A new report by Akron, Ohio-based basic materials research company Smithers estimates an annual global market for food-grade post-consumer recycled (PCR) plastic resins of nearly 6.7 million metric tons by 2029.

Source: RecyclingToday

In part thanks to ambitious targets and accompanying directives, Smithers and the report’s author Patrick Ellis estimate that in 2029 Europe will remain the largest market for food-grade PCR, consuming 3.6 million metric tons that year.

The world’s most populous continent, Asia, however, “will see the highest growth rate in consumption of food-grade PCR packaging at an 8.7 percent compound annual growth rate (CAGR)” between now and 2029, says Smithers.

Smithers says the report includes a detailed statistical breakout of current and projected demand for food-contact PCR resins by polymer type and regional geography.

Also addressed, says the firm, are questions including “What [are] the biggest challenges in the PCR for [the] food-contact industry?” and “How [will] the arrival of commercial-scale chemical (advanced) recycling diversify the supply of PCR plastics?”

The research house says regulations and recycling targets will put pressure on the consumer products and polymers industries this decade. Smithers also predicts “a sharp increase in PCR prices is expected (already 15 percent or more above virgin material prices) but should stabilize [leading] up to 2030.”

The report labels the food-contact market as the biggest growth area for PCR, “but quality is the biggest concern.”

Smithers says its report, intended for polymer and packaging producers and recyclers, is based on “extensive primary and secondary research,” including interviews with material suppliers and converters, published data, government statistics, trade data and other sources.

Lead author Ellis, says Smithers, has spent more than 50 years working in the European plastics industry “in a variety of technical, marketing and management roles,” including with multinational corporations.