Close the Loop

Closing the loop requires us to design for recyclability, maximise post-consumer recycled content (PCR) quality and availability, and to work with industry stakeholders on policy, consumer education and planning to ensure suitable infrastructure is available.

We must also consistently upgrade and re-engineer our production processes to maximise the amount of PCR we’re able to use.

Highlights in 2024

24.4%

24.4% of the plastic packaging we produced last year comprised postconsumer recycled (PCR) material.

12.5%

12.5% of our recycled material was from kp Tray2Tray^®.

68%

Recyclable alternatives offered for 68% of our product portfolio.

32%

32% of our products by volume are designed for recyclability (2019: 22%).

Target I: Use more recycled material

We will use at least 30% post-consumer recycled (PCR) material in our packaging.

Highlights

Our use of PCR has remained stable, attributable to continued process optimisation. Market fluctuations challenged the industry on PCR usage and availability.

Future outlook

We remain focused on developing new films for novel packaging that include PCR, while also expanding the use of recycled materials with the aim of keeping material flows inside a closed loop.

Target II: Close the packaging loop

At least 30% of the PCR material in our packaging will be from the kp Tray2Tray^® initiative.

Highlights

We continue to grow the share of kp Tray2Tray® despite market challenges. This is thanks to our strong partnerships across the value chain.

Future outlook

We have made significant progress on the journey to originate 30% of our PCR consumption from pots, tubs and trays by 2025. However, the challenges in securing supplies of good-quality tray flake are limiting our ability to progress at the expected pace. Strong collaborations are key to stable supply, and we are committed to doing more as soon as we’re able to.

Target III: Recyclability

100% of our packaging will be recyclable.

Highlights

The number of products in our portfolio designed for recyclability has increased. We offer recyclable alternatives for 68% of our overall product portfolio.

Future outlook

We continue to grow our range of designed-for-recycling alternatives. However, making all of our packaging recyclable will need to remain a priority beyond 2025. We will continue to work on multi-level value chain partnerships in different forums and associations to roll out standards at scale.

Close the Loop in action

Making recyclable labels easy to adopt

Traditional shrink sleeve labels are typically made from virgin materials, which cannot be recycled as they are made of PVC or PETG based polymers.

To meet this challenge, kp offers the SmartCycle^® portfolio, which is recyclable in the RIC 1 stream. And in 2024, we developed SmartCycle^® Plus, a high-performance heat shrink sleeve label film made with 30% PCR chemically recycled content that is compatible with existing labelling equipment and recycling infrastructure.

By integrating recycled material without compromising functionality, we provide brands with a sustainable and recyclable labelling solution that maintains clarity, printability and performance.

Making recyclable labels easy to adopt

kp 100% Tray2Tray^® is a breakthrough innovation

kp 100% Tray2Tray<sup>®</sup> is a breakthrough innovation

kp 100% Tray2Tray^® is a breakthrough innovation

kp 100% Tray2Tray^® is the first-ever food tray made entirely from other recycled trays, ideal for businesses looking to minimise their exposure to taxes on plastic and emissions. Key benefits include a low carbon footprint, lightness and great on-shelf optics.

To prove tray recyclability is possible at scale, we pursued an innovative ‘open market’ business model, which results in zero loss of value at any stage in the process. We hope that other packaging manufacturers will now follow suit and create similar products. Amadori, a prominent brand in the Italian food sector, is one of our first customers.

The first recyclable medical-grade film

To properly protect medical devices and maintain sterility, extremely safe and functional packaging is legally required. Up to now, meeting those high standards meant that this packaging could not be recycled.

To address this issue, we developed kpNext® MDR1, an advanced copolyester innovative solution for medical device packaging film, designed for recycling in the RIC 1 PET stream. During the development process, we conducted rigorous testing to ensure compatibility with sterilisation processes, forming and sealing equipment.

Looking ahead, we will work with industry partners to advocate for recyclable medical packaging and better recycling facilities to improve collection and recycling rates.