It wasn’t until the 20th century that products made entirely of synthetic plastics were invented.
Belgian chemist Leo Baekeland was granted the first patent for synthetic plastic in 1907. It was called Bakelite and became known as the “material of a thousand uses.”
Many alternatives to Bakelite have since been created. As a result, it’s rarely used today. But Bakelite’s creation marked the start of the global plastics industry – which grew to be worth $712 billion in 2023. It’s expected to be worth $1.05 trillion by 2033.
It’s no secret that this rising use of plastic has had detrimental consequences. Over time, the material breaks down into tiny particles that seep into our soil and water, and eventually into the bloodstreams of humans and animals. The ultimate impact on our bodies has yet to be determined.
The total weight of plastic waste outweighs all living animals on the planet. And the growth of that waste isn’t expected to stop. In fact, nearly 500 million tons of plastic waste is created every single year.
Plastic is a big concern for our environment and the health of all living organisms. It gets a lot of attention by governments and in the media. But many people aren’t aware of what I believe could be an even bigger concern for our planet.
I’m talking about chemicals – especially “forever chemicals.”
Forever chemicals is another name for polyfluoroalkyl substances (PFAS). These chemicals can withstand the elements of the Earth and don’t break down over time. They’re expected to last in our world for thousands of years. And the scariest part is that they’ve found their way into our bodies.
Approximately 99% of Americans tested – including newborn babies – have been positive for these substances. This is problematic because even small doses of forever chemicals have been linked to cancers, high cholesterol, liver ailments, immunosuppression, and more.
There are currently more than 12,000 known forever chemicals in existence. They can be found in everything from microwave popcorn bags to pizza boxes and non-stick cooking pans. They’re even in the waterproof clothing, protective equipment, and firefighting foam used by firefighters.
In other words, forever chemicals are an innovation that bettered our lives at a dire cost.
Part of why I’m telling you this is so that you’re aware of what’s likely in your body. But remember that I’m an investor – and one of my top priorities in this newsletter is to help make you money.
So naturally, there’s a long-term investment angle here…
I’m not recommending that you short the companies that make these forever chemicals. They’re already under scrutiny by governments around the globe. Instead, the opportunity is in the cleaning up of the chemicals that are already out there.
It’s estimated that it will cost up to $250 billion to address the forever chemicals problem.
The biggest issue is that they’re just about everywhere. They’re in our bodies. They’re in the soil. They’re even in our drinking water. In the U.K., 96% of water samples have tested positive for forever chemicals.
The prevalence of these chemicals is also weighing on the healthcare sector. Healthcare costs associated with forever chemicals are estimated to be between $55 and $90 billion annually.
Hundreds of billions of dollars are being spent in relation to forever chemicals. And that tells us there is potential to make money.
In 2023, several European countries proposed a blanket ban on all forever chemicals at the European Chemicals Agency. The ban will cover all production, use, and market availability of these chemicals within the European Union.
In the U.S., the Environmental Protection Agency (EPA) passed a rule earlier this year to limit the amount of forever chemicals in drinking water. It’s estimated that these substances have contaminated the water of two-thirds of Americans. This marked the EPA’s first new rule regarding chemicals in drinking water in nearly three decades.
The U.S. Food and Drug Administration has also restricted the use of forever chemicals in grease-proofing food packaging – insisting that they be completed phased out in the coming years. At least 12 states have even stricter rules in place.
Moves are being made by individual corporations, too.
3M (MMM) said it will phase out forever chemicals by 2025 and has already reported a reduction in production. DuPont (DD) has phased out long-chain forever chemicals and removed them from its firefighting foam.
Restaurant Brands International (QSR) – the owner of Burger King and other fast-casual restaurants – will remove forever chemicals from its food packaging by 2025. And sportswear maker Patagonia plans to follow suit, removing the substances from its merchandise by 2025.
A lot of work must be done. But this will lead to widespread opportunity – and profits – for the companies involved in the elimination and cleanup of forever chemicals.
It will start with the testing of products to detect forever chemicals and extend to the businesses cleaning up the landfills and wastewater operations where these substances seep into our soil and drinking water.
AECOM (ACM) – one of the largest engineering and construction management firms in the world – has the technology to help eliminate forever chemicals. It’s called DE-FLUORO, and it’s considered the world’s first environmentally sustainable treatment that destroys these substances from contaminated liquid.
The company’s chemicals cleanup division accounts for just 1% of overall revenue today. But AECOM believes there is a $10 billion opportunity in this space over the next decade.
Montrose Environmental Group (MEG) is a smaller company that’s involved in both the consulting of forever chemicals cleanup as well as the actual removal. That makes it as close to a pure play on this trend as we can get – with approximately 12% of total revenue coming from its forever chemicals business.
At the end of the day, the forever chemicals problem isn’t going away. What’s done is done. But what we can do going forward is prevent the problem from getting worse.
Governments and corporations around the world are taking the necessary steps to make that happen. But they’re just in the beginning stages.
And that means massive upside potential for investors who get in on this trend early.
Here’s to the future,
Matt McCall Editor, Market Insights
The post This Massive Environmental Problem Could be Huge for Your Portfolio appeared first on Centurion Publishing.
