The race to tackle plastic pollution has led to bold promises from major plastic users and producers, but as we approach the critical year of 2025, not all companies are keeping up with their commitments to a circular economy for packaging.
BloombergNEF's latest assessment of 40 companies, including brand owners and plastic producers, reveals a mixed bag of progress. Our analysis, based on publicly announced targets and 2024 company reports, categorizes these firms into leaders, followers, and laggards in the pursuit of a sustainable packaging future.
But here's where it gets controversial... Some companies are making significant strides, like Asahi Breweries, which moved up six places with its ambitious goal of achieving 100% conversion to recycled or bio-based PET bottles by 2030. On the other hand, PepsiCo, once a pioneer, has lost its leading position by lowering its targets for virgin resin reduction and recycled content.
The year 2025 is a turning point. It's a year of reckoning, where we'll see if companies can deliver on their circular economy goals. The shifts in rankings reflect the reality: those consistently pushing forward stay on top, while those slowing down their ambitions slide down.
And this is the part most people miss... Brand owners like PepsiCo, Unilever, and Coca-Cola are easing up on their circular economy ambitions, setting less aggressive targets. However, these targets might be more realistic given the current state of recycling supply chains. Coca-Cola, for instance, reduced its recycled content goal from 50% to 35-40% by 2035, acknowledging the challenges of sourcing recycled materials for flexible film packaging.
Companies heavily reliant on food-grade flexible films are struggling to keep up or are stagnant. This is evident in the rankings, with many in the 'follower' category, including Mondelez and Kraft Heinz. These companies are facing the challenge of finding suitable, affordable recycled plastics to meet their packaging needs.
Despite the overall slowdown, some brand owners are making headway. Colgate-Palmolive, for example, increased its recycled content from 18% to 21% in 2024, and is on track to meet its 2025 target of 25%.
For plastic producers, the journey is equally challenging. Out of the 20 assessed, 13 have set clear targets for sustainable (recycled or bio-based) material production by 2030 or earlier. If these 13 companies meet their goals, they could supply a significant 13 million tons of sustainable plastics annually by 2030. However, weak demand and unfavourable economics are major hurdles.
A controversial interpretation: Some plastic producers are seeking opportunities in sectors where high-grade recycled plastics are in demand, such as the automotive industry. Companies like Borealis and Sabic are introducing innovative products with high recycled content, but this strategy might not be enough to overcome the global supply glut in the chemicals market.
To navigate these challenges, some producers are opting for off-take agreements or acquisitions instead of building their own recycling facilities. Dow, for instance, formed a supply agreement with Freepoint Eco-Systems for pyrolysis oil, a key feedstock for recycled plastics. Borealis, too, has increased its circular production capacity and acquired plastic recyclers to boost its sustainable credentials.
As we navigate the complexities of achieving a circular economy, it's clear that the journey is far from straightforward. Are these companies doing enough? Should we be more critical of their progress, or is this a realistic reflection of the challenges they face? We invite you to share your thoughts and engage in the discussion below.
