California Q2 Recycling Rate Beats Target at 41%

Dalton, GA, October 21, 2025-CARE executive director Bob Peoples summarizes the Q2 results of the California Carpet Stewardship Program: “Results for Q2 were generally up, but weaker than expected given that Q2 and Q3 are typically the strongest quarters. Q2 2025 gross collection was up by 400,000 pounds and recycled output increased by 1.4 million pounds, resulting in an overall recycling rate of 41%, well ahead of the 2025 target of 37%.

Overall, markets remain quite challenging. Again, in Q2 demand for nylons remains weak. Tariffs, low oil prices and economic uncertainties remain a key concern. Carpet cushion markets, not covered by the carpet stewardship law, continue to be severely depressed. The reorganization of Aquafil’s recycling operations has created some unique challenges for the program to work through, including potentially reduced recycled output for a period of time.

Sales in Q2 were 12.7 million square yards, down two percent versus Q2 2024. As a result, sales projections for the second half have been reduced by an additional 4%. Recycled output projections for the second half of the year are significantly below forecasts at the start of 2025.

Overall, 81% of total expenses were paid out in the form of subsides and 80% of all those subsidies were paid to California-based recyclers. Revenue exceeded expenses, resulting in a fund balance of $13.8 million, up by $4.1 million versus Q1.”