Cost Benefits Analysis

In the UK, 45% of plastic packaging is not recycled with multiple application segments considered hard-to-recycle and challenging to replace with reusables or avoid altogether.

Compostable packaging offer an alternative to plastic packaging that neither can be avoided/replaced with reusable packaging nor recycled effectively.

Yet, the market size of compostable packaging in the UK is still marginal representing potentially a missed opportunity to maximize the benefits of such packages in increasing the circularity faith of packaging.

In this part of our study, we’ve tasked EUNOMIA, a global sustainability consultancy, to research what could be the economic and environmental impact of introducing more meaningfully compostable packaging to the UK market.

To study the topic EUNOMIA has drafted two potential scenarios, one of low penetration rate and one of high penetration rate for compostables. (see table 3.1). In both the low and the high penetration scenarios a few application segments were assumed to fully transition to compostables. These included tea and coffee bags, sticky labels for fresh produce, single use carrier bags and caddy liners. For other application segments lower penetration rates were assumed. Coffee capsules were modelled at 10% and 30% penetration rate while flexible packaging and single use table-ware were modelled at up to 20% for the high penetration rate.

Three different collection methods were chosen for these items. Items that are heavily food contaminated and/or too small to be identified at MRFs such as: tea and coffee bags, sticky labels for fresh producer, bin liners and carrier bags were assumed to be discarded via the food waste bin to be further treated via Anaerobic Digestion and finally sent for treated at IVC Composting sites. Single use table-ware used in closed loop arenas was assumed to be collected on site to be sent directly for IVC treatment. Compostable flexible packaging was modelled as collected alongside other flexible plastic packaging (to be further identified at MRFs with relevant new installed equipment) to positively sort these as a separate stream, before being sent for treatment at IVC composting plants.

The results of our study demonstrate a significant increase in overall volumes of recycled packaging via ensuring organic recycling for compostable plastics. Moreover, as many of the compostable packaging items carry food waste residuals and/or drag with them food waste, another important benefit arises as the dragged food waste is salvaged and being organically recycled alongside the compostable packaging.