Recyclable Material Wholesalers NAICS 423930

Jan 10, 2026 - Industry Challenges of 2025 Likely to Continue in 2026

• The US recycling industry enters 2026 facing many of the same pressures that defined 2025, including tariff uncertainty, softer consumer spending, and volatile commodity prices, according to Waste Dive. Analysts are split on whether recycled commodity prices will slip further or remain flat, as manufacturing activity continues to lag and recycled polyethylene terephthalate (rPET) related tariffs add strain. Major waste companies such as WM and Republic Services expect long term investments in automation, material recovery facility (MRF) upgrades, and polymer centers to strengthen pricing and volume, though recent facility closures have disrupted supply chains for some plastics. Extended producer responsibility (ERP) laws for packaging, batteries, paint, and textiles are poised to play a larger role this year, with new programs rolling out in Oregon and Colorado, and additional legislation advancing in multiple states. These EPR initiatives could provide new revenue streams and infrastructure support as the industry navigates ongoing economic headwinds.
• Waste and recycling operators face rising fire risks as lithium-ion batteries from electronics and disposable vapes continue to enter waste streams, according to consultant Ryan Fogelman, as reported by Resource Recycling. His data show facility fires in the US and Canada have sharply increased in recent years, with vapes a major contributor. Fogelman argues bans on single-use vapes are ineffective, urging tobacco and vaping companies to fund battery collection through extended producer responsibility programs. He highlights the hazards of vapes, which combine biohazard, chemical, and battery risks, and calls for design changes requiring removable batteries. Fires linked to discarded batteries are costing the industry about $2.5 billion annually, alongside risks to workers and communities. Fogelman warns that without better design, infrastructure, and manufacturer accountability, the “vape effect” will continue to escalate.

• China’s new regulation requiring recycled pulp importers to disclose dry or wet milling methods is shaking the market for old corrugated containers (OCC), according to Waste Dive. The policy targets dry-milled pulp, viewed as more contaminated, prompting price drops and production halts across Southeast Asia. US recyclers are bracing for inspection protocols and enforcement details, while wet-pulp mills report rising demand. The move echoes past Chinese import crackdowns, like National Sword, which disrupted global fiber flows and led to a surge in recycled pulp exports. With over 60% of China’s pulp imports previously dry-milled, the shift could raise raw material costs and deepen OCC market volatility. Analysts expect long-term impacts to hinge on enforcement, but many believe a full ban on dry pulping is likely. The recycling industry faces renewed uncertainty, with OCC’s price swings and structural imbalances intensifying.
• Redirecting 50% of plastic waste from landfills to recycling could generate 173,200 US jobs, $12.8 billion in payroll, and $48.7 billion in economic output, according to the American Chemistry Council (ACC). The report highlights the combined potential of mechanical and advanced recycling technologies, which together can process a wider range of plastics. While mechanical recycling handles common curbside items, advanced methods convert hard-to-recycle plastics, such as flexible packaging and textiles, into raw materials for new products. The U.S. has 245 plastic recycling facilities, but many plastics still end up in landfills due to infrastructure limits. Over $10.5 billion has been invested in recycling, with $4.6 billion toward advanced systems. ACC advocates for federal policies like extended producer responsibility and harmonized recycling legislation to boost innovation and investment.