendly production technologies and take advantage of free trade agreements. 

Bizhub