Why Recycled Plastic Is More Expensive Than Virgin Plastic? 3 Key Reasons Explained

In today's eco-conscious world, the demand for recycled plastic continues to grow. Surprisingly, some recycled plastics are even more expensive than virgin plastics. Here are three key reasons:

1. High Recycling Processing Costs

Recycled plastic raw materials come from post-consumer waste, requiring multiple steps including sorting, transportation, shredding, washing, and plastic recycling pelletizing. These processes involve significant equipment, energy, and labor costs—far exceeding the raw material costs of producing new plastic directly from petroleum.

2. Performance Enhancement Through Modification

Many industries (such as automotive and food packaging) have strict performance requirements for plastics. Recycled plastics often need additives like toughening agents and stabilizers to restore or enhance mechanical properties and weather resistance. This requires specialized technology and additional costs.

3. Expensive Certifications and Testing

Recycled plastics typically require certifications such as GRS (Global Recycled Standard), ISCC+, and FDA food-grade approval, with single certification costs ranging from 20,000 to 100,000 RMB, plus periodic renewals. Additionally, heavy metal testing and carbon footprint calculations further increase expenses.

Why Do Companies Still Choose Recycled Plastics?

Despite higher costs, recycled plastics help businesses:
✅ Comply with environmental regulations and reduce carbon taxes
✅ Enhance brand ESG (Environmental, Social, and Governance) image
✅ Meet international clients' demands for sustainable materials

Looking ahead, as plastic recycle extruder technology improves and economies of scale develop, the cost of recycled plastics may decrease. However, in the short term, their prices will likely remain higher than virgin plastics.

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