OPIS Insights

Why the U.S. Struggles with Plastic Recycling

Why is America lagging so far behind other developed countries when it comes to recycling plastic? This was a major topic of discussion at the largest plastics recycling conference in the U.S. in March 2025.

When you factor in textiles, like discarded clothing, the U.S. only recycles about 6% of its plastic waste. That’s significantly lower than the 10–12% recycling rate that’s often cited.

One eye-opening stat at the Plastics Recycling Conference came from Chris Killian, Chief Technology & Sustainability Officer at Eastman, who revealed that when you factor in textiles, like discarded clothing, the U.S. only recycles about 6% of its plastic waste. That’s significantly lower than the 10–12% recycling rate that’s often cited, and it puts the U.S. well behind many countries in the European Union and the U.K.

Killian spoke on a panel called “Investment Trends in Circular Economy: Insights and Strategies from Corporates & Investors” and spotlighted the work Eastman is doing to change the game. The company operates a facility in Kingsport, Tennessee, that uses methanolysis, a form of advanced recycling, to process waste streams that are usually considered non-recyclable—think old carpeting, textiles, green strapping tape, and food trays. They’re sourcing from about 200 suppliers and turning all that hard-to-recycle waste into specialty materials used in packaging and more.

So, what’s methanolysis, exactly? It’s part of a newer wave of “advanced” recycling technologies, which go beyond traditional mechanical recycling (the kind where bottles and containers are sorted, shredded, and turned into pellets). Methanolysis breaks down complex polyester waste at a molecular level, creating new, high-quality materials that can reenter the production cycle.

One big takeaway from Killian’s talk: Eastman isn’t hurting for feedstock. “We have all the feedstock we need,” he said—a notable contrast to many U.S. recyclers who say they can’t get enough waste material to meet demand.

Currently, about 80% of the material Eastman recycles in Tennessee is post-consumer, with the remaining 20% coming from post-industrial sources (like factory-rejected food trays). And this is just the beginning. Eastman is planning to open another advanced recycling facility in Longview, Texas, by 2028.

But if we want to make a real dent in the plastic waste problem, Killian emphasized that we can’t rely on just one method. We need both advanced and mechanical recycling, along with serious upgrades to the country’s infrastructure—especially in collection, sorting, and processing.

In short: the technology is there. The feedstock is there. Now the U.S. needs to scale up the systems to make a circular plastic economy a reality.

Tags: Plastics