Key recycling trends shaping our circular economy this Global Recycling Day - Mpact Recycling

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Key recycling trends shaping our circular economy this Global Recycling Day

Global Recycling Day happens every year on 18 March.

It’s not a public holiday, but for Mpact Recycling and the industry as a whole, it’s one of the most important days in the calendar. It marks a shared commitment to shifting manufacturing away from dependence on raw materials and toward a genuinely circular economy.

The recycling industry is definitely changing. New Extended Producer Responsibility legislation is reshaping who pays for waste. Chemical recycling is moving from the laboratory into commercial operations. And geopolitical tensions in the Middle East introduce more uncertainty to an already unpredictable market.

This year, Global Recycling Day’s mission looks especially pertinent.

Global adoption of Extended Producer Responsibility

South Africa is already operating within an Extended Producer Responsibility framework, where producers contribute financially to the collection and recycling of the packaging they place on the market. And increasingly, other parts of the world are moving in the same direction.

Governments across North America, Europe, and parts of Asia are introducing policies that place responsibility back on the companies that introduce packaging into the economy.

Several US states, including California, Maine, Colorado, and Oregon, have already passed packaging EPR legislation, with more jurisdictions preparing to follow.

The principles behind these policies ring true all around the world. When producers are made accountable for what happens to packaging at the end of its life, packaging design and material choices become more strategic. Recycling costs stop being someone else's problem.

The global expansion of policies like EPR, is very exciting. It broadens the circle and creates more links in the recycling value chain.

Sorting is getting smarter and faster

The sorting facility of five years ago looks very different from the one being built today. Artificial intelligence, robotics, and optical sensors are transforming what is possible inside Materials Recovery Facilities.

Near-infrared spectroscopy can identify polymer types, colours, and contaminants within mixed waste streams at remarkable speed. Separation is also getting faster, and more accurate, thanks to new and evolving technologies.

The potential is significant. Lower contamination rates, higher quality recovered material, and recycled feedstock that manufacturers are more willing to use in new products.

New ways to break down plastic

Mechanical recycling, which involves shredding, melting, and reforming plastics, remains the backbone of the industry. Yet it has limitations. Contaminated, multilayered, or chemically complex plastics are often difficult to process this way.

Two emerging approaches are attracting attention.

Chemical recycling breaks plastics down to their molecular building blocks, allowing them to be converted back into virgin equivalent raw material. In theory, this opens the door to recycling materials that would otherwise be destined for landfill. (Source: Taylor & Francis Online)

Enzyme-based recycling takes a different route. Engineered enzymes break down plastics such as PET into their original chemical components, potentially at lower temperatures and with lower energy requirements. (Source: Science Direct)

These technologies are still under development. However, they offer the possibility of expanding the range of materials that recycling systems can recover. Monitoring these developments remains important as the industry evaluates how they may complement established recycling processes.

Greater demand shaped by policy

Several regions now require beverage containers and other packaging formats to include minimum percentages of recycled material. These policies create guaranteed demand for recycled material for feedstock, encouraging investment in recycling infrastructure.

For recycling companies, this shift changes the conversation. Recycled materials become recognised not only as environmental solutions but also as strategic industrial inputs within global supply chains.

The rise of data transparency

Regulators, investors, and consumers increasingly expect verifiable evidence behind statements about recyclability or recycled content.

The industry response has been investment in digital tracking systems that can monitor materials as they move through supply chains and provide reliable data on recycling outcomes.

For organisations operating within the recycling value chain, improved data transparency is becoming an essential part of demonstrating the real impact of recycling activities.

The political landscape

Recycling markets do not operate in isolation. Oil prices, shipping costs, and geopolitical developments all influence the economics of recycling.

Renewed tensions in the Middle East illustrate this clearly. When oil prices rise, recycled plastics can become more competitive compared with virgin materials because raw plastics are derived from petroleum. When shipping routes are disrupted, global trade in recyclable commodities can slow. And when uncertainty increases, investment decisions across industries may pause.

Understanding these external pressures is an increasingly important part of navigating the recycling landscape.

Where we are going

The global recycling industry is in the midst of a genuine transformation. Stronger regulations continue to push businesses toward embracing circular thinking as more than an obligation. New technologies are improving the quality of recovered materials. Emerging processes are expanding what can be recycled. And market demand for recycled content is steadily growing.

The pressures remain. Economic volatility, geopolitical uncertainty, changing regulations and many more unpredictable events will continue to shape the industry.

But the trajectory is clear.

On 18 March, Global Recycling Day serves as a moment to recognise the great progress recycling has made. It also reminds us of the   journey ahead, anticipating systems that keep valuable materials in use, that reduce dependence on raw resources, and that embed, and sustain, the pursuit of a fully circular economy in our hearts and minds.

With care and healthy optimism, we won’t stop believing in the dream of a circular future.

Happy Global Recycling Day.

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