A recent report by Rabobank shows that the plastic packaging sector in the US and Europe continues to have a strong focus on sustainability, with industry committing to environmental protection pledges, and governments rolling out regulations on managing plastic and plastic waste. However, a lack of investment has left producers questioning the viability.
The report, titled Unwrapped: Plastic Packaging Matters, and released in June, outlines the latest trends and developments, first and foremost being the current economic reality and high inflation leading consumers to look for affordability. Coupled with that is an increasing focus on convenience, leading to smaller portioned products and meals that can be consumed on the go.
The lack of investment is especially pertinent in the area of flexible packaging recovery, as flexible substrates are often considered undesirable in many material recovery facilities.
The report states there has been no reduction in consumer demand for single-use plastics in the US. This is despite bans in certain municipalities, some of which have been revoked due to hygiene concerns during the pandemic. It further highlights that some single-use formats are difficult to change and are unlikely to be recycled. Examples are coffee cups and lids, condiment packets, creamer pods and coffee pods. The report anticipates that policies such as EPR fees may help to counteract this, and says that change is needed in consumer mindset, recycling infrastructure and government involvement.
The report also looks at various barriers to recycling and what can be done to mitigate them. Among industry, there is a perception of added costs, with the high price of recyclates compared to virgin materials leading to low rates of recycled material in packaging. In order to overcome this, collection infrastructure needs to be improved as well as designing packaging for collection to facilitate a greater likelihood of correct disposal.
Advanced recycling is proposed in the report, as it allows the recycling of hard-to-recycle plastics that cannot be mechanically recycled and produces virgin-quality plastics. However, there are questions about financial viability and environmental impact which are likely to slow down adoption. It also discusses the limitation of compostable and biodegradable plastics, as they require very specific conditions to correctly break down, which cannot always be met in reality. The report also advised against the adoption of biobased plastics, stating that it is more viable to focus on highly recyclable resins.
The full report breaks down each of these areas and more, and can be accessed here.
