Novolex reports lower global PCR usage

Although overall PCR usage dropped in 2023, Novolex’s paper segment reached its highest share of recycled content since 2020. | Photo Courtesy of Novolex

Packaging producer Novolex reported slightly lower post-consumer recycled content usage in its plastic products for 2023, according to the company’s latest sustainability report.

In 2023, renewable, bio-based or PCR sources comprised 47% of raw materials, Novolex reported, lower than the 49% reported in 2022 and 2021. Virgin resin accounted for 75% of the 2023 purchases, in comparison to 70% in 2021.

Throughout 2023, the U.S. PET market saw abundant and competitively priced virgin PET imports, a lack of PCR content mandates and overall reduced consumer spending contribute to reduced consumption of recycled PET.

“The 2% shift was due to changes in our production mix,” the company said. “Our raw materials include multiple bio-based resins, PCR paper and resins, virgin resin and paper, aluminum, sugarcane, wood, bamboo and more.”

Plastics

Of total resin purchased in 2023, 23% included recycled content, sourced from both post-consumer and post-industrial material.

Total PCR volume increased to 4% of total resin, which Novolex attributed to increased PCR utilization in Waddington North America. The Waddington rigid plastics business produces food packaging including clamshell and other containers containing a minimum of 10% post-consumer PET.

In 2022, Novolex announced a $10 million investment to increase recycling capacity at its North Vernon facility in Indiana, and in 2023 it committed to doubling the volume of post consumer PE films recycled there by the end of 2024. The company said it would share progress toward these goals in its 2024 sustainability report.

The company also is partnering with Canada’s NOVA Chemicals on a new film recycling facility in Connersville, Indiana, with capacity to produce 100 million pounds of recycled PE to be used in NOVA resin. The plant is expected to be operating at commercial scale as early as 2025.

In Europe, Waddington produces fruit containers made from 100% recycled PET.

Since 2020, the PCR content share has remained steady at 3-4%, while post-industrial material has varied from 18% (2022) to 24% (2021). Bio-based resin has been at 2% since 2021, up from zero in 2020.