Round and round the loop

In the packaging industry, terms such as ‘circular economy’ and ‘sustainability’ are often used together. The circular economy can be defined as sharing, leasing, reusing, repairing, refurbishing and recycling materials and products to increase their lifespan as much as possible while ensuring they retain their function and value. The circular economy aims at minimizing waste – sustainability is the ultimate objective.  

The industry’s efforts to move from a linear economy of ‘take, make, dispose’  

to a circular model are fueled by consumer sentiment and government regulations that hold both manufacturers and brand owners accountable for the packaging they place on the market. 

A worthy initiative, surely, but not without its challenges. 

Challenges in plastic recycling 

There are currently three main ways to recycle plastics.  

Mechanical recycling transforms waste plastics into new products without changing their chemical structure. This involves sorting, shredding and melting before extrusion into pellets.  

Energy recycling converts plastic into thermal and electrical energy through incineration.  

Chemical recycling breaks down plastic polymers into monomers for re‑polymerization – effectively producing virgin, food-grade plastics.  

The main challenge in recycling packaging arises from inadequate recycling infrastructure in many countries. Packaging consisting of mixed materials and contaminated with inks, adhesives and other chemical coatings hinders waste separation, recycling and processing. 

Renee Schouten, vice president of marketing for INX International Ink, explains: ‘Specific recycling processes and infrastructures may vary between European countries, and different states or regions in the US. Recycling practices are influenced by factors such as local regulations, market demand and available technologies. Efforts are continuously being made to improve recycling rates, increase the quality of recycled materials, and develop innovative recycling solutions to address environmental challenges.’ 

Contamination due to food residue, chemicals, or use of non-compatible substrates also hampers recycling. The waste may not be suitable for recycling into food-grade packaging without thorough separation, cleaning and processing. Some materials may also degrade or lose quality during the recycling process.  

Anna Niewiadomska, marketing manager narrow web at Flint Group, adds: ‘Whether this be fiber-based materials mixed with plastics, or the use of inks, coatings and adhesives adhered to a substrate, today’s traditional mechanical recycling systems are often unable to effectively separate materials to create single stream flows of high value recycled material for onward commercial sale and use in new products.’ 

Efforts are continuously being made to improve recycling rates, increase the quality of recycled materials, and develop innovative recycling solutions to address environmental challenges 

Intelligent labels may also help here. Michael Goller, senior director for atma.io at Avery Dennison notes that when goods reach the end of life, recyclers and dismantlers don’t know what a product is made from, and the materials end up in the waste stream. Any label a product once had may have been destroyed or rendered unreadable. With data carriers such as RFID and QR codes, the information is directly accessible online without the need for all the information to be printed on the label.  

HolyGrail project 

Established in 2017 as part of the Ellen MacArthur Foundation’s New Plastics Economy program, Project HolyGrail united 29 corporations, spearheaded by P&G, to enhance post-consumer recycling by improving material sorting methods. Recognizing the obstacle posed by ineffective waste sorting in Europe, the initiative selected digital watermark technology developed by Digimarc, a US-based company.  

This technology, which consists of imperceptible codes resembling postage stamps covering packaging surfaces, received support from the majority of stakeholders and successfully underwent initial testing on a sorting line. These digital watermarks can be decoded by a high-resolution camera on the sorting line to convey attributes such as manufacturer details, SKU information, food contact status, plastic type and composition for multilayer items in a sorting facility for better sorting and recycling.  

The program has been updated with a HolyGrail 2.0 pilot project aimed at demonstrating the technical feasibility of Digimarc’s digital watermarks for the precise sorting of packaging waste. Additionally, it seeks to assess the economic viability of implementing this technology on a larger scale. 

HolyGrail 2.0 is advancing to the final R&D trials for market readiness and preparing for a pilot launch in France in 2024 in light of EU-wide targets mandating increased plastic recycled content by 2030. 

Tests will evaluate the technology’s ability to detect, sort and remove two types of flexible packaging materials –  

PP flexibles, produced by PepsiCo and LDPE flexibles, produced by Essity and P&G. Granular sorting trials will take place at the German materials recovery facility Hündgen Entsorgung. Concurrently, a three-month sorting trial will begin for digital watermarked rigid packaging, launched by HG2.0 member companies in the Danish and German markets, utilizing prototypes from Pellenc ST and Digimarc installed on Hündgen Entsorgung’s commercial sorting line. 

Mono materials 

Multilayer packaging materials, like those found in flexible and rigid packaging, pose challenges for mechanical recycling technology due to chemical incompatibility among layers. ‘However, innovative methods like solvent-targeted recovery and precipitation (STRAP) offer a solution,’ explains Tim Bohlke, director of sustainability, Resource Label Group. ‘While traditional recycling struggles with multilayer plastics, advancements like STRAP show potential for more sustainable handling of these complex materials, crucial for items such as laundry detergent pods, cereals and juices, which are difficult to recycle and often end up in landfills. The true answer is chemical recycling.’ 

Inappropriate choice of materials can also hinder recycling, adds Bohlke. ‘As an example, a paper label on a plastic bottle is deemed detrimental to the recyclability of that bottle. In working with the value chain a label supplier can determine proper testing protocols to make sure the package will fully support recycling standards.’ 

Matching the label material to the main packaging component (container, tray, bottle, cardboard box) can improve the yield of the recyclate. These materials are referred to as mono-material packaging. 

Lintec Europe has developed MMP Mono Material Polyester (PET) labelstock designed for single-use PET containers. Both film and adhesive are manufactured from polyester, reducing the risk of contamination if the labels are not removed before the washing and grinding process. The adhesive contains 40 percent bio-mass content. A special top coating also enables the labels to be de-inked in an alkaline washing process. 

Avery Dennison’s CleanFlake adhesive technology is another step towards the circular economy. CleanFlake is designed to help the recovery of both PET and HDPE packaging materials. During PET recycling, the adhesive deactivates to allow both the label and adhesive to separate cleanly, leaving the plastic free of contamination. During colored HDPE recycling, the label stays attached, but does not compromise the resulting plastic pellets, the company reports. 

Jindal Films has introduced BICOR 25 and 30 MBH568 PP mono-material and PE mono-material to help the industry conform to the new guidelines for mechanical recycling in Europe. Saica Flex has developed a new mono-material, metalized structure composed of three layers (triplex), all of which are made of polyethylene (PE). 

Exemplifying industry collaboration towards circular economy, Siegwerk, ExxonMobil, Henkel, Kraus Folie and Windmöller & Hölscher created an award-winning mono-material PE-pouch with barrier properties that produces almost colorless recyclate after removing printing ink and the oxygen-barrier coating layer. Siegwerk’s deinking and delamination primer technology, applied using a Windmöller & Hölscher Miraflex II flexo printing press, played a crucial role. Oxygen barrier properties were achieved using barrier coatings from Siegwerk and Henkel. The pouch comprises ExxonMobil’s polyethylene, including Exceed S and Exceed XP, combined with Exact materials in the sealant layer. The MDO-PE films, developed by ExxonMobil and Kraus Folie, were produced on their Varex II extrusion line with an inline MDO unit. 

Mono material shrink sleeves 

The global shrink sleeve label market is thriving, offering enhanced branding and protection for products while improving recyclability with the right choice of materials. Manufacturers are opting for clear PET and HDPE bottles to boost recyclability, replacing colored ones that are harder to recycle. Shrink sleeves maintain brand visibility on clear bottles by adding vibrant colors. They can be easily removed from PET or HDPE bottles before recycling provided they have been converted with a ‘zipper’ and the consumer has been educated in removing and separating the sleeves. 

Inks and coatings have a key role to play in the circular economy by supporting and not hindering the recycling process 

Even where shrink sleeve materials are fully compatible with the container, contamination issues can arise from the ink. Because PET-based shrink sleeves and containers have the same molecular weight, the contaminated material cannot be separated in a flotation tank.  

To meet these challenges, Innovia Films, a division of CCL, has developed floatable polyolefin shrink films – a low-density white film that retains its floatability after printing. According to Innovia, this opaque film enhances the light-blocking capabilities of shrink sleeves, suited for light-sensitive industries such as dairy, food supplements, nutrition and cosmetics. These films enable the use of transparent PET bottles for light-sensitive applications replacing HDPE bottles that are not recycled back into food-grade packaging. 

Innovia’s RayoFloat white APO separates during sorting and recycling, producing a high yield of high-quality PET flakes suitable for food-grade recycling through the sink-and-float process. Additionally, it contains up to 20 percent post-industrial recycled content.  

Emsur’s Emfull is a polyolefin-based shrink sleeve with floatability properties that facilitate its separation from bottles during recycling washing phases. 

Water washable inks and coatings 

Material recyclability is just one consideration in developing circular economy packaging. Labels are printed and coated with a range of chemical formulations which are critical to their functionality, but these can also hinder the recyclability of the label substrate and the container material.  

Explains Niewiadomska of Flint Group: ‘Inks and coatings have a key role to play in the circular economy by supporting and not hindering the recycling process. Depending on the packaging application, the correct selection of inks and coatings can either enable the ink to be washed through the system without contamination or ensure it adheres to a label or substrate that is effectively separated and designated for a separate waste stream.’ 

Traditionally, during the recycling process, conventional printed inks bleed during the caustic bath phase. This causes discoloration of the wash solution and contaminates the plastic so it cannot be recycled as a new product.  

Flint’s Evolution range of inks and coatings consists of both a deinking primer, which allows inks to the safely washed away, and a caustic-resistant overprint varnish (OPV) which encapsulates the ink, preventing it from leaching into the recycling system.  

Evolution varnish ensures that inks remain on the label during the caustic wash used in the recycling process while not impacting the floatability of the label. The protected ink can then be skimmed off with the floating label and directed to an alternative waste stream. 

Both products increase the yield of material from shrink sleeve recycling processes by up to 10 percent, says Flint.   

‘Our Evolution range has been fully migration-tested in Europe, confirming that this range is certified for FCM (food contact material) substantiating that this next-gen technology is safe and sustainable,’ Niewiadomska says. 

INX has also developed a range of washable inks. INX’s Genesis Washable inks meet the PET-CG-02 Critical Guidance Protocol established by the Association of Plastic Recyclers. They are deinkable from cPET films and floatable with roll-fed OPP labels where ink is typically required to stay attached in the recycling process. 

Schouten of INX explains: ‘Since washable inks are deinkable from plastic packaging – and considering with the advanced formulation of pigment particles there is minimal bleed in the caustic wash solution and a reduced impact on recycled PET discoloration – new clear bottles can be made from the circular re-use of recovered material.’  

Emsur’s Ecoem PET shrink sleeves use washable inks to prevent contamination by ink residues. These sleeves can be mixed and recycled with PET bottles in the recycling process. Emsur’s washable inks are APR-certified to maintain the quality of recycled PET flakes. 

Labels can help with everything they’re affixed to, not make it detrimental to recycle. The How2Recycle label on the package can give consumers direction 

Recycling for food-grade plastic 

For true, lasting packaging circularity, recovered plastic materials should be reusable in the same applications as virgin materials instead of being downcycled into secondary applications. This is particularly important for food-contact-approved materials. Making recycled food-grade plastics could unlock huge potential for recycled packaging. But is it possible?  

‘Yes, packaging made from recycled materials can be food grade,’ says Robert Taylor, director of sustainability of UPM Raflatac. ‘There is limited availability of food-grade recycled plastics, but the recycling infrastructure is still developing, both mechanical and chemical recycling having their roles.’ 

For food-grade plastic recycling there are specific requirements for the recycling lines, raw material and recyclate quality. For example, limiting non-food grade feedstock as raw material to a very small share in mechanical recycling processes. ‘In mechanical recycling, PET bottle recycling is a good example of large-scale plastic recycling in food grade. Another example is mechanical food-grade HDPE recycling. Chemical recycling can create food-grade material from lower-grade feedstock as well,’ Taylor explains. 

Recycled packaging intended for food must undergo extensive cleaning and sterilization to meet food safety requirements and prevent contamination risks. Certain plastics, paper, and metals can be recycled to create new food-grade packaging. Proper selection of inks and coatings is crucial to ensure that the recycled packaging maintains its food-grade status.  

Innovation in recycled products 

Innovative new products are being developed utilizing raw materials originating not just from packaging industry waste, but also other sources.  

The aim is to reduce pressure on virgin feedstocks and prevent leakage to nature – for example, the plastic pollution found in oceans today. A good example of this approach is the UPM Raflatac Ocean Action label, the world’s first label material made with ocean-bound plastic. 

Recycled liner waste can also be reused for label manufacture. UPM Raflatac, for example, offers its RafCycle recycling service to convert label waste into a resource. The total amount of liner waste recycled through the RafCycle service between 2014 and 2022 equals the weight of over three Eiffel Towers. This also equates to 463,000 trees left for other uses, or 334 long-haul flights worth of CO2 emissions avoided compared with waste material ending up in landfills, according to UPM. 

Resins manufactured through the chemical recycling process are also being more widely adopted. Toray, for example, is manufacturing polypropylene film from ExxonMobil’s Exxtend chemical recycling process. ExxonMobil’s recycling facilities are certified by ISCC Plus, ensuring adherence to robust mass balance practices. 

Converters leading in circular economy 

All4Labels is among the leading converters demonstrating a practical commitment to the principles of a circular economy. With ambitious goals set for 2030, All4Labels aims to cut waste generation by 30 percent and ensure that over 95 percent of waste is recyclable or reusable. 

Since 2020, the company has been measuring CO2 emissions across all production sites and is working towards carbon neutrality by 2030 and to reduce 38 percent of the emissions intensity in its operations.   

Additionally, All4Labels has developed an in-house Life Cycle Assessment (LCA) tool designed for printed labels to help customers minimize environmental impact throughout a product’s lifecycle. 

‘This analytical LCA tool captures the overall environmental impact of a product, process, or human activity, from raw material acquisition, through production and use to waste management,’ says Gabriela Neves Ferri, vice president R&D and sustainability at All4Labels. 

The converter has developed its own Star portfolio of sustainable labels, featuring products such as Starloop made with post-consumer recycled content. 

‘By showing comparisons with virgin materials, and mechanically and chemically recycled substrates, we can back up the claim that a more sustainable material will not have a significant impact on the design of the label,’ Ferri explains. 

Its waste management efforts, particularly in Latin America, have seen significant progress. In ‘Blumenau, Brazil, we have successfully achieved zero landfill disposal, preventing inappropriate waste disposal and advancing our commitment to the UN’s SDG 12 responsible consumption and production standard. More recently, our Indaiatuba site has achieved the same result, further underscoring our dedication to environmental responsibility and sustainable business practices,’ Ferri highlights. 

Similarly, Resource Label Group has introduced its RLGreen portfolio that improves container recycling and utilizes products that include recycled content.  

Bohlke of Resource Label Group says, ‘Labels can help with everything they’re affixed to, not make it detrimental to recycle. The How2recycle label on the package can give consumers directions. As members of the APR (Association of Plastic Recyclers), we work with the recycling industry on how to bring best-in-class materials. Working with our customers to ensure the proper face stock, adhesives, inks and liner all work together to help with a more robust recycling process.’ 

The way forward 

Schouten of INX says a range of wider improvements need to be made across consumer education, advanced recycling technologies, infrastructure improvement and policy support if the circular economy is truly to become a reality. All4Labels’ Gabriela Neves Ferri advocates for supply chain collaboration to ensure recyclable materials are effectively collected, sorted and processed. All4Labels has intensified cooperation with CELAB and Finat, and is part of the Ellen MacArthur Foundation Community, contributing to broader industry-wide progress in sustainability. 

UPM Raflatac’s Taylor stresses a multi-spectrum approach to achieving a low-carbon circular economy, emphasizing the importance of reducing, recycling, renewing and reusing materials. ‘There is no one-fits-all solution: some products need to switch materials, but most will need to be downgauged or include recycled content. One thing is for sure, they must be made more circular by following recycling design guidelines and meeting the compliance needs of legislation, such as the PPWR in Europe.’ 

Niewiadomska of Flint Group highlights the significance of ink and coating technology in advancing the circular label and packaging economy. Flint Group collaborates with organizations such as the Association of Plastic Recyclers to enhance ink and coating recyclability, developing products that function seamlessly in recycling systems. 

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Connected packaging

The European Commission has introduced the Digital Product Passport (DPP) legislation for all products placed onto the European market, including imports. This is designed to provide comprehensive data on a product’s life cycle, durability, sustainability and traceability. The product passport data is accessible via electronic means through a data carrier such as a QR code or RFID chip.  

Implemented gradually from 2026 to 2030, the DPP will initially impact batteries, followed by apparel and consumer electronics. It aims to empower consumers and businesses with transparent information to make informed choices, thereby driving supply chain sustainability.  

While some technical guidelines for the EU Digital Product Passport are still being developed, Avery Dennison has already created an end-to-end solution to assist brands in complying with the upcoming regulation. Digital Product Passport as a Service (DPPaaS) by Avery Dennison includes hardware, software (including atma.io), digital ID technology, physical labels and support services.  

Avery Dennison’s atma.io software assigns unique digital IDs to everyday items. This provides end-to-end transparency by tracking, storing and managing all the events associated with each individual product. It works across all ‘digital triggers’ including RFID, QR and barcodes.  

Michael Goller, senior director for atma.io at Avery Dennison, says: ‘Our traceability features go far beyond the ability to track finished goods across the supply chain and enable companies to track on a very granular level which raw materials are used for production and capture the full genealogy of their products. In addition, we enable brands to capture and track the carbon footprint of each product individually. The platform also empowers consumers to contribute to the circular economy by enabling efficient resale, returns, and recycling so that products can be given a second life.’  

Polytag is another company pushing forward the tracking and tracing of packaging. Its Invisible UV Tags printed on labels and GS1-approved, unique-every-time QR codes act as a tool for consumer tracing and recycling efforts.

Connected to these are customizable web pages that can be used to share product information, sustainability information and ingredient origins.

Polytag’s QR codes offer real-time insights into packaging journeys, enabling waste reduction and design optimization. This transparency incentivizes recycling, fostering sustainability and consumer engagement.

Last year, Polytag partnered with UK retail giants Aldi, Co-op, and Ocado Retail to help capture recycling data and gain greater transparency of their product packaging lifecycles.  Its pilot with Ocado Retail last summer saw 87 percent of those who scanned and recycled Ocado’s milk bottles obtaining rewards for recycling. Within just 56 days, over 20,000 20p rewards were collected.

Using Polytag’s dashboard, Ocado tracked each product’s packaging journey from purchase to recycling, including its path to Material Recovery Facilities (MRFs) at the barcode level.

Polytag launched the EcoTrace Programme, uniting major FMCG brands to improve single-use plastic recycling in the UK. The initiative collects funds from single-use plastic businesses to install UV-tag detection equipment in recycling centers, aiming to enhance national recycling rates.

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Robust gasification

Currently undergoing pilot testing, Robust Gasification is a modern take on a technology used to power streetlights in 19th-century America. By heating organic products to a temperature that releases their chemical bonds, synthetic gas, or syngas, is produced. Syngas is the precursor to manufacturing plastics which are indistinguishable from oil-based plastics. The pilot is taking place at a landfill site, and since all packaging products apart from metal and glass are organic-based, they can all be processed alongside other organic waste found in landfill sites. This has the advantage of using existing garbage collection and landfill logistics and provides a limitless source of syngas which can be used directly in the manufacture of new plastic containers and films.

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HOW HAS CIRCULAR ECONOMY LEGISLATION BEEN IMPLEMENTED AROUND THE WORLD?

North America

As of 2023, six US states have active EPR (extended producer responsibility) or similar packaging laws. California mandated that all packaging in the state must be recyclable or compostable, 65 percent of single-use plastic packaging should be recycled, and a 25 percent reduction in plastic packaging is required by 2032. Colorado mandates producers finance recycling systems.

Maine shifts packaging waste responsibility to producers. 
Oregon encourages recycling via producer funding and higher fees on non‑recyclables.

New Jersey mandates post-consumer recycled content for various products. Washington requires producers to use recycled plastic and label plastic trash bags with QR codes linking to their website.

Europe

The European Union aims to reduce packaging waste by 15 percent per capita for each member state by 2040, resulting in a 37 percent overall waste reduction compared to current legislation. Reuse and recycling are key strategies. Companies must offer a percentage of products in reusable or refillable packaging. Certain packaging formats will be banned, such as single-use items in restaurants and hotels. By 2030, packaging should be fully recyclable through a combination of design criteria, mandatory deposit return systems for plastic bottles and cans, and clear labeling for compostable packaging. Producers must include recycled content in new plastic packaging, enhancing plastic recycling efforts.

United Kingdom

The UK plans to minimize waste, reuse materials, and manage end-of-life packaging to reduce environmental impact. Goals include achieving zero avoidable waste by 2050, eliminating avoidable plastic waste by 2042, meeting current waste targets, and establishing ambitious new targets. Efforts will also focus on combating illegal disposal, reducing littering and addressing marine plastic pollution originating from land.

India

In 2021, India updated its Plastic Waste Management Amendment rules by banning plastic carry bags under 120-micron thickness and single-use plastics/films. These rules require brand owners to register and demonstrate compliance with EPR guidelines to promote the circular economy in plastic waste management. EPR efforts include a centralized portal, certificate trading, and penalties for non-compliance. India also launched a Circular Economy Roadmap in 2021 to boost sustainable material solutions, the supply of recycled plastics and alternative uses for plastic waste.

Japan

In 2022, Japan passed legislation requiring hotels and restaurants to reduce single-use plastics through consumer reward programs and the use of alternative materials. Mechanisms for collecting and recycling plastics, including municipal waste, were established, and led by local authorities. Certification systems were introduced to incentivize businesses to recycle their products.

China

China’s National Development and Reform Commission 
unveiled the Circular Economy Development Plan that spans 
from 2021 to 2025. It emphasizes initiatives like promoting green product design, enhancing clean production methods through audits and innovation, encouraging resource utilization in industrial parks, optimizing resource extraction and waste utilization, and facilitating urban waste co-processing through policy improvements and market-oriented approaches. The plan also focuses on enhancing the recycling infrastructure by integrating facilities into urban planning, establishing standardized recycling networks, and optimizing rural recycling systems. Efforts focus on advancing renewable resource utilization by fostering industry clusters, and standardizing product recycling. Standardization of the second-hand goods market involves refining regulations, promoting online trading, and increasing oversight of offline markets.