PET Price Volatility Drives Expansion of Bottle-to-Bottle Recycling in Thailand

The fluctuating market price of virgin PET is prompting Thailand's beverage industry to accelerate its transition to a bottle-to-bottle recycling model. HaadThip, a Coca-Cola bottler in southern Thailand, is expanding its local recycling partnerships to address the challenges posed by uncertainties in virgin PET supply and prices.

The price of virgin PET is affected by the costs of raw materials such as crude oil, naphtha, PTA, and MEG, as well as changes in international shipping, exchange rates, and global supply and demand. This volatility makes production costs unpredictable for bottlers. In contrast, locally recycled post-consumer PET (rPET) offers a more stable supply source, reducing reliance on imported virgin materials.

HaadThip's collaboration with local recycling enterprises strengthens the collection, sorting, cleaning, and pelletizing of post-consumer PET bottles, which are then used to produce new beverage bottles, achieving a true "bottle-to-bottle" cycle. This initiative aligns with Coca-Cola's global sustainable packaging goals to increase recycled materials, reduce carbon footprints, and promote a circular economy.

The Thai government supports this transition by encouraging circular economy models and improving policies like extended producer responsibility, creating opportunities for the rPET market.

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