A new report lifts the lid on an escalating challenge in healthcare: the sector’s dependence on single-use plastics is creating both an environmental burden and a growing financial strain — but it also opens the door for biotech, medtech and materials innovators to lead change.
Produced by Systemiq and Eunomia, the study — “A Prescription for Change: Rethinking Plastics Use in Healthcare” — estimates that in 2023, hospitals, clinics and healthcare systems across Europe and North America generated some 2.1 million tonnes of single-use plastic waste, producing nearly 9.3 million tonnes of carbon dioxide equivalent (MtCO₂e) and incurring about US$56 billion in procurement and disposal costs. Absent interventions, these figures could rise by as much as 40% by 2040 — meaning nearly 2.9 million tonnes of waste, emissions of 12.9 MtCO₂e, and annual costs of US$76 billion.
Importantly, despite this volume, less than 5% of healthcare plastics in these markets currently goes through mechanical recycling, with most incinerated or landfilled due to strict waste handling regulations.
The levers for change
The report outlines five “circularity levers” that could meaningfully bend the curve:
- Refuse, Rethink, Reduce: Eliminate unnecessary plastic — overpackaging, redundant gloves, single-use items where reusable alternatives exist.
- Reuse: Durable gowns, trays, and other instruments that can be sterilised and used multiple times instead of being discarded after one use.
- Substitute: Move towards alternative materials (paper, compostables, lower-impact plastics) wherever safety and regulations permit.
- Improve recycling: Design products for recyclability, segregate waste streams, expand collection and processing infrastructure.
- Procure low-greenhouse gas (GHG) plastics: Where single-use is unavoidable, use plastics made with bio-based feedstocks or with carbon capture, and that have lower lifecycle emissions.
Under a “High-Ambition” scenario, the report estimates that by 2040, healthcare could slash its plastic demand by 53%, cut greenhouse gas emissions in that sector by about 55%, and reduce associated annual costs by roughly 24% — which translates to savings in the order of US$18 billion per year compared with business-as-usual.
Tackling barriers to progress
Several systemic barriers remain:
- Patient safety concerns and regulatory exemptions for medical plastics limit innovation.
- Infrastructure for sterilisation and reprocessing is uneven.
- Procurement practices tend to focus on up-front cost rather than lifetime value, discouraging adoption of circular alternatives.
- Data on product-level material flows is patchy, making it harder to track or optimise plastic use.
These challenges open clear opportunities for companies in biotech, medtech and materials science:
- Biopolymers and compostable materials that meet sterility standards are in demand.
- Devices and instruments designed for safe reuse or modular replacement could reduce waste streams.
- Scalable sterilisation and reprocessing technologies would enable wider uptake of reusables.
- Digital tools for traceability and circular supply chains can help hospitals and regulators make informed choices.
- Innovations in chemical recycling or mono-material packaging could capture value from plastics that are currently discarded.
Why investors should pay attention
The regulatory landscape is tightening. Exemptions for healthcare are increasingly under review, with some European jurisdictions signalling that they could be lifted after 2035. Public expectations around the sector’s environmental footprint are also growing.
For healthcare suppliers and innovators, building circularity into R&D and procurement strategies can cut costs and strengthen ESG credentials. For investors, this is an inflection point — backing early movers now could secure exposure to the companies shaping the future of sustainable healthcare.