Before Calling rPET “Food Grade,” Read the Conditions

More recycled PET (rPET) is being offered for food packaging, but not all recycled materials are suitable for the same applications. The term “food grade” can be misleading if the conditions attached to the relevant regulatory opinion are overlooked.

As of early October 2026, the FDA's public database contained 471 favorable opinions, with several new PET entries added in September. A September 3 letter for Changzhou Dyun Environmental Technology covers physically recycled PET for contact with certain dry foods, including raw fruits, vegetables and shell eggs, under room-temperature, refrigerated and frozen conditions. Other recent opinions cover broader food types and more demanding applications, including high-temperature sterilization and cooking above 250°F. A chemically recycled PET process received a favorable opinion for all food types under the conditions already authorized for PET.

A material suitable for dry-food packaging may not be appropriate for a hot-filled beverage, an oily prepared meal or a tray intended for reheating.

The FDA assesses recycling processes individually, taking into account feedstock controls, potential contamination and the effectiveness of the recycling process. Meeting resin specifications, including intrinsic viscosity and color, does not in itself establish suitability for food contact. Processors must also check the permitted food types, temperatures and packaging configurations, including whether direct contact is allowed or an effective barrier is required. Changes to feedstock or recycling conditions may also affect the scope of an existing opinion.

The term “FDA approved” should also be used with caution. The agency's letters express no objection to material produced through a specific recycling process under stated conditions. They do not provide blanket approval for every grade or application offered by a supplier.

In early October, activity for US post-consumer PET bales picked up a little on the West Coast but stayed tepid in the Midwest, and export demand was soft. Prices held flat, with curbside bales at around 3.00 cents per pound EXW Los Angeles, 2.25 cents EXW Chicago and 4.00 cents EXW US Southeast. Clear rPET flakes were priced at around 59.50–60.50 cents per pound, while food-grade rPET pellets were heard at around 78 cents per pound in Los Angeles, maintaining a premium to clear flake.

For virgin PET, peak season has ended and no major increase in US demand is expected in the fourth quarter, even with some holiday demand for bottled beverages. No price increases have emerged for October or beyond, and PET buyers surveyed by Townsend expect a volume-weighted average decrease of 0.6 cents per pound in October, but that could change.  Feedstocks Paraxylene and PTA had not settled for September or October by the time the survey was completed, and current indications are that both benchmarks combined will settle significantly higher.  Imported PET prices continue to be supported by elevated freight rates.

Supply is a concern for industry consultants. The US does not manufacture enough PET to meet domestic demand and depends heavily on imports, which current tariffs make more expensive without removing the need for them. Chinese PET production rates have dropped to around 55% amid tight PET and MEG supply, and inventories that once cushioned the market are being depleted. In Asia, the price gap between virgin and recycled PET reached zero for the first time since May. According to a recycling industry source, this has not yet changed virgin PET resin consumption because of the lengthy qualification process.

A favorable FDA opinion remains valuable qualification evidence, but processors still have to connect the conditions in that letter to the package, filling process, food type and expected consumer use. The phrase “food grade” on its own does not answer those questions.

For more insights into recycled plastics and wider industry developments, explore our Townsend’s Plastic Market Monthly. Contact us to learn more.

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