Understanding the True Cost of PET and rPET Packaging | Zespri

Understanding the True Cost of PET and rPET Packaging

Global Resin Research for Zespri

As organisations move away from virgin plastic and towards recycled content, one of the biggest challenges is understanding the commercial reality behind those material choices.

Salty undertook global research for Zespri into the cost, availability and market dynamics of virgin PET and food-grade recycled PET (rPET) resin to help inform future packaging decisions.

The research examined pricing and supply across North America, Europe, Asia, Latin America, the Middle East and Africa, alongside the wider challenges influencing PET and rPET markets.

We investigated:

  • Virgin PET versus food-grade rPET pricing

  • Global resin demand and supply

  • Regional market volatility

  • Availability of food-contact-grade recycled resin

  • Collection and recycling infrastructure

  • Circularity challenges and opportunities

  • Regulatory requirements for recycled content

  • Commercial implications of changing packaging materials

A key challenge identified was that food-grade rPET can be significantly more expensive and more difficult to source than virgin PET. Recycled resin pricing is influenced by collection rates, processing capacity, quality, food-contact requirements, legislation and competition for limited recycled material.

European PET and rPET Material Flow | 2022

European PET material flows illustrate the gap between recyclability and recycling in practice. Of approximately 4.995 million tonnes of PET placed on the market in 2022, around 3.005 million tonnes ultimately flowed to landfill, energy recovery or other unaccounted destinations.
Link to article

Understanding what happens to packaging after use was an important part of our research. Material selection cannot be assessed on recyclability alone. Collection rates, sorting, recycling capacity, material losses and competition for food-grade recycled resin all influence whether PET can remain within a circular material system.

This wider systems view helped inform Zespri's packaging decision-making — considering not only the purchase price of virgin PET and rPET, but also material availability, circularity, regulatory exposure and the long-term implications of continued reliance on plastic packaging.

This creates a difficult commercial tension.

Businesses are increasingly being encouraged — and in some markets required — to incorporate recycled content into plastic packaging, while the cost and availability of suitable recycled resin can make that transition challenging.

The research helped Zespri look beyond the headline assumption that replacing virgin PET with recycled PET automatically solves the packaging problem.

Instead, packaging decisions need to consider the whole system: material availability, cost, food safety, recycling infrastructure, legislation, environmental impact and long-term supply-chain resilience.

For Salty, the work reinforced an important principle:

The best packaging decision begins before the material is selected.

Understanding the economics and limitations of existing materials helps organisations determine where recycled plastic makes sense — and where reducing plastic, redesigning packaging or moving to alternative materials may deliver a better long-term outcome.

To learn more about renewable materials and how to implement these into your value chain contact enquiries@saltoftheearthpackaging.nz or visit our sister consulting company www.velzy.nz