PepsiCo is expanding its use of 100% recycled PET plastic in its packaging via a multi-year supply agreement with sustainable plastic manufacturer Loop Industries. Loop uses technology that allows no- and low-value plastics to be recycled endlessly into new, virgin-quality PET plastic. PepsiCo is purchasing production capacity from Loop’s joint venture facility in the US.
Loop’s technology allows plastic bottles and packaging of any color, transparency or condition, carpet, clothing and other polyester textiles that may contain colors, dyes or additives, and even ocean plastics that have been degraded by sun and salt to be recycled while still meeting FDA requirements for use in food-grade packaging, the company says.
The food and beverage giant is seeking “different and creative” approaches to the challenges of plastics and waste, and says the PET plastic from Loop will help the company in its drive toward a circular economy.
The deal will also include a marketing and communications plan to raise awareness of the importance of recycling, sustainability and the circular economy, PepsiCo says.
Most plastic production today is a classic example of the wasteful linear economy, Loop proclaims. “It’s produced from fossil fuels and $80 to $100 billion of it is thrown out after being used only once. We bring plastic production into the sustainable circular economy.” The company decouples plastic from fossil fuels by creating new PET from waste plastic using “zero energy depolymerization technology,” Loop says.
The green packaging market is expected to continue its growth over the next four years, according to a new report from Technavio. The market will be accelerating at a CAGR of nearly 8%, to $95 billion, by 2022, the report states.