The USA plastics recycling industry: a survey of manufacturers and vendors of recycled plastic products

Abstract

Despite efforts spanning more than a decade, plastics continue to be the least recycled component of the USA's municipal waste stream. This study addresses a significant gap in knowledge about the operation of the plastics recycling market by investigating and analysing the characteristics and experiences of manufacturers and vendors of consumer products with recycled plastics content.

The study collected information through a survey of this segment of the USA's plastics recycling industry. The analysis of this information confirmed that the industry, as a whole, is young. Nevertheless, it offers a very wide variety of products. These face stiff competition from virgin resin plastic products, or from other virgin competing materials such as wood and cotton. Recycled plastic products are often more expensive than their competitors. Some manufacturers and vendors, especially the younger ones, addressed this problem by finding a niche market with consumers who are willing to pay a premium for environmentally friendly products. On the other hand, companies whose products are successfully competing against virgin products are more likely to have operated longer, to be vertically integrated (producing raw materials and consumer products), and to be more diversified in the number of resins they handle.

Manufacturers and vendors of recycled plastic products in the USA have gained considerable experience since the early years of plastics recycling. Nonetheless, they continue to face some serious challenges. Operators of materials recovery facilities that process PCR have an important role to play in supporting the industry by improving the quality of their product (i.e. PCR). However, the most important factor for securing continued growth of the industry is the expansion of markets for the industry's products. The responses to the survey indicate that, while there are actions that manufacturers and vendors can take to increase their chances of success, the effect of government policy remains overwhelming. Policymakers can facilitate growth in plastics recycling by stepping up their efforts to implement effective demand-side policies and by adopting policies to internalize the environmental and social externalities of plastics manufacturing and use.