Plastic Cost: Environmental And Monetary Impact

Plastic is often considered an inexpensive material, with a price of around €1/kg or 20.50 cents per pound. However, this seemingly low cost masks significant hidden costs. The production of plastic has serious environmental and health impacts, with endocrine-disrupting chemicals (EDCs) in plastics posing a threat to public health and costing the U.S. an estimated $250 billion in increased healthcare costs in 2018. Additionally, the price of plastic can vary, with some grades of scrap plastic trading at higher prices and experiencing notable price swings.

The price of scrap plastic

The price of plastic is often quoted at €1/kg, but this doesn't take into account the hidden costs of this 'inexpensive' material. Endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health and cost the U.S. an estimated $250 billion in increased healthcare costs in 2018.

Scrap plastic prices vary depending on the grade of the plastic. In March 2023, Grade A film was trading at 16.94 cents per pound, Grade B film at 7.94 cents per pound, and Grade C film at 0.5 cents per pound. Polypropylene (PP) was trading at 8.13 cents per pound, up from 5.38 cents the previous month. PET, natural HDPE, colour HDPE and PP prices increased by 6%, 10%, 45% and 51% respectively over the same period.

In Europe, the average price of plastic scrap reached its highest value in 2022, at 467 Euros/tonne. This was an increase from 334 Euros/tonne in 2012, with the lowest value reached in 2020 (247 Euros/tonne).

The environmental cost of plastic

The costs of the plastic crisis worldwide are unfathomable. The costs of collecting, sorting, recycling and disposing of municipal plastic waste are estimated to range between $643 billion and $1.61 trillion globally during the 2016-to-2040 period. These costs are mainly borne by municipalities or companies responsible for household waste management, but it is taxpayers who ultimately pay the bill.

The plastic pollution that has accumulated in the global ecosystem since 1950 could cost between $13.7 and $281.8 trillion in damages in the period between 2016 and 2040. This is a conservative estimate, as annual costs are expected to grow with rising plastic production and population growth.

Endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health. Diseases linked to these chemical substances were estimated to annually cost $384 to $403 billion in the US, $44 billion in the EU and $18 billion in Canada in 2010 prices. Adjusted for 2021 and spread over the 2016–2040 period, these costs amount to $11.21 to $11.69 trillion. In 2018, the US health costs related to chemicals in plastics reached $250 billion.

The health cost of plastic

The cost of plastic is not just financial but also has a huge impact on human health. The WWF-commissioned report developed by Dalberg warns that the true cost of plastic on the environment, health and economies can be as much as 10 times higher for low-income countries, even though they consume almost three times less plastic per capita than high-income countries. The report estimates that the total lifetime costs of a kilogram of plastic are around $150 in low- and middle-income countries, which is eight times the $19/kilogram incurred by high-income countries. When comparing just low-income countries and their wealthier counterparts, the cost differential rises to 10 times, with low-income countries hit with costs of $200 a kilogram.

The health costs of plastic are significant. Endocrine-disrupting chemicals (EDCs) in plastics pose a serious threat to public health. These chemicals disturb the body’s hormone systems and can cause cancer, diabetes, reproductive disorders, neurological impairments of developing fetuses and children, and death. In 2018, the US government spent an estimated $249 billion to $250 billion in increased health care costs due to plastic-related exposures. Diseases linked to these chemical substances were estimated to cost $384 to $403 billion in the US, $44 billion in the EU and $18 billion in Canada in 2010 prices. Adjusted for 2021 and spread over the 2016–2040 period, these costs amount to $11.21 to $11.69 trillion. This is likely a conservative estimate, as annual costs are expected to grow with rising plastic production and population growth.

The costs of the plastic crisis worldwide are unfathomable. The costs of collecting, sorting, recycling and disposing of municipal plastic waste are estimated to range between $643 billion and $1.61 trillion globally during the 2016-to-2040 period. These costs are mainly borne by municipalities or companies responsible for household waste management, but it is taxpayers who ultimately pay the bill.

The UN Environment Programme has projected the social and economic costs of global plastic pollution to reach up to as much as $600 billion per year. The reason for the negative health impacts, and the subsequent health costs, is the toxic chemicals that plastics are largely comprised of. Phthalates and PFAS are two additional chemical groups contributing to the high health costs linked to plastics. Phthalates account for $67 billion of the total social costs, while PFAS accounts for $22 billion, according to the study.

The price of plastic per kg

PET, or polyethylene terephthalate, is a common type of plastic used in soda bottles and other packaging. It is lightweight and can be easily moulded, making it a popular choice for the industry. One kilogram of PET can make 80 soda bottles.

The price of plastic per pound

The price of plastic is subject to fluctuations, with some types of plastic experiencing more dramatic price swings than others. For instance, high- and mid-grade films, which typically have stable prices, saw an increase in March 2023, with the national average price of Grade A film reaching 16.94 cents per pound.

The cost of plastic resin has also been high in recent years, with raw material costs reaching record highs. In 2021, the Mintec Global Packaging Index indicated an average cost of 55 cents per pound for plastic packaging materials, the highest price since October 2018.

It is worth noting that the price of plastic is not isolated from the broader market trends. For example, in 2021, the metal and paper markets also experienced similar price spikes, with the most notable raw materials increase occurring in the plastics industry, with a market jump of 6.1% from the previous month.

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