Smithers Foresees Demand Surge for Recycled Plastic Packaging

SEATTLE (Scrap Monster): The latest report published by Smithers foresees significant surge in demand for post-consumer recycled (PCR) plastic packaging through 2026, mainly driven by the food and beverages industry. The demand is projected to grow at a CAGR of 5.9% over the forecast period, rising from nearly 4.8 million metric tons in 2021 to around 6.37 million metric tons in 2026.

The report noted that advanced mechanical recycling systems have boosted the recycling rate of PETs. The rule that mandates minimum amount of recycled content in PET beverage bottles in Europe, Canada and California will result in further boost in demand. The companies are increasingly improving their recycling technology and revising their packaging processes to meet the rising demand, it said.

The food and beverage industry accounted for more than two-thirds of the total PCR consumption in 2021. Also, the industry will continue to lead the market through 2026. Smithers expects personal care and medical packaging segments to play a significant role in the market in the coming years.

Meantime, the demand in transit packaging and other consumer segments may likely fall below the market mean, Smithers noted.

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