Stabilizing Recycled Plastic End Markets: Key Takeaways from Our Joint Webinar

Nearly 200 people registered (about 76 attended live) for a joint webinar hosted by the Recycling Council of Alberta (RCA), Alberta Plastics Recycling Association (APRA) and Association of Plastics Recyclers (APR) exploring one of the most pressing challenges facing the circular economy today: how to strengthen end markets for recycled plastics.

Moderated by Tammy Schwass (APRA), the panel featured:

• Allen Langdon, CEO, Circular Materials
• Matt Lebrun, Director, Plastics Regulatory Affairs, Environment and Climate Change Canada
• Elena Mantagaris, Senior Advisor, Canadian Initiatives, Association of Plastics Recyclers (APR)

Here is a summary of some key discussion topics from the webinar:

The Core Problem: Price Isn’t Driving Demand Anymore

Historically, recycled and virgin plastic markets have moved together when virgin resin prices increased, recycled content became a more competitive option. Today, that relationship has become increasingly complex.

Panelists noted that virgin resin remains inexpensive due to low feedstock costs and expanded global petrochemical production. At the same time, recycled resin values have declined significantly over the longer term, with HDPE down 34%, natural HDPE down 58%, and clear PET down 68%.

Although recycled resin prices have increased slightly in recent months alongside a temporary rise in virgin resin prices, the improvement has not been driven by stronger demand. Buyers remain cautious, and confidence in supply, consistent quality, reliable markets, and policy certainty now play just as important a role as price.

The consequences have been significant. Approximately a dozen recyclers have closed across Europe—representing more than one million tonnes of recycling capacity in 2025 alone—while six PET recyclers have shut down in the United States over the past year, reducing North America’s PET recycling capacity by approximately 25%.

Dumping Continues to Challenge Canadian Recyclers

The panel also discussed the impact of unfairly priced imported resin on domestic recycling markets.

Canada imposed anti-dumping duties on PET resin from China and Pakistan following a Canada Border Services Agency investigation. However, panelists noted that lower-priced material has increasingly entered the market from India, a trend sometimes referred to as “origin washing,” where materials are rerouted through other countries before export.

Building Stronger End Markets

Panelists outlined several policy tools that could help stimulate demand for recycled plastics, including:

• National recycled content requirements.
• Interim demand-side incentives, such as federal tax credits.
• Country-of-origin and traceability requirements for recycled content.
• Stronger and more timely action to address unfair trade practices.

Environment and Climate Change Canada continues to gather data through the Federal Plastics Registry and plans further stakeholder engagement later this year and into early next year to help inform future recycled content policy.

Progress Across Canada

Despite current market pressures, there are encouraging signs of progress.

Provinces continue to align Extended Producer Responsibility (EPR) systems, with harmonized material lists being introduced across Ontario, Nova Scotia, and Alberta, while New Brunswick is expected to follow in June 2027.

Producer Responsibility Organizations have also aligned on 62 standardized reporting categories and Canada-wide eco-design guidelines, helping improve consistency across Canada’s recycling systems while encouraging packaging that is easier to recycle.

Panelists also highlighted eco-modulation, where fee structures are adjusted to better reflect the recyclability and commodity value of different materials, creating stronger incentives for better packaging design.

Looking Beyond Packaging

Elena Mantagaris shared insights from Site Zero in Sweden, one of the world’s most advanced plastics sorting facilities. Of all plastic recycled there, only 7% returns to food-contact packaging, 18% becomes other forms of packaging, and 61% is used in non-packaging products.

The message was clear: recycled content policy needs to look beyond packaging alone if Canada hopes to build stronger and more resilient end markets for recycled plastics.

Looking Ahead

Panelists agreed that strengthening recycled plastic markets will require coordinated action across governments, industry, and producer responsibility organizations.

Canada’s provincial EPR systems are now largely in place, providing a strong foundation for the next phase of the circular economy. Building on that progress through national recycled content policies, continued collaboration on standards and eco-design, and investment in stable end markets will be key to ensuring recycled plastics remain a valuable resource for years to come.

Watch the full webinar recording here:
Stabilizing Recycled Plastic End Markets: Policy Tools, Market Signals, and Next Steps