Argus' global recycled polymers team has picked out some of the key upcoming legislative topics that could impact the industry in 2026.
EU recyclers await Circular Economy Act support
The European Commission's announcement of additional measures to support the EU plastic recycling industry has been positively received by the region's largest industry body, Plastic Recyclers Europe (PRE).
The commission says the Circular Economy act — which it plans to propose this year — will "introduce more comprehensive measures to remove barriers and improve the functioning of the single market for secondary raw materials, and promote demand for circular materials". As always, the devil will be in the detail, but the EU's acknowledgement of issues for European recyclers such as high power costs and mounting competition from imports and cheap virgin plastics — which PRE has been highlighting for several years — will be seen as a positive by the recycling industry.
In addition to confirming its Circular Economy Act plans, the EU released a proposal for harmonised end-of-waste regulations across the bloc in December, building on work by the EU's Joint Research Committee, with an intention to reduce red tape for recyclers and build downstream confidence in the sector.
An updated implementing decision for the Single-Use Plastics Directive has also been advanced to a member state vote. This clarifies that post-consumer plastic waste collected outside the EU can count towards the 25pc recycled content requirement for PET beverage bottles, providing other regulations such as 2022/161 are met, but sets limits on recyclates produced outside the EU counting towards the targets. Non-EU OECD produced recyclates would be permitted from 21 November 2027, while imports from non-OECD countries would be assessed on a case-by-case basis. The EU has committed to working towards separate HS codes for recycled and virgin plastics, to support enforcement of EU rules on imported plastics and "inform potential trade measures to ensure fair competition", the commission says.
EU PET recyclers cautiously optimistic over trade defence talks
European recyclers are closely watching the development of the commission's anti-dumping investigation into imports from Vietnam and are hopeful that the industry will receive more support in 2026.
The announcement in December that no provisional duties would be applied has dampened optimism. But the commission is considering additional trade measures and is undertaking measures to support the recycling industry.
Irrespective of potential duties, European rPET recyclers are hopeful that prices for flakes and pellets have bottomed out. The market ended last year under pressure from low virgin prices and lacklustre demand, in addition to the competitively priced imports that plagued the market for much of 2025.
But towards the end of last year, the arbitrage with southeast Asian import offers narrowed, supported by higher freight costs, and European and Asian prices are now more closely aligned. With European PET bale prices likely to rise seasonally towards mid-2026, recyclers will hope to have the scope to pass higher prices on to their customers without having too negative an impact on demand, and the more balanced starting point for this year gives them cause to be cautiously optimistic.
Many expect the challenging conditions of last year to persist but are hopeful that additional regulatory support may offer some light at the end of the tunnel for those that are able to weather the storm.
US recycled plastics face legal test
The US recycled polymers market enters this year under pressure from weak demand and fragmented policy signals. Virgin resin remains cost-competitive, reducing the incentives for recycled content, while the absence of a federal mandate leaves state programmes as the main driver of compliance.
In Oregon, a critical test is looming for the industry, as the state's Plastic Pollution and Recycling Modernisation Act faces a legal challenge from the National Association of Wholesaler-Distributors (NAW). The law violates interstate commerce rules, NAW has said. A hearing is set for 14 January. The outcome could influence the development of the extended producer responsibility (EPR) landscape. An unfavourable ruling may stall similar EPR programmes in Washington and New Jersey.
Underlying market fundamentals remain weak. Several US recyclers shut down their facilities last year in response to thin margins and oversupply, and brand owners have scaled back their recycled-content targets, opting for cheaper virgin resin instead.
The Oregon ruling will have a significant impact in determining market direction for 2026, either reinforcing EPR programmes or deepening structural challenges for recycled plastics.
South Korea mandates rPET in beverage bottles
South Korea will require beverage manufacturers that produce 5,000t or more of final products to use at least 10pc recycled polyethylene terephthalate (rPET) in their products from 1 January 2026. The environment ministry issued the mandate under revisions to the Enforcement Decree of the Resource Recycling Act to boost circularity and reduce plastic waste.
The policy targets major bottled water and non-alcoholic drink producers. The threshold will expand by 2030 to include producers of more than 1,000 t/yr, and the rPET requirement will rise to 30pc. The environment ministry and the food and drug safety ministry must certify rPET for use in food-contact bottles to address safety concerns over non-intentionally added substances from contaminated recycling streams.
Companies affected by the mandate must submit implementation plans by 31 January and annual compliance reports after that. The Korea Environment Corporation will verify the use of recycled content by 30 April each year.
This move follows broader efforts to formalise recycled material standards in 2022 and the approval of mechanically recycled PET as a food contact material a year later.
South Korea's rPET consumption in 2026 will be approximately 17,500 t/yr with the 10pc mandatory blending content, market participants estimate.
