Supply, Demand and Chemical Innovations - Insights From The ICIS Experts

Annelie Moolman • 7 June 2024

The world of recycling is ever-evolving, with constant shifts in supply, demand, and innovation shaping its landscape.

In a recent episode of the CANEI podcast, the Plastic Recycling Podcast, we spoke with two industry experts, Andrea Bassetti and Emily Friedman from ICIS, who shared valuable insights into the current state of recycling in the United States. Here are the key takeaways from their discussion:


Supply and Demand Dynamics


Mature and Emerging Markets:

The rPET market in the U.S. is highly mature, driven by strong demand from large consumer brands and a robust supply chain sourced from recycled water and soda bottles. In contrast, the recycled polyethylene (rPE) and polypropylene (rPP) markets are still developing and facing significant supply challenges despite increasing demand.


Transitioning Applications:

rPE and rPP are shifting from traditional applications like bins and trash bags to more visible consumer goods packaging. This transition is driving demand but outstripping current supply capabilities.



Legislative Impact


Voluntary Commitments vs. Legislation:

While voluntary commitments from brands have significantly driven recycling demand, they often fall short due to the higher costs of recycled plastics compared to virgin materials. EPR legislation aims to enforce accountability and promote sustainable recycling practices, providing a more consistent and reliable framework.


EPR Legislation:

EPR mandates producer responsibility for the lifecycle of their products and packaging. Although the U.S. still lags in comprehensive legislative support, such measures are crucial for driving sustainable recycling efforts.



Chemical Recycling Revolution


Broader Feedstock Range:

Chemical recycling allows for a wider range of feedstock, including multi-layered materials unsuitable for mechanical recycling. This process can handle higher contamination levels, expanding the scope of recyclable materials.


Projected Growth:

Chemical recycling capacities are expected to grow fourfold by 2028, potentially making up 22% of all recycling. This growth could significantly increase the amount of waste that can be recycled and help address supply challenges in mechanical recycling.


Challenges and Opportunities


Cost Implications:

Chemical recycling is currently more expensive due to high energy requirements and complex processes. However, it offers new opportunities for brands to adopt circular resins in their packaging, despite the premium price.


Partnerships and Collaboration:

Successful recycling strategies depend on partnerships between mechanical and chemical recyclers. By working together, these sectors can optimize waste streams, enhance recycling rates, and create more sustainable solutions.


Conclusion



The recycling industry is navigating significant shifts in supply, demand, and technology. Collaboration and innovation are emerging as key drivers of progress. Andrea Bassetti and Emily Friedman's insights highlight the complexities and opportunities within the recycling market. By embracing sustainable practices, forging partnerships, and staying updated on legislative developments, stakeholders can drive positive change and shape a more environmentally conscious future.


CANEI helps companies and brands integrate recycled raw materials into their products with high-quality rPET, rPP, and rPE. 


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