CPGs Advance in PCR Use, Despite Missing 2025 Goals
An AMERIPEN study reveals that while packaging recycling rates and capacity are improving, meeting 2025 sustainability goals remains challenging due to persistent supply gaps.
Rob Keith, Policy and Membership Director of AMERIPEN
Photo courtesy of AMERIPEN
Packaging recycling rates and recycling capacity are improving, albeit not quite at the pace some have hoped. Although CPG companies have made noteworthy progress toward their sustainability goals, 2025 goals are still out of reach for many. Challenges obtaining sufficient supply remains the biggest hurdle to overcome.
This snapshot of the packaging industry from AMERIPEN’s “U.S. Packaging Recycled Content Goals Analysis” study also highlights the need for additional reclamation to meet post-consumer recycled content (PCR) demand. The newly released study details how the packaging industry is making meaningful strides toward circularity in recent years while contending with ongoing challenges in collection, capacity, and quality.
AMERIPEN engaged Circular Matters, a consulting firm with expertise in packaging and recovery systems, to help evaluate 2023 data on supply, demand, and capacity for recycled materials in paper, plastic, metal, and glass packaging in the U.S. The report, funded by PLASTICS’ Recycling Is Real campaign, documents progress made in sustainable packaging and increased recycling capacity since AMERIPEN issued a similar report in 2021. The findings offer encouragement that progress is being made.
The findings
To get a picture of demand for PCR in relation to supply of recycled materials, researchers reviewed the voluntary and publicly declared recycled content goals of 46 CPG companies. They then added goals set by trade associations and weighed the impact of state-mandated extended producer responsibility (EPR) requirements or recycled content mandates on the packaging industry—all established after the release of the initial 2021 report.
PCR in plastic packaging has more than doubled from an average of 5.3% in 2019 to 10.7% in 2023 among companies with stated goals. This mirrors global trends, as companies participating in the New Plastics Economy Global Commitment 2024 Progress Report increased their percentage of PCR in plastics packaging from 5% in 2018 to 14% in 2023.
Additionally, U.S. plastics reclaimers have more than doubled their capacity to supply PCR for packaging. Nevertheless, additional capacity is needed for all resins aside from high-density polyethylene (HDPE) and low-density polyethylene (LDPE), with a particularly high demand for PET.
The supply-demand mismatch for PCR material highlights gaps in the value chain and infrastructure for many materials, but especially for plastics. AMERIPEN often sees this disconnect at the legislative level when policymakers write recycled content mandates under the assumptions that PCR materials are readily available and that it’s simple for producers to transition from virgin materials to PCR.
Still, the gap between demand and supply is closing. In plastics, for instance, PCR use went from 0.6 billion pounds per year in 2021 to 1.9 billion in 2025. However, with companies continuing to issue voluntary sustainable packaging goals and more states expected to enact recycled content and EPR laws that include PCR targets, the demand for recycled materials in packaging is expected to increase. More collection from consumers is needed to meet the demand anticipated based on today’s goals, especially in plastics and aluminum, as it’s unclear whether materials recovery from these laws will provide sufficient supply.
PCR for food contact requires additional regulatory oversight. Obtaining approvals to manufacture food-contact PCR has been a frequent pain point for packaging providers. Researchers were unable to quantify the capacity to produce plastic and paper PCR approved for use in food packaging due to “lack of public data on packaging used for food versus non-food uses and amount of PCR approved for food-contact uses.” Obtaining PCR plastic acceptable for food packaging also is difficult due to the inferior quality of mechanically recycled plastic and the higher costs associated with using PCR resins over virgin plastic resin.
Advanced recycling, which holds promise as a new source for plastic PCR and food-contact applications, is not yet widely available in the U.S. Capacity was reported at 0.4 billion pounds per year in AMERIPEN’s 2021 report and grew to just 0.5 billion pounds per year in the latest report. By contrast, mechanical plastic recycling capacity increased from 2 billion pounds to 4.2 billion pounds over the same period.
While companies can utilize advanced recycling as a tool to achieve their individual goals as the technology gains traction in the U.S., it’s unclear whether packaging regulations will permit feedstock produced from advanced recycling to be counted toward compliance with state laws.
The path forward
As a result of their findings, researchers conclude that a comprehensive approach with multiple tactics must be employed simultaneously to meet goals for sustainable packaging stretching forward to 2032, particularly in the realm of plastics. Collections of materials for recycling must continue to increase, and we need greater consumer participation. Mechanical recycling technologies must continue to evolve to produce higher-end resins, and advanced recycling should be considered to fill gaps in mechanical recycling for safe, food-contact recycled resins.
Moving forward also means collaborating across groups and industries to overcome technical, regulatory, and supply chain barriers. Industry input is critical for setting goals or regulations, and market development has to be part of any packaging regulation that’s seeking to increase circularity. AMERIPEN continues to work with stakeholders across the packaging value chain to advocate for workable, informed, and effective legislation. PW
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