Discover your next big idea at PACK EXPO Las Vegas this September
Experience a breakthrough in packaging & processing and transform your business with solutions from 2,300 suppliers spanning all industries.
REGISTER NOW & SAVE

Packaging vs. Apparel: Who’s Winning the War to Source rPET?

As CPGs shift to greater percentages of PCR in their packaging to meet Ellen MacArthur commitments or other sustainability goals, they may not anticipate that competition to get ahold of it is fierce, and the apparel industry is their top competitor.

Andrew Brown, head of Plastics and Recycling at market intelligence consultancy Wood Mackenzie, describes the ongoing battle for rPET between CPGs and apparel manufacturers.
Andrew Brown, head of Plastics and Recycling at market intelligence consultancy Wood Mackenzie, describes the ongoing battle for rPET between CPGs and apparel manufacturers.

From a big-picture perspective, the growing demand for PCR is a good thing both economically and environmentally, according to Andrew Brown, head of Plastics and Recycling at market intelligence consultancy Wood Mackenzie. The use of recycled plastic in packaging, particularly rPET, is an instrument that can help brands and CPGs decarbonize and lower their greenhouse gas footprint.

But the problem packagers face is that the brands and CPGs don’t constitute the only vertical market seeking to employ PCR to help decarbonize. Automobile manufacturers, pipe and drainage manufacturers, and textiles industries are getting in line to take advantage of PCR’s carbon footprint-reducing properties.

“Everyone wants recycled material. For a bunch of folks at a plastic recycling conference. that's a great news. It's a good problem to have,” Brown says. “The challenge is figuring out what's driving this demand. Is it a drive for more responsible waste treatment, or is it for reduced carbon intensities? I think it's both. And as the industry evolves, not just the plastic value chain is looking for options to decarbonize. Every industry that consumes plastic is looking for options to reduce their carbon footprint. One of the most prominent solutions for those industries that are highly plastics-dependent is to look at recycled materials as an option to reduce their carbon footprint. And it turns out that the two biggest contenders here are packaging and apparel.”

Packaging vs. apparel: Face to face comparison

Packaging currently commands 27 million tons of PET resin overall, substantially less than apparel’s 36 million tons. Demand for rPET among packagers and CPGs is largely concentrated in Western countries in North America and Europe, while the apparel rPET demand comes mostly from East Asia, where the PET fiber industry is concentrated. Packaging generally has higher quality material standards than do rPET fabrics—that’s especially true of food-grade rPET.

“There are differences there between staple fiber and filament fiber, but in either case, textile-bound rPET fibers aren’t subject to nearly the [level of] certifications that packaging rPET has to undergo,” Brown shares.

Comparatively low quality rPET—too low for many packaging applications—remains well-suited (forgive the pun) for apparel because it can be dyed to any color. Another foundational difference between the packaging and apparel markets is that the use of rPET in apparel is a traditional, entrenched practice, whereas rPET use for packaging is a newer, emerging end-use for recyclate. As far as PCR usage goals broadcasted by the two industries, the Ellen MacArthur Foundation says that its signatories’ packaging should have at least 26% recycled content by 2025. The Textile Exchange is aiming for 45% recycled content among its signatories by 2025.

“So massive goals for use of PCR, mostly rPET, are being set by these associations,” Brown says. “And the question then becomes, what that means for demand? Do we have enough of it? What kinds of new supply is going to be needed for rPET material if these targets are to be met?”

Currently, we're looking at approximately 10% penetration of rPET into the packaging sector. On the apparel side, that number is about 20%.

“So if these goals are to double, or more than double over the next two to three years (as the targets have been set for 2025), that means we’re looking at nearly 14 million tons of new rPET supply that are going to be necessary to meet expected demand over the next two to three years. That's a massive number.” This chart reveals the current penetration of rPET, the forecast amount, and the nearly 5 times the forecast amount that's needed to fill promised NGO targetsThis chart reveals the current penetration of rPET, the forecast amount, and the nearly 5 times the forecast amount that's needed to fill promised NGO targets

Pharmaceutical Innovations Report
Discover the latest breakthrough packaging technologies shaping the pharmaceutical sector. This report dives into cutting-edge innovations, from smart containers that enhance patient safety to eco-friendly materials poised to transform the industry’s sustainability practices. All from PACK EXPO. Learn how forward-thinking strategies are driving efficiency and redefining what’s possible in pharma packaging.
Learn More
Pharmaceutical Innovations Report
Annual Outlook Report: Workforce
Hiring remains a major challenge in packaging, with 78% struggling to fill unskilled roles and 84% lacking experienced workers. As automation grows, companies must rethink hiring and training. Download the full report for key insights.
Download Now
Annual Outlook Report: Workforce