New Consortium for Small-Format Plastic Recovery: Hidden Values in Waste

Every year, billions of units of small-format packaging enter the market from sectors like beauty, pharmacy, foodservice, beverage, and retail. Most of these end up in landfills after use because current technologies and collection systems cannot properly handle them. Based on extensive research and fieldwork, the Center for the Circular Economy at Closed Loop Partners has launched a new consortium to solve this problem. The “Consortium for Small-Format Packaging Recovery” aims to improve the technological, economic, and environmental recovery of small rigid plastics in materials recovery facilities.

The Root of the Problem: Why Does Small Packaging Get Lost?

While the Association of Plastic Recyclers (APR) defines small-format packaging as under 2 inches in at least two dimensions , field data reveals that even larger small items (2 to 3 inches or more) get lost in the recycling system. In materials recovery facilities (MRFs), these materials often slip through sorting equipment, such as glass screens, ultimately contaminating the glass stream.

Contributing factors include wear and tear on equipment, material shape and behavior (e.g., long, thin items), the sheer force of inbound materials, and a lack of size-sorting equipment in smaller, older MRFs. The loss of these materials represents a significant economic value lost, as valuable plastic resins are discarded instead of being reintegrated into the secondary commodities market.

Research Methodology and Participating Partners

In 2022, Maybelline New York approached the Center for the Circular Economy to conduct initial research to evaluate small-format packaging recovery solutions. Building on these initial tests, four additional corporate partners—Kraft Heinz, L’Oréal USA, P&G, and Target—joined the effort in 2024. The Center for the Circular Economy, in partnership with Circular Services, utilized a rigorous, multi-step methodology to validate the findings.

This included evaluating glass stream contamination at more than half a dozen U.S. MRFs. They collected samples from two MRFs’ glass streams and one glass recycling plant’s residue streams, and then trialed equipment configurations to sort plastics. The sorted samples were ultimately sent to reclaimers to test their processability and market value.

Quantitative Data: What Valuable Materials Are Hidden in the Glass Stream?

The fieldwork revealed that wasted small-format streams hold significant market value. Based on detailed analysis, the composition of the valuable small materials contaminating the glass stream was:

• 43% polypropylene (PP)

• 34% metals

• 13% polyethylene terephthalate (PET)

• 10% high-density polyethylene (HDPE)

Polypropylene (PP) was the most abundant plastic resin identified, and its largely mono-material composition makes it particularly well-suited for resale opportunities. Recovering small metals is also highly appealing due to their higher average market value and the availability of cost-effective recovery technologies.

The size distribution of small plastics showed significant variations depending on facility equipment. An analysis at one MRF in August 2024 showed that 46% of plastics in the glass stream were under 2 inches, 19% were between 2 and 3 inches, and 35% were over 3 inches. This statistic demonstrates that 54% of the small plastics were larger than the industry definition of 2 inches.

Technological Breakthrough: Optimizing Screens

In a case study conducted at a U.S. MRF in September 2024, the facility installed a new glass screen. This upgrade resulted in a relative reduction of approximately 67% in mid-to-large size “small” plastic contamination in the glass stream.

Before the screen upgrade, the proportions in the glass stream were: 46% under 2 inches, 19% between 2 and 3 inches, and 35% greater than 3 inches. After the optimization, the proportion of pieces under 2 inches increased to 82%, pieces between 2 and 3 inches dropped to 14%, and plastics larger than 3 inches fell drastically to just 4%.

Market Demand and Economic Challenges

Tests and industry surveys clearly prove that both mechanical and molecular (chemical) recyclers show interest in small-format materials, creating potential end markets. Around 75% of the mechanical recyclers engaged were interested in the material. However, 25% of stakeholders indicated they likely couldn’t recover the smallest materials, as these would slip through the 2-inch screens in their facilities and be lost again. Mechanical recyclers are currently willing to pay higher prices for clean, sorted materials like PP than chemical recyclers.

Regarding economic feasibility, a major hurdle is that small-format recovery is not a priority for most MRFs or glass plants, as it falls outside their core business focus. To advance the process, financial support is essential, whether through EPR schemes or direct brand investment to cover capital and operational expenditures. Achieving sufficient material volume is critical for a successful business model , as well as minimizing logistical costs—which can be facilitated, for example, by the colocation of MRFs and glass plants.

Regulatory Pressure: California’s SB 54 and EPR

The urgency for action and financial motivation is further accelerated by the tightening regulatory environment. In states implementing extended producer responsibility (EPR) laws—such as California, Colorado, Maine, Oregon, and Minnesota—brands face increasing pressure to meet higher recyclability standards. In California, SB 54 explicitly classifies small-format plastic packaging (per APR’s definition) as non-recyclable. Without intervention, this designation could lead to fines, market restrictions, mandatory redesigns, or even a total ban on this type of packaging.

The Consortium’s Vision: From Research to Real-World Implementation

The collected data irrefutably proves the potential to recover valuable materials, including metals and polypropylene, and the strong market demand for them. Notably, with the right infrastructure upgrades nationwide, tens of thousands of tons of small plastics and metals could avoid landfills annually, generating significant market value. Building on this realization, the Center for the Circular Economy launched the Consortium for Small-Format Packaging Recovery to move the project from the research phase into real-world testing across the U.S..

The core goal of the consortium is to fund equipment and infrastructure upgrades for rigid small plastics recovery in facilities, serving as tangible proof of the concept’s viability. This performance will be measured through specific metrics: tracking the tons of plastic diverted from landfills, the carbon emissions avoided, and the volume of post-consumer recycled (PCR) content generated. The ultimate expectation is to establish and engage a robust value chain for recovery that unites recyclers, policymakers, and brands to build a more sustainable, truly circular economy.

Professional and Government Reference Links:

• The informational page of the program by the institute that conducted the original study (Closed Loop Partners):

  https://www.closedlooppartners.com/research/small-format-packaging-recovery/

• The official state information page for the California EPR regulation mentioned in the article (SB 54 – Plastic Pollution Prevention and Packaging Producer Responsibility Act) (CalRecycle):

  https://calrecycle.ca.gov/packaging/packaging-epr/