U.S. Plastic Recycling Market Analysis by Material type (Polyethylene Terephthalate (PET), High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC), Low-Density Polyethylene (LDPE), Polypropylene (PP), Polystyrene (PS), Other Plastics (including ABS, Nylon, Polycarbonate)), End Use, Recycling Process, Collection and Distribution Channel: Consumption (Million Tons), Recycling Rate (%), Pricing Technology, Analysis and Forecast Till 2033

Market Overview

U.S. Plastic Recycling Market recorded a volume of 5.73 million tons in 2024 and is estimated to reach a volume of 11.40 million tons by 2033 with a CAGR of 7.6% during the forecast period.
 

 
The anticipated, gradual increase in the U.S. plastic recycling rate, projected to rise from 13% in 2023 to a target of 20% by 2033, heavily relies on the successful commercialization and scaling of advanced recycling technologies. These technologies are becoming essential for the U.S. plastic recycling market. Unlike traditional mechanical recycling, which faces challenges with contaminated, mixed, or multi-layered plastics, advanced methods such as the depolymerization developed by Loop Industries, pyrolysis, and gasification offer the capability to break plastics down to their molecular building blocks or basic hydrocarbons. This innovation significantly broadens the range of recyclable materials, making it possible to divert difficult-to-recycle films, flexible plastics, and mixed waste streams from landfills, converting them into virgin-quality feedstocks for new plastics or fuels.

The strategic importance of this expansion for the U.S. plastic recycling market cannot be overstated. By producing high-value outputs that can serve as direct replacements for fossil-based inputs in chemical and polymer manufacturing, advanced recycling aims to decouple the economics of recycling from the fluctuating commodities market for washed flakes. This shift creates a more stable and potentially profitable value proposition for investors and waste handlers, drawing significant capital into the sector. Therefore, the anticipated gradual rise in the recycling rate is not simply about improving collection; it is intrinsically linked to the planned development of these chemical facilities. Their success will be crucial in determining whether the U.S. plastic recycling market can effectively process the vast majority of plastic waste that currently eludes the mechanical system. As a result, the path of the U.S. plastic recycling market through 2033 will serve as a pivotal test of whether technological innovation can address the systemic economic and material challenges that have kept national recycling rates stagnant for decades, solidifying advanced recycling as the key strategy for achieving meaningful circularity.

Pricing Analysis

The pricing forecast for the U.S. plastic recycling market outlines an anticipated average price increase from $300 per ton in 2023, peaking at $500 per ton by 2030, before gradually declining to $420 per ton by 2033. This trajectory indicates a significant market value re-rating followed by a correction towards a new equilibrium. The sharp price ascent from 2023 to 2025, rising from $300 to $480, marks a transformative period for the U.S. plastic recycling market, driven by favorable policy changes and tightening supply-demand dynamics. 
 

 
This surge is primarily fueled by stringent extended producer responsibility (EPR) laws and ambitious recycled content mandates enacted in several major states, which create guaranteed, inelastic demand for recycled plastic resins such as rPET and rHDPE. At the same time, investments in advanced recycling infrastructure are still in the scaling phase, resulting in a supply lag that pushes prices upward. During this phase, the U.S. plastic recycling market is shifting from being a marginal cost-based commodity to becoming a premium, compliance-driven material.

The plateau and peak expected from 2028 to 2030, where prices escalate from $480 to $500, represent a market reaching a price ceiling. At this stage, recycled plastic will begin to test its economic viability against virgin plastic. The sustained high prices during this time reflect a mature phase of policy-driven demand, although they also indicate rising operational costs for collection and sorting needed to meet purity standards.

The anticipated downturn from 2031 to 2033, moving from $500 to $420, is significant; it suggests the U.S. plastic recycling market is overcoming its initial supply constraints. This price compression is likely the result of a notable increase in both mechanical and advanced processing capacities coming online, along with potential efficiencies and rising competition among recyclers. As prices decline, the market transitions from a supply-constrained, premium environment to a more competitive, scaled commodity landscape, where prices remain supported by mandate-driven demand but are balanced by adequate supply.

Overall, this price arc forecasts a more valuable and stable U.S. plastic recycling market, albeit one that will face cyclical pressures. The long-term price floor is expected to be permanently elevated due to ongoing policy frameworks, ensuring that recycled plastic evolves from being a byproduct to becoming a primary input for manufacturing. The future viability of the U.S. plastic recycling market will hinge on its ability to balance high collection and sorting costs with the economies of scale afforded by new technologies, all while navigating the volatile prices of virgin plastic feedstocks. The forecast indicates a successful scaling of the industry, but emphasizes that effective margin management will be just as essential as pursuing volume growth.

Segmental Analysis

The U.S. plastic recycling market has undergone significant transformations over the past decade, influenced by increasing environmental awareness, tighter regulations, and advancements in recycling technologies. Among various materials, Polyethylene Terephthalate (PET) leads the market with a 35% share, attributed to its prevalent use in beverage bottles, food packaging, and textile fibers. PET’s strong position is bolstered by the efficiency of both mechanical and chemical recycling processes designed for this polymer, along with a heightened demand from industries looking for recycled PET (rPET) to implement sustainable packaging solutions.

 
High-Density Polyethylene (HDPE) follows closely, capturing 28% of the market, primarily sourced from milk jugs, detergent containers, and rigid packaging. The recycling of HDPE benefits from established collection systems and consistent industrial demand, making it a staple within the U.S. plastic recycling landscape. Polypropylene (PP) holds 12% of the market share and has been experiencing steady growth, thanks to its versatile applications in automotive parts, consumer goods, and packaging. Although PP poses more recycling challenges due to its lower density and susceptibility to contamination, recent advancements in sorting technologies and chemical recycling methods have improved recovery rates, thereby enhancing its market presence.

Low-Density Polyethylene (LDPE), responsible for 10% of the market, is mainly derived from films, bags, and flexible packaging. Its recycling is often constrained by contamination and degradation of polymer properties, yet the rise of collection programs and innovations in film-to-film recycling are starting to bolster LDPE’s overall contribution. 

The market shares of Polyvinyl Chloride (PVC) and Polystyrene (PS) are smaller, at 5% and 4%, respectively. Both materials encounter challenges due to hazardous additives released during processing, contamination, and limited demand for recycled outputs. Despite representing niche segments, they are gradually receiving attention through advanced chemical recycling technologies capable of recovering valuable monomers.

Other plastics such as ABS, Nylon, and Polycarbonate collectively account for 6% of the U.S. plastic recycling market. Their diverse but fragmented applications span across electronics, automotive, and specialty consumer products. The adoption of advanced sorting, shredding, and depolymerization technologies is increasingly allowing for more efficient recycling of these materials, broadening the market beyond the traditional PET and HDPE.

Overall, the U.S. plastic recycling market reflects a clear trend toward high-value, easily recyclable polymers, while making strides in addressing previously underutilized or complex materials. This growth is propelled by regulatory mandates at both federal and state levels, extended producer responsibility (EPR) programs, and an increasing commitment from corporations toward sustainable packaging. Investments in mechanical, chemical, and advanced recycling technologies further enhance the market’s ability to manage a variety of polymer types. Coupled with rising consumer awareness and the growing adoption of circular economy practices by businesses, the market is positioned for future expansion, with PET and HDPE maintaining their dominance while emerging materials such as PP, LDPE, and specialty plastics become increasingly relevant through technological and regulatory advancements.

Company Analysis

The key players operating in the U.S. plastic recycling market include Waste Management, Inc., Republic Services, Inc., Custom Polymers, Inc., KW Plastics, Brightmark Energy, Plastics Recycling, Inc. (PRI), and other regional and emerging companies.