Recycling industry News
Our top news picks from last month:
- Trellis: These state recycling bills offer relief from tariff uncertainty
- ESG Today: PepsiCo Pushes Back Climate, Packaging Goals Due to “External Realities”
- Trellis: A silver lining of tariffs: Soaring secondhand apparel sales
- WasteDive: Nova Chemicals, Novolex open mechanical recycling facility for PE film
These state recycling bills offer relief from tariff uncertainty
The article touts the increasingly important role of Extended Producer Responsibility (EPR) in averting supply chain disruptions in times of economic and regulatory uncertainty. It offers an excellent overview of current and proposed EPR legislation across the U.S., with seven states having already passed EPR laws — and another four having proposed laws to date.
✅ Our take:
By incentivizing a reliable and robust local PCR materials market, EPR helps reduce uncertainty related to tariffs and logistics costs. We remind our readers of the importance of making smart material portfolio decisions and how using PCR materials can significantly reduce overall material costs for producers, under impending EPR schemes.
PepsiCo pushes back climate, packaging goals due to “external realities”
Pepsi reduced its ambitions related to climate, water and packaging goals, pointing to a lack of external regulatory support and financial investment. Notably, Pepsi revised its previous commitment to using 50% recycled content in plastic packaging by 2030 (vs. 2020) to now only 40% by 2035.
✅ Our take:
While Pepsi’s move is disappointing, we’re encouraged to see other brands dig in (e.g., Cadbury launches packaging with 80% recycled content), double down (e.g., Amazon invests in new packaging technology) and achieve (e.g., REI reached zero-waste in May) their previously set goals. It’s a matter of seizing economic opportunities — capturing the growth associated with sustainable products at comparable costs to virgin — and avoiding reputational, regulatory and operational risks (as illustrated in a study released this month on food and agriculture companies).
Pepsi is not alone in “re-assessing” commitments, but even among the various major consumer brands scaling back ambitions, there remains a desire to progress towards recycled content goals, as is the case with Walmart, which Circular is actively supporting in sourcing suitable recycled materials.
A silver lining of tariffs: Soaring secondhand apparel sales
A recent ThredUp (online consignment and thrift store) survey reveals the apparel industry’s concern about procurement disruption and consumer interest in secondhand fashion. Of the 50 American retailers and brands surveyed, 80% expect supply chain disruptions from the ongoing trade war, and 54% see resale as a stable and predictable source of revenue. Meanwhile, 62% of the more than 3,000 American consumers surveyed worry that tariffs will drive up prices for fashion, and 59% say they will seek secondhand and other less expensive apparel options. As the government steps back from sustainability, ThredUp executives expect corporations and consumers will step up.
✅ Our take:
The flurry of news stories about sustainable fashion this month points to the economic opportunity in secondhand fashion (see articles on Salt Lake City-based Cotopaxi and Colorado-based Tersus Solutions) and the rise in investment in textile recycling. This is good news given both the greenhouse gas emissions footprint (~8% of global emissions) and material waste (a garbage truck full of clothing every second) associated with the fashion industry. Plastic demand from the textile industry is the third largest behind only packaging and building and construction. With EPR legislation reaching fashion, the need to create a robust and transparent supply chain for recycled textiles is increasingly pressing.
Nova Chemicals, Novolex open mechanical recycling facility for PE film
NOVA Chemicals, a Canadian petrochemical company, inaugurated a new facility in Indiana in May to mechanically recycle PE film. The plant will be operated by packaging producer Novolex and already has customers lined up to use its PCR material. Nova received a Letter of No Objection from the U.S. Food and Drug Administration in 2023, allowing it to produce recycled linear low-density polyethylene (rLLDPE) for food contact applications. The plant, with three out of four lines already installed, will have the capacity to recycle 145,000 bales of plastic film and produce over 100 million pounds by 2026.
✅ Our take:
This is good news for brand owners and producers that rely on flexible plastics, which have traditionally been hard to recycle. While most petrochemical companies have looked to chemical recycling as the solution to recycling film and flexible plastics, shortcomings of advanced recycling technologies include higher greenhouse gas emissions than mechanical recycling in addition to high costs overall. Still, we’ll need both mechanical and advanced recycling to solve the overall challenge of recycling plastic waste. We’re thrilled to see further investment in this much-needed infrastructure.
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Circular News
What has Circular.co been up to?
The Circular team is enhancing its digital platform with new features for suppliers! Watch this space for a special announcement later this month.
Eliminating PCR pain points through greater transparency
In a recent article, Circular.co’s Chief Operating Officer Shannon Gordon discusses the perceived “hydra of blockers” hindering PCR transactions and how AI can open the door for market transparency. Circular’s AI-powered and data-rich platform helps buyers and suppliers pursue transparent and efficient transactions.
PCR Pricing and Tariff Analysis
✅ Our take:
PCR plastic resin prices were flat to slightly down over the past month, with the highest drop for rHDPE in the US (-3%). This continues a trend over the past year, with rHDPE prices decreasing by nearly a quarter over the past 12 months. Globally, mixed-color rHPDE is the most competitively priced PCR on the market (even without tariffs) — nearly reaching parity with virgin HDPE in the US — with the exception of mixed-color PP in Asia. Exploring its use for suitable applications could help brands struggling to reach PCR targets within budget, as well as automotive manufacturers.
The drop has led to a significant spread between mixed-color rHDPE in the US ($0.4/lb) and Europe ($0.92/lb), with potential deals to be made, should the evolving regulatory landscape allow it.
Meanwhile, FDA-compliant rPET has steadied in the US ($1.668/lb, though double what it was last year), and remains stable in Asia and Europe this month ($0.599 and $0.808 per pound). It commands a significant premia over its virgin counterpart, as does natural rHDPE ($1.356/lb vs. $0.458/lb for virgin natural HDPE in the US).
Sources: ICIS, OPIS, ARGUS, SPG
About Circular
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