For several years, it has been cheaper for companies to buy recycled PET plastic flakes than newly manufactured PET plastic.

This has meant that the sustainable alternative has also been the most economical - something that has changed in recent months, according to S&P Global Platts, specialists in energy and raw materials and a source for reference price assessments in the physical commodity markets.

Increased demand

According to a report from the analysis company, recycled PET flakes now cost more per tonne compared to the newly made equivalent. It is the first time since S&P Global Platts started its measurements in February 2008 that the recycled PET plastic has been more expensive than new.

The trend is partly driven by the steadily growing demand to include recycled plastics in new products, while new plastics have also become cheaper to manufacture. Not least because of falling oil prices in recent years.

Extra 2.5 billion a year

The analysts have warned that price developments could cost manufacturers of sustainable PET products in Europe an extra $ 250 million a year, equivalent to almost SEK 2.5 billion, writes The Guardian.

Despite the EU's fight against the environmentally friendly plastic and the goal that all PET bottles should contain 25 per cent recycled plastic from 2025, the price shift now risks leading, in particular, to the smaller manufacturers of PET plastic products to choose new rather than recycled materials to keep production costs down. .

Hard to change

According to S&P Global Platts, most market participants see a three-digit discount on recycled PET flakes compared to newly manufactured ones as necessary to make the recycled plastic competitive. This is due to the additional costs of processing the recovered flakes.

At the same time, they write that it can be difficult for the large producers to easily switch from working with recycled PET. In addition, they believe that the short-term economic outlook for the big brands does not outweigh the decision to move more to recycled material in the long term.