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In our consumer-driven culture and economy, we rarely give a second thought about our waste footprint. Yet according to industry experts, per-capita waste generated in North America is approximately 2.5 kilograms daily. Worldwide, the figure will only increase, inspiring recycling firm TerraCycle to offer a bold new solution: scale up the recycling infrastructure to include virtually any product that we touch. This groundbreaking proposition is at the heart of why you should invest in TerraCycle stock.
Currently, the broader recycling industry has massive end-result inefficiencies. Yes, we have a “culture” of recycling in the sense that we separate unrecyclable garbage from recyclable goods, putting waste into their appropriate containers. However, this creates two problems: first, the garbage that we throw away ends up in landfills, and second, our recyclable goods often end up in someone else’s landfill.
Indeed, the waste problem has severe geopolitical implications. Last year and prior to the novel coronavirus pandemic, The Atlantic sounded the alarm, noting that for decades, China has taken the bulk of our recycling raw materials. But increasingly, China and many other developing nations have restricted or rejected America’s trash.
Therefore, we may eventually find ourselves being suffocated with our own waste, recyclable or otherwise. Further, most waste products are traditionally considered unrecyclable, thus accelerating our trash crisis. Hence, this is why forward-thinking investors have sought how to invest in TerraCycle stock.
To summarize, here are the three key reasons why you should consider this particularly compelling equity crowdfunding opportunity:
- Help solve a rapidly accelerating waste production crisis
- Partnerships with major corporations
- Purpose-driven business for a purpose-driven generation
Below, we’ll discuss in greater detail why this private investing offer can change the trajectory of waste management.
Invest in TerraCycle Stock to Advance a Necessary Cultural Shift
As I mentioned above, every person in North America on average produces 2.5 kilograms (that’s slightly more than five-and-a-half pounds) of waste every day. What may surprise people is that much of this collective garbage gets sent to other countries. However, as developing parts of the world grow their economies, they don’t want to put up with this indignity.
Who can blame them? But that’s not the worst problem. When these nations shift their economies from elemental, agrarian- or commodity-based commerce to advanced manufacturing or even technological, their consumer base will be elevated in terms of purchasing power.
As we saw with the almost miraculous ascent of China, when people have money to spend, they consume. And when they consume, that leads to greater waste. Therefore, the idea to invest in TerraCycle stock isn’t just centered on profitability concerns, as is the case with many equity crowdfunding opportunities. No, we desperately need a solution.
What separates TerraCycle from the crowd is its unique ability to repurpose previously unrecyclable goods that would ordinarily end up in landfills into economically viable end products. Better yet, this mission statement isn’t just pie in the sky. Multiple blue-chip organizations, including Colgate-Palmolive Company (NYSE:CL) and PepsiCo (NASDAQ:PEP), have partnered with the innovative firm.
Really, even taking aside the profit motivation, both corporations and regular people see the writing on the wall. According to Rubicon.com, 90% of all solid waste in the U.S. does not get recycled. Thus, TerraCycle’s CEO, Tom Szaky, believes his underlying business is “the biggest and most powerful tool for change.”
But it’s not just the operational side of recycling that he’s concerned about. Rather, with his concept, Szaky would like everyone to rethink the idea of the consumption and waste process. By eschewing one-use containers for multi-use ones, individual consumers can participate in meaningful social change.
For example, think about Starbucks (NASDAQ:SBUX) and its reusable coffee cup policy: consumers save a little and Starbucks can mitigate some of their overhead costs. As well, we have collectively less waste. Bring this concept to scale and you’ll likely promote wholesale efficiencies. Thus, you can also see why so many want to invest in TerraCycle stock.
Like any equity crowdfunding opportunity, there are many risks involved with TerraCycle. First, private investing offers are usually illiquid. Therefore, if you invest in TerraCycle stock, you’re basically committed for the long haul.
Further, due diligence is a must for any investment. But for equity crowdfunding, this takes on greater importance due to the lack of information available relative to blue-chip investments. Therefore, you should think carefully before diving into private investing.
On the business end, the catalyst to invest in TerraCycle stock seems like a no-brainer. As detailed above, you have a critical crisis driving the narrative. If we don’t solve the problem, at some point, our rabid consumption will be our downfall.
Here, the purpose-driven millennial generation is a major plus for TerraCycle. This and the emerging Gen Z will likely lay the groundwork for positive climate change policies. With TerraCycle’s myriad solutions, the company offers easy, perhaps even fun ways to participate in ethical climate-friendly behaviors.
But the problem is getting the rest of America – including millennials – to get on board with the program. Again, according to Rubicon.com, “The U.S. recycling rate is around 34.5%. If we’re able to get the rate to 75%, the effect will be like removing 50 million passenger cars from U.S. roads.”
Clearly, for those who are on the fence on whether they should invest in TerraCycle stock or not, this recycling participation rate must move higher. Supposedly, the people are willing. However, the coronavirus has thrown a wrinkle into this assumption.
As you know, we have quite a few Americans that are raising a fuss about wearing a face mask. If such a simple thing causes uproars, recycling initiatives may not achieve much participation.
A Groundbreaking Solution
At the end of the day, I believe many will come to the conclusion that the good far outweighs the bad, and therefore invest in TerraCycle stock. Someone has to create a solution to this global crisis. Here, TerraCycle is both a thought leader and platform provider.
If you’d like to take a shot, visit TerraCycle’s investor page website. Shares are offered as Regulation A securities, which are exempt from Securities and Exchange Commission registration. Please note the nuances associated with Regulation A stocks, as well as TerraCycle’s own disclosed risk factors.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.