MATERIALS / RECYCLING PETplanet Insider Vol. 24 No. 01+02/23 www.petpla.net 22 Issues facing the rPET market Mechanically recycled clear rPET Everyone in the industry knows there are complex issues with regards to the availability, affordability and consistency of high quality clear rPET. There are so many factors that play into this that Holland Colours wanted to showcase the different aspects to better understand this problem. Holland Colours interviewed several brand owners, recyclers and other players in the market to get their perspective. While virgin PET is clear, recycled PET comes in a variety of colour shades and corresponding prices. These colour differences are caused by remainders from their previous life influencing the value of the recycled material. The clearer the recycled plastic is, the higher the value and the higher the price – to the point where high quality rPET is often more expensive than virgin PET. The result is that it can make more sense for processors and brand owners to use higher levels of virgin PET simply to remain cost competitive. Costs The reality is that high quality clear rPET is expensive. To fully understand why this is, it’s important to understand some of the underlying mechanics driving up the price. New regulations There are new European regulatory requirements that mandate that as of 2025, PET bottles must contain on average 25% rPET. This means that in the European Union, these new requirements are creating a massive demand for high quality rPET in order for brands to be able to continue to sell in this region. In the Americas similar drivers are arising. Below is an overview of some of the regulations: The EU has mandated the industry to include 25% recycled content in PET bottles by 2025 and 30% in all plastics bottles by 2030 under the Single-Use Plastics (SUP) Directive. Likewise, in the US state of California, manufacturers are required to include an annual average of 15% PCR in beverage containers starting in 2022. By 2025, the mandate is set to increase to 25% and by 2030 to 50%. Washington state has also recently announced a schedule for postconsumer recycled (PCR) requirements for different product categories, starting with beverage containers and trash bags in 2023, adding certain household cleaning and personal care products in 2025, and expanding to dairy milk containers in 2028. (PackForwardLaws and regulations https://packforward.eu/theme/policy-and-strategy/laws-and-regulations) Commitments of global brand owners Holland Colours sees a large push from brand owners who are moving in the direction of rPET independently and setting even higher targets for themselves than the 25% rPET content. So beyond the initial demand, these goals for even higher percentages of rPET are driving up demand even further. It is up to the market to develop suitable solutions the address this increasing demand and avoid transitions to alternative, less desirable packaging materials. “In our interviews with converters, they’ve often stated they they see the colour cast of incoming rPET changing more and more. Moreover, consumer as well as market perception of a changing colour cast of beverage bottles is inevitable. The expectation from brand owners is that in time the colour-cast will be associated with sustainability. However, we’re not there yet.” Mark, Kalisvaart, Global Product Market Manager Additives, Holland Colours MATERIALS / RECYCLING
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