The Cost of Using PCR

Assessing the Costs of Using PCR in the Manufacture of Plastic Packaging & Products

Ocean pollution and depletion of natural resources have been tied to plastic use, with many major brands making commitments to utilize more recycled content. One avenue is utilizing post-consumer resin (PCR) in the production of new products. PCR is derived from consumer packaging that is processed into recycled plastics.

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The Canadian government has set an aspirational target of incorporating 50% recycled content in plastic products, where applicable, by . The Environment and Climate Change Canada (ECCC)  sought to understand the feasibility and the cost of incorporating PCR in certain plastic packaging applications. The ECCC is a department of the Canadian government responsible for coordinating environmental policies and programs, as well as informing the public about ensuring a clean, safe, and sustainable environment.

The ECCC retained RRS  to conduct research and build a model that quantifies the marginal cost of incorporating PCR in the manufacture of five plastic items, including four packaging formats and garbage bags.

THE STUDY

RRS conducted interviews with companies that represented different plastic packaging formats and various conditions in which PCR is used in packaging in North America, including plastic reclaimers, packaging converters, and packaging manufacturers. RRS also conducted a literature search to supplement the information gained through the interview process. The team incorporated all the data gathered into a model that generated cost curves reflecting the marginal cost of incorporating PCR in the evaluated packaging applications.

Because the assessment was designed to reflect the marginal cost of using PCR in manufacturing, the model includes only the costs incurred during the conversion process &#; when the PCR is utilized to produce a product or packaging. It does not reflect the costs of reclaiming post-consumer plastics and producing PCR to the specification required by the converter or the cost of acquiring PCR feedstock.

THE FINDINGS

The most significant costs related to incorporating PCR typically relate to front-end material handling and rejected products (loss rates). Converters also commonly reported increased costs related to testing and quality control, blending, screening, and in one example, upgrading a legacy extrusion line to a multi-layer line.

The research identified the following considerations related to the cost of incorporating PCR in different contexts:

• End-use application
• Food grade (or not)
• Producing from 100% PCR
• Product weight

The research also identified several methods converters use to improve quality and reduce production costs when using PCR:

• Level of PCR content
• Use of additives
• Avoidance of blending PCR and virgin materials
• Automated storage

The study found that while there are marginal costs to incorporating PCR in the production of plastic products and packaging, those costs are limited and do not appear to be the central factor in a company&#;s determination of whether or not to utilize PCR.

Interviews conducted during the study indicated that most of the additional cost in incorporating PCR is embedded in the cost of the PCR to the converter and is not incurred in the process of producing packaging. Since this project assumed that PCR is available at the same price as virgin plastic, that cost is not reflected in this analysis.

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Furthermore, building a sufficient supply of PCR would likely reduce the incremental cost of incorporating PCR in the conversion process.

Please reach out to Bryce Hesterman, RRS consultant, for more information on this study.

Review the full report here: Cost of Using PCR

In a world where our oceans are full of micro and macro plastics, looking for more environmentally-friendly alternatives to single-use plastics is crucial. This is where PCR - short for post-consumer resin &#; comes into its own. 

Made from recycled plastics, turning used packaging into PCR prevents plastics from being sent to the landfill by giving it a new lease of life. Usually, the plastics used are PET and HDPE. 

So, how is PCR plastic made? Once the PET and HDPE reach the recycling points, they&#;re sorted before being made into pellets. These pellets are then melted down and formed into new products. As with any type of packaging, there are pros and cons to PCR plastic:

 Advantages of PCR packaging

• Reduced environmental impact: Rather than necessitating the creation of virgin plastic, using PCR plastic for packaging uses plastics that already exist and helps to divert waste from landfills and oceans by utilizing recycled materials, contributing to a circular economy.

• Energy savings: PCR plastics often require less energy during the manufacturing process, leading to lower energy consumption.

• Promotes recycling: The use of PCR plastic encourages recycling programs and infrastructure development, fostering a culture of sustainability.

• Enhanced brand image: More and more individuals are growing concerned about the environmental impact of the products they purchase. Brands that use PCR packaging can market themselves as environmentally responsible and appeal to eco-conscious consumers.

Disadvantages of PCR packaging

• Color variation: PCR plastic may exhibit color variations, making it challenging to achieve consistent packaging aesthetics. If you&#;re after crystal clear packaging, then PCR plastic might not be the material for you. 

• Higher cost:In some cases, PCR plastics can be more expensive to produce than virgin plastics due to the recycling and purification processes. This means that it may be a more expensive option over virgin plastic.

• Supply and demand: The current demand for PCR plastic outstrips the availability of the material. Therefore, there needs to be an uptake in recycling in order to ensure that the future demands for PCR plastic can be met.

PCR plastic can be used alongside other types of plastic &#; such as PP and PET - to create packaging. Here at APG, we have a variety of packaging solutions constructed using PCR on offer. If you&#;re interested in using PCR plastic to package our products, then reach out today to discuss your unique requirements.

Contact us to discuss your requirements of Is PCR Plastic Recyclable. Our experienced sales team can help you identify the options that best suit your needs.