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The postconsumer recycled (PCR) market is at a critical juncture. Despite growing interest in using PCR materials in packaging to reduce virgin plastic use, producers and recyclers report that widespread adoption has been slower than expected. There is a disconnect between recyclers who have the capacity to produce more PCR but lack the corresponding demand, and brand owners who say they struggle with finding PCR suppliers who can deliver materials at scale.

Today, mechanical recycling is the most common and cost-effective recycling method for plastics in the world. Plastics market research from AMI Consulting predicts that the global production of mechanically recycled materials will reach 55 million tons by 2030. Utilizing this existing infrastructure presents multiple opportunities, with showing that mechanical recycling requires lower capital costs, lower energy usage and reduced greenhouse gas emissions than other recycling methods.

As brand owners, governments and nonprofit organizations all seek to increase the rate of plastic recycling, how can recyclers help accelerate the adoption of PCR plastic and create materials that meet the needs of the market? A solution that will provide lasting impacts on the production of high-quality PCR materials is an investment in improved mechanical recycling sortation and processing technology. The ability to mechanically recycle more plastics, supported by management of incoming material streams and better sortation, can help recyclers produce high-quality PCR materials that meet the standards of highly regulated applications like food packaging.

Many postconsumer plastic bales contain bulk contaminants and mixed plastic types, rendering them difficult for recyclers to work with. In an analysis of materials recovery facility (MRF) post-use plastic film bales, found that some contain as little as 50% of PE or PP, while the remaining half is made up of undesired plastics and nonplastic materials. Inconsistencies in incoming materials, such as the wide variety of municipal recycling collections, lead to inefficiencies in the recycling process that add cost and degrade quality of PCR, making it unattractive for packaging applications. Through the development of sourcing and sorting protocols, these inefficiencies can be reduced, opening up more possible end markets for high-quality PCR packaging such as food and beauty applications.

Building a circular system requires coordination and relationship building across the value chain. From educating retailers and customers about the value of PCR plastics to employing the latest sorting technology, the following techniques will help recyclers, PCR suppliers and manufacturers understand the components of a chain of custody and how to go about constructing the supporting networks and operations to produce high-quality PCR and deliver it to the right customers.

Analyze Market Demand

For recyclers looking to start or expand PCR material offerings, it is important to understand the current market dynamics and demands of different industries. shows that PCR pricing can be extremely volatile due to the unpredictability of scrap values. While some input streams can be unpredictable, programs that support enhanced sortation, such as store drop-off containers or retailer back-of-house collections, can provide more reliable sources of postconsumer plastics. Increased investment and expansion of sorting procedures and technology combined with new collection opportunities can help increase supply.

Demand for PCR materials is predicted to grow significantly in the coming years. Data from estimates that the global PCR market will grow from $17 billion in 2023 to $47 billion by 2033, with the food and beverage sectors responsible for the highest share.

Some of the largest fast-moving consumer goods (FMCG) companies have set targets to reduce their use of virgin plastic and increase their use of PCR materials, including Nestlé, PepsiCo and Mars Inc., which all participate in the Ellen MacArthur Foundation (EMF) Global Commitment. As EMF signatories seek to meet their goals of incorporating PCR into their packaging, they will need reliable suppliers of high-quality PCR that complies with food-contact and cosmetic regulations.

Understand PCR Requirements

A chain of custody tracks the use of consumer materials from where they were produced, what they were used to package, how they were transported, and how they were collected and reprocessed. The first step in building this paper trail is understanding what the chain of custody requirements are for the PCR material’s end use. Third-party organizations have begun to develop recycling standards and certifications. The PCR Certification program and ’s Recycled Material Standard both offer certifications with data collection and operations audits, providing potential applicants with a detailed framework of supplier due diligence questions and process requirements.

For food packaging applications, the U.S. Food and Drug Administration (FDA) stipulates that recycled plastic materials must meet the same standards as virgin plastic. A chain of custody that maintains physical traceability is needed to monitor the contents of PCR materials. This involves identity preservation, which is the tracking and verifying of the source of incoming materials; and segregation, which keeps food-contact materials separate from any other recycled content destined for mixed-use bales or industrial uses.

Build Relationships

Collecting and sharing information about post-use plastic benefits both consumers and recyclers/producers. Recyclers should work to build relationships with other players throughout the plastics value chain to ensure the right information is being collected and shared. Education about the value of plastic waste is essential.

For retailers primarily focused on waste management, it is important to help them understand the significant impact they can have not only on reduced waste to landfill but also on the supply of PCR plastic, and how their efforts to participate in detailed recordkeeping and collection programs will bolster the reliable availability of scrap materials. It can also be helpful to be involved in the development of protocols used to document procurement and use information for materials like back-of-house films.

For brand owners and retailers, understanding what happens to plastics after their initial use contributes to a clearer picture of their environmental impact and enables transparent communication about their progress toward sustainability goals. Recyclers should work to educate their customers about the options available with PCR, as many brands report they do not know where to source PCR materials. Recyclers should also work closely with MRFs to communicate their desired quality and composition standards so the facilities can work toward meeting those specifications.

Explore Collection Opportunities

Exploring new collection opportunities can help contribute to the supply of quality PCR materials. Extended producer responsibility (EPR) legislation is gaining traction in the U.S., and recyclers should understand how the programs will be administered, whether through producer responsibility organizations (PRO) or stewardship plans, and who will be responsible for collecting, sorting and reprocessing.

There are numerous opportunities for collaboration between recyclers, MRFs, resin suppliers, packaging producers, retailers and brand owners to develop collection and supply agreements. For example, resin supplier Nova Chemicals owns a mechanical recycling facility in Connersville, Indiana, and is collaborating with packaging manufacturer and plastic film recycling expert Novolex Holdings LLC to operate it. The facility processes postconsumer plastic films to produce Syndigo recycled polyethylene (rPE), with pellet production currently underway. By 2026, the facility will deliver over 100 million pounds of rPE to the market.

As the recycling industry works to expand its infrastructure, it is important to examine different avenues of collection, including store drop-off programs, community collection centers, commercial films and wraps, and other large consumers of plastic materials and food packaging such as event venues and stadiums.  

Optimize Operations

In addition to managing the source and uses of incoming materials, recyclers need to track the progress and integrity of PCR through their own operations. The latest advancements in sorting technology can help create cleaner feedstocks and optimize productivity. Optical sorters and new hyperspectral cameras are improving the accuracy of sorting procedures, while machinery that incorporates machine learning and artificial intelligence (AI) can provide valuable data about scrap materials. In plants that process multiple types of PCR content, separate sorting lines and silos are effective systems to maintain the segregation of food-contact PCR.

Obtain a Letter of Non-objection

Recyclers can help increase customer and consumer confidence in food-contact PCR plastic by obtaining a letter of non-objection (LNO) from the FDA. An LNO, while not a legal approval from the FDA, nonetheless represents its opinion that the recycler’s processes are expected to produce PCR materials that will be suitable for use in food-contact applications.

To apply for an LNO, the recycler must submit a description of its recycling process, demonstrate that contaminants can be removed (often by conducting a challenge test) and indicate the intended use conditions of the material. Designing a process that is viewed as acceptable by the FDA requires a chain of custody, source controls and protocols to prevent cross contamination, and knowledge of current good manufacturing practices (cGMP). Recyclers must also be familiar with the relevant Federal Food, Drug and Cosmetic Act regulations for food-contact substances, including those regulations that apply to any additives present in the source material or added during the recycling process.

Share Knowledge

Mechanical recycling is an important tool in increasing the circularity of plastics. With its broad accessibility and economic and environmental advantages, mechanical recycling will continue to expand. The production of high-quality PCR via mechanical processes is achievable. This new era of plastics production highlights the value of partnerships and collaborations in which experienced suppliers share their individual expertise to advance the common goal of reducing plastic waste. Recyclers are now more closely connected with both resin suppliers and converters which enables the refinement of different PCR products to meet the elevated processing and performance requirements of today’s end markets for PCR.

Improving the collection and sortation of recycled materials is a vital step in increasing the availability of recycled feedstock. Advancing the processing options for PCR plastics will benefit the industry as a whole, spurring investment into new recycling infrastructure and technology, and making PCR more cost-effective for brand owners. The development of new recycling systems will enable the increased collection of plastics that were previously destined for landfills, such as plastic films and flexible packaging. Transparent chains of custody will enable more post-use plastics to stay in the economy in high-value applications, transforming the way plastic waste is perceived and managed.

ABOUT THE AUTHOR: Alan Schrob is director of mechanical recycling at Nova Chemicals. He spent 20 of his 30 years in the plastics industry encouraging circularity in a variety of roles, including ����ý development, marketing and the rigid and flexible packaging markets, including performance films. His work has involved exploring innovation opportunities for downstream applications in plastics and plastics sustainability, and improving plastic circularity. Contact: (412) 490-4000; Alan.Schrob@novachem.com.