US R-PP market shows promise, amid challenging adoption process

HOUSTON (ICIS)–As consumer concern for product sustainability continues to spur both regulatory and voluntary action within the recycled plastics space, recycled polypropylene (R-PP) resin has risen in interest.

US recycled plastics markets continue to develop new grades of R-PP in response to converter and brand company demand in the packaging and durables space.

Despite the desire to incorporate higher percentages of R-PP into existing products, the unique challenges with polypropylene (PP) collection infrastructure and limitations on the mechanical recycling processes have hindered widespread or rapid adoption.

For example, those seeking R-PP tend to request post-consumer based material with food-contact approval, as well as natural or transparent color so that products can be modified to maintain prior brand design.

Supply of these types of feedstocks are extremely limited, largely due to the fragmented PP collection landscape and mixed application of PP in existing consumer packaging.

Moreover, only a handful of recyclers have received Letters of Non-Objection (LNOs) from the US Food and Drug Administration (FDA). As of the latest update, slightly more than 20 individual companies have received one or more LNOs.

As such, a natural, food-grade R-PP resin is priced at roughly two times the price of virgin PP. Prices for white or light gray R-PP are slightly lower than natural but are limited to various design applications and in some cases still hold a premium against virgin.

Similarly, black and dark gray materials are typically not as sought after due to their design limitations and thus trade at a much lower price on weaker demand.

Regardless of the aesthetic or regulatory hurdles, an additional barrier to adoption for post-consumer R-PP resin continues to be mechanical properties and performance.

Based on the mix of incoming feedstock items from curbside bales, such as cups, tubs and lids of various colors, sizes and applications, the blended properties of the final resin typically range from 12-20 Melt Flow Index (MFI, also referred to as melt) and 1.2-1.7 Izod.

Thus, packaging and product converters with specific manufacturing and performance requirements must then compound material to achieve the final resin material, inherently limiting the percentage of post-consumer recycled (PCR) content.

As such, recyclers note there has been increased quoting activity for their R-PP portfolio, but still limited conversion to substantial order volumes.

In addition, pricing continues to show wide ranges based on a myriad of factors, including material quality, color, volume, production capability and buyer/supplier market knowledge.

Overall demand for PP PCR remains strong from end markets such as food and beverage and personal care, which are driven by both regulatory and voluntary recycled content targets. Other end markets such as horticulture, durables, automotive and construction are slower to adopt, and instead have historically pursued post-industrial or low cost virgin material due to cost-effectiveness.

ICIS is currently prototyping US R-PP market coverage.

Prototype reports target those involved in the processing and purchasing of PP bales as well as mechanically recycled post-consumer and post-industrial PP resin within the US. These reports have market discussion on pricing, supply, demand and current news, split by post-consumer vs post-industrial market categories.

If you are interested in learning more about this coverage and or receiving these prototype reports, please reach out to Emily.Friedman@icis.com.