American recycling needs a level playing field against lower-cost imported plastic

America’s ability to build a circular economy depends on a whole systems effort: consumers recycling responsibly, recycling companies investing in processing infrastructure to produce quality materials and brands committing to use recycled materials in their packaging. It’s a delicate balance requiring dedication and investment from all stakeholders. 

Several troubling trends emerged in 2025 that are threatening to upend the economics of a fragile ecosystem that underpins much of the country’s recycling efforts, particularly plastics recycling.

The problem: unverified imports

Recycled polyethylene terephthalate (rPET), a high-value plastic made from recovered PET, also known as No. 1, bottles, is the backbone of the American plastic recycling system. Domestic recyclers face mounting pressure from lower-cost imported virgin PET and rPET, which increased 8 percent in 2025, according to London-based Independent Commodity Intelligence Services. In the second quarter alone, 910 million pounds of PET and rPET were imported, for about an 11 percent increase year over year.

This influx of imports has real-world consequences for U.S. manufacturing. Domestic recyclers, who must meet strict quality and traceability standards, also are being undercut by imported materials that do not face the same scrutiny. Recycled PET from Southeast Asia is neither transparent nor traceable, with questions about whether it’s truly recycled material.

The result: American plant closures

In May 2025, Alpek Polyester announced it was shutting down its operations in Fayetteville, North Carolina, displacing 180 workers. In September, Vernon, California-based rPlanet Earth, responsible for 4 percent of U.S. rPET capacity, closed permanently, costing hundreds more jobs.

The Washington-based Association of Plastic Recyclers attributes rPlanet Earth’s closure to brands pulling away from recycled content commitments and opting for cheaper, imported rPET to meet regulatory requirements.

When brands scale back on recycled content goals, the entire recycling system is jeopardized. PepsiCo and Coca-Cola have reduced their recycled-content targets from 50 percent by 2030 to 35-40 percent by 2035. Walmart acknowledged it did not meet its 2025 plastic packaging reduction and recyclability goals.

These decisions weaken demand for rPET and discourage investment in domestic recycling infrastructure, from material recovery facilities to community collection programs. Claims of “scarcity of supply” are unfounded; our industry is investing billions to collect and process more PET than ever before.

When brands scale back on recycled content goals, the entire recycling system is jeopardized.

The solution: policy reform

To protect American recycling and restore public trust, the National Waste and Recycling Association urges that a number of actions be taken:

• establish and enforce traceability standards for domestic and imported rPET, including third-party certification and country-of-origin reporting;
• prioritize domestic content in recycled material mandates to support U.S. jobs and infrastructure;
• support domestic recyclers through procurement policies that favor verified U.S. recycled content; and
• encourage brand accountability by requiring transparent reporting on recycled content sourcing.

The California Beverage Container Recycling and Litter Reduction Act, S.B. 633, if passed, is a step in the right direction, requiring beverage manufacturers to report the percentage of imported postconsumer recycled plastic and the country of origin.

If we fail to act, the promise of the circular economy might never be realized. That is a risk for U.S. manufacturing jobs, public health, environmental progress and the future of our domestic recycling system.