On Monday, Plastic Sheet’s (PS) second quarter earnings report is due to be released.
The company reported a $1.1 billion loss for the year ending March 31.
This was largely due to a decrease in sales and increased production costs for its plastic sheet products.
The stock closed Monday at $14.99, down from $16.00 a year ago.
The shares have fallen more than 20% this year.
The Wall Street Journal noted that “plastic sheeting was once the darling of the tech and retail industries and now faces a global price war with other consumer goods products, such as electronics and automobiles, as well as a decline in demand for the lightweight, low-cost sheeting that forms the backbone of the company’s business.”
While many investors are hoping for a revival in the plastic sheet industry, a decline to $2 a sheet is unlikely.
A new report from a non-profit group called the Center for Consumer Advocacy (CCAA) has predicted that the plastic sheets market will be in a downward trend over the next five years.
The report, entitled Plastic Sheet: How to Save Your Business and Your Economy, estimates that the U.S. plastic sheet market will shrink from $4.7 billion in 2015 to $1 billion in 2020.
The industry will have a 10% decline in sales to $500 million in 2020, according to the report.
This will mark the largest drop in sales since the recession, which was caused by the rise in plastics used in household goods.
“We expect the U-turn in the industry will occur by 2025 and will cause significant pain for consumers,” CCAA President Michael Gartenberg said in a statement.
“The industry is experiencing an unprecedented amount of change.
The transition to new products, new packaging, new materials, new methods of packaging, and new processes will impact consumer choice and impact the environment.”
A report released by the Environmental Working Group in May also predicted a major decrease in the plastics market by 2027.
“By 2027, plastics will account for less than 1% of the U of S gross domestic product (GDP),” the report said.
“This is a significant decline for the industry, which is experiencing significant shifts in consumer behavior, as people switch to cleaner-seeming products and consumers move toward sustainable lifestyles.”
The U. of S. plastics market will lose about $1 trillion over the course of the next 15 years.
These costs include a drop in consumer spending due to the reduction in the price of plastic, as more consumers opt for less expensive plastics,” the report added.
The CCCA has also called on the federal government to adopt stricter regulations to control the plastic industry and put in place stricter requirements for packaging and labeling.
The organization noted that in 2015, “there were almost 5,500 plastic-containing recalls in the U, and the U S. had 1.5 million plastic packaging recalls and 2,200 plastic-labeled food recalls.”
The report estimates that in 2027 “there will be more than 2,400 plastic-related product recalls, with the majority occurring in the non-food sector, and a substantial number of them occurring in non-essential products, as a result of the rapid increase in nonfood plastic.”