Unveiling the Circular Plastics Leaders and Laggards: A Deep Dive into the Race for Sustainability
In the ever-evolving landscape of sustainability, the battle against plastic pollution is intensifying. As the world scrambles to meet the 2030 deadline for a circular economy, the pressure is on for both brand owners and plastic producers to step up their game. But who's leading the charge, and who's falling behind? BloombergNEF's latest analysis reveals a mixed bag of progress, with some companies shining brighter than others in the quest for sustainable packaging.
The Race to the Finish Line: A Year of Pivotal Decisions
2025 marks a pivotal year in the journey towards a circular economy. As the deadline looms, BloombergNEF has once again assessed 40 firms, including 20 brand owners and 20 plastic producers, to uncover the leaders and laggards in sustainable packaging. The analysis reveals a patchy progress from both sides, with some companies accelerating towards their goals while others seem to be hitting the brakes.
The Rising Stars: Leading the Charge
Asahi Breweries has emerged as a standout performer, climbing six places in the ranking. Their ambitious goal of achieving 100% conversion to recycled or bio-based polyethylene terephthalate (PET) bottles by 2030, up from 37% in 2024, has propelled them to the top. Additionally, Asahi's use of rigid packaging like glass and aluminum, which are easier to recycle, has contributed to their success. Alpek, another standout, has announced plans to expand PET bottle recycling capacity to 300,000 metric tons annually by 2025, and has refrained from announcing any new virgin plastic expansion plans.
The Slowpokes: Stagnating in Place
On the other hand, some companies are struggling to keep up. PepsiCo, a pioneer in the circular economy, has dropped its goal to reduce virgin resin use by 50% compared to 2020, and lowered its target for recycled content from 50% by 2030 to 40% by 2035. LyondellBasell, once at the top, has also slipped, despite achieving a 65% increase in recycled/renewable polymer production to 200,000 tons in 2024. However, the company's announcement of virgin plastics production expansion plans in 2025 has cost them points.
Brand Owners: Setting the Pace or Slowing Down?
Brand owners like PepsiCo, Unilever, and Coca-Cola have set new, less ambitious targets with deadlines further out in the future. While these targets may be more achievable, they also raise questions about the commitment to sustainability. Coca-Cola, for instance, has reduced its goal to achieve 50% recycled content in all packaging by 2030 to 35-40% by 2035. Colgate-Palmolive, on the other hand, is making progress, increasing the recycled content in its plastic packaging from 18% in 2023 to 21% in 2024, and is on track to meet its 25% target for 2025.
Producers: Struggling with Demand and Economics
Of the 20 plastic producers, 13 have set clear targets to produce sustainable (recycled or bio-based) materials by 2030 or earlier. If these companies meet their targets, they would supply around 13 million tons of sustainable plastics per year by 2030. However, insufficient demand for recycled products is a significant challenge for producers. Despite this, some producers are seeking out sectors where the demand for high-grade recycled plastics is on the rise, and buyers are willing to pay a premium over virgin plastics.
The Future of Circular Plastics: A Balancing Act
As the world grapples with the supply glut in the chemicals market, exacerbated by new primary production capacity coming online in Asia, several plastic recyclers have closed operations in recent years. Companies have halted or delayed investments in sustainable chemicals production due to record-low utilization rates and low or even negative margins. However, some producers have signed offtake agreements or acquired recycling companies, instead of building their own plants. For instance, Dow has formed a supply agreement with Freepoint Eco-Systems for 65,000 tons of pyrolysis oil, which is used as feedstock to make plastics with a recycled content. Borealis, another standout, has increased its circular production capacity by 18% compared to the previous year, and has acquired plastic recycler Integra Plastics in 2024.
The Takeaway: A Call to Action
As the race for a circular economy intensifies, it's clear that some companies are leading the way, while others are struggling to keep up. The future of circular plastics depends on the actions of both brand owners and plastic producers. It's time for everyone to step up their game and work together to create a more sustainable future. But here's where it gets controversial... What do you think? Are the targets ambitious enough, or do we need more aggressive action? And this is the part most people miss... The true test of commitment lies not just in setting targets, but in delivering on them. So, what's your take? Agree or disagree? Share your thoughts in the comments below!
