Recycling, Sustainability, Circular Economy

The Business Case for PCR Packaging: More Than Just Sustainability

22.04.2025 | 6 min read

Jonas Kristensson

Post-consumer recycled (PCR) packaging is a key solution for brands that want to reach environmental goals. What many brands overlook, however, are the tangible business advantages it brings. This article unpacks three compelling business benefits of PCR packaging and highlights how these advantages position companies for long-term growth.

Understanding PCR Packaging

PCR packaging refers to materials used by consumers that are collected through recycling programs and then reprocessed into new packaging materials. Unlike pre-consumer recycled content, which consists of industrial scrap or excess materials, PCR comes from materials that have already entered the waste stream.

Common PCR materials are:	These materials, once recycled, become valuable resources for sustainable packaging solutions:
Polyethylene terephthalate (PET) Polypropylene (PP) High-density polyethylene (HDPE) Polystyrene (PS)	Recycled polyethylene terephthalate (rPET) Recycled polypropylene (rPP) Recycled polystyrene (rPS) Recycled paper and cardboard blends

Implementing these recycled materials can strengthen market positioning, reduce long-term production costs, and enhance overall customer perception.

PCR Streams

Two primary methods are used to process PCR materials: mechanical recycling and chemical recycling.

Mechanical Recycling

This is the most common process in the U.S. for PCR material. Mechanical recycling involves collecting, cleaning, shredding, and melting plastic waste and then extruding that material into granules/pellets for manufacturing new packaging. While cost-effective compared to chemical recycling, mechanical recycling can degrade material properties with each cycle, causing variances in color, odor, and strength.

Chemical Recycling

Another recycling method is chemical recycling, which breaks down a material into its fundamental molecular components. This process eliminates impurities and produces a higher-quality product with properties similar to virgin materials. However, this process is less common due to higher processing and technological costs and a higher carbon footprint than mechanical recycling. As eco-friendly responsibility grows, more and more consumer brands plan to invest in chemical recycling capabilities as early as 2025-2030.

3 Key Operational Benefits of PCR Packaging

1. Reducing Carbon Footprint & Supporting the Circular Economy

One of the most significant advantages of PCR packaging is its ability to lower carbon emissions—particularly in mechanical recycling streams, which dominate today's market due to cost efficiency—and reduce reliance on virgin materials. Producing virgin plastic requires petroleum extraction, refining, and polymerization, all of which generate greenhouse gas emissions. Mechanically recycled plastics like PCR rPP minimize waste in landfills and reduce energy consumption. Lifecycle assessments show that materials like rPET require up to 75% less energy than their virgin counterparts.

PCR packaging contributes to a circular economy by transforming the "take-make-waste" model into a regenerative system where materials are continuously repurposed. This approach conserves natural resources while helping businesses align with global climate goals and enhance ESG reporting.

2. Meeting Consumer Demand for Sustainability

Today’s consumers are more environmentally conscious than ever, seeking brands that prioritize sustainability. A study by Trivium Packaging found that 74% of consumers are willing to pay more for products with sustainable packaging, highlighting the preference for eco-friendly options.

Retailers are responding to this shift by implementing sustainability scorecards to evaluate supplier packaging choices—major players like Walmart and Amazon now assess brands based on their environmental impact. Businesses that integrate PCR content in their packaging meet these evolving expectations and strengthen brand loyalty and consumer trust.

Clear labeling of PCR content provides transparency and reassures consumers of a brand's environmental commitment. This sustainability-centered approach serves as a differentiator, improving brand perception and appealing to eco-conscious consumers, retailers, and investors alike.

Businesses that publicly commit to sustainability targets and transparently report their progress strengthen brand loyalty and consumer trust while positioning themselves as industry leaders.

3. Regulatory Compliance and Risk Management

Governments worldwide are implementing stricter regulations to curb plastic waste, with many regions now mandating minimum levels of recycled content in packaging.

The Association of Plastic Recyclers (APR) advocates for PCR certification requirements to strengthen North American recycled markets and enhance transparency. California's Extended Producer Responsibility (EPR) law already requires PCR certification to meet source reduction requirements, while Oregon mandates PCR content in roll carts. Similar regulations are expected to roll out in New Jersey, Maine, and other states.

Switching to PCR packaging helps businesses stay ahead of these evolving regulations, avoiding potential penalties and supply chain disruptions.

U.S. Regulatory Guidline

We've created a comprehensive overview of standards and implementation dates for U.S. recycled content laws across California, Washington, New Jersey, Maine, and Connecticut, based on Association of Plastic Recyclers (APR) data.

Download the Guide here!

Creating Business Value Through the Circular Economy

By embracing PCR packaging, businesses close the loop on material lifecycles, supporting a circular economy that minimizes waste and maximizes resource value. In this model, materials maintain their highest utility throughout their lifecycle through:

Design optimization for recyclability
Extended material value across multiple use cycles
Reduced waste
Development of efficient production lines

As more businesses adopt PCR packaging, the entire recycling ecosystem strengthens. Increased demand for recycled materials improves collection infrastructure, processing capabilities, and material quality—creating a network that enhances sustainability outcomes and business performance.

Conclusion

Even though the cost for PCR materials is currently still higher than virgin material, post-consumer recycled packaging offers clear business benefits that extend beyond environmental impact. By strategically implementing PCR solutions, companies can achieve market differentiation and regulatory compliance, all while building the circular economy infrastructure.

As consumer expectations evolve and regulatory frameworks tighten, organizations that integrate PCR packaging can position themselves for future markets. To realize the full value of PCR, however, it is vital to vet packaging partners that can help with implementation.

In our next article, we'll explore why selecting the right sustainable packaging partner is crucial for achieving optimal PCR implementation outcomes

Let's chat!

Ready to advance your sustainability journey with a partner who understands PCR packaging? Contact Greiner Packaging today to discuss your packaging requirements and sustainability goals.