How does closed-loop packaging differ from standard recycling? What are its potential benefits – and what obstacles might lie ahead? These are just some of the questions answered by Kiilto packaging specialist Heidi Kähkönen, who says she never fails to be enthused by the topic.
Kähkönen points out that the goal of closed-loop recycling is to promote the circular economy.
“By closed-loop packaging, we mean a system in which used packaging is collected and processed into recycled plastic, which is then used to manufacture new packaging for the same purpose. The aim is to keep valuable materials in circulation without them ending up incinerated or in landfill.”
How does closed-loop packaging differ from standard recycling?
“With the recycling of household plastic packaging, for instance, the resulting recycled plastic usually contains multiple plastic types. Consumer packaging can also be contaminated with various unwanted substances. The quality of recycled plastic depends on the efficiency of sorting and cleaning during the recycling process.”
What are the benefits of closed-loop recycling?
“In a closed-loop system, the desired material is collected separately, so that the source of the recycled plastic is known, and the material is cleaner from the outset. This simplifies the recycling process.
A closed-loop system helps maintain the quality of recycled plastic at a sufficiently high level, allowing it to be reused in more demanding products.
Additionally, closed-loop recycling allows plastic to be reused within the same geographic area where the products are used.”
What are the key stages of closed-loop recycling?
“The closed-loop process typically includes the following stages:
- Collection: Used packaging is rinsed and sorted into a designated collection container.
- Transport: Empty packaging is collected and delivered for recycling.
- Recycling and reuse: After cleaning, the packaging can either be reused as is or processed into plastic granules and used to manufacture new packaging.”
What kind of collaboration does closed-loop recycling require?
“A successful closed-loop system requires collaboration between multiple stakeholders. It’s crucial to involve product users – customers who are willing and able to collect empty packaging, ensuring they have sufficient space for storage. We worked with a diverse group of participants on the pilot, including Hämeenlinna Osuusmeijeri cooperative dairy and Valio in the field of industrial services, Juvenes and Perho Culinary, Tourism & Business College in the field of food services, the City of Kotka, the City of Hamina, the University of Helsinki and LTQ Partners in the field of professional cleaning services, and CC-Tukku in the field of retail and distribution.
In addition to these partners, a waste management company or another entity capable of organising logistics is needed. In our pilot, LHJ Group handled this role. The next crucial partner is the recycling processor, responsible for converting used packaging into reusable materials. In this case, Lassila & Tikanoja took on this task. Finally, we needed a packaging manufacturer, which in this pilot was Muovi-Heljanko.”
Why did Kiilto want to trial closed-loop packaging?
“It’s essential to constantly seek new solutions that reduce resource consumption, lower environmental impact and promote more sustainable consumption. Existing practices must be questioned and alternative solutions explored. Without testing new approaches, we can’t learn what works well and what still needs improvement. That’s why we embarked on this pilot project.”
How well did the pilot succeed? What did we learn?
“The pilot was a great success – we successfully produced new packaging from the collected materials. Trying something for the first time is never easy or straightforward. There were many discussions and agreements needed between different partners. However, we managed this well, and we are very pleased with the outcome.
The pilot raised important questions, particularly regarding logistics. For example: Could compactors be installed at collection sites to allow larger volumes of plastic to be collected while reducing empty space in transport? How should small-scale collection sites be managed? Could recycling companies receive financial compensation for collected plastic? Could plastic collection be free of charge for participants? How can we ensure that the cleanest plastic fractions are directed towards applications that require high purity levels?
These are major questions that require discussion across the entire value chain.”
What are Kiilto’s plans for packaging? Will the pilot continue?
“We’re always on the lookout for more sustainable raw materials and packaging solutions. Our goal is that by 2025, 70% of our packaging will be reusable, made from recycled materials, or sourced from renewable materials.
Additionally, we are committed to reducing packaging material per tonne of product each year, and we are piloting refillable packaging solutions – even for smaller package sizes.
We have also tested consumer readiness for refillable packaging, and we’re conducting trials on refilling cleaning product bottles in professional cleaning settings.
We closely monitor the willingness of different customer groups to adopt new circular economy solutions. Although this specific closed-loop pilot will not continue in its current form, we’ll apply the lessons learned and explore how to expand our network further.”
What three wishes does the packaging specialist have following this pilot?
“First, I’d like to see more real action taken, and more open discussion. This also means talking about costs. Building more sustainable operating models doesn’t come cheap, but what could be more important than investing in the future? It’s clear that we must learn to do things in a way that’s better for the environment. If we don’t experiment, we don’t learn. Collaboration and investment are needed, or otherwise we risk paying a much higher price in the long run.
Second, I hope we can find more businesses and organisations willing to collect plastic for closed-loop recycling. There is high demand for recycled plastic, and reaching the necessary collection volumes is essential for making closed-loop systems viable and appealing across the entire network, where efficiency and cost remain key factors to improve on.
Finally, I hope that closed-loop packaging will enable the use of recycled plastic even in our products with the highest quality and safety requirements, such as cosmetics and medical devices.”
Can Kiilto provide guidance on closed-loop recycling?
“Absolutely! We’re happy to share our experiences from the pilot project. Anyone interested is welcome to contact me.”
Further information:
Heidi Kähkönen
Packaging Development Manager
Heidi.kahkonen@kiilto.com
+358 40 837 0830