The race to combat plastic pollution is on, but are companies keeping their promises? As deadlines loom, the gap between leaders and laggards in the circular plastics movement is widening.
In a world drowning in plastic waste, major players in the packaging industry vowed to shift towards sustainable practices by 2025 and 2030. Yet, as these deadlines approach, BloombergNEF’s latest analysis reveals a stark reality: progress is uneven, and not everyone is pulling their weight. Our Circular Economy Company Ranking evaluates 40 firms—20 brand owners and 20 plastic producers—to spotlight those leading the charge and those falling behind. But here's where it gets controversial: while some companies are making strides, others are quietly backpedaling on their commitments.
2025 is a make-or-break year for these pledges, as it will determine whether the ambitious circular economy goals set years ago are truly achievable. Our ranking shows that consistent progress keeps companies at the top, while those slowing down are slipping fast. For instance, Asahi Breweries climbed six spots by committing to 100% recycled or bio-based PET bottles by 2030, up from 37% in 2024. Similarly, Alpek gained four places by expanding its PET bottle recycling capacity to 300,000 metric tons annually by 2025—without planning new virgin plastic production.
On the flip side, PepsiCo, once a leader, dropped to 12th place after abandoning its goal to halve virgin resin use by 2020 and pushing back its recycled content target. LyondellBasell, despite increasing recycled polymer production by 65%, lost ground due to plans to expand virgin plastics in 2025. And this is the part most people miss: even giants like Coca-Cola have scaled back their ambitions, reducing their recycled content goal from 50% by 2030 to 35-40% by 2035.
Why the slowdown? For many brands, the challenge lies in underdeveloped recycling supply chains and the high cost of sourcing sustainable plastics. Companies reliant on flexible film packaging, like Mondelez and Kraft Heinz, are particularly struggling, while those using rigid materials like PET bottles or aluminum cans are faring better. For example, Danone’s Evian and Nestle’s Vittel have achieved 100% recycled content in Europe, where waste sorting infrastructure is advanced.
Among producers, weak demand and economic hurdles are major roadblocks. Only 13 out of 20 have set clear sustainable production targets, yet even these face challenges. Indorama, Alpek, and Braskem are leading the way, but insufficient demand for recycled products remains a critical issue. Interestingly, some producers are targeting niche sectors like automotive and electronics, where buyers are willing to pay a premium for high-grade recycled plastics.
However, the global chemicals market’s oversupply crisis, driven by new production capacity in Asia, has forced several recyclers to shut down. Companies like Dow and Borealis are adapting by signing offtake agreements or acquiring recycling firms instead of building new plants. Borealis, for instance, boosted its circular production capacity by 18% in 2024 after acquiring Integra Plastics.
But here’s the burning question: Are these scaled-back targets a realistic adjustment or a convenient retreat? As companies navigate economic pressures and supply chain limitations, is it fair to lower the bar on sustainability? We want to hear from you—do these shifts reflect pragmatism or a lack of commitment? Share your thoughts in the comments below!
