Recycling industry news
Our top news picks from May:
- Waste Dive: Minnesota governor signs packaging EPR law with mixed response from recyclers
- PWC: Consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh: PwC 2024 Voice of the Consumer Survey
- ESG Today: 80% of Companies See Sustainability as a Potential Revenue, Profitability Driver: Morgan Stanley Survey
- Packaging Gateway: Coca-Cola completes transition to 100% recycled plastic bottles in Canada
Minnesota governor signs packaging EPR law
Minnesota became the fifth state in the US to sign Extended Producer Responsibility (EPR) for packaging into law. Producers will be required to pay 50% of recycling costs as of 2029, ratcheting up to 90% by 2031. Specific targets (e.g., recycling rate, PCR content) have yet to be established for the program.
Our takeaways?
Legislation is moving steadily toward supporting and scaling up recycling. Preparing for EPR is critical to ensuring access to PCR material and minimizing compliance costs.
Consumers willing to pay 9.7% sustainability premium, even as cost-of-living and inflationary concerns weigh: PwC 2024 Voice of the Consumer Survey
Results from a global survey indicate that over 80% of consumers are willing to pay more for a product that is made from recycled, sustainable, or eco-friendly materials.
The survey, which was conducted in over 30 countries with more than 20,000 consumers, found that consumers would pay a mean of 10% above average price for such products. What are the three most important sustainability attributes affecting purchasing decisions?
- Waste reduction
- Recycling
- Eco-friendly packaging
Our takeaways?
This is good news for sustainable commodities and for the recycling industry, where price premiums for PCR vs. virgin material remain sticky. It validates McKinsey's research from last year.
80% of Companies See Sustainability as a Potential Revenue, Profitability Driver: Morgan Stanley Survey
A Morgan Stanley survey fielded across 300 public and private companies reveals that over 80% of companies associate sustainability with financial impact, be it higher revenue, greater profitability, lower cost of capital, or risk management.
According to the survey, 85% of respondents view sustainability as a value-creation opportunity, while 72% see the potential for higher costs or legal risks from sustainability regulation, and 73% anticipate higher costs or scarcity of raw materials over the next five years.
Our takeaways?
Similar to the above point, sustainability is clearly a priority for producers. Solutions that make it easier for companies to capture the value at stake and mitigate risks have never been more valuable.
Coca-Cola completes transition to 100% recycled plastic bottles in Canada
The Coca-Cola Company has transitioned to 100% recycled plastic for all 500mL bottles in its sparkling beverage portfolio in Canada. The milestone is part of Coca-Cola’s goal to use at least 50% recycled content in its packaging by 2030 and also cut virgin plastic usage.
Our takeaways?
This marks a bright spot for brands along the journey to circularity. Now that major players have proven it can be done, we believe more brands and manufacturers will push toward fully recycled materials, and laggards will lose their competitive advantage.
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Circular news
What has Circular.co been up to in May?
In the media:
- Shannon Gordon, COO of Circular.co, shares the company’s perspective on “Entering the digital age of buying and selling” of sustainable commodities
- Ian Arthurs, founder and CEO of Circular.co, sat down with Jennifer Ramsay to discuss Circular’s story and how the platform is helping brands transition to more sustainable practices in “Remaking manufacturing through more materials recycling.” The interview is also available here.
Impressions from Circularity 24 and NPE (National Plastics Expo):
Circularity 24 Chicago, May 22-24:
- Nearly every imaginable global consumer brand was represented. The resources dedicated to sustainability within producing organizations have grown since last year.
- Brands are looking for technology tools to navigate strategic and operational challenges. Specifically, we saw a number of AI tools designed to help with everything from understanding new and pending legislation to developing PCR formulations/ “recipes”.
- Understanding EPR legislation was an underlying theme in nearly all content. Generally, responsible producers understand the need and are hopeful about the momentum it will bring to PCR adoption. However, they are also concerned about the complexity of compliance (data collection, reporting, minimizing fees, etc.).
NPE (National Plastics Expo) Orlando, May 6-10:
- This is a massive, bustling global industry show almost exclusively focused on supply side, and mostly on virgin plastic. Significant innovation in heavy machinery areas like sortation and molding is creating highly efficient new product lines.
- Sustainability was a small portion of the show, but it is clear that it’s the next wave of growth in plastics. Most molders and processors are asking for brands and OEMs to demand PCR products and they will invest.
New Product Launch: PCR Spec Heatmaps
- Heatmaps allow a user to deeply analyze any spec for any given PCR material. We’ll share much more as we gather customer feedback. Stay tuned for more updates.
About Circular
Launched in 2022, Circular.co makes sustainable sourcing easier with data. We built the world's largest post-consumer recycled (PCR) materials database for brands to navigate markets and make data-driven decisions. Responsible producers can easily use detailed technical spec data to find the right materials at transparent prices from vetted suppliers, all in one online platform. Book a demo here or visit circular.co.