Market analysts say PET collection rates are insufficient to reach the amount of material brand owners will need to hit their recycled-content objectives.
Researchers from analysis firm IHS Markit anticipate recycled PET will “penetrate, but not replace virgin” material, according to a report from Plastics News. The analysts spoke during the Global Plastics Summit 2019 in Houston last month.
That’s partially because demand will outpace supply of recyclate, according to Tison Keel of IHS Markit. He anticipates virgin PET will still make up 90% of the market in 2025, according to Plastics News.
To provide enough supply for consumer goods companies to meet their goals, collection rates in the U.S. would need to double, Keel said.
While there will not be enough RPET to meet demand, virgin material remains “oversupplied worldwide,” according to Plastics News.
Meanwhile, the global PE market could be poised for major oversupply, pushing down prices, according to a separate IHS Markit presentation covered by Plastics News. And falling virgin prices lead to downward pressure for recycled resin, which must remain competitive with the prime plastics market.
More stories about PET
- Financial filing shows PET reclaimer’s income losses
- NAPCOR: PET bottle recycling rate remains near 29%
- Prime producers detail recycling quantities