US PET Recycling Faces Pressure as Rates Slip, Highlighting Urgent Need for Domestic Feedstock, Stronger Policy Support, and Investment to Sustain Circular Packaging Markets 13-12-2025
US PET recycling
US PET Recycling: Domestic Feedstock and Policy Support Remain Critical
The US PET recycling industry remains resilient, but new data shows growing pressure on the system. According to the 2024 PET Recycling Report from the National Association for PET Container Resources, the North American PET bottle recycling rate declined to 30.2% in 2024. While this represents a drop from 32.5% in 2023, it still sits above the decade-long average of 29.5%.
For the US PET recycling sector, the numbers highlight both progress and risk. PET recycling continues to function at scale, yet reclaimers face rising costs, market volatility, and competition from lower-priced virgin resin. Strengthening domestic feedstock supply and supportive recycling policy is becoming increasingly important. US PET recycling
PET Recycling Rates Remain Above Key Benchmarks
Despite the year-over-year decline, PET recycling performance in the US and Canada continues to exceed global benchmarks. NAPCOR reports that the overall PET collection rate reached 39.2% in 2024, well above the 30% threshold established by the Ellen MacArthur Foundation.
This confirms that PET recycling infrastructure across North America remains effective. Collection systems are capturing more material, even as consumption patterns and resin markets fluctuate. For policymakers and brand owners, the data reinforces that PET recycling works when supply chains remain stable and investment continues. US PET recycling
Industry Concerns Over Domestic Reclaimer Viability
While PET recycling rates remain relatively strong, industry leaders are increasingly concerned about the competitiveness of North American reclaimers. In 2024 alone, three PET recycling facilities announced closures, raising alarms about long-term capacity and domestic supply security.
Domestic PET recycling depends on reliable regional feedstock. When reclaimers shut down, more recycled PET must be imported, weakening local circular economies. Prioritizing US-generated PET feedstock is seen as essential for maintaining a truly circular plastics system and protecting recycling jobs.
Thermoform Recovery Shows Significant Growth
One of the most positive developments in US PET recycling is the rapid increase in PET thermoform recovery. In 2024, the US and Canada collected 264 million pounds of PET thermoforms, marking a 52% increase compared to the previous year.
This surge reflects ongoing efforts to expand recycling beyond bottles and into non-bottle PET packaging. Improved sorting technology, including AI-driven optical systems, has allowed reclaimers to better identify and process thermoforms mixed within bottle bales.
However, demand for recycled thermoform material has not kept pace with supply. Unlike beverage bottles, thermoforms face fewer mandatory post-consumer recycled content requirements. As a result, converters often switch between virgin PET and recycled PET based primarily on price and package specifications.
Bottles Continue to Dominate rPET End Markets
Beverage bottles remain the dominant end market for recycled PET in the US. More than 60% of all domestically sold rPET in 2024 was used in bottle production, reinforcing the central role bottles play in PET recycling economics.
Overall rPET sales declined by 3% compared to 2023, while imported rPET made up 23% of total supply. Increased volumes of virgin PET resin entering the market placed downward pressure on recycled content usage, despite strong sustainability commitments from brands.
The average recycled PET content in US bottles measured 15.9% in 2024. Although this figure remains above the prior three-year average of 13.7%, it fell from 2023 levels due largely to the lower cost and higher availability of virgin PET.
Policy Support Drives Recycled Content Adoption
High prices for premium domestic rPET continue to challenge broader adoption. Mandatory recycled content requirements are emerging as one of the most effective tools to counter this trend.
California’s recycled content mandate, which requires 25% rPET in bottles by 2025, has already driven a significant increase in recycled PET usage. The requirement will rise to 50% by 2030, potentially triggering another surge in demand as brands prepare to comply.
Such policies help stabilize US PET recycling markets by guaranteeing demand, supporting domestic reclaimers, and reducing reliance on imported materials.
Improved Process Efficiency and New Feedstock Sources
The 2024 report also highlights meaningful improvements in PET recycling efficiency. The share of usable material recovered from PET recycling increased from 81.5% in 2023 to 85.2% in 2024, reflecting better sorting, processing, and material utilization.
Additionally, US and Canadian reclaimers processed nearly four times more non-traditional feedstock than the previous year. This growth was driven by depolymerization technologies, a form of chemical recycling that operated at scale for the first time in 2024.
These technologies expand the range of materials that can be recycled, helping offset feedstock shortages and strengthening overall PET recycling resilience.
The Path Forward for US PET Recycling
The latest data confirms that US PET recycling remains one of the strongest mechanical recycling systems globally. However, sustaining progress will require continued investment in recycling infrastructure, smarter policy frameworks, and stronger domestic feedstock strategies.
With rising thermoform recovery, improving process efficiency, and policy-driven demand for recycled content, PET remains well positioned as a leading material in the circular economy. The challenge now is ensuring that domestic recyclers remain competitive as markets evolve.
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