Plastic prevented from reaching the ocean is gaining traction as a route into food-grade recycled polymer applications, with a supplier pointing to regulatory approval, brand interest and comparatively lower costs, while chemical recycling faces growing uncertainty over regulation, yield losses and investment hurdles, according to Brendon Bale, Stakeholder Engagement Lead at Bantam Materials UK Ltd, a supplier of food-grade recycled polyolefins and polyethylene terephthalate.

Bale said in an interview with Platts, part of S&P Global Energy, on July 22 that Bantam is seeing strong demand for recycled polypropylene (R-PP) produced from its Prevented Ocean Plastic stream. The company said its material has received EU approval for food-safe use under the novel technology route and is already in active discussion with brand owners and packagers for applications including cups, trays, caps, labels, films and injection-molded products.

The development highlights a widening split in the emerging food-grade recycled polymer market. At present, recycled PET is already a widely regarded food-grade material if produced via a hot-washed process. However, excluding PET, recycled plastics with food grade approval generally must come through a novel technology application in the EU, where each technology will be assessed on a case-by-case basis. The Plastic and Plastic Packaging Regulation (PPWR), which will be implemented Aug. 12, will require mandatory inclusion of recycled content of at least 10% for non-PET contact-sensitive packaging by 2030, of which chemical recycling and Prevented Ocean Plastic material are likely competing for the same demand pool.

With the legal implications hinging on the 2030 goalpost, Bantam said 2028 could be a major inflection point for demand for food-grade recycled polyolefins.

Bale said Bantam owns and operates collection centers for ocean plastic prevention and has collected the equivalent of 4 billion bottles. Its model is franchise-based, allowing it to customize material streams according to downstream requirements. The company has collection centers in Indonesia, Ecuador and East Africa and is looking at continuing global expansion. It also cited Ecuador as a supply chain that remained reliable despite wider disruption in the Middle East.

Bale said Bantam is preparing to launch food-safe R-PP made from the Prevented Ocean Plastic program, with two brands expected to go live this year. Pricing remains the most important factor for buyers, Bale said, followed by branding and sustainability considerations. Bale said there are multiple trials underway for recycled caps and labels, although high melt flow index grades are not yet available.

At the same time, chemical recycling remains positioned by some market participants as a route capable of serving more demanding applications, including direct food contact, healthcare and baby products. A chemical recycler said chemical recycling has an advantage over plastic prevented from reaching the ocean in applications where brand owners may be reluctant to use mechanically recycled streams for the most sensitive uses.

However, the chemical recycling route is facing its own setbacks. The recycler said the refinery route has become difficult for the industry because of restrictive PPWR treatment and limited legal flexibility. Under fuel-exempt mass balance accounting, only allocation to naphtha can be counted, while fuel outputs are excluded, creating a major yield issue. Market sources previously said there was a yield loss of up to 70% under mass balance accounting via a refinery route. As a result, many market participants are hesitant to adopt refinery-based alternatives. The recycler said the market is in a difficult period, with players becoming conservative and assuming the strictest interpretation by excluding uncertain outputs.

The contrast is leaving brand owners with two distinct routes into food-grade polymers other than R-PET. The Prevented Ocean Plastic program offers an approved, lower-cost and brand-friendly route for some packaging applications, while chemical recycling continues to promise virgin-quality material for more demanding end uses but faces cost, yield and regulatory challenges.

Platts assessed mechanically recycled food-grade R-PET pellets at €1,490/mt, down €10 day over day, on FD NWE basis, July 24. R-PP natural pellets, with melt flow 20-25 and non food-grade, was assessed stable day over day at €1,370/mt, DDP NWE. Mixed plastic waste bales, feedstock for mixed polyolefin pyrolysis process, was assessed stable day over day at €265/mt, DDP NWE.

Source: Platts