Into the Plastic Processing Void

New data reveals North American plastic reclaimers have vast unused capacity, with collection and demand as the real barriers to a circular system

24 Apr 2026

North American plastic recyclers possess the infrastructure to process nearly 2 billion pounds of additional material annually, according to new industry research. The study suggests that low recycling rates in the US and Canada stem from a lack of collected material and weak market demand rather than a shortage of industrial capacity.

The survey, commissioned by the Association of Plastic Recyclers (APR), analyzed more than 85 reclaimers across 21 US states and four Canadian provinces. It found significant unused capacity for all major resin types, including PET, HDPE, and polypropylene. Current processing volumes sit at approximately 5 billion pounds per year. Reaching full capacity would increase this total to 7 billion pounds, roughly the weight of 479 loaded shipping trucks per day.

These findings challenge the narrative that the primary barrier to a circular economy is a lack of physical factories. Instead, the data points to systemic inefficiencies in municipal collection and a hesitation among manufacturers to commit to recycled resins over cheaper virgin plastics.

"The real constraint is upstream," said Steve Alexander, president of the APR. He noted that without stable purchasing commitments from brands, reclaimers cannot economically justify running their plants at full speed. This dynamic has left the industry in a cycle where infrastructure remains underused while plastic waste continues to enter landfills.

The report arrives as regulatory pressure begins to shift the market. Seven US states have now enacted extended producer responsibility laws, which require companies to fund the end of life costs for their packaging. Furthermore, several jurisdictions are introducing mandatory minimums for recycled content in new products.

While these policy shifts are expected to bolster demand, the immediate challenge remains the supply chain. Until domestic collection rates improve, the industry's massive capital investments in processing hardware will remain partially idle. The outlook for the sector now depends on whether legislative mandates can bridge the gap between existing industrial capacity and the current supply of raw waste.