RECYCLABLE PACKAGING SHORTAGE WARNING
The rising long-term demand for recycled packaging could lead to a supply shortage of recycled packaging materials , warns professional services giant , McKinsey .
In its paper , Filling the gap : Boosting supply of recycled materials for packaging , McKinsey warns that companies who seek to be sustainable by using recycled packaging could be thwarted because of a shortage of suitable materials .
“ Collection levels of high-quality recycled material look set to remain almost flat , creating supply challenges for brand owners and packaging companies ,” the report says .
It goes on to state that , in the US alone , demand for recycled polyethylene terephthalate ( rPET ) will outpace supply by a factor of three by 2030 .
McKinsey says that to boost availability of recyclable plastics , organisations need to plan for circularity . An example it gives is Coca-Cola , which changed the colour of Sprite bottles from green to clear , making them more recyclable .
“ Before I joined CCBSS I had no idea how complex it was . The system includes around 70 independent bottlers .”
Asked how she and her team helps drive results , Reynolds explains that they :
• Ensure the business can mitigate operational risk by developing strategic sourcing plans around commodity risk-management
• Support sustainability initiatives .
• Drive innovation
• Manage cybersecurity threats
• Drive cost control
40 January 2024