The State of Post Consumer Recycled Materials

Post Consumer Recycled (PCR) materials are used in everything from carpet fibers and outdoor furniture to packaging for cleaning supplies and cosmetics. Food-grade PCR is available but must compete for this limited supply. Image courtesy of Plastic Ingenuity
When Growing Demand Doesn’t Guarantee Higher Prices – or Greater Supply
By Zach Muscato, Corporate Sustainability Manager at Plastic Ingenuity
Post-consumer recycled (PCR) resins are an ideal solution to limit virgin plastic use, reduce environmental impact, and increase packaging circularity. But the PCR supply has flattened, and despite the economic law of supply and demand, market prices are historically low. It will take a multi-pronged approach to topple existing systemic barriers and revitalize the input stream.
The State of PCR

Post-consumer recycled (PCR) resins are an ideal solution to limit virgin plastic use, reduce environmental impact, and increase packaging circularity. Image courtesy of Plastic Ingenuity
PCR materials, including PET, PP, HDPE and some others, are commonly used in durable goods like T-shirt and carpet fibers, composite lumber, and retail packaging for products ranging from food and drinks to electronics.
PP (polypropylene) is a popular choice for packaging applications, yet the overall recycling rate for rigid PP containers remains low, at 8% in the U.S.1 An important factor impacting the recyclability of a packaging category is its acceptance rate in community recycling programs. The acceptance rate depends largely on packaging format. Although PP bottles, jugs and jars are accepted at a rate of 76%, formats like clamshells and trays have acceptance rates of 50%.2 A category must have an acceptance rate over 60% to be considered “widely recycled.”3
PET (polyethylene terephthalate) has a robust recycling infrastructure, making it one of the most recycled plastics globally. An impressive 89% of community recycling programs across the U.S. accept PET bottles, jugs and jars.2 Currently, PET thermoforms sit just below the “widely recycled” threshold at 54%, as do PET cups and lids (both 59%)2, so achieving that status is an attainable goal in the relatively short term.
The lower acceptance rate for PET thermoforms reflects structural obstacles. Contamination from look-alike materials, complex material properties and a lack of targeted processing technology can all make PET thermoform recycling more challenging. Similar systemic barriers contribute to PP recycling challenges, although the issues are different. For example, contamination of PP containers is typically caused by food residue. Additionally, many materials recovery facilities (MRFs) lack the advanced sorting technologies required to efficiently separate PP from other plastics in mixed recycling streams.
Brand Commitments Stimulate PCR Demand
International brands, retailers and suppliers are committing to a more sustainable future by setting bold targets for decreasing their use of virgin plastics, shifting to reusable packaging, eliminating use of problematic plastics, designing packaging for recovery, increasing the use of PCR materials, and more. An example is the Ellen MacArthur Foundation’s Global Commitment, launched in 2018. Signatories of the Global Commitment – including businesses representing 20% of all plastic produced globally and over 50 government entities – have undertaken the ambitious goal to make their packaging more recyclable, reusable or compostable, while also integrating higher amounts of recycled content.
The foundation’s most recent progress report acknowledges that while significant progress has been made around the world, more work is yet to be done to achieve a circular economy for plastic. Notably, Global Commitment signatories working toward robust goals have outperformed the market across nearly all target areas where comparable data exists, even if not all ambitions will be met by 2025.4
Why PCR Supply Continues to Lag Behind

International brands, retailers and suppliers are committing to a more sustainable future by setting bold targets for decreasing their use of virgin plastics, shifting to reusable packaging, eliminating use of problematic plastics, designing packaging for recover and increasing the use of PCR materials. Image courtesy of Plastic Ingenuity
Several factors are limiting PCR content incorporation into packaging at scale, including difficulty securing market premiums, competition from imported polymers, recycling variations between jurisdictions, and a lack of infrastructure investments. While solutions are currently being implemented, it will take collective action across the value chain to reinvigorate the PCR supply and secure a dedicated stream for packaging applications.
Goal 1: Decouple PCR pricing from virgin plastic pricing.
Despite increasing consumer demand for PCR and its growing usage in packaging across formats, prices have not risen accordingly. PCR material costs are tied to the cost of virgin plastics, meaning manufacturers can switch back and forth arbitrarily in some market-moving segments. Additionally, with prices uncommonly low, market forces are preventing reclaimers from capturing margins necessary for long-term economic sustainability.
Goal 2: Implement policy changes to subsidize economic investments.
Extended Producer Responsibility (EPR) policies are gaining momentum across the country, with five states currently implementing EPR for packaging laws and nearly a dozen more introducing EPR legislation. Under these mandates, producers are required to provide funding and/or services that assist in end-of-life management of covered products, including collection, sortation and processing. Well-designed EPR policies are essential to create favorable conditions for a plastic circular economy.
Goal 3: Improve recovery and recycling rates.
EPR and other policy measures can help incentivize or require design for plastic recovery, reuse and recycling; mobilize financing and investments in waste management infrastructure; and set standards and targets for the collection, sorting, reuse and recycling of packaging materials.
Alliance partnerships are also critical in these efforts, from sharing best practices for recyclability to stimulating demand for PCR to advocating for policy changes. Organizations include the Association of Plastics Recyclers (APR), the National Association for PET Container Resources (NAPCOR), the Sustainable Packaging Coalition, The Recycling Partnership, and many more.
Goal 4: Establish certifications and standards for PCR materials.

Several factors are limiting PCR content incorporation into packaging at scale, including difficulty securing market premiums, competition from imported polymers, recycling variations between jurisdictions, and a lack of infrastructure investments. Image courtesy of Plastic Ingenuity
With PCR material imports entering the U.S. market at increasing rates, it’s important to verify that the materials are indeed what they claim to be before using them in packaging. APR has developed a PCR certification program that includes requiring third-party verification to enhance credibility and reduce risk.5
Additionally, the U.S. Food and Drug Administration (FDA) ensures that recycled plastic used in food contact applications is safe for consumers. The FDA performs a thorough evaluation and issues favorable opinions through No Objection Letters (NOL) for food-grade recycled resins. The majority of the NOL’s currently listed in FDA’s searchable database are for food-grade recycled PET, and food-grade recycled PP is an emerging solution.6
Advanced recycling techniques and ISCC PLUS-certified materials also have the potential to unlock new opportunities for using PCR in more types of packaging.
A Future with Less Plastic Waste
A full-circle value chain for PCR materials continues to expand, including package manufacturers, retailers, recycling collectors, MRF operators, reclaimers, and PCR end users. PCR then can be repurposed into many types of new products, significantly reducing its environmental impact and contributing to a circular economy.
According to NAPCOR’s latest PET Recycling Report, the U.S. turned more than 286 million pounds of post-consumer recycled PET into new thermoforms in 2023,7 which were then used to protect and transport food and other important products to consumers. PET thermoforms had, on average, 16.9% PCR content in 2023, up significantly from 10.8% in 2022.7 This momentum with PET, PP and other resins must not only continue, but also accelerate and expand.
Circularity takes time, effort and investment. Now that the deadline for 2025 sustainability targets has arrived, we must do more to get the job done.
About the Author
Zach Muscato is the Corporate Sustainability Manager at Plastic Ingenuity and has dedicated his career to the thermoformed packaging industry. Learn more at https://www.plasticingenuity.com
References
1The Recycling Partnership, The State of Residential Recycling, 2024
2The Recycling Partnership, Community Recycling Program Acceptance Data, Sept. 16, 2024
3Federal Trade Commission Green Guides
4Ellen MacArthur Foundation, The Global Commitment, Nov. 18, 2024
5Association of Plastic Recyclers, APR PCR Certification
6FDA, Searchable List of No Objection Letters
7NAPCOR, PET Recycling Report, 2023