FACT SHEET
Market summary – flexible plastics
In 2013-14 Sustainability Victoria commissioned market analysis into four
waste materials identified as priorities for market development and four which
are emerging materials of interest. This fact sheet summarises the findings for
flexible plastics.
Terminology
Plastic products can be broadly grouped as either flexible or rigid. The major plastic polymer types are
identified by a Plastics Identification Code (PIC) number from 1 to 7.
The majority of flexible plastics are made of low density polyethylene (LDPE) or linear low-density
polyethylene (LLDPE). However other polymers, including high density polyethylene (HDPE) and
polypropylene (PP), may be used to produce film.,. Flexible plastic products include packaging film,
plastic bags, shrink wrap, builder’s film and agricultural films such as bale wrap.
In contrast, the most common rigid plastics are made of polyethylene terephthalate (PET), high density
polyethylene (HDPE), poly‐vinyl chloride (PVC), and polypropylene (PP). Rigid plastics are found in
products such as bottles, containers, toys and building products like pipes.
Composition
As stated above, flexible plastics are predominantly LDPE or LLDPE, although flexible film can be
manufactured from other polymers. For example, single-use plastic grocery bags are often made from
HDPE.
Most flexible plastics are thermoplastics, which are inherently more difficult to recycle as the polymer
structure is degraded by reprocessing. This means that the materials are often reprocessed into
products of lower value than the original product.
Plastic films are increasingly being made by laminating different polymers with metal foils to produce
packaging which is lightweight and strong, but difficult to recycle because it is virtually impossible to
separate the polymers.
The move away from rigid packaging by manufacturers of products such as detergents and sauces
towards lighter weight flexible pouches and sachets is providing benefits of reduced overall weight of
packaging. However, it is also reducing recyclability and is adding to overall waste.
Volumes
There is no specific data on the generation or recovery of flexible plastics. However, the volume of
flexible plastics disposed of to landfill in Victoria is thought to be in the range of 74,000 to 108,000
tonnes per annum (in 2011–12). This range is calculated from two sources.
1.
The 2011-2012 National Plastics Recycling Survey by Plastics and Chemicals Industries
Association (PACIA) which suggests that 14.4% of the plastic consumed in Australia is LLDPE,
and
2.
The volume of flexible plastics disposed of to landfill in Victoria on the basis of residual waste
audit data.
Table 1: Estimated volume of plastic bags and film disposed of to landfill in Victoria
Units
MSW
C&I
C&D
TOTAL
Per cent by weight in landfilled
waste (based on 2009 landfill
audits)
0.6%
7.0%
1.1%
3.0%
Total tonnes of waste landfilled
– Victoria (2011–12)
1,560,900
1,275,800
782,000
3,618,700
Estimated tonnes flexible plastic
to landfill
10,000
89,300
8,300
107,600
Products and applications
Recycled flexible plastics are used as a substitute for virgin plastic or timber. They are made into a
range of products including bollards, fence posts, speed humps and outdoor furniture.
Melbourne-based Replas currently recycles flexible plastics mostly sourced from Coles supermarkets
through that company’s plastic bag take-back scheme. Replas produces over 200 products, but mainly
focuses on pit lids (for utility companies), wheel stops, bollards, signage and street furniture.
Product standard
The International Standard for Plastics Recycling ISO 15270:2008 Plastics – Guidelines for the recovery
and recycling of plastics waste provides a framework for the industry. It covers different options for
waste plastic management, including reprocessing and energy recovery. It has quality assurance
requirements to ensure that product quality is controlled, plastics are recovered responsibly and the
impact on the environment is minimised.
Market overview
Current management options for flexible plastics in Victoria include:

recycling of clean source separated flexible plastics (uncontaminated), mostly from
industrial sources,

recovery of flexible plastic from commingled recyclables in MRFs, and

landfill disposal (contaminated plastics within the municipal, C&I or C&D waste
streams).
Recycling of flexible plastics is inhibited by difficulties in processing (they get caught in mechanical
sorting machinery) and costs – anecdotally the transport of used agricultural plastic film is usually
prohibitively high so it is left or disposed of on farm.
Each year, the Plastic and Chemicals Industry Association (PACIA) commissions the National Plastics
Recycling Survey (NPRS)1 to capture data on the use and recycling of plastics across Australia. The
survey aggregates plastic recycling data according to polymer type and also explores the recovery of
“2011-12 National Plastics Recycling Survey”
http://www.pacia.org.au/Library/PageContentVersionAttachment/b32ecc28-36a3-4087-bd6833a889cf9aef/r02_05_a10802_nprs_2011_12_report.pdf
1
plastics in packaging versus durable goods. As such it is difficult to get data relating to the recovery of
flexible plastics, which may cover different polymer types and uses. Most plastic recycling in Australia is
of rigid plastics and is mostly focussed on packaging products because of their shorter lifespan.
As outlined in previous sections, the majority of flexible plastics are usually LDPE or LLDPE, so the data
on that material gives a good indication of recovery activity. The data available in the 2011–12 PACIA
survey indicates that nine facilities were identified in Victoria as accepting L/LLDPE for reprocessing
(out of 23 plastic recycling facilities in Victoria).
Across Australia in 2011-12, around 68,000 tonnes of L/LLDPE plastics from all sources were recovered
for recycling, which represents about 30% of total consumption. Around half of the recovered L/LLDPE
was reprocessed domestically, and the remainder was exported. However, the majority of recovered
L/LLDPE was from industrial sources. Very little post-consumer domestic material is currently
recovered.
Market risks
The key market risks for the use of flexible plastics as expanded, compressed or extruded products are
as follows.
Quality: The quality of end products is directly related to the quality of inputs. The level of contamination
in many source feedstocks is therefore a critical risk to the quality of end products.
Cost: Costs of collection and processing are high against the value of the end product. Cost of products
can be higher than competitors, for example recycled plastic pit lid covers are more expensive than
concrete covers.
Technology: Lack of cost effective processing options to take flexible plastics back to food grade
plastics. The current technology limits processing back to pellets for use in extrusion or expanded
products.
The introduction of new multi-layered plastics may impact on existing products and require additional
infrastructure improvements.
Market barriers
Feedstock
As noted above, the key barrier impacting on the market for products made from flexible plastics is the
availability of good quality feedstock at the right price. Given the competitiveness of products made from
virgin plastic and timber, price sensitivity is severe and each additional cost at the collection and
processing end will affect the competitiveness of products. Although landfill can be a less attractive
disposal option due to levy costs and gate fees, there are still low cost options through export
markets.Exports
A large percentage of collected mixed plastics are being exported to countries which are unlikely to
have the same level of standards and regulations applied in Australia and may have lower processing
costs due to lower compliance and labour costs. Perception of poor quality
Perception regarding quality still remains a barrier, mainly as a result of some lower quality products that
have been produced in the past. Products are also impacted by trends, particularly in the building
industry. Despite having significant benefits over timber, the current preference for natural timber
products has kept markets for timber decking and furniture particularly strong in recent years.
Perception of poor quality
Perception regarding quality of recycled products still remains a barrier, mainly as a result of some lower
quality products that have been produced in the past. Products are also impacted by trends, particularly
in the building industry. Despite having benefits over timber, the current preference for natural timber
products has kept markets for timber decking and furniture particularly strong in recent years.
Transport
Processing and transport costs continue to be a significant barrier. Flexible plastics have low bulk
density and as a result suffer transport inefficiencies unless baled or compacted.
Market opportunities
Stakeholders consulted for this market analysis research suggested that a significant proportion of
the flexible plastics currently recovered are being exported. A recent report undertaken for the
Australian Packaging Covenant (APC) suggests Victoria requires more local processing capacity 2.
As processing technologies develop and costs reduce, there is potential for this sector to grow in
the future and for products made from recycled flexible plastics to replace current alternatives such
as timber products. Improving the supply of recovered flexible plastics for local processing is a key
opportunity.
The following two Victorian examples demonstrate further opportunities to increase the recovery of
flexible plastics for local processing.
SKM Recycling and Darebin City Council
SKM Recycling operates the largest Materials Recovery Facility (MRF) in Victoria at Coolaroo. SKM has
started to recover flexible plastics, which were previously considered contamination. The main driver for
recovery is the rising cost of landfilling residuals. Recovered flexible plastics are generally baled and
exported for reprocessing.
In 2012, SKM ran a 20-week ”bag in bag” trial with 900 households in Darebin City Council to test the
feasibility of municipal collection of flexible plastics through the kerbside system. The council noted it
was very popular with residents and may be considered for full rollout.
Plasback
The Plasback program is a voluntary product stewardship scheme operated by Tapex. It focusses on
collecting and recycling agricultural films such as silage wrap from farms, bulk bags and pallet wrap and
recycling them into substitute timber products like plastic boards and grates.
The key to Plasback is consolidation of volumes of material in regional locations to allow collections and
transport efficiencies to improve overall cost. Farmers are provided with large bags to pack their used
silage wrap and these are returned free to participating regional transfer station. Plasback use a mobile
plastics baler to compact the material on site allowing them to visit multiple transfer stations on a
collection run.
“Assessment of recycling infrastructure: current status and future opportunities – SRU”, last modified 2013,
http://www.packagingcovenant.org.au/data/Projects/Final_reports/R04-06-A11003__Recyclinginfrastructure_report_Stage_2.pdf
2
This fact sheet is a summary of a report completed by Hyder Consulting on behalf of Sustainability
Victoria in 2014. Due to the confidential nature of some information provided by stakeholders this report
is not publicly available.
Further Information
For more information contact Jane Street on:
T: (03) 8656 6709
E: jane.street@sustainability.vic.gov.au
or visit www.sustainability.vic.gov.au/marketanalysis
Sustainability Victoria
Level 28, Urban Workshop,
50 Lonsdale Street, Melbourne VIC 3000
Phone (03) 8626 8700
sustainability.vic.gov.au
Published by Sustainability Victoria.
Market summary – flexible plastics
© Sustainability Victoria, September 2014 IWM030