The cost of recycling paper: Understanding the economics of a sustainable future

Cube of compressed paper at Berkeley recycling center credit Chiara Coetzee
Sustainability

Recycling paper is a crucial step in reducing our impact on the environment. It saves trees, reduces energy consumption, and cuts down on waste. However, recycling paper also comes at a cost. While it may seem like a simple process, there are several factors that contribute to the price of recycled paper.

One of the most significant factors is the quality of the recycled paper. As the recycling process causes paper fibres to break down, the quality of the recycled paper decreases. This means that either a higher percentage of new fibres must be added, or the paper is down-cycled into lower quality products. Down-cycling is the process of using recycled materials to create products of lesser quality or value than the original product. For example, recycled paper may be used to make tissues, toilet paper, or cardboard boxes.

Another factor that affects the cost of recycled paper is the availability of raw materials. The demand for recycled paper is high, but the supply is limited. This is because not all paper can be recycled, and not all recycled paper is suitable for reuse. In some cases, the paper may be too contaminated or may contain too many impurities to be recycled.

The cost of recycled paper also varies by region. In Germany, for example, the price of recycled paper was €100/£49 per tonne in 2003. This was typical for the time, but prices have fluctuated since then. The price of recycled paper is influenced by many factors, including the cost of raw materials, energy prices, and labour costs.

Cube of compressed paper at Berkeley recycling center credit Chiara Coetzee
Cube of compressed paper at Berkeley recycling centre © Chiara Coetzee / Public Domain

Despite the challenges, the benefits of recycling paper far outweigh the costs. Recycling paper saves energy, conserves natural resources, reduces greenhouse gas emissions, and reduces landfill waste. In addition, it creates jobs in the recycling industry and stimulates local economies.

To ensure a sustainable future, it is essential that we continue to invest in recycling infrastructure and technology. By doing so, we can reduce our impact on the environment while creating economic opportunities and promoting a more sustainable future for all.

Latest Packaging News

Demand soars for Packaging Innovations & Empack 2026 visitor passes
Events

Demand soars for Packaging Innovations & Empack 2026 visitor passes

Packaging professionals rush to register for 2026 show, driven by a focus on disruptive thinking...
Advancing innovation, integrity, and collaboration in the global supply chain
Events

Advancing innovation, integrity, and collaboration in the global supply chain

World BI invites you to the premier global summit for clinical supply chain innovation and...
Packaging in 2025: what shaped the year
Business

Packaging in 2025: what shaped the year

A year in review for the packaging sector As 2025 draws to a close, we’ve pulled together a short...
WEPACK 2026 set for Shenzhen with eight concurrent shows and 120,000 sqm exhibition space
Events

WEPACK 2026 set for Shenzhen with eight concurrent shows and 120,000 sqm exhibition space

The global packaging industry's flagship event, WEPACK World Expo of Packaging Industry 2026, will...
2026 to be a year of growth for Sovereign Labelling Machines
Supplier News

2026 to be a year of growth for Sovereign Labelling Machines

The UK-based manufacturer of labelling and sleeving solutions has its sights set on further...