Why Manufacturers Are Reconsidering Recycled Plastic Resins
Summary
Manufacturers are adopting recycled plastic resins, including PCR and PIR plastics, as advances in recycling, product design and compounding improve quality and expand applications. Demand is increasing due to brand commitments, regulations and consumer expectations, with recycled content already used at scale in packaging and adoption growing across industries such as automotive, construction and electronics.
Post-consumer recycled (PCR) and post-industrial recycled (PIR) materials are gaining importance in long-term material strategies.
Quality, consistency and processing challenges previously limited the use of PCR and PIR plastics. Today, recycled plastic resins are viable across more applications thanks to advances in product design strategy, recycling systems and compounding processes. Regulatory and market pressures further encourage recycled resin adoption.
Manufacturers now need to decide how and when to integrate PCR and PIR materials into their operations.
Why Demand for PCR and PIR Plastics is Accelerating
Demand for PCR and PIR plastics is accelerating due to a combination of brand commitments, regulatory pressure and evolving market expectations.
Shifting Consumer and Market Expectations
Consumer expectations and retailer requirements put pressure on plastics manufacturers to incorporate recycled resins. Thirty-nine percent of consumers consider environmental impact to be extremely or very important when making purchasing decisions, according to McKinsey. The same study found recyclability ranks among the most important sustainability attributes in packaging, reinforcing demand for materials, like PCR and PIR, that support circular systems.
Brand Commitments Driving Demand
Brand commitments to increase the use of recycled content reflect growing consumer demand. Major companies, including Coca-Cola, PepsiCo and Unilever set targets to increase PCR usage and transition to recyclable packaging, with goals ranging from 25% to 50% recycled content.
Recycled content commitments create clear demand signals that ripple across the plastics value chain, influencing the material selection decisions of both suppliers and manufacturers.
Recycled Content in Use, at Scale
In the packaging market, an early adopter of recycled content, PCR and PIR are already implemented at scale. Beverage bottles and multi-pack carriers made with recycled resins maintain functionality, demonstrating how recycled plastic resins can meet performance requirements in high-volume applications.
Regulations Expanding Recycled Content Requirements
Regulation is similarly accelerating recycled resin adoption. Governments are introducing policies requiring minimum levels of recycled content in packaging and other applications.
In the U.S., state-level initiatives such as California’s SB 54 advance extended producer responsibility frameworks. The European Union’s Packaging and Packaging Waste Regulation establishes recycled content and recyclability requirements beginning in mid-2026. These and similar policies are pushing recycled plastic resins into broader use across industries and geographies.
Economic Factors Influencing Adoption
Economic conditions also play a role in PCR and PIR adoption. Fluctuations in petrochemical feedstock prices can affect the cost of virgin plastics. When prices for virgin resin increase, recycled materials may be cost-competitive in some applications. As recycling technology improves, the available supply of recycled resins will increase and their cost decrease, supporting broader adoption over time.
As demand for recycled plastic resin accelerates, manufacturers are evaluating where they can be applied across different end markets.
Expanding Applications for PCR and PIR Plastics
Recycled content is successfully entering end markets beyond packaging. PCR and PIR plastics are now being evaluated and used in applications such as:
- Automotive: Components where weight reduction and sustainability goals are priorities
- Healthcare: Select non-critical applications where performance requirements can be maintained
- Construction: Products such as piping, decking and insulation materials
- Electrical & Electronics: Component housings and cable management systems
- Packaging: Bottles, containers and multi-pack carriers
Emerging use cases for PCR and PIR reflect growing confidence that recycled resin applications can meet performance requirements, even in highly regulated industries.
How Plastic Recycling Technology is Improving
The progress in recycled plastic resins is tied to improvements across recycling infrastructure related to material recovery and product design:
- Advanced recycling expanding material recovery: Converts plastic waste into raw materials that can be used to produce higher-quality resins and recover materials previously considered unrecyclable
- Improved sorting increasing feedstock quality: Optical sorting and automated systems reduce contamination and create cleaner, more consistent inputs for recycled plastic resins
- Design for recyclability improving outcomes: Product and packaging designs are increasingly aligned with recycling systems, using mono-material structures and eliminating incompatible additives
- Closed-loop systems supporting consistency: Materials such as PET bottles are recycled back into the same applications, maintaining a more uniform material stream with fewer contaminants and enabling higher-quality PCR resins
Recycling infrastructure innovations expand the materials and products that can be recycled and returned to the plastics value chain. The resulting quality and consistency improvements in PCR and PIR resins make these feedstocks more applicable across a range of plastics applications.
Moving Forward with PCR and PIR Plastics
Collaboration is key when implementing recycled content. Resin distributors and suppliers, recyclers, manufacturers and brand owners are working together to improve material performance, secure feedstocks and accelerate adoption.
Manufacturers are taking a structured approach to integrating recycled content:
- Evaluating PCR and PIR materials in existing applications
- Running trials to understand processing behavior and performance
- Working with suppliers to develop or incorporate application-specific formulations
Adopting recycled plastic resins requires ongoing testing, validation and optimization. It is not a one-time transition. Read this guide to begin evaluating how recycled plastic resins can fit into your manufacturing operations.
M. Holland works closely with suppliers and customers to identify recycled and sustainable resin options, navigate evolving regulatory landscapes and develop solutions that align with recycled content goals. Visit the Sustainability market page for more information or subscribe to receive the latest news and insights from M. Holland.
Frequently Asked Questions
What are PCR and PIR plastics?
Post-consumer recycled (PCR) plastics are made from materials that have been used and disposed of by consumers, such as bottles or packaging.
Post-industrial recycled (PIR) plastics are derived from manufacturing scrap that is recovered and reused.
Why are manufacturers using recycled plastic resins?
Manufacturers are using recycled plastic resins to meet regulatory requirements, align with brand sustainability goals and respond to customer demand. Improvements in material quality and processing have also made PCR and PIR plastics more viable for a wider range of applications.
How have recycled plastic resins improved in performance?
Advances in compounding, sorting and recycling technologies have improved:
- Material consistency between batches
- Processability (e.g., melt flow)
- Aesthetic capabilities, including lighter colors
These improvements allow recycled resins to meet performance requirements in more demanding applications.
What is advanced recycling and why does it matter?
Advanced recycling technologies convert plastic waste into raw materials that can be used to produce new resins. These processes expand the types of plastics that can be recycled and improve the quality of recycled plastic resins.