A session on reclaimers at this week’s Plastics Recycling Conference in San Diego reflected a sense of urgency, with industry leaders addressing the pressures on recycling operations and the need for the system to deliver results in a challenging economic environment. “We can’t fail here. We’re all in this, we need to see it work,” said Kate Eagles, program director, policy and markets lead, for the Association of Plastic Recyclers (APR), and moderator of the session.
Her comments captured the stakes facing the sector at a time when economic realities are testing business models across the value chain. Several conference attendees said privately that the overall mood this year felt more subdued compared with past events, reflecting both uncertainty and recent industry developments.
Since the beginning of the year, three major recyclers have announced closures, including Evergreen Recycling, Alpek, and rPlanet Earth. Evergreen’s announcement came during the second day of the conference, underscoring the immediacy of the challenges being discussed.
Market pressures meet new investments
A consistent theme of the panel—and the conference overall—was the rapidly changing market dynamic. Recycled resin prices have fallen, virgin resin remains inexpensive, imports continue to compete with domestic supply, and demand signals are inconsistent across end markets. At the same time, companies are continuing to invest in new recycling capacity, adding another layer of complexity to the current environment.
Anna Rajkovic, circular economy market manager, NOVA Chemicals, spoke about the company’s recently operational film recycling facility in Connorsville, Ind., one of the largest of its kind. With commercialization underway, she acknowledged the timing has been challenging “It’s not a great time for demand,” she said, noting that the company needs stronger market pull for the materials now available.
Rajkovic added that contracts are ultimately a reflection of downstream demand, and voluntary commitments alone may not be enough to drive widespread adoption. Mandates and policy mechanisms could help bring more participants into the market, she said.
The other panelists, representing several resin types, described similar pressures. Paul Bahou, president of Global Plastics Recycling, pointed to competition from low-cost imports in the PET sector, while Bill Jefcoat, director of raw materials procurement, KW Plastics, emphasized the continuing need for greater feedstock availability across regions.
“If we get recycling to everyone, then anything becomes recyclable,” Jefcoat said, referring to broader access to collection programs.
Kristen Rinehart, VP and GM – Recycling for Advanced Drainage Systems, said reclaimers are also dealing with quality challenges tied to packaging design and consumer behavior. Materials that are not designed for recycling or are incorrectly sorted add processing complexity and cost.
Economics remain a central challenge
Throughout the discussion, speakers returned repeatedly to the economics of recycling as the core issue. Rising operating costs, combined with competition from virgin resin and imports, create structural pressure on reclaimers.
Jefcoat described the situation in straightforward terms, calling it “a math problem at the end of the day,” with costs for equipment, labor, and operations increasing while bale pricing dynamics remain largely unchanged.
Rinehart noted that reclaimers often absorb the cost of feedstock variability and conversion. Until recycled materials become more competitive with virgin alternatives, purchasing decisions will continue to be driven by total cost considerations, she explained.
Policy tools were discussed extensively as potential ways to rebalance the system. These included EPR programs, minimum recycled content requirements, and federal incentives such as the proposed CIRCLE Act tax credit for recycling infrastructure. Panelists agreed that a combination of mechanisms will likely be necessary.
Design decisions drive downstream cost
Upstream packaging design emerged as one of the most significant cost drivers affecting reclaimers. Bahou said post-consumer recycled material carries avoidable expense because of contamination and non-recyclable components entering the stream.
“There’s stuff that doesn’t have to be there. You get yield loss that you don’t have to have,” he said, explaining that eliminating problematic materials would reduce processing losses and lower costs.
He added that policy approaches such as EPR could help address materials that introduce unnecessary complexity into recycling systems.
Supply and demand must advance together
While increasing collection remains an industry priority, speakers emphasized that supply alone will not stabilize markets. Demand development is equally critical.
Rajkovic described recycled content as one of the more accessible pathways for companies seeking to meet sustainability goals compared with redesigning entire packaging formats. Even when recycled resin carries a premium, the overall impact on finished product cost can be relatively small.
Panelists also highlighted durable goods as an important and stable end market for recycled plastics. Long-life applications such as infrastructure products can keep materials in circulation for decades and support long-term circularity.
As the session wrapped up, Bahou referenced an earlier moment from the morning, when a fire alarm sounded at the conference center before programming began. He used it as a metaphor for the current state of the recycling industry and the urgency to act. “The fire alarm is on,” he said. “Let’s fix it.” PW
