In the debate about sustainable packaging, a persistent myth is that chemically recycled plastics and Post-Consumer Recycled (PCR) materials are prohibitively expensive. But is this really true? Let's break down the economics using a simple example that will surprise us...
A Tale of a Potato Chip Bag
Consider your favourite bag of chips, priced at ₹92.5 (€1.03) for 200gm. While you might be focused on the crispy contents inside, let's examine the plastic packaging—typically made from advanced recycled plastics like rPP (recycled polypropylene) or rPE (recycled polyethylene)—that keeps those chips fresh and crunchy.
The Real Cost of Circular Plastics
Each bag typically contains about 2 grams of plastic packaging. At current market rates:
Virgin plastic cost: ₹0.30 (€0.0034) per bag
Advanced recycled plastic cost (including ISCC Plus certified rPP and rPE): ₹0.60 (€0.0068) per bag
Actual cost increase: ₹0.30 (€0.0034) per bag
Percentage increase on total product cost: 0.3%
Putting the Cost in Perspective
That fraction of a rupee—₹0.30 or less than half a Euro cent—represents the entire price difference between using virgin plastic and chemically recycled plastics. To put this in perspective, it's less than the cost of a single potato chip in the bag.
Beyond the Price Tag: Hidden Benefits and Costs
Business Advantages
The minimal cost increase of switching to Post-Consumer Recycled (PCR) materials can be offset by multiple benefits:
Enhanced brand reputation through use of ISCC Plus certified materials
Improved consumer loyalty
Future-proofing against stricter regulations
Reduced environmental compliance costs
The Hidden Costs of Linear Economy
The traditional "make-take-dispose" model carries significant hidden costs:
Carbon emissions valued at US$ 80 to 120/ton
Future regulatory penalties
Waste management expenses
Resource depletion
Environmental cleanup costs
Understanding Reality
When we examine the complete picture, the argument against advanced recycled plastics begins to crumble. The actual cost difference between virgin and chemically recycled materials like rPP and rPE is minimal—mere fractions of a cent per product—while the benefits are substantial and long-lasting.
Key Takeaways:
The cost impact of using PCR materials on consumer products is negligible (0.3% in our chips example)
Environmental benefits of ISCC Plus certified recycled materials far outweigh the marginal cost increase
Future regulations may make non-circular options more expensive
Circular economy is an investment in the future, not a cost burden
The Path Forward
The transition to chemically recycled plastics and PCR materials isn't just about cost—it's about making smart, sustainable choices for our future. As regulations tighten and consumers become more environmentally conscious, the question isn't whether to adopt advanced recycled plastics like ISCC Plus certified rPP and rPE, but rather how quickly we can make the transition.
The numbers speak for themselves: chemically recycled plastics are not just environmentally responsible—they're economically viable. The real cost of not making this transition could be far greater than the minimal investment required to embrace circular solutions today.
Want to learn more about implementing circular plastic solutions in your business? Contact APChemi to explore sustainable packaging options that make both environmental and economic sense.
References:
Ellen MacArthur Foundation. "A circular economy for plastic." Ellen MacArthur Foundation, www.ellenmacarthurfoundation.org/topics/plastics/overview. Accessed 1 Dec. 2024.
Babirush Plast. "Comprehensive analysis of recycled vs virgin plastic: Costs, benefits, and sustainable choices." Babirush Plast, babirushplast.com/comprehensive-analysis-of-recycled-vs-virgin-plastic-costs-benefits-and-sustainable-choices/. Accessed 1 Dec. 2024.
Patel, D. "Chemical recycling is essential for plastics circularity, but faces challenges." Chemical Engineering, www.chemengonline.com/chemical-recycling-is-essential-for-plastics-circularity-but-faces-challenges/?printmode=1. Accessed 1 Dec. 2024.
Tolinski, M. "Regulatory impact on plastics: Navigating a shifting landscape." Plastics Engineering, www.plasticsengineering.org/2024/04/regulatory-impact-on-plastics-navigating-a-shifting-landscape-004520/. Accessed 1 Dec. 2024.
Sharma, K. "Govt's new rules for plastic packaging: Recycle upto 50% of single-use plastic in 3 yrs." The Print, theprint.in/environment/govts-new-rules-for-plastic-packaging-recycle-upto-50-of-single-use-plastic-in-3-yrs/836530/. Accessed 1 Dec. 2024.
Morgan Stanley. "The circular economy of plastics." Morgan Stanley, www.morganstanley.com.au/ideas/the-circular-economy-of-plastics. Accessed 1 Dec. 2024.
Prices of BOPP + LDPE as on 30-Nov-2024
Demand supply cap of circular plastics as on 30-Nov-2024
Maximum price of chips/100gm as on 30-Nov-2024