VIDEO: Annual post-consumer PET collection rate growth needs to more than double to hit 2025 targets

LONDON (ICIS)–Recycled polyethylene terephthalate (R-PET) food-grade pellet (FGP) prices have reached a record-high spread with virgin polyethylene terephthalate (PET) and colourless R-PET flake values have reached sustained parity with virgin PET for the first time in 2019.

Demand remains driven by rising fast-moving consumer goods (FMCG) sustainability targets, EU legislation and changing consumer attitudes to single-use plastics.

This has created a two-tier market between packaging and non-packaging applications while virgin PET prices have been broadly weakening throughout the year and collection rates remain relatively stagnant.

With increased volatility and regionality plaguing the market, ICIS senior editor for recycling Mark Victory  talks with ICIS analyst Helen McGeough about the outlook for the second half of 2019, how realistic FMCG targets are, the collection rate growth needed to reach those targets and the potential impact of mounting recessionary pressures.

R-PET can be used in carpet and apparel manufacturing and in the automotive industry. R-PET is also used for food packaging, including beverage bottles.