Sustainable Packaging: Circularity for Rigid Plastics

August 2024

Rigid plastics are a versatile, efficient group of packaging materials, which represent more than a quarter of global grocery sales, but which are being increasingly challenged, by consumers and by regulators for their presence in waste. Prioritising efficiency and circularity in plastic packaging designs together with improving end-of-life recovery, recycling and re-use are key, to elevate the environmental profile of plastic and to prevent this resource from becoming waste.

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Key findings

Rigid plastic accounts for more than one in every four packs sold today

At 1.1 trillion packs in 2023, rigid plastic accounted for 28% of global grocery packaging sales, led by PET-bottled soft drinks and thin wall plastic food packaging. Its success in use comes from versatility in size and shape, while its light weight brings distribution efficiency gains.

Rising influencer concerns confers a responsibility to improve pack circularity

Two thirds of consumers are worried about climate change, and see plastic as a priority action area, to reduce its pollution. Regulatory intervention facilitates as EU regulation on tethered caps, effective from July 2024, shows, with potential for a global plastic treaty by end-2024. Improving brand pack circularity amid influencer pressures is integral to future-proof rigid plastic.

To close the gap on waste and reduce carbon footprint requires robust recycling and re-use

Prioritising design for recyclability or composting needs to be combined with more effective collection, recycling and re-use, to prevent plastic waste. Recycling rates remain far from optimal: PET (highly recyclable) bottle recycling hovers around 60% in Europe and is markedly lower elsewhere. Investment in recycling and recycled resins are key to reducing carbon impact.

Voluntary and regulatory targets can catalyse change

Businesses and regulators increasingly pledge rigid plastics sustainability via redesigns to remove surplus, lightweighting and recycled resins. While some 2025 milestones will not be met, with a recalibrating of pledges happening, targets provide a framework to catalyse collaborative progress and create investment opportunities, in renewable plastics and recycling.

Lead the charge on renewables and recycled content, for circular plastics momentum and reputation

Leadership on embedding renewable, recyclable and recycled in rigid plastics can enable companies and countries to make advances not only in circularity for plastics but also on net-zero climate pledges. There is a reputational rationale too; consumers seek sustainable packaging, so advances made, that are communicated well, can improve brand standing.

Why read this report?
Key findings
Rigid plastics face challenges as climate concerns grow
Rigid plastics are a powerhouse but not immune to cost-of-living pressures
Future will be shaped by soft drinks and food as core end-uses, and by waste concerns
The climate matters: Consumers want to live more sustainably with less plastic waste
Rigid plastics rank among most discarded waste items, if some improvement
Environmental regulatory pressure on plastic is rising, with Europe leading
Circularity is becoming more established in strategy and investment plans
Sustainable packaging is the top sustainability priority for new launches in 2024
Rigid plastics recyclability guidance: Not all plastics are equal
Redesign via recyclate: Increase recycling and recycled content to reduce carbon impact
Coca-Cola India is partnering with Reliance Retail on a PET collection and recycling pilot
A place for refills: Potential for plastic and competitor substrates
New EU rules add pressure to drinks: On collection, recyclate and for, the first time, refills
Businesses pledge to sustainable plastic, for packaging and climate goals
Reducing plastic’s footprint: Renewable pack design action is strong
But many brands will not reach 2025 targets: Slow economy and infrastructure impede
Plastics’ recycling: EU capacities are progressing but still off-target
Plastic Pacts: The value of voluntary collaborations to accelerate progress
Alongside the power of collaboration, policy is essential
Power of policy (if implemented) to supercharge recycled plastic: European taxation
EU’s PPWR brings potential to fast-track PET beverage bottle collection, mostly via DRS
The reputational incentive to spur on plastics’ sustainability
Recommendations
Treat rigid plastic as a valuable resource destined for repeated re-use
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