This article appeared in the January 2025 issue of Resource Recycling. Subscribe today for access to all print content.

Across all consumer goods categories, the U.S. is striving to limit packaging waste and to slow the flow of landfill contributions. Regulators and environmentalists know that time is running out to combat climate change and that moving from a linear to circular model is one of the most effective strategies for preserving materials, reducing resource consumption and decreasing production-related emissions. Yet recycling rates in the U.S. continue to fall short of their potential — largely due to a lack of access and understanding for consumers. This raises the question: If we could simply improve consumer recycling habits of consumers for even one type of packaging, how much could we shift future recycling rates and landfill volumes?

Aluminum as a clear avenue

The beverage can serves as a package with unique opportunity for moving the needle, given its market-ready path toward a greater circular economy. While most modern consumers know that the beverage can is a recyclable item, many do not understand just how impactful that recyclability is in terms of the bigger picture. Used beverage cans are able to be recycled from an empty can to a new can on the shelf in as few as 60 days — a remarkable turnaround that not only saves precious materials from landfill but also saves more than 90% of the energy required in production using virgin materials.

Aluminum cans are also one of the highest-valued formats in the recycling stream given the fact that they can be recycled an infinite number of times without loss of properties like strength and durability. In fact, the Can Manufacturers Institute says that the profit from aluminum beverage cans effectively enables the entire recycling system to operate — typically accounting for more than 33% of the revenue at an average MRF, more than any other single material commodity.

Unfortunately, the majority of consumers are unaware of the importance of UBCs for recycling systems and are not always committed to making responsible choices for material disposal, leaving a tremendous opportunity gap for greater collection.

Creating care and commitment within consumers

While there are numerous ways to make beverage can recycling easier for consumers, there is no action without buy-in. Consumers must feel connected to the products they are using as well as
personally responsible for their choices in order to develop new, more productive habits.

With this in mind, driving consumer education about the damaging effects of landfill waste and resource consumption on the future of our planet, as well as the benefits of properly disposing of key packaging formats like the beverage can, helps to drive more mindful behavior and long-term stewardship.
When a consumer knows that the way they interact with just one beverage can plays a tangible role in a potential environmental outcome, they are more apt to do their part.

Often this education can be done in tandem with localized events where can collection is active and accessible. Some examples include:

• Sponsoring contests at sporting events: Various minor league teams around the U.S. have received sponsorship support from manufacturers and beverage brands to hold a collection contest of all used beverage packaging in stadium and arena stands, incentivizing responsible disposal and recycling on-site while providing longer-term education and reminders to all attendees along the way.
• Hosting competitions at schools: CMI has led a One Million Can Challenge with elementary schools in key regions of the U.S. to drive awareness of the importance of UBC collection not only with families and communities but with the younger generation, who can develop impactful habits early on.
• Creating greater accessibility in high-consumption areas: Metal packaging industry initiatives like Every Can Counts continue to meet consumers where they are, placing recycling ambassadors at local festivals, community parks, academic institutions and other high-traffic areas where passersby can be taught to be more thoughtful about recycling in relation to their daily activities and lifestyles.

Strength in numbers

Ultimately, when it comes to increasing national recycling rates, it is imperative we remember that small actions can create significant impact. Focusing on one substrate, and partnering with one school or one neighborhood to drive more awareness, can be part of a much larger patchwork of efforts happening across the U.S. With the mindset that no one initiative is too minor, we stand a chance to advance the circular economy and foster a much healthier environment long-term.

Jennifer Bogs is a global director of sustainability at Crown overseeing the strategy and implementation of the company’s sustainability program at approximately 400 locations in 40 countries while leading a global team of sustainability professionals. She has 20-plus years’ experience in the environmental field and 9-plus years of experience in sustainability.

The views and opinions expressed are those of the author and do not imply endorsement by Resource Recycling, Inc. If you have a subject you wish to cover in an op-ed, please send a short proposal to [email protected] for consideration.

This article appeared in the January 2025 issue of Resource Recycling. Subscribe today for access to all print content.

Designing packaging for recyclability is an important part of building a circular economy. For plastics, structures that are designed with consideration for existing recycling methods can contribute to higher-
quality recyclate and help strengthen the supply of post-consumer recycled material in the future. Although it involves a thorough understanding of downstream collection and recycling processes, designing for recyclability really begins with upstream producers.

Beyond performance and aesthetics, examining packaging from a recycler’s point of view involves considering how the package could be collected, sorted and processed. Because mechanical recycling is the most widely available recycling method today, many companies are moving toward mono-material packaging designs that could enable higher-yield PCR feedstock bales in the future. However, mono-material structures must be able to meet the necessary barrier and sealing requirements of incumbent structures to be a viable alternative to mixed-material laminates and films. Balancing these performance requirements, equipment capabilities and consumer expectations of how the package should function can prove quite difficult for brand owners.

How can the packaging industry advance technology innovations that fulfill all of these specifications? Through their studies exploring how to build a circular economy, the Ellen MacArthur Foundation has identified external input and breaking down silos as two key ingredients for a successful upstream innovation process. Brand owners know the type of product and experience they want to deliver to consumers. Suppliers understand the capabilities and limitations of different materials. Bringing various areas of expertise together through cross-value-chain collaboration streamlines and accelerates the commercialization of packaging solutions that deliver the desired experience for consumers while considering the post-use cycle of the product.

The growing availability of high-density biaxially oriented polyethylene is one example that illustrates how resin suppliers, film manufacturers and original equipment manufacturers worked together to bring a new PE material to market that enables new types of mono-material packaging. Working with biaxial film manufacturers like Inteplast, Nova Chemicals expanded BOPE-HD availability and capacity by running trials and collaborating closely with the experts in biaxial film production. These relationships helped refine the BOPE-HD formulation to meet converter and brand owner requirements. “Every step of the value chain has to work together in order to make sure that we end up with a product that meets the needs of the market,” said Latricia Fry, market and business development manager at Inteplast.

Market demands

The development of BOPE-HD began with an increased interest in mono-material PE solutions from brand owners. Motivated by NGOs like the Ellen MacArthur Foundation, emerging extended producer responsibility legislation and consumer preferences, many companies have made sustainability commitments related to making packaging recyclable and incorporating PCR materials.

PE is suitable for a wide variety of packaging applications due to its moisture barrier properties. While HDPE has established recycling streams and is one of the most recycled types of plastics, the majority of flexible packaging films end up as waste. Store drop-off programs are currently the only consumer recycling program for plastic films on a large scale, and they only accept a portion of PE flexible packaging. GreenBlue, the organization behind the How2Recycle labeling system, reports that only 36% of program members’ flexible packaging qualifies for store drop-off recycling, while the remaining 64% is not yet accepted.

In light of its versatility and its developing options for recycling, PE is a common choice for mono-material packaging designs. When Inteplast began exploring BOPE, they started with linear low-density
PE but discovered that it could not meet all of their customers’ needs. The goal of designing mono-material structures is to replace multi-material PET and PE laminates. These materials demonstrate high stiffness and heat resistance, and LLDPE could not meet the same types of processing requirements. The market was demanding an HDPE solution.

Product development

Nova Chemicals started down a new path altogether when they began developing their BOPE-HD resin for tenter frame lines, as the process requires a different formula than blown PE film. To create the resin that could run on commercial tenter frame lines, including lines designed for biaxially oriented polypropylene, they had to create a completely new formula that would not slow down or limit production. As all operators work on maximizing line speed, maintaining productivity for the new HDPE material was essential, though working with HDPE in this process is technically challenging. To develop a functional resin that could be widely adopted, Nova formed strategic relationships with film manufacturers.

Nova and Inteplast embarked on a journey to test resin formulations and production processes for the BOPE-HD resin. The Nova team conducted trials on Inteplast’s tenter frame lines. Nova and Inteplast team members attended OEM demonstrations together to better understand how the resins could run on existing and new equipment. At Nova’s Centre for Performance Applications in Calgary, Inteplast and other brand owners tested films on converting equipment and shared feedback to improve the functionality of the resin.

Benefits of collaboration

Developing a new product requires lots of testing and many different iterations. The exchange of information and an open dialogue between multiple industry players throughout the process aligns everyone’s objectives, helping teams pursue the right research and modifications. “Any time a packaging design changes, there will never be a drop-in solution that solves everyone’s problems,” Fry explained. “Adjustments will always need to be made, and sharing feedback during the development stage ensures that we are all following the right path and narrowing in on our process.”

For mono-material structures, new films need to work within existing production capabilities to be competitive and profitable. Collaboration enables new developments that account for the manufacturing, processing and performance needs throughout the entire packaging value chain. “Collaboration really is the only way we’re going to be able to solve the demand for circularity when it comes to flexible films,” said Fry.

The industry must focus on creating accessible mono-material packaging solutions that provide an alternative to non-recyclable, mixed-material films. As the world comes together to increase plastic recycling and reduce plastic waste, it is important to start these system-level changes with existing opportunities like packaging designed for store drop-off programs and optimized for mechanical recycling processes. Downstream solutions alone will not be able to tackle plastic without upstream innovation supported by diverse teams and collaborative thinking.

Brant Wunderlich has extensive experience in the packaging industry and is currently the team leader for application development and circular economy at Nova Chemicals, a leading producer of polyethylene resin that strives to solve industry challenges and circular solutions for our customers and organizations across the value chain.

The views and opinions expressed are those of the author and do not imply endorsement by Resource Recycling, Inc. If you have a subject you wish to cover in an op-ed, please send a short proposal to [email protected] for consideration.

This article appeared in the January 2025 issue of Resource Recycling. Subscribe today for access to all print content.

As the January inauguration approaches — and with it, the prospect of new, higher tariffs — views on the potential impacts are mixed among the recycling industry, several officials said in recent weeks. However, market participants largely agreed that the implementation of such tariffs remains far from certain.

On Nov. 25, President-elect Donald Trump threatened hefty tariffs on Canada and Mexico to take effect on his first day of office this month, saying they’re meant to stop drugs and undocumented immigrants from entering the U.S. During the campaign he also shared plans for blanket tariffs on almost all imports regardless of country, according to Reuters and other news outlets.

Even before the threatened increase in tariffs, major exporters in China and Southeast Asia started producing faster to ship products to the U.S. ahead of Trump’s inauguration, said Hannah Zhao, director of fiber at commodity pricing and analysis agency Fastmarkets RISI. As in many packaging sectors, the fourth quarter of each year is traditionally weak, but this year orders for paper packaging, such as containerboard and boxboard, suddenly increased to “preload” the price to the U.S., increasing demand for recycled fiber.

Similar dynamics are at play in plastics, said James Derrico, vice president of new business at CellMark, a large brokerage for recycled materials including plastic bales and resins.

Ahead of the tariffs, CellMark imported extra PET and recycled PET resin to help hedge against anticipated higher pricing, he said. “A lot of other industries have the same idea, and the reason we know that is because the ocean freights jumped up pretty dramatically on importing material to the U.S. that looked like it could potentially be hurt with tariffs.”

Derrico remained optimistic that Canada and Mexico would not resort to retaliatory tariffs, because the customers overseas still need materials. An increase in prices was more likely than a decrease in trade volumes, he added.

As Chris Goger, senior director of recycling at recycled materials broker Blackbridge Investments, put it: “Who knows how it’ll actually take shape? And so it’s kind of hard to make sense of it, but at the same time, you can’t just say, oh, we’ll worry about it if and when it happens.”

Fiber supply and demand

In the wake of China’s 2018 implementation of a ban on imports of scrap material, a policy known as National Sword, India and Southeast Asia have become prime destinations for U.S. recovered paper. These countries pulp the recovered paper and then send it to China for packaging manufacture.

India, Malaysia, Thailand and Vietnam combined to receive nearly 40% of U.S. recovered fiber exports in January-October 2024, according to U.S. International Trade Commission data. Mexico accounted for about 15% and China received just under 10% of the total. Canada received only 5%.

So if Chinese demand for recycled fiber were to fall, so too would Asian demand for U.S. exports, and “that definitely will impact the U.S. recovered paper market,” Zhao said.

In addition, tariffs on certain developing nations — so-called BRICS countries such as India and Brazil — would likely mean a slowdown in goods imported to the U.S. and further weaken demand for paper packaging, should they support an alternative currency to the U.S. dollar, she said.

Likewise, Mexican manufacturing of consumer goods relies on U.S. demand, said Derek Mahlburg, economist and director of North American paper and packaging at Fastmarkets RISI. “Their demand for importing containerboard from the U.S. is just going to go down, period,” he said. “And this is regardless of whether we were to see any kind of retaliatory tariffs.”

In general, weak manufacturing of consumer goods leads to decreased demand for packaging, he said, pointing to the drop in OCC prices in 2019 following increased trade restrictions during Trump’s first term.

“China is a huge driver of what happens to U.S. prices,” Mahlburg said. “There’s only so much decoupling that can happen really because of how much U.S. recycled fiber does get exported.”

Plastic dynamics

As was seen starting in 2023, widely available cheap imports for both virgin PET and RPET dampened demand for domestic RPET, which remained at a significant price premium. With tariffs in place, however, the opposite could occur, according to Marcelo Wasem, research and analysis director for PET at Chemical Market Analytics.

Although increasing tariffs on Chinese material would have no impact due to the dearth of resin originating there, “for Mexico and Canada, yeah, we have a huge impact,” Wasem said.

The U.S. is a net importer of virgin PET, and he said imports supply around 30% of demand requirements, with Mexico representing about 18% and Canada 6-7%.

“What we can predict at this point is that an increase in tariffs in those countries will have naturally an increase of imports from Asia,” he said, adding that 65% of imports come not from China but from South Korea, Taiwan and southeast Asia. The increase in demand would subsequently push up deep-sea freight rates, Wasem said.

Although over the past two years RPET buying on the spot market has increased only during shortages of virgin PET, Wasem said increased buying would push up prices for RPET but still could incentivize usage of RPET over virgin material.

“We have two components of demand: One is the natural demand for sustainability initiatives, companies trying to introduce more recycled PET in their products,” he said. “And the other component is directly related with how long or short the virgin PET market is.” If the U.S. has any constraints on PET supply, “players will naturally move to the recycled market to get more volumes.”

Because of its reliance on the U.S. PET market, Mexico eventually would run out of export alternatives and be forced to reduce plant operating rates, he said.

In a late July investor call — well before the threat of tariffs — Jorge Young, CEO of Mexico-based PET producer Alpek, said the North American trade deficit for PET “probably peaked in 2022 with more than 1 million tons of PET deficit in the Americas. It’s been trending down slightly.”

With anti-dumping duties already in place for imported Chinese PET, Mexico’s imports originate mostly from other Asian countries, Young said, though “the prices from the non-China origins are not as low as China.” Nevertheless, Asian countries besides China still have “a relatively high percentage of their capacity that is again available for exports.” He expected Mexico to continue to face an uphill battle for market share.

For PE markets, Morales said a trade war would ultimately hurt domestic converters, “the consumer would pay, and it would hurt profitability of these North American countries, which kind of goes against the whole point of trying to make a better economy, not worse.”

Over the past few years, vast new U.S. capacity for virgin PE — and the resulting oversupply and low pricing — has cut deeply into demand for post-consumer HDPE. Recycling processors struggle to compete with virgin resin that may be priced closer to feedstock post-consumer bales.

However, Morales said, with emphasis growing on recycled content targets, recycled HDPE prices remain elevated, and “we’re setting ourselves up for another whiplash, possibly in 2025.” Even tariff-inflated virgin PE values were unlikely to be sufficient to incentivize use of recycled HDPE, he said.