Brands bite the bullet on recycled plastic price

A plastics recycling report, published by market intelligence company S&P Global Platts, noted how the rPET flake market had usually seen a consistent price discount compared with virgin PET. This summer, however, virgin prices sank – first to parity with, and now significantly below – recyclate prices.

While converters of non-food-contact rPET flake, in applications such as film, sheet and fibre, might be tempted to move to cheaper virgin polymer, this would be harder for some brand-owners.

“Certain purchasers of rPET have made commitments they need to stick to,”​ Ben Brooks, associate editor of the report, told Food Manufacture​.

Food-grade in limited supply​

“There is limited supply of this food-grade quality of recyclate. Many want to ensure they still have access to that supply of good-quality rPET in future.”​

Switching back to virgin polymer might have been an acceptable strategy in the past “but sustainability and demonstrating that you’re supporting the environment have become big selling points with consumers,”​ he said.

“We’re not really expecting UK demand for rPET to drop, since it’s led by regulation, and it seems like, every month, another company announces a new initiative,”​ Brooks added.

Christian Crépet, executive director of PET value-chain organisation Petcore Europe, quoted in the report, said demand from brand owners meant higher-value, more highly-processed food-grade rPET pellet was also inflating flake prices. 

The EU’s single-use plastics directive requires all PET bottles to contain at least 25% rPET by 2025.

“There’s not enough infrastructure for the 2025 deadline, certainly not in the UK, and this will have a significant impact on prices up to that date,”​ Crépet predicted.