McKinsey estimates that the demand for post-consumer recycled (PCR) plastic will triple by 2030 to about 90 million tons. Consumer interest and government regulations regarding extended producer responsibility (EPR) as well as PCR content mandates are contributing to increasing market demand for recycled products.
Creating opportunities for recyclable plastic packaging is a key part of creating a circular economy. According to the UN Environment Programme, more than a third of all plastics produced are used in packaging. The latest innovations in polyethylene (PE) technology are enabling recyclable, monomaterial packaging with innovations like BOPE and all-PE barrier and sealant resins. These new resins are bringing more opportunities for recyclability to traditionally non-recyclable packaging formats such as flexible packaging, which previously relied on multi-material laminates to achieve performance requirements.
All-PE packaging can help brand owners and retailers meet their recyclable packaging goals, while offering opportunities for resource reduction. For example, high-density BOPE provides toughness and stiffness that allows for downgauging and light-weighting while maintaining barrier protection and processability, reducing the overall amount of plastics used in production. In addition to supporting processability for producers and converters, new PE resins are also enabling what happens to plastics during and after the recycling process.
Many recycled plastics are reused in general-purpose applications due to purity and quality requirements. To support a closed-loop system, however, recycled plastics must be able to meet quality standards for high-value applications. As one of many answers, producers have developed ready-to-recycle PE resins that retain their physical properties through multiple recycling processes, expanding the market for rPE.
The PCR market
Designing packaging for recyclability opportunities can only be successful if they are reused in other products. Data from the Global Commitment’s 2023 Progress Report shows that participating businesses have more than doubled the percentage of PCR content in their plastics packaging since tracking began in 2018, but it still only represents 11.7 per cent of the total plastics used. The trend is moving in the right direction but not fast enough. More needs to be done to meet the Global Commitment report’s goal of 25 per cent PCR content by 2025, which is around the corner. Suppliers are working to cultivate end markets for PCR content by developing recycled plastics solutions that are viable for a wider range of applications. For example, food-grade materials are strictly regulated by the US Food and Drug Administration and all recycled content must come from packaging that was originally able to be used for food products. New systems are being developed specifically to capture PE films from food packaging so they can be recycled into new food-grade applications.
Long-term supply agreements and partnerships are also promoting the market adoption of PCR content. Resin producers are working with packaging manufacturers and retailers to create packaging solutions that are tailored to their needs, leverage existing equipment, and production abilities, which ease the transition to more sustainable packaging practices. As brand owners continue to pursue incorporating PCR materials, higher demand for recyclate supports a profitable economic model for recycling, attracting more investment.
Recycling infrastructure
Some resin producers have begun taking an active role in managing the full lifecycle of plastics, from production to reuse, by directly investing in recycling. These facilities increase recycling opportunities for consumers and divert plastics from landfill. Building new recycling capabilities gives suppliers more control over the sourcing of the materials to be recycled, resulting in higher-quality PCR feedstock and strengthening the supply chain for PCR content. Significant progress has been made towards building a circular economy for plastics, but more action is needed to tackle the problem of plastic waste. Collaboration across the entire value chain is essential to adapt production models to incorporate PCR content and design packaging for more opportunities for recyclability.