US polyethylene terephthalate (PET) bottle collection rates fell in 2024 while demand for recycled material weakened, despite gains in recovery and processing capacity, according to the National Association for PET Container Resources (NAPCOR).
The US PET bottle collection rate declined to 30.2pc in 2024 after falling from 32.5pc a year earlier, even as the total volume of bottles available for recycling rose by 3.5pc to about 6mn lb, NAPCOR said in its 2024 PET Recycling Report.
At the same time, total consumption of recycled PET (rPET) across US and Canadian end markets dropped, highlighting weaker demand for recycled material.
The data show a growing imbalance in the PET recycling market, where supply and recovery are improving but end-market demand is failing to keep pace.
Supply expands as rPET demand falters
On the supply side, PET availability continued to expand. Imports of virgin and recycled PET for bottle applications increased by 8pc in 2024, while US reclaimers processed 1.97bn lb of material, up by 1.5pc from the previous year.
Thermoform recovery recorded the most significant growth. Total recovered PET thermoforms in the US and Canada jumped by 52pc to 264mn lb, driven largely by improved identification of thermoform material in bottle bales and advances in sorting and reclamation technologies. But these gains were not matched by stronger demand for recycled content.
Post-consumer recycled (PCR) content use in PET thermoforms fell sharply, dropping to around 12pc from 18pc a year earlier. The decline reflects shifting end-market dynamics and economic pressures. Growth in food and foodservice packaging, which typically uses lower levels of recycled content, diluted overall PCR rates even as the mix of virgin and recycled inputs remained largely unchanged, NAPCOR said.
High prices curb recycled PET demand
Pricing dynamics played a central role. The premium for rPET over virgin PET widened significantly, reaching as much as 38pc on the US east coast, compared with around 11pc at the start of 2024.
"There was an increasing premium for recycled PET over the course of 2024… At its highest point, there was a 38pc premium for east coast rPET pellet over virgin," NAPCOR said in an emailed response to Argus. "This means the cost pressure for recycled-content usage ramped up through most of the year, which certainly would have impacted some converters' decisions."
Higher domestic rPET prices also encouraged substitution toward lower-cost alternatives. Imports of rPET rose to a record 395mn lb, accounting for 23pc of total consumption, while some manufacturers shifted back to virgin resin.
Although thermoform recovery increased sharply, most of this material continues to be processed alongside bottles rather than recycled back into thermoform packaging. The largest end market for recycled PET remains food and beverage bottles, limiting closed-loop systems for thermoforms. Technical barriers are no longer the primary constraint; economics remains the key challenge.
"Meeting food-contact requirements is not difficult if the right technology and machinery are used… The biggest barrier to thermoform-to-thermoform recycling for food-contact applications may be cost," NAPCOR said.
Looking ahead, NAPCOR pointed to policy as a potential driver of stronger demand. While several US states have introduced recycled content mandates, most do not apply to non-bottle rigid packaging such as thermoforms.
New Jersey remains an exception, with a 10pc recycled content requirement for non-food rigid plastic packaging that will expand to include food-contact applications in 2027.
"Because brands and converters can back away from voluntary commitments… mandates or eco-modulation incentives through EPR programs would be promising avenues to boost PCR usage in thermoforms," NAPCOR said.
Absent stronger policy support or more favorable pricing dynamics, continued gains in PET recovery may not translate into higher recycled content use, reinforcing structural imbalances across the recycling value chain.
