The final link in the chain – Australia

Posted on April 22, 2026 by DrRossH in Plastic Recycling

Recycled plastic shows why markets matter, writes Suzanne Toumbourou, CEO of the Australian Council of Recycling.

Source: The final link in the chain – Waste Management Review

A functioning recycling system has three essential elements: collection, processing and end markets.

Despite significant investment in recycling capacity, around 80 per cent of plastic packaging still ends up in landfill.

The imbalance is structural: recyclers must manage material locally, but the products they remanufacture compete in global markets shaped by cheap imported plastic.

Large-scale international investment in virgin plastic production capacity has driven persistent oversupply, suppressing prices and undermining recycled material worldwide.

The result is a clear and enduring price gap. Australian-made recycled plastic can be about 50 per cent more expensive than imported virgin material. That gap reflects real costs: energy, labour, logistics and regulatory compliance in a high-standards economy.

Left unaddressed, the consequences are predictable. Recyclers struggle to sell material and therefore take in less feedstock, ultimately operating below viable utilisation levels. Capacity sits idle. Planned investments are delayed or cancelled. Recoverable resources are lost to landfill, and environmental harm increases.

This is not a failure of infrastructure, effort or capability. It is a market failure.