Plastic scrap imports add to ‘perfect storm’ hitting domestic PCR

Against a backdrop of rising imports, pricing competition and tariff confusion, an unprecedented number of domestic PET reclaimers closed last year. In 2026, expect more emphasis on policy solutions and local supply chains.

What happened

It sounded simple: If brands used more recycled plastic in their products and packaging, it would strengthen U.S. recycling systems.

Yet rising volumes of imported recycled resin and weakening demand in some areas are putting pressure on domestic producers, with the challenges expected to continue in 2026. Tariff uncertainty, strained consumer spending and the cost difference between international and American material all factored into a soft and unstable U.S. postconsumer resin market this past year.

Why it matters

There are several pressure points that Kate Bailey, chief policy officer at the Association of Plastic Recyclers, sees contributing to the “perfect storm of problems arising all at the same time.”

Virgin plastic is cheap and plentiful. “Whenever you have too much of something, you charge less, so that’s further driving down the price,” Bailey said.

Some brands and manufacturers have been backing off sustainability targets, meaning lower demand for recycled resin. And when they use materials like recycled PET, they’re largely importing it, especially in California, which is geographically closer to large Asian markets.

This news brief is based on reporting published by Packaging Dive on 2026-01-29. The original report is linked below.