PET thermoform recycling

PET Thermoform Recycling Reaches New Milestone, but Circularity Gap Remains

North America’s PET thermoform recycling sector achieved a significant milestone in 2024, with recovery volumes reaching their highest level ever recorded. According to the latest market analysis from NAPCOR, 264 million pounds of PET thermoforms were collected for recovery across the United States and Canada, demonstrating continued progress in the collection of trays, clamshells, cups, tubs and other thermoformed packaging formats.

The result highlights growing success in capturing PET packaging beyond traditional beverage bottles. However, the report also reveals that collection growth alone is not enough to guarantee a fully circular system.

Recovery Volumes Continue to Climb

PET thermoform packaging plays an important role in modern supply chains. Widely used for fresh produce, bakery products, prepared foods and consumer goods, these packaging formats help protect products, reduce food waste and improve transportation efficiency.

NAPCOR’s analysis indicates that the record recovery figure reflects improved sorting capabilities, greater acceptance of thermoforms in recycling programs and a higher proportion of thermoforms appearing in curbside PET bale streams.

The growth is particularly noteworthy because PET thermoform recovery increased by more than 50% compared with the previous year, making it one of the fastest-growing segments within the PET recycling stream.  PET thermoform recycling

Collection Is Growing Faster Than Recycled Content Demand

Despite record recovery rates, the market faces a challenge that has become increasingly common across the recycling sector: demand is not keeping pace with supply.

NAPCOR’s findings show that virgin PET remained the dominant feedstock used by thermoform manufacturers in 2024. While collection volumes increased, the use of post-consumer recycled PET declined compared with the previous year, widening what industry observers describe as a “circularity gap.”

This means more material is being recovered, but not enough is finding its way back into new thermoform packaging applications.

The issue is especially visible in food-contact packaging, where regulatory requirements, material performance specifications and cost considerations continue to limit the use of recycled content in some applications.

Why the Market Is Under Pressure

The PET recycling industry is navigating a difficult economic environment.

Domestic recyclers face competition from imported recycled PET, while fluctuations in virgin resin pricing can affect the competitiveness of recycled materials. NAPCOR has also highlighted concerns about market instability and the need for additional investment in North American recycling infrastructure.

At the same time, policymakers across North America are introducing new measures designed to increase packaging circularity.

Extended Producer Responsibility (EPR) programs, recycled-content mandates and infrastructure funding initiatives are becoming increasingly important drivers of investment decisions throughout the packaging value chain.

As these policies expand, accurate data on collection, processing and end-market demand will become even more critical for manufacturers and recyclers.

PET Thermoforms Are Becoming More Important to the Recycling Stream

Historically, PET bottle recycling has dominated the conversation around PET circularity.

Today, thermoforms are becoming a larger part of the recovery stream. Industry data show that PET thermoforms are increasingly being collected alongside PET bottles, creating both opportunities and challenges for reclaimers.

Most recovered thermoforms continue to be processed through existing PET bottle recycling systems rather than through dedicated thermoform recycling streams.

While this approach supports higher recovery rates, it also creates technical and operational challenges that recyclers must manage to maintain efficiency and product quality.

Technology and Policy Will Shape the Next Phase of Growth

Industry stakeholders increasingly agree that future progress will depend on more than collection improvements.

Advancements in sorting technologies, material processing and chemical recycling pathways are expected to play a growing role in expanding end-market opportunities for recovered thermoforms. At the same time, packaging design improvements could help increase recyclability and reduce contamination throughout the recycling process.

Investment in domestic recycling infrastructure will also be critical. Industry leaders argue that stronger local processing capacity can help reduce dependence on imports while supporting demand for recovered PET materials across North America.

Outlook

The record recovery of 264 million pounds of PET thermoforms demonstrates that collection systems are becoming more effective and that consumers are increasingly participating in recycling programs.

However, the next challenge for the industry is clear: turning those recovered materials into consistent, high-value feedstocks for new packaging.

Closing the gap between collection and recycled-content utilization will require coordinated efforts from recyclers, packaging producers, policymakers and brand owners. Companies that successfully connect recovery, processing and end-market demand will likely be best positioned as circular economy requirements continue to expand across the packaging sector.

KEY TAKEAWAYS

• PET thermoform recovery reached a record 264 million pounds in North America during 2024.
• Recovery volumes increased by more than 50% compared with the previous year.
• Recycled-content utilization remains below industry expectations despite higher collection rates.
• Food-contact regulations and economics continue to limit broader rPET adoption.
• EPR programs, recycled-content mandates and infrastructure investments are expected to shape future market growth.
• The industry’s next challenge is increasing demand for recovered thermoform materials, not simply collecting more of them.
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PET Recycling Market Crisis Exposes Gap Between Sustainability Goals and Economic Reality

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