Recycled resin market – Global recycled resin market struggles as Eastman and Indorama brace for weaker demand but hope long-delayed recovery finally sparks long-awaited industry rebound 19-11-2025
Recycled resin market – Eastman focuses on capacity expansion while delaying second US recycling plant
Eastman, headquartered in Tennessee, is taking a strategic approach to growth in the recycled resin market. The company remains committed to its contractual recycling volume requirements, largely supported by ongoing capacity expansions at its Kingsport methanolysis plant. CEO Mark Costa recently explained that Eastman is executing a series of debottlenecking projects that could increase Kingsport output by around 30%.
This expansion is designed to keep Eastman on track while the company evaluates the timeline for its second planned US methanolysis plant in Longview, Texas. Construction on the Longview project has been delayed, but Eastman intends to use the Kingsport improvements to identify efficiencies and guide future investments. recycled resin market
Costa noted that the company has added new capacity to its Tritan resin line, allowing Eastman to allocate certain production assets to RPET whenever needed. While no firm timeline was offered for Longview, Costa suggested updates may be available early next year.
PepsiCo contract shifts volumes into 2026
A crucial driver for Eastman’s long-term recycling plans is its offtake agreement with PepsiCo, intended to support large-scale production for packaging applications. PepsiCo recently revised its PCR goals and extended its timelines—changes that affected the rollout schedule of RPET volumes.
Eastman is now working with Pepsi to move contract deliveries into 2026. Even with the delay, Costa emphasized that Kingsport has the ability to meet PepsiCo’s requirements once expanded. He added that despite market challenges, the contract remains strong and sufficient to support the scale of a second large methanolysis plant. recycled resin market
This is particularly important given that domestic PET recyclers in the United States continue to feel pressure from cheaper imported resin from Asia. These imports make it more difficult for recyclers to balance sustainability commitments with cost-competitive manufacturing.
Packaging vs. durable goods: PCR adoption varies with economic conditions
Eastman has long described its plan to broaden recycling applications from durable goods into packaging. However, economic softness and slow consumer-durable sales have delayed market progress. Costa explained that many durable goods incorporate copolymers and specialty Tritan materials, but volumes remain below expectations due to weakened housing markets and restrained consumer spending.
Within the recycled resin market, typical PCR content ranges between 50% and 75%, depending on brand commitments. When economic pressure is high, adoption tends to shift toward the lower end of this range due to the premium associated with PCR materials.
Still, Eastman says brand engagement remains strong, with commitments nearly complete and only one customer reducing its obligations. The company expects significant volume increases once demand for appliances and other consumer durables rebounds.
Indorama reports steep earnings decline as global disruptions reshape the polyester chain
On the other side of the Pacific, Indorama Ventures reported a 33% year-over-year drop in Q3 EBITDA to $285 million, accompanied by a 9% reduction in sales volumes. The company cited fundamental structural shifts in the global polyester and recycled resin market, including high energy prices in Europe and major feedstock cost differences between the East and West.
Indorama expects polyester-sector earnings in 2025 and 2026 to remain weak, influenced by uneven tariff policies, supply chain fragmentation, and persistent overcapacity. As part of its strategy to reduce losses, the company has closed its Montreal PTA plant, a key supplier of PET feedstock.
Management described the global chemical sector as entering a new economic era shaped by geopolitical tension, shifting consumer behavior, and environmental pressures. As the market rebalances over the next one to two years, Indorama anticipates consolidation and partnerships across the value chain.
Pent-up demand remains the common hope for recovery
Both Eastman and Indorama see parallels between today’s environment and the travel rebound that followed the COVID slowdown. They believe demand that has been delayed by macroeconomic uncertainty will eventually return, supporting growth in the recycled resin market and stabilizing global supply chains.
While the timeline remains uncertain, both companies continue preparing for eventual recovery—positioning themselves for stronger volumes once market conditions improve.
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