Recycled Polyolefins: grades, applications, and European suppliers

European mechanical recycling capacity for rPE and rPP totals approximately 3 million tonnes per year and is growing at ~10% annually. The largest operators include LyondellBasell QCP (Netherlands), Borealis Borcycle, Veolia / SABIC TRUCIRCLE, and Plastic Energy (chemical recycling pyrolysis). Quality bifurcates sharply: post-consumer rPE and rPP from packaging streams trades €500–1,200/t below virgin; chemically recycled (advanced recycling) rPP for food contact often trades a premium over virgin.

The collection-to-pellet flow has structural bottlenecks. Bale availability sets the floor: Germany's DSD (Dual System), France's Citeo, and Spain's Ecoembes drive the bulk of post-consumer collection. Sorting capacity (NIR-based in MRFs) is the first capacity constraint; food-contact-grade decontamination capacity is the second.

rPO pricing decouples from virgin contract. Bale supply (kerbside collection economics) sets the floor; converter demand (PPWR compliance) sets the ceiling. The virgin-to-rPO spread inverts during demand shocks — autumn 2022 saw rPO trade above virgin briefly as PPWR-anticipating brand owners locked in supply.

ICIS publishes rPE flake (for film and bottle) and rPP pellet weekly indices separately. For chemically-recycled material, mass-balance accounting under ISCC PLUS allows premium pricing tied to a virgin-equivalent specification. Buyers committing to multi-year volume often secure volume in advance via offtake agreements directly with recyclers.

EU 2022/1616 governs recycled plastics in food contact applications. Only EFSA-approved decontamination processes can place rPO into food contact — coverage for rPP is significantly broader than for rPE due to chemistry and historical EFSA review patterns.

PPWR mandates 10–35% recycled content depending on packaging type by 2030. Supply-chain traceability via mass-balance accounting (ISCC PLUS) is the dominant verification scheme for both mechanically and chemically recycled material. Brand owners running their own recycled-content commitments (Unilever, Nestlé, P&G) often demand third-party certification beyond the regulatory minimum.