Race for Recycled Plastics Turns Into High-Stakes Game

US brands lock in recycled resin deals as circular packaging shifts from ambition to necessity

5 Feb 2026

The US recycled plastics market is shifting from good intentions to hard strategy. What began as a sustainability pledge is now a fight for resources, as packaging companies race to secure reliable supplies of recycled resin.

Over the past year, a surge of long-term contracts, capacity expansions, and investment deals has redrawn the competitive map. Recycled materials are no longer a marketing add-on. They have become a core input. For many consumer brands, access to high-quality recycled resin now matters as much as price and performance.

Analysts value the US recycled plastics market at nearly $58 billion in 2025, with forecasts suggesting it could more than double by 2035. Packaging leads that growth, fueled by corporate commitments to raise recycled content and meet tougher environmental goals.

To manage risk, companies are locking into longer supply agreements instead of relying on volatile spot markets. These deals help steady pricing and guarantee supply, while giving recyclers the confidence to expand capacity and upgrade technology.

Waste Management is among those scaling up recycling infrastructure to capture more usable plastic and improve quality. Chemical companies and recyclers are also testing new processing methods to handle a wider range of plastic types. This innovation push is widely seen as essential to a functioning circular economy.

Progress is visible but uneven. The U.S. Plastics Pact reports its members average about 11 percent post-consumer recycled content in packaging, well short of the original 30 percent target. The updated 2030 roadmap extends the timeline, reflecting both gains made and the hurdles that remain.

Momentum, however, continues to build. The Environmental Protection Agency’s National Strategy to Prevent Plastic Pollution, while voluntary, signals a clearer federal direction. For packaging leaders, circular plastics are no longer a side project. They are becoming the foundation of future business models.