The demand for recycled polymers is experiencing significant growth in both the United States and the United Kingdom, driven by a combination of regulatory pressures and corporate sustainability commitments. A recent report by RaboResearch, the analysis and knowledge division of Rabobank, reveals that this trend is set to continue in the coming years, with Europe leading the way, due to the continent’s regulations and industry pledges.
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European Leadership in Recycled Content Market
According to the RaboResearch report, Europe is at the forefront of the global post-consumer recycled content (PCR) market, consuming over half of the world’s PCR materials. The food and beverage sector has been particularly pivotal, accounting for two-thirds of PCR usage in 2021. This sector is expected to further increase its demand for sustainable packaging solutions through 2026, boosted by the EU regulatory frameworks that act as important guides for recycled content utilization.
However, to meet the rising demand for PCR materials, the report stresses the need for substantial investments in EU collection and recycling infrastructure. Without these investments, Europe may struggle to sustain its leading position in the PCR market, especially as the Packaging and Packaging Waste Regulation (PPWR) introduces increasingly stringent recycled content targets.
Challenges in the US Market
In contrast, the adoption of PCR content in the US has been slower, with the report identifying several obstacles, including higher costs, limited availability, and concerns over product quality. In addition, many US companies have had to reset their sustainability commitments, often shifting their focus towards reducing carbon emissions or extending their packaging goals.
The report also highlights a potential supply-demand gap for recycled PET (rPET) in the US, as consumption rate could surpass supply growth. While the U.S. Food and Drug Administration (FDA) has expanded approved sources for PCR through its “letters of no objection,” the market still faces significant challenges. RaboResearch suggests that solutions like Extended Producer Responsibility (EPR) schemes and Deposit Refund Schemes (DRS) could help enhance the collection of high-quality plastics for recycling.
EU’s Ambitious Goals and the PPWR
Europe’s recycled plastics production accounted for 18 % of total production in recent years, and despite a 17 % capacity growth in 2021, the report notes that economic challenges have lowered demand, leading to underutilization of recycling facilities.
However, the PPWR’s ambitious recycled content targets are expected to revitalize the sector and the demand. To meet the 2030 PPWR objectives, Europe will need to triple its recycled plastic production from 2021 levels. Specific polymers, such as polypropylene (PP) and polyethylene (PE), require a near 5 times increase, while recycled PET volumes must double, with even more stringent targets set for food-grade PET by 2040. The report emphasizes that these requirements are expected to enhance collection and sorting systems and ensure that recyclates are directed towards applications that support circularity, such as closed-loop bottle systems.
Moreover, the report advises that investments in recycling infrastructure must also account for the growing demand for recycled materials in other industries, including automotive, to prevent interindustry competition that could impede the overall progress.
Conclusion
The global demand for recycled polymers is on an upward trajectory, driven by robust regulatory frameworks in Europe and emerging commitments in the US and UK markets. While Europe leads the way, significant challenges remain, particularly in the US, where adoption has been slower. As the industry navigates these complexities, the need for substantial investments in recycling infrastructure and thoughtful regulatory approaches will both be crucial in ensuring a sustainable and circular future for plastic packaging.
