Recycled Plastics to 2016


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Recycled Plastics to 2016

  1. 1. Recycled Plastics to 2016Report Details:Published:November 2012No. of Pages: 239Price: Single User License – US$5100This study analyzes the US recycled plastics industry. It presents historical demand data (2001,2006, 2011) and forecasts to 2016 and 2021 for recycled plastic collection and demand by source(e.g., bottles, bags and film, rigid plastics), resin (e.g., PET, HDPE, polypropylene), and market(e.g. packaging, construction products, motor vehicles). The study also considers marketenvironment factors, details industry structure, evaluates company market share and profilesindustry players.US demand to rise 5.9% annually through 2016US demand for post-consumer recycled plastics is forecast to rise 5.9 percent per year to 3.4billion pounds in 2016. Gains will be driven by a number of factors, including a growing emphasison sustainability among packaging and consumer product manufacturers, advancements inprocessing and sorting technologies allowing a wider variety of plastic to be recycled, and animproved collection infrastructure that raises the plastic recycling rate. Continued support byfederal, state, and local governments for recycling efforts will also provide a significant boost torecycled plastic collection, processing, and demand.However, the overall rate of plastic recycling in the US will remain relatively low -- 6.5 percent oftotal plastic demand in 2016 -- as the industry faces a number of challenges. Recycling is minimalin several major plastic markets, including construction products, motor vehicles (other thanbatteries), and packaging film, due to a lack of collection capability or economical processing.Export sales (particularly to China) siphon off a substantial portion of plastic scrap, and much ofwhat is processed domestically has high levels of contamination. As a result, only 53 percent ofthe plastic collected for recycling makes its way to manufactured products in the US market.Collection of rigid plastic and film on the riseBottles will remain the leading source of plastic for recycling, accounting for about half of all plasticcollected in 2016. The well established collection infrastructure, including deposit laws in severalstates, makes bottles one of the most widely recycled plastic products. More rapid gains, however,are forecast for other sources, particularly rigid plastics, film, and carpet. The recycling industryhas put significant efforts into increasing the collection of rigid plastic, including thermoformed
  2. 2. packaging and bulk containers, particularly at the commercial level. Bag and film recycling will alsobe bolstered by private industry collection initiatives, as these are a key source of raw materials forplastic bag and woodplastic composite producers.LDPE to be fastest growing recycled resinPolyethylene terephthalate (PET) and high density polyethylene (HDPE) were the two leadingresins used in recycled plastic products in 2011, accounting for over 70 percent of demand. WhilePET will see above average gains in demand, fueled by rising recycled content in beverage bottlesand thermoformed containers, subpar increases in HDPE collection will limit demand for recycledresin. The most rapid growth is forecast for low density polyethylene, which will benefit from arebound in the construction market, as well as smaller volume resins such as polypropylene andnylon.Packaging to remain largest recycled plastics marketPackaging will continue to be the leading market for recycled plastic in 2016, with strongest gainsexpected for food and beverage bottles and clamshell containers, fueled by rising production ofrecycled resins suitable for food contact uses. A rebound in US construction activity will drivestrong demand for recycled plastics in construction product markets, particularly lumber and pipeapplications. While advances in the motor vehicle market will be limited by the highly maturebattery segment, use of recycled plastic in fabrics and other vehicle interior applications willincrease at a robust pace.Company ProfilesProfiles competitors in the US industry including Custom Polymers, Envision Plastics, EvergreenPlastics, KW Plastics, Mohawk Industries, Plastipak and TrexAdditional InformationThis study examines the US market for post-consumer recycled plastic by resin (e.g., PET, HDPE,LDPE/LLDPE, polypropylene, nylon, polystyrene), market (e.g., packaging, construction, motorvehicles), and collection source (bottles, rigid plastic and foam, bags and film, carpet and fiber).Historical data for 2001, 2006, and 2011 and forecasts for the years 2016 and 2021 are providedfor recycled plastic demand by volume (in pounds) for each of the resins and markets, whilecollection volume data are given for sources and resins. Value data (in US dollars) and pricing arealso provided for resin demand. In addition, the key strategic, competitive, and regulatory variablesaffecting the US recycled plastic industry are discussed, the industry’s key players are identifiedand profiled, and US sales are evaluated. The entire study is framed within the industry’seconomic and market environments.Post-consumer recycled plastics are defined as plastic products which, having served their end
  3. 3. use, are reclaimed and reprocessed into base resins. By this definition, recycling of finished plasticproducts by commercial and industrial consumers is also included. The re-use and recycling ofplastic scrap and trimmings from manufacturing processes, and merchant market sales of theseproducts, are considered “post-industrial” recycling and are excluded. Reclaimed plastics whichare not reprocessed into base resin form, such as shredded plastic foam and carpet padding, arenot considered recycled plastics and are excluded. Recycled plastic resin demand is evaluated atthe pellet form for the purposes of determining price and market value, despite the fact thatrecycled resin is often sold to customers in flake form. Captive production and use of recycledplastic in the manufacture of products such as carpet, plastic lumber, and containers is included indemand.Information and data on high performance composites were obtained from a variety of primary andsecondary sources, including government and trade associations, industry participants, onlinedatabases, and other Freedonia studies. Trade associations include the Alliance of FoamPackaging Recyclers, the American Chemistry Council, the Association of Postconsumer PlasticRecyclers, the Carpet America Recovery Effort, the Container Recycling Institute, the NationalAssociation for PET Container Resources, and the Society of the Plastics Industry. Primaryinformation was gathered through consultations with officers and marketing personnel ofparticipating companies and other industry specialists. Secondary data and backgroundinformation were obtained from various trade publications including Plastics News, PlasticsTechnology, Recycling Today, Resource Recycling, and Waste & Recycling News. Corporateannual reports, SEC Form 10-K filings, product catalogs, and other company information werealso used extensively in framing the industry and market environments and as input for marketsize assessments.Throughout this study, demand is related to various indicators for comparative purposes and tofacilitate further analysis. Tabular details may not add to totals due to independent rounding, andcalculated ratios reflect unrounded numbers. The macroeconomic indicators used in this studywere obtained from The Freedonia Group Consensus Forecasts dated August 2012. Due to theBureau of Economic Analysis’ use of chain weighted price indices, inflation-adjusted grossdomestic product components (2005 dollars) may not add to the total.Get your copy of this report @ points covered in Table of Contents of this report includeTable Of Contents1. EXECUTIVE SUMMARY 12. MARKET ENVIRONMENT 4General 4Macroeconomic Outlook 5
  4. 4. Consumer Spending Outlook 8Construction Industry Outlook 11Manufacturing Outlook 15Motor Vehicle Industry Overview 19Plastic Resin Industry Outlook 22Plastic Packaging Industry Outlook 25Solid Waste Management Trends 28Plastic Recycling Processes & Technology 31Regulatory & Legislative Environment 35Container Deposit Laws 36Municipal Collection Infrastructure 37Recycled Content Requirements & Incentives 39Plastic Bag & Container Regulations 41Private Sector Initiatives & Issues 42Labeling & Bale Standards 43Collection Initiatives 45Extended Producer Responsibility 48Recycled Plastic Pricing 49Historical Market Trends 52Foreign Trade 55International Activity 573. RECYCLED PLASTIC COLLECTION 59General 59Bottles 62PET 63HDPE 65Other 66Rigid Plastic & Foam 67Packaging 69Motor Vehicles 71Other Sources 72Bags & Film 73Carpet & Fiber 75Processing, Yield, & Demand 774. RECYCLED PLASTIC RESINS 81General 81Polyethylene Terephthalate 84PET Resin Overview 84Recycled PET Collection & Demand 85Markets 88
  5. 5. Producers 91High Density Polyethylene 93HDPE Resin Overview 93Recycled HDPE Collection & Demand 94Markets 97Producers 100Low Density Polyethylene 100LDPE/LLDPE Resin Overview 100Recycled LDPE Collection & Demand 102Markets & Producers 104Polypropylene 106Polypropylene Resin Overview 106Recycled Polypropylene Collection & Demand 108Markets & Producers 111Nylon 114Nylon Resin & Fiber Overview 114Recycled Nylon Collection & Markets 116Polystyrene 119Polystyrene Resin Overview 119Recycled Polystyrene Collection & Markets 121Other Resins 1245. RECYCLED PLASTIC MARKETS 128General 128Packaging 130Bottles 131Containers 134Bags & Film 136Strapping 138Other Packaging 140Construction 142Carpets & Rugs 144Lumber 147Pipe 150Furnishings 152Other Construction 153Motor Vehicles 155Batteries 157Other Motor Vehicle 158Other Markets 1606. INDUSTRY STRUCTURE 164
  6. 6. General 164Industry Composition 164Market Share 168Merger & Acquisition Activity 171Marketing & Distribution 173Competitive Strategies 175Cooperative Agreements 176Company Profiles 180Advanced Environmental Recycling TechnologiesIncorporated 181Berkshire Hathaway Incorporated 184BioCor LLC 186Blue Ridge Plastics, see Illinois Tool WorksCarbonLite Industries LLC 187Clean Tech, see Plastipak HoldingsClear Path Recycling, see Berkshire HathawayThe Coca-Cola Company Incorporated 189Coll Materials Incorporated 191Custom Polymers Incorporated 193Dart Container Corporation 194Entropex 198Envision Plastics Industries LLC 199Evergreen Nylon Recycling, see Berkshire HathawayEvergreen Plastics, see PolychemFresh Pak Corporation 200Hilex Poly Company LLC 201Illinois Tool Works Incorporated 203KW Plastics 205Marglen Industries Incorporated 207Mohawk Industries Incorporated 208MRC Polymers Incorporated 209NextLife Recycling LLC 210Nicos Polymers Group, see Coll MaterialsOmni Resource Recovery Incorporated 213Parallel Products of Kentucky Incorporated 214PARC Corporation 215Peninsula Plastics Recycling Incorporated 216PET Processors LLC 217Phoenix Technologies International LLC 218Plastic Revolutions Incorporated 220Plastipak Holdings Incorporated 221Polychem Corporation 222
  7. 7. PolyQuest Incorporated 223Reynolds Group Holdings Limited 225Schupan & Sons Incorporated 227Signode Packaging Systems, see Illinois Tool WorksSolo Cup, see Dart ContainerTrex Company Incorporated 228UltrePET, see wTeWellman Plastics Recycling LLC 229wTe Corporation 230Additional Companies Mentioned in Study 232List Of TablesSECTION I -- EXECUTIVE SUMMARYSummary Table 3SECTION II -- MARKET ENVIRONMENT1 Macroeconomic Indicators 82 Personal Consumption Expenditures 113 Construction Indicators 154 Manufacturers’ Shipments 185 Motor Vehicle Indicators 226 Plastic Resin Supply & Demand 257 Plastic Packaging Indicators 288 Municipal Solid Waste Management by Process 319 Recycled Plastic Prices 5110 Recycled Plastic Market, 2001-2011 5411 Recycled Plastic Trade 57SECTION III -- RECYCLED PLASTIC COLLECTION1 Recycled Plastic Collection by Source 612 Plastic Bottle Collection for Recycling 633 Rigid Plastic & Foam Collection for Recycling 694 Plastic Bag & Film Collection for Recycling 755 Carpet & Fiber Plastic Collection for Recycling 776 Recycled Plastic Processing & Demand 79SECTION IV -- RECYCLED PLASTIC RESINS1 Recycled Plastic Demand by Resin 822 Polyethylene Terephthalate Supply & Demand 853 Recycled PET Collection & Demand 874 Recycled PET Demand by Market 915 High Density Polyethylene Supply & Demand 946 Recycled HDPE Collection & Demand 977 Recycled HDPE Demand by Market 99
  8. 8. 8 Low Density Polyethylene Supply & Demand 1029 Recycled LDPE/LLDPE Collection & Demand 10410 Recycled LDPE/LLDPE Demand by Market 10611 Polypropylene Supply & Demand 10812 Recycled Polypropylene Collection & Demand 11113 Recycled Polypropylene Demand by Market 11414 Nylon Resin & Fiber Supply & Demand 11615 Recycled Nylon Collection & Demand 11916 Polystyrene Supply & Demand 12117 Recycled Polystyrene Collection & Demand 12418 Other Recycled Plastic Collection & Demand 127SECTION V -- RECYCLED PLASTIC MARKETS1 Recycled Plastic Demand by Market 1292 Packaging Markets for Recycled Plastic 1313 Bottle Demand for Recycled Plastic by Segment & Resin 1344 Container Demand for Recycled Plastic by Resin 1365 Bag & Film Demand for Recycled Plastic by Resin 1386 Strapping Demand for Recycled Plastic by Resin 1407 Other Packaging Demand for Recycled Plastic by Resin 1428 Construction Product Markets for Recycled Plastic 1449 Carpet & Rug Demand for Recycled Plastic by Resin 14710 Lumber Demand for Recycled Plastic by Resin 15011 Pipe Demand for Recycled Plastic by Resin 15212 Furnishings Demand for Recycled Plastic by Resin 15313 Other Construction Demand for Recycled Plastic by Resin 15514 Motor Vehicle Markets for Recycled Plastic 15615 Motor Vehicle Battery Demand for Recycled Plastic 15816 Other Motor Vehicle Demand for Recycled Plastic by Resin 16017 Other Markets for Recycled Plastic by Segment & Resin 163SECTION VI -- INDUSTRY STRUCTURE1 US Recycled Plastic Sales by Company, 2011 1672 Selected Acquisitions & Divestitures 1723 Selected Cooperative Agreements 178List Of ChartsSECTION II -- MARKET ENVIRONMENT1 Plastic Recycling Process Flowchart 342 Recycled & Plastic Resin Pricing, 2011 523 Recycled Plastic Market, 2001-2011 55SECTION III -- RECYCLED PLASTIC COLLECTION1 Recycled Plastic Collection by Source, 2011 61
  9. 9. 2 Recycled Plastic Collection, Processing, & Demand, 2011 80SECTION IV -- RECYCLED PLASTIC RESINS1 Recycled Plastic Resins: Collection & Demand, 2011 83SECTION V -- RECYCLED PLASTIC MARKETS1 Recycled Plastic Demand by Market, 2011 129SECTION VI -- INDUSTRY STRUCTURE1 US Recycled Plastics Market Share, 2011 168Contact: for more information.