New Media Coverage Highlights Challenges Facing the US PET Plastic Recycling System

Recent media coverage highlights growing pressure on the North American recycled PET (polyethylene terephthalate, universally recognized by the #1 on the packaging) plastic market and the broader implications for the domestic recycling system.

In Argus Media and Plastics News, NAPCOR Executive Director Laura Stewart discussed how a combination of market disruptions, including recycling plant closures, rising imports of recycled material, and uneven demand signals, is creating new challenges for the US PET recycling industry.

Recycling Capacity Loss Raises Concerns

One of the most immediate challenges facing the industry is the loss of domestic recycling capacity. In her interview with Argus Media, Stewart noted that a series of recycling facility closures has significantly reduced the industry’s ability to process post-consumer PET.

Including the recent closures of Evergreen Recycling plants in Ohio and New York, the US PET reclamation industry has announced the full or partial closure of seven PET recycling facilities since January 2025. Even after accounting for new facilities that came online in 2025—D6 Inc. in Longview, Texas, and Republic Services Inc. in Indianapolis, Indiana—NAPCOR estimates these closures represent an estimated 24.5% reduction in US PET recycling capacity.

When recycling infrastructure constricts, the consequences ripple throughout the system. Recyclers may struggle to process collected material, end markets become less reliable, and the circular flow of PET—from bottle to bottle—becomes harder to sustain.

These developments come at a time when the US recycling system is already facing longstanding structural challenges. National PET bottle recovery rates have hovered around 30% for decades, with significant variation across states due to collection systems and policies, such as deposit return programs, also known as recycling refund programs.

Without a reliable collection and processing infrastructure, valuable recyclable material can be lost to landfills or the environment rather than being returned to productive use.

Rising Imports Complicate Circularity

Another factor highlighted in recent reporting is the growing role of imported recycled PET in the US market.

Stewart told Argus Media that imports of recycled PET have risen significantly in recent years, with some estimates as high as 50%. While recycled material is essential to meet demand for recycled content, a growing reliance on imports can create unintended consequences for domestic recycling.

If recycled resin produced outside North America increasingly replaces domestically recycled material, it can weaken the economic signals needed to sustain the recycling infrastructure in the US.

As she explained in Argus Media, when imported recycled PET is used to manufacture bottles sold in the US, the material loop that supports domestic recycling can begin to break down.

“If imports into the US continue to grow and the imported rPET is used in bottles made here, it weakens the circularity flow of material the domestic recycling system depends on,” Stewart said.

A circular economy relies on a functioning system in which materials collected domestically are processed and remanufactured into new products. When that loop is disrupted, the long-term viability of recycling infrastructure can be affected.

A System at a Tipping Point

The pressures facing the PET industry are not caused by any single issue. Instead, they reflect a combination of market and policy dynamics. The Plastics News coverage echoes similar concerns about the broader market environment facing recyclers today.

In recent years, demand for recycled plastic was expected to grow rapidly as companies set ambitious recycled content commitments and sustainability targets. However, economic uncertainty, fluctuating demand, and evolving corporate strategies have complicated that outlook.

These shifts are occurring alongside other pressures facing the recycling sector, including rising operational costs, inconsistent feedstock supply, and policy uncertainty.

Taken together, these factors have created what some industry observers describe as “the perfect storm” for recyclers, particularly those operating facilities designed to produce food-grade recycled PET. As reported by Plastics News:

“When you have those activities happening together, and then you put that on top of the closures that we’re hearing about, that is cause for concern,” Stewart said.

The situation underscores a key point: recycling markets depend on stable supply, consistent demand, and supportive policy frameworks to function effectively.

The Path Forward: Strengthening the System

Despite these challenges, the long-term opportunity for PET recycling across North America remains strong. PET is a valuable material that is designed to be recycled and remade into new products, including new bottles and packaging.

Furthermore, PET plays an important role in keeping food safe, reducing emissions associated with packaging, and supporting thousands of jobs across the recycling and manufacturing sectors. But maintaining a circular system requires the right conditions across the entire value chain, from collection and processing to demand for recycled material.

Policies that improve collection rates and strengthen the PET industry, such as minimum recycled content standards, well-designed extended producer responsibility programs, deposit return systems, and investments in modernized collection systems, can help strengthen domestic recycling infrastructure and ensure that valuable materials remain in the North American economy. Explore these themes in our flyer, From Patchwork to Performance: Scaling Recycling Infrastructure to Meet PET Plastic Demand.

Ultimately, maintaining a healthy PET recycling system benefits everyone, from recyclers and manufacturers to communities and consumers. As she told Argus Media:

“Changing perceptions from ‘plastics are bad’ to ‘PET is recyclable, recycled daily, and valuable’ is part of building a system that keeps PET out of landfills and the environment,” said Stewart.

The industry’s future depends on collaboration across the entire supply chain. Recyclers, brands, producers, policymakers, and industry organizations all have a role to play in ensuring that PET continues to deliver on its promise as a circular, sustainable packaging material.

As recent media coverage makes clear, the industry is navigating a challenging moment. But with the right policy signals, investment in collection infrastructure, and continued collaboration across the value chain, the US PET recycling system can remain resilient and continue moving toward a more circular future.

Read the full Argus Media article here and read the full Plastics News article here.