Closed Loop Partners releases report on small-format packaging recovery

New York City-based Closed Loop Partners’ Center for the Circular Economy has released a new report on small-format plastic packaging recovery revealing a pathway to recover tens of thousands of tons of small packaging materials from material recovery facilities (MRFs) and glass recycling plants across the U.S.

 The report builds on more than two years of market research and recycling tests in partnership with Maybelline NY and its parent company, L’Oréal Groupe, bolstered by the support of Kraft Heinz, P&G and Target.

Closed Loop Partners says that with the right equipment upgrades and reconfigurations, significant volumes of small-format packaging materials can be recycled rather than lost to residue. For example, the company says upgrading the glass screen at a MRF resulted in a 67 percent relative reduction in mid-to-large-sized "small" plastics contaminating the glass. These small plastics that otherwise would have been discarded now are properly sorted and baled for sale.

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“The types of equipment needed to capture small-format recyclables depend on what type of material the facility processes, what existing equipment they have and the facility’s physical footprint and capacity,” Closed Loop Partners tells Recycling Today. “Depending on these variables, a facility may need supplemental equipment to sort further by size, shape (2D versus 3D) [and] plastic resin type, and may need among other things additional conveyor belts to recover small format plastics. Small metals recovery typically requires equipment including an eddy current and drum magnet.”

Closed Loop Partners says the investment needed to make these retrofits varies based on the material being targeted, ranging from a few hundred thousand dollars to several million dollars. The company adds that the equipment needed for small plastics recovery is more expensive than the equipment needed to recover small metals.

As brands work to meet waste reduction goals and achieve compliance with extended producer responsibility (EPR) legislation, the opportunity to capture previously unrecovered small-format plastic packaging can have a significant positive impact, Closed Loop Partners says.

The Center for the Circular Economy collaborated with Circular Services, a Closed Loop Partners company, to research small-format packaging recovery. Circular Services operates more than 20 material recovery facilities (MRFs) across the U.S. and manages municipal contracts in the cities of New York; San Antonio and Austin, Texas; and Phoenix. The center conducted what Closed Loop Partners describes as “an extensive, in-field process” to identify solutions for recovering small-format packaging. This included evaluating glass stream contamination at more than half a dozen U.S. MRFs that included collecting samples from two MRFs’ glass streams and one glass recycling plant’s residue streams, trialing equipment configurations to sort plastics from these streams and sending samples to reclaimers to test their processability and market value. Closed Loop Partners said this process was reiterated multiple times.

According to the report, many small format plastic materials have significant market value, logistical solutions already exist to handle them, current technologies can be adapted to effectively recover portions of them at MRFs and glass recycling plants, market demand for these materials is strong and targeted investments at recycling facilities are needed to build a compelling, scalable business case to recover smaller materials.

In the area of logistics, Closed Loop Partners says, “We have seen that many small-format materials can be incorporated into existing bales that include larger-format materials. When mixed with regular-sized materials, small-format items are often held in place by the larger materials within the bale, reducing the risk of displacement.”

A wide array of plastics are used in small-format packaging. “In our research, we found that the most common recoverable resins found in small-format packaging are polypropylene (PP) followed by high-density polyethylene (HDPE) and polyethylene terephthalate (PET),” Closed Loop Partners says. “However, many materials remain unrecoverable due to their multimaterial, multicomponent nature (e.g., plastic pumps with metal springs) or their low market value (e.g., film, black plastics). These challenges present new design opportunities for improved recyclability when it comes to small formats.”

Expanding the effort

The report’s findings around small-format packaging have led to the launch of a new industry collaboration managed by Closed Loop Partners’ Center for the Circular Economy: The Consortium to Recover Small-Format Packaging. Its focus is on advancing the recovery of small-format packaging by testing the Center for the Circular Economy’s latest findings in real-world scenarios across the U.S. The Center for the Circular Economy is inviting research-phase partners to join and expanding participation to brands across various sectors. This is a cross-industry challenge, as small-format packaging is used in beauty, pharmacy, food service, beverage, retail and beyond, the company says.

One next step to build upon the findings is investment in equipment and infrastructure upgrades for rigid small plastics recovery in the field. Closed Loop Partners says it anticipates a quantifiable tonnage of materials diverted from landfill, carbon emissions avoided and postconsumer recycled content generated. The consortium will lead the establishment and engagement of a value chain for recovery of small materials, from recyclers, reclaimers, policymakers and more.

“To justify investment in equipment and infrastructure, a sufficient volume of recoverable small materials is essential,” Closed Loop Partners says. “Exploring solutions at both MRFs and glass plants is critical as glass plants serve as aggregation sites, receiving materials from multiple MRFs and often handling higher volumes, making them strategic locations for targeted interventions.

“Based on sampling at a large-scale glass recycling facility serving a major city, as much as 12,000 tons of small-format materials could be diverted annually and sold on the secondary commodities market with the right equipment—equivalent to approximately 600 truckloads per year,” the company adds. “The insights from our field trials can be applied to recycling facilities nationwide, meaning tens of thousands of tons of plastics and metals could be recovered annually, reducing landfill waste and generating significant market value.”

Engaging the value chain

Engaging the entire value chain is imperative in the effort to recover small-format packaging, Closed Loop Partners says. “For small-format packaging to be recycled, we need the entire value chain to act. A future where well-designed small-format packaging is curbside recyclable, thanks to investment in the widespread development of recovery infrastructure, will depend on the entire value chain collaborating, including:

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• brands need to design small-format packaging for recovery, which means the materials can be sorted and have value in end markets;
• recycling facilities need to optimize their operations and implement the necessary equipment to sort, separate and sell small-format materials;
• reclaimers need to process purchased bales that include small-format materials into feedstock for various new products;
• communities need to accept small-format packaging in local recycling programs; and
• consumers need to be supported through education and awareness campaigns so that they know they can confidently recycle their small-format packaging, knowing it is backed by widespread infrastructure.”

“We’re eager to put our findings to the test and, through the Consortium to Recover Small-Format Packaging, deploy equipment and infrastructure upgrades to drive real-world proof-of-concepts in the field,” says Kate Daly, managing partner, Closed Loop Partners’ Center for the Circular Economy. “It’s critical that we advance solutions to recover valuable small-format materials, like polypropylene, that otherwise typically end up in landfill. This is inherently a cross-industry challenge, as small-format packaging is used in beauty, pharmacy, food service, beverage, retail and beyond. We’re inviting our research-phase partners and brands across various sectors to join the Consortium and help address an urgent waste challenge.” 

Marissa Pagnani McGowan, chief sustainability officer, North America, for L’Oréal Groupe, says, “L’Oréal is excited to partner with Closed Loop Partners to develop innovative solutions for recovering packaging materials, reducing waste and creating opportunities in a fragmented national recycling infrastructure. Closed Loop Partners’ Center for the Circular Economy provides practical and scalable approaches for recovering small-format plastics that end up in landfills. We believe scaling these innovations will improve the recyclability of plastic and create a viable end-market for our materials.” 

“As the No. 1 makeup brand in the world, we have a responsibility to create the most sustainable makeup life cycle possible,” Trisha Ayyagari, global brand president, Maybelline New York, says. “Most makeup packaging is too small to be recycled; it literally falls through the cracks at recycling facilities. That’s why it was so important to partner with Closed Loop Partners’ Center for Circular Economy to pioneer solutions for small-format recycling and to help us and the beauty industry accelerate our sustainable transformation. We look forward to making progress together.” 

Linda Roman, director of packaging R&D and North America R&D Fellow at Kraft Heinz, says, “At Kraft Heinz, we know collaboration is the key to unlocking solutions for the future of packaging. We are proud to partner with Closed Loop Partners on this groundbreaking research to advance packaging solutions, improve end-of-life recovery and enhance critical infrastructure. By working together, we can drive meaningful change and create a more sustainable future for food.” 

Companies that are part of the small-format packaging value chain, whether manufacturers, brand owners or other stakeholder, that are interested in joining the Consortium to Recover Small-Format Packaging should email centerforthecirculareconomy@closedlooppartners.com.