Recycled Plastics Market: Practical Guide to Reduce Carbon Impact

So, read on for some of the most detailed insights into recycled plastics and how manufacturers across industries can reduce their carbon footprint – 

Recycled Plastics Market: Key Benefits in Reducing Emissions

Recycled plastics offer a multitude of advantages for manufacturers looking to minimize their carbon emissions. The production process of recycled plastics, compared to virgin plastics, typically requires less energy, resulting in lower carbon emissions. 

According to the Ellen MacArthur Foundation, an international charity that promotes the circular economy to address challenges such as climate change, pollution, and waste, using one metric ton of recycled plastic can save between 1.5 to 3 metric tons of CO₂ emissions. This stark difference makes recycled plastics an ideal choice for businesses aiming to decrease their environmental impact.

Several companies have made substantial progress in this regard. For example, Unilever, a leading European consumer goods company, aims to reduce its use of virgin plastic by 50% by 2025. To achieve this, the company plans to increase its use of recycled plastic and cut its overall plastic packaging by 100,000 tons per year. By embracing recycled plastics, the company expects to significantly reduce its overall carbon footprint while also contributing to its broader sustainability goals.

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Top 3 Types of Recycled Plastics Used in Packaging

Manufacturers have several types of recycled plastics to choose from, each offering unique properties suitable for different packaging needs. The most common types include:

1. Post-Consumer Recycled Plastics (PCR): Derived from used products like water bottles, PCR plastics are collected, cleaned, and reprocessed. Companies such as Coca-Cola have heavily invested in PCR for their bottles, aiming to use 50% recycled material across all packaging by 2030. PCR plastics are ideal for creating a circular lifecycle where products are continuously repurposed.

• According to Inkwood Research, post-consumer recycled plastics (PCR) is expected to be the largest revenue-generating type in the global recycled plastics market, with an expected share of 67.31% by 2032. 

2. Post-Industrial Recycled Plastics (PIR): This type comes from the reprocessing of manufacturing scrap and excess material. It’s typically used in industrial packaging solutions where high durability is required. Dow, for example, has leveraged PIR in its supply chain to create robust packaging that is both functional and sustainable.
3. Biodegradable Recycled Plastics: Combining the benefits of recycled material with the ability to decompose naturally, these plastics are making waves in industries where eco-friendly disposal is a priority. For instance, Danimer Scientific produces biodegradable polymers that are increasingly being used by companies to reduce long-term waste. The company’s Nodax® and PLA biopolymers are designed to meet the biodegradability standards set by ASTM and EN. Its PHA is FDA-approved for food contact and can fully biodegrade in soil, water, or compost environments—both industrial and home—within three months under aerobic or anaerobic conditions.

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Design Considerations for Durable, Sustainable Packaging: Recycled Plastics Industry

While recycled plastics offer environmental benefits, manufacturers must also ensure that these materials meet the durability and functionality standards expected in the B2B packaging industry. Key design considerations include:

• Material Strength: Packaging must withstand the rigors of transportation and storage. Innovations in recycled plastics have significantly improved material strength, making it possible to use recycled content in applications that previously relied on virgin plastics. Sealed Air, a packaging company known for its Bubble Wrap®, is now producing protective packaging using recycled content without compromising the strength or protective properties of the material.
• Customization and Branding: Recycled plastics can be tailored to meet branding needs. With advancements in colorants and printing techniques, businesses can create eco-friendly packaging that aligns with their brand identity. Companies like Nestlé have embraced this by offering packaging solutions made from recycled plastics that also highlight their commitment to sustainability on the product’s labeling; in fact, in 2023, 41.5% of Nestlé’s packaging consisted of recycled or renewable materials, with 9.3% of its plastic packaging made from recycled content. Further, the company is also aiming for more than 95% of its plastic packaging to be designed for recycling by the year 2025.
• Compliance with Regulations: As regulations around plastic usage tighten globally, using recycled plastics can help companies meet both environmental goals and legal requirements. By incorporating recycled plastics into their packaging, businesses can stay ahead of these regulatory changes and avoid penalties. The European Union’s Single-Use Plastics Directive, for example, has pushed businesses toward using more recycled content to reduce overall plastic waste. As per our analysis, Europe captured the highest revenue share of 39.72% in the global recycled plastics market in 2023 and is expected to continue this growth trajectory between 2024 to 2032. 

How Can Manufacturers Incorporate Recycled Materials into Supply Chains?

Integrating recycled plastics into your supply chain requires a structured approach. Here’s a roadmap to get started:

• Identify Suppliers: Partner with suppliers who specialize in recycled plastics. Loop Industries is an excellent example of a company that offers recycled PET for packaging, providing a sustainable alternative to virgin plastic.
• Optimize Packaging Design: Consider redesigning your packaging to reduce overall plastic use while maximizing the benefits of recycled materials. For instance, P&G has not only reformulated its Head & Shoulders shampoo to contain just nine ingredients but also cut the plastic in the bottle by 45%. The design allows users to roll up the bottle like a tube of toothpaste, making it easier to use all the products and reducing space in recycling bins. Additionally, Herbal Essences has revamped its shampoo as well as conditioner bottles, now using 25% less plastic compared to earlier versions, leading to a significant reduction in plastic usage. (Source)
• Assess Material Compatibility: Evaluate how the recycled material performs with your current packaging processes. It’s crucial to ensure that switching to recycled plastics doesn’t negatively impact product quality or functionality.

What’s Next | Tools and Metrics for Tracking Carbon Reductions

To quantify the impact of using recycled plastics, manufacturers can leverage several tools and metrics that measure their carbon footprint reduction:

Lifecycle Assessment (LCA): This tool helps businesses assess the environmental impacts of their products throughout their lifecycle, from raw material sourcing to disposal. It provides a comprehensive view of how recycled plastics affect overall emissions.

Carbon Footprint Calculators: Companies like Carbon Trust offer calculators to measure how much carbon is being saved by using recycled content versus virgin materials. The Carbon Footprint Calculator is designed to assist UK-based SMEs in measuring their corporate emissions in line with GHG Protocol Guidance. It covers direct emissions from fuel and processes as well as emissions from purchased electricity for the assets they operate. This can help manufacturers set measurable targets and track progress over time.

Greenhouse Gas Protocol (GHG Protocol): This is the world’s most widely used standard for measuring and managing greenhouse gas emissions. It provides guidelines on how companies can report their emissions reductions from switching to recycled materials.

Conclusion | Recycled Plastics Market Growth Prospects

Incorporating recycled plastics into packaging solutions is not only a practical way for manufacturers to reduce their carbon footprint but also an opportunity to align with growing regulatory requirements and consumer demands for sustainability. By taking advantage of innovative materials like PCR, PIR, and biodegradable plastics, businesses can lead the charge in creating a more circular economy, while still maintaining the functionality and durability needed in modern packaging. With the right tools and strategies in place, manufacturers can track their impact, meet regulatory requirements, and embrace eco-friendly branding, all while contributing to a greener future.

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By Shruti