Brands that went big on recycled content targets have begun to roll back on their commitments, largely due to cost pressures.
Research conducted by Recycling Magazine shows the gap between rPET (recycled PET) and virgin PET was in excess of €400 per tonne last year. In other words, buying virgin PET can save a considerable amount of cash for major beverage brands.
The magazine reported: “Several participants in the rPET market, including beverage brands, have said some brands and fast-moving consumer goods companies (FMCGs) are cutting back their use of rPET to the minimum contracted volumes, which for beverage bottles is often between 25-30%. This is either to meet the mandatory recycled content target for beverage bottles as set out in the Single Use Plastics Directive (SUPD), which came into effect on January 1st 2025, or in line with internal company targets.”
As well as regulatory pressures, including extended producer responsibility and deposit return schemes in the UK, many companies have set targets for recycled content through voluntary Plastic Pacts.
However, there are fears that this year will see many businesses water down their ambitions as the agreements come to an end (often falling far short of the targets) and they look to cut costs. That Coca-Cola has already moved its sustainability goalposts is likely to embolden others, according to market experts. There are others who feel the shift represents a period of setting more realistic targets.
“Member states have yet to put in place any significant financial or economic penalties for non-compliance for brands not hitting the SUPD’s 25% target, leading some PET bottle producers and brands to continue to use the minimum rPET content, or are even stick with 100% PET until forced to make the change,” the report noted.
UK recycling boost
Earlier this month Innovate UK announced that its smart sustainable packaging (SSPP) challenge has boosted UK plastics recycling infrastructure.
Professor Margaret Bates, CEO of the recently launched UK packaging extended producer responsibility scheme administrator, PackUK, for Defra, said SSPP has “harnessed the willingness of retailers, brands and the plastic packaging supply chain to engage and invest in innovation that supports resource efficiency and clean growth. It has attracted £274 million of co-investment to date, delivered new infrastructure on the ground in the UK, and challenged the art of the possible and the investible,” she added.
Beverage brands in the UK are facing a challenging period as they face new rules under pEPR, the rollout of simpler recycling collections and, in the near future, a deposit return scheme.
