The American plastic recycling sector is undergoing one of the most difficult periods in its history in early 2026. According to the latest market reports, domestic recycling plants are facing a “perfect storm”: historically low virgin plastic prices combined with cheap overseas imports are making domestic processing economically unsustainable. Data from the National Association for PET Container Resources (NAPCOR) highlights that while sustainability pledges are increasing, domestic demand for recycled PET (rPET) has dropped drastically as the price gap widens.
The structural crisis of the U.S. PET market is not new, but by 2026, it has reached a critical point where the survival of basic infrastructure is at stake. Processors argue that market mechanisms currently reward more polluting solutions, while domestic rPET producers are increasingly forced to reduce capacities or close their plants.
The Dominance of Virgin Plastic: Why is New Cheaper than Old?
The report points out that the price of virgin PET in the United States has fallen to a level that is impossible to compete with, given the high energy and labor costs of the recycling process.
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The Natural Gas Effect: The bounteous and inexpensive supply of shale gas in the U.S. keeps the energy costs of manufacturing new plastic extremely low.
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Overproduction: The expansion of global petrochemical capacities has brought an oversupply to the market, further pushing down the price of virgin polymers.
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Price Gap: While the prices of virgin and recycled materials were relatively close in 2022, by 2026, the difference has reached a point that most food and beverage companies are no longer willing to pay as a “green premium.”
Import Pressure: Overseas rPET Floods the States
For domestic recyclers, the final blow comes from imports. According to the report, recycled flakes and regranulates arriving from Asia (primarily China and Vietnam) and South America are significantly cheaper than American production.
Reasons for this, based on the source:
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Lower Operating Costs: Overseas processors operate with significantly lower wages and environmental compliance costs.
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Logistical Anomalies: In certain cases, even with ocean shipping costs included, imported rPET is cheaper than raw material transported domestically by truck.
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State Subsidies: Some exporting countries indirectly subsidize waste processing, distorting global competitive conditions.
The NAPCOR Report: Stagnating Recycling Rates
According to NAPCOR’s latest data, the recycling rate for PET bottles in the United States remains stagnant at around 29%. This value falls far behind European or Californian figures (where deposit-return systems are utilized).
Critical points from the report:
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Collection Efficiency: Due to the fragmentation of collection systems, the quality of incoming raw material is often poor, which increases processing loss.
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Capacity Utilization: U.S. recycling plants are currently forced to leave a significant portion of their capacity idle, as brands prefer cheaper virgin material or imports for their packaging.
Sustainability Pledges vs. Economic Reality
The “Sustainability Paradox” dominates the sector: while major food brands have publicly committed to using 25–50% recycled plastic by 2025 or 2030, in practice, procurement decisions continue to be dominated by price.
Unless there is policy intervention—such as mandatory domestic recycled content requirements (PCR mandates) or environmental equalization mechanisms on imports—the American recycling infrastructure could suffer irreversible damage. Experts warn: if these plants close, there will be no one to turn to for recycled raw materials when the economic cycle eventually shifts.
Official Sources and References:
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Industry Organization: NAPCOR – National Association for PET Container Resources
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Federal Data: EPA – Facts and Figures about Materials, Waste and Recycling
