Recycled PET Market Stress Is Real — and Domestic Recycling Is at a Crossroads

It is no secret that the PET plastic recycling business in the US is under enormous strain, and NAPCOR Executive Director Laura Stewart recently painted the picture for attendees of this year’s The Packaging Conference in Austin. PET stands for polyethylene terephthalate, which is universally recognized by the #1 inside the triangle.

As noted in the recent Plastics News article, NAPCOR estimates that as much as 16-20 percent of US PET wash capacity has been lost following a series of plant closures in less than a year. Five wash lines have shuttered. Bale prices are depressed. Margins are compressed. Demand signals remain uneven.

At the same time, imports are reshaping the market.

At the conference, Laura noted that at least 25 percent of the recycled PET (rPET) used in the US now comes from overseas, with some estimates approaching 50 percent. Lower-cost imported rPET is flooding the market, putting unprecedented pressure on domestic recyclers.

Yes to International Trade, But Circularity at Home Matters

NAPCOR supports global supply chains. As Laura made clear, “We’re not against global supply chains. We need material. But we also need circularity domestically.”

That means stabilizing demand through mandatory post-consumer recycled content targets and policies that reinforce domestic material flows.

Without stable demand for rPET, it becomes difficult to move bales, sustain operations, or justify investment. As Laura warned, 2026 is not off to a strong start.

Action is Needed Now

Beyond imports, other forces are contributing to the stress on US PET recycling:

• Shifting end markets
• Inflation and tariffs
• Lightweighting
• Brands delaying or retreating from recycled content commitments

When extended producer responsibility (EPR) and related recycling laws are adopted without complementary measures to require the use of post-consumer recycled content, strengthen sorting and collection systems, ensure traceability, and stabilize demand and recycling capacity, domestic recyclers can struggle to compete.

Unless we collectively take measures to ensure a more resilient, transparent, and economically viable domestic circular economy for PET, the strain on the integrity of our domestic recycling system may become untenable, resulting in, among other things, job losses, environmental backsliding, reduced domestic recycling capacity, less material recycled, and reduced circularity.

It is incumbent on all of us—brands, reclaimers, converters, policymakers, and associations—to act intentionally.

Strong domestic recycling systems require stable demand, transparent supply chains, and policy frameworks that align intent with economic reality.

NAPCOR is urging legislators to reinforce domestic material flows and demand for domestic recycled content through specific policies.

To read Laura Stewart’s full comments and explore the complete Plastics News coverage from The Packaging Conference, read the full article here.