American Plastics Council

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1 American Plastics Council 2004 NATIONAL POST-CONSUMER PLASTICS RECYCLING REPORT INTRODUCTION The 2004 National Post Consumer Plastics Recycling Report is the 15th annual APC Plastics Recycling Study. This Study was a cooperative effort between the American Plastics Council (APC), the Association of Post Consumer Plastics Recyclers (APR), and the American Beverage Association (ABA). Designed to quantify the amount of and the rate at which post consumer plastic bottles were recycled in calendar year 2004, the Study was conducted by the engineering consulting firm of R. W. Beck, Inc. (R. W. Beck). HIGHLIGHTS/SUMMARY OVERALL Overall, total post consumer plastic bottle recycling increased 247 million pounds in 2004 to an all time high of 1,915 million pounds. The increase continues the historical trend of more pounds collected each year as the pounds of plastic bottles available for recycling continues to grow. The increased pounds also were helped by: o New York City s return to plastic bottle recycling for the full year; o An increase in the California redemption value; o Increased recycled plastic bale value, resulting in more careful extraction of material by handlers in order to optimize their financial return; o An increase in the percent of population with access to single stream curbside recycling (single stream typically results in increased participation and recovery); and o The positive impact of several ongoing consumer and community education/communications programs. PET bottle pounds collected increased by 165 million pounds for the year and an associated rate increase from 19.5% to 21.6%. Total HDPE bottle pounds collected increased by 81 million for the year and an associated rate increase from 24.8% to 25.9%. The overall plastic bottle recycling rate increased to 22.6%. The recycling rate for PET and HDPE bottles (96% of the plastic bottle market) also increased to 23.5%. Page 1 of 12

2 COLLECTION Both PET and HDPE made significant gains in pounds of bottles recovered in PET was up 165 million pounds, natural HDPE was up 30 million and pigmented HDPE was up 51 million, for a total HDPE increase of 81 million pounds. Consumers continue to appreciate having the opportunity to recycle; with many communities changing to a single stream collection style for curbside recycling, consumers find it easier to recycle. Most communities that switch to single stream collection experience an increase in participation and recovery. Recovery of bottles for products consumed outside of the kitchen (e.g. bathroom, garage, laundry room, etc.) continues to be a challenge as consumers forget these bottles are recyclable. Figure 1 Growth in Post-Consumer Plastic Bottle Recycling Millions of Pounds Recycled 2,500 2,000 1,500 1, Source: R. W. Beck, Inc. RECYCLED MATERIAL STREAM PET originally was used exclusively to package soft drinks. This made the recycling stream very consistent, composed primarily of clear (unpigmented) one and twoliter bottles. The only variant in the package design was a small percentage of green bottles. Today PET is used to package a wide variety of beverages in addition to soft drinks (water, juice, tea, isotonics, and beer) other foods (peanut butter, ketchup, edible oils, applesauce, etc.) and other products. These products demand a variety of bottle designs and sizes, a wide range of pigments, unique label materials, and barrier Page 2 of 12

3 coatings, layers and blends that are combined with the PET to make a marketable and functional package. The PET bottle market has grown to represent 55% of the plastic bottle market (up from 54% in 2003, and 53% in 2002), and the recycled bottle stream has shifted to a 53% PET/47% HDPE ratio from the 51%PET/49% HDPE in 2003 (Figure 2). The PET market, previously predominantly soft drink bottles, continued to shift to water, juice, tea and other types of beverages and foods. The sale of these products in PET custom bottles now represents nearly 63% of the total PET bottles sold. (Table 1). HDPE, used to package a variety of products from milk and juice to motor oil and shampoo, has not undergone the same degree of change in market demographics and therefore has experienced more consistent recycling dynamics. HDPE bottled products continue to be consumed primarily at home and near a recycling bin as evidenced by its continuing strong recycling rate of nearly 26%. Figure Plastic Bottle Production and Recycling Composition by Resin Type Plastic Bottle Recycling Other <1% Plastic Bottle Production Other 4% HDPE 47% PET 53% HDPE 41% PET 55% Source: R. W. Beck, Inc. Other includes PVC, LDPE/LLDPE, and PP; data was not collected for PS in Page 3 of 12

4 Plastic Bottle Type Table 1 Post-Consumer Plastic Bottles Recycled in Calendar Year 2004 Compared to 2003 Figures [1] (In Millions of Pounds per Year) Plastic Recycled Calendar Year 2003 Calendar Year 2004 Resin Sales [2] Recycling Rate [3] Plastic Recycled Resin Sales [2] Recycling Rate [3] PET Soft Drink % % PET Custom % % Total PET Bottles % % HDPE Natural % % HDPE Pigmented % % Total HDPE Bottles % % PVC % % LDPE/LLDPE % % PP % % PS [4] [4] [4] [4] Total Bottles % % Source: R. W. Beck, Inc. [1] The data in this report provide a snapshot of plastic bottle recycling trends from the national perspective. The data are particularly useful in identifying national trends and highlighting changes that have occurred from year to year, and may be a useful tool for planning purposes. While national data may be useful as a comparison with local waste characterization and recycling data, significant differences will exist from locality to locality, and from state to state. If communities or states are making decisions where precise knowledge of the amount, composition and disposition of MSW is crucial, e.g., where a solid waste management facility is being designed, or for local or state regulatory enforcement, etc., then local characterization of the quantities of individual components generated, recycled and disposed is essential. [2] Based on data provided by the American Plastics Council s Plastics Industry Producers Statistics Group and Container Consulting, Inc. Resin sales includes both the virgin and recycled plastic pounds used to produce new bottles. PET total pounds based on data provided by NAPCOR. [3] Percentages shown for PET and HDPE are based on virgin resin sales plus the recycled resin used in the manufacture of bottles. [4] Data was not collected for PS in 2003 or RECLAMATION INDUSTRY UPDATE The high value of recycled resin, for both PET and HDPE, increased the demand for recycled resin in The PET bottle recycling industry remained stable through 2004 with a total of 14 companies in the industry. The four largest companies handled almost 68% of the domestically processed recycled resin. The HDPE bottle recycling industry also remained stable in The HDPE recycling industry stands at 30 companies in The number of smaller companies varies slightly from year to year as they switch from processing industrial scrap only to adding post consumer to the mix. Page 4 of 12

5 Similar to previous years, over 80% of the recycled HDPE is processed by the eight largest companies. Capacity utilization for the PET recycling industry increased to 67% from 59% in Capacity utilization for the HDPE recycling industry increased to 70% from 68% in It is important to note that in prior years, PVC recycled pounds were understated due to the difficulty in capturing accurate export pounds. The increase in the 2004 PVC recycling rate is due to obtaining additional information, rather than an actual increase in PVC recycling. It is also important to note that the recycled pounds data for LDPE and Polypropylene may be understated in Table 1 above. It is common for LDPE and PP to be recycled with HDPE but it is hard to measure the exact amounts that are being thereby recovered. The properties of these resins are compatible with HDPE at the relatively low percentages involved. Figure 3 Size Comparison of Domestic Reclaimers of PET and HDPE Bottles PET Bottle Reclaimers Total Pounds= 628 Million Total Companies= 14 Companies Company Size Classification (Millions of Pounds Processed) 177 Million (5 Companies) 22 Million (5 Companies) 426 Million (4 Companies) >55 15 to 55 <15 Page 5 of 12

6 HDPE Bottle Reclaimers Total Pounds= 758 Million Total Companies= 30 Companies Company Size Classification (Millions of Pounds Processed) 66 Million (6 Companies) 23 Million (16 Companies) >15 5 to 15 <5 669 Million (8 Companies) Source: R. W. Beck, Inc. Page 6 of 12

7 Figure 4 PET Bottle Wash Capacity in the U.S. Utilized Capacity Excess Capacity Millions of Pounds 1,200 1, Source: R.W. Beck, Inc. The figures shown above are estimates and should not be used for business planning purposes. Utilized capacity includes PCR quantities processed domestically only. Capacity based on 24 hrs./day and 365 days/year. Figure 5 HDPE Bottle Wash Capacity in the U.S. Utilized Capacity Excess Capacity Millions of Pounds 1,400 1,200 1, Source: R.W. Beck, Inc. The figures shown above are estimates and should not be used for business planning purposes. Utilized capacity includes PCR quantities processed domestically only. Capacity based on 24 hrs./day and 365 days/year. EXPORT MARKETS 372 million pounds of PET bottles (37.1% of the total recovered for recycling) and 145 million pounds of HDPE bottles (16.0% of the total recovered) were exported for recycling in other countries. These quantities may be underrepresented due to the large number of export brokers handling the material, which results in difficulty in accurately tracking the movement of the material. Export markets for post consumer plastic bottles were again strong for the year. The slight decline from 38.3% in 2003 to 37.1% in 2004 for PET pounds exported may Page 7 of 12

8 have been due in part to actions taken by the Chinese government to enforce restrictions on the import of post consumer plastic bales. Page 8 of 12

9 END USE MARKETS Fiber applications continued to be the #1 market for domestically reclaimed recycled PET bottles, though its share of the market for recycled PET bottles has declined from 58% in Food and beverage containers and industrial strapping also remained relatively strong and comprised the second and third largest recycled PET (RPET) markets respectively. Non food containers experienced an increase in RPET market share, which is likely due to the State of California enforcing its Rigid Plastics Packaging Container Law (RPPC Law). The RPPC Law requires manufacturers, producers and generators of products sold in California to use recycled content in all rigid plastic packaging of non food products as one of four options for being in compliance. Natural HDPE s primary market continued to be new polyethylene bottles for a myriad of non food applications (detergent, motor oil, household cleaners, etc.). Pigmented HDPE found increased usage for the production of polyethylene pipe and a wide range of lawn and garden products such as edging, flower and shrub pots, etc. Plastic lumber consumes a broad range of raw materials due to its diverse nature (recycled bottles, film and mixed rigid containers, plus wide spec virgin resin) and continued as a strong market in The potential for plastic lumber product applications (both 100% plastic profiles and composite materials composed of plastic/fiber blends) could be huge, as historical demand for residential decking boards apparently continues to grow along with the market for rails, fence posts and other non structural applications. The potential for structural applications such as railroad ties, marine pilings and even small bridges also may become greater as product development and test installations continue to be successful. Page 9 of 12

10 Figure 6 Domestic Recycled PET Bottle End Use Film/Sheet 5% Compounded Resin 1% Clean Export <1% Non-Food Containers 10% Food/Beverage Containers 13% Fiber 56% Strapping 15% Source: R. W. Beck, Inc. Figure 7 Domestic Recycled HDPE Bottle End Use Lumber 9% Pallets/Crates/B uckets 2% Other/Non- Classified 1% Automotive 4% Film/Sheet 7% Non Food Bottles 43% Lawn/Garden 12% Pipe 22% Source: R. W. Beck, Inc. Page 10 of 12

11 APC RECYCLING RESOURCES APC offers tools and resources for communities wanting to increase plastic bottle collection, including the: Technical Assistance Program (TAP) for recycling programs with specialists skilled in helping communities design and implement cost effective programs; Initiatives such as the All Plastic Bottle Collection Programs; o All Bottle programs have been increasing approximately 15% per year. In 2004 more than 1800 communities accepted all plastic bottles. This simplification of the collection process for consumers typically results in a 10 20% increase in plastic bottle collection over a program that specifies collection of codes #1 (PET) and #2 (HDPE) only. o Approximately 2800 unique visitors visit the web site each month. Regional staff that are committed to working with community solid waste coordinators; Extensive databases that help put buyers and sellers of recycled plastics together (Markets Database) and that help facilitate the purchase of thousands of products made from post consumer plastics (Recycled Products Database) and are available at the APC site ( o The Markets Database continues to be active with an average of 2400 unique visitors per month to the database site. o The Recycled Products Database also is used widely with 9600 visitors per month. Database ( primarily for California, but helpful for others around the country, to facilitate the recovery of clean plastic film and grocery/retail bags from consumers and businesses; and Recently published guide called Plastics Recycling in Your School, which provides schools with valuable information and steps to follow to recycle plastics from vending machines, cafeterias and administrative settings. (Order your copy of this guide by calling HELP 90) DISCLAIMER The 2004 National Post Consumer Plastics Recycling Report has been prepared to provide some helpful ideas and information for parties interested in recycling plastics. Facilities developing a recycling process and all entities involved in the chain of collection, Page 11 of 12

12 processing, distribution and sale of recycled products have an independent obligation to ascertain that their plans, actions and practices meet all relevant laws and represent sound business practices for their particular operations. Facilities may vary their approach with respect to particular operations, products or locations based on specific factual circumstances, the practicality and effectiveness of particular actions and economic and technological feasibility. This report is not designed or intended to define or create legal rights or obligations. APC does not make any warranty or representation, either express or implied, with respect to the accuracy or completeness of the information contained in this manual; nor does APC assume any liability of any kind whatsoever resulting from the use of or reliance upon any information, conclusions, or options contained herein. Page 12 of 12

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