A new report has found that while companies are making measurable progress on recycled content in packaging, significant barriers in supply and infrastructure could prevent many from meeting their targets.
The findings are from the U.S. Packaging Recycled Content Goals Analysis, published by AMERIPEN and prepared by Circular Matters. It was funded by the Recycling is Real initiative from the Plastics Industry Association.
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The analysis draws on data from 46 consumer packaged goods (CPG) companies, national trade associations, and state laws, assessing how corporate sustainability goals compare with the current and future capacity of the US recycling system.
The report updates a 2021 study and aims to provide a clearer understanding of how recycled content targets intersect with recyclability, material availability, and processing capabilities.
Progress on plastic packaging, but shortfalls remain
The report shows that companies with stated goals have, on average, more than doubled their use of post-consumer recycled (PCR) content in plastic packaging — from 5.3% in 2019 to 10.7% in 2023.
However, it warns that even with recent increases in reclamation capacity, the U.S. is not on track to meet 2025 targets, particularly for polyethylene terephthalate (PET), a common plastic used in bottles and containers.
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By GlobalDataWhile many companies have made public commitments, the study finds that actual availability of materials remains a constraint. Collection rates remain relatively low, and there is limited capacity for advanced recycling that would be needed to meet future demand.
State legislation adds pressure on the supply chain
Since 2020, at least 10 U.S. states have enacted laws requiring minimum levels of recycled content in packaging. These new regulations have introduced external pressures on CPG companies and packaging producers, driving change across the supply chain.
However, these mandates also expose gaps in the current recycling infrastructure, particularly around food-grade recycled materials and consistent supply quality.
Companies continue to face challenges related to high costs of recycled materials compared with virgin resins and inconsistency in the quality of available recycled inputs.
The report suggests that more robust policy support and investment in infrastructure will be required to meet growing demand.
Industry capacity has improved, but policy alignment is needed
The report finds that plastics reclaimers in the U.S. have more than doubled their capacity since the previous analysis in 2021, showing clear industry momentum. Still, the authors note that the recycling system is not yet scaled to meet widespread goals.
AMERIPEN cautions against policies that favour particular industries or uses for recycled materials. It advocates for competitive, open markets that allow all sectors to access recycled inputs, rather than allocating them to packaging alone.
By providing updated, objective data, the report aims to help companies, policymakers and stakeholders better understand where intervention is most needed to align goals with supply and infrastructure realities.
