CARE Reports Q3 Results, Addresses Collapse of Global Plastics Recycling

Dalton, GA, January 21, 2026-CARE has announced the following results for Q3, 

“Results for Q3 reflect a major market pullback across many plastic recycling sectors, both in the U.S. and in Europe. While gross collections were up, we saw a major drop in Recycled Output of about 24%, resulting in an overall Q3 Recycling Rate of 30%, a major drop from Q2 at 41%.

“Sales in Q3 were 13.3 million square yards, up slightly from Q2 but again down 7% vs. Q2 2024. Recycler Recycled Output projections for the second half of the year are significantly below forecasts from the start of 2025.

“Overall, 69% of total expenses were paid out in the form of subsidies, and 79% of all those subsidies were paid to California-based recyclers. Revenue exceeded expenses, resulting in a fund balance of $19.7M, up by $13.8M vs. Q1.

In addition, CARE executive director Bob Peoples offered the following observation:

The global plastics-recycling system is not just under stress-it is collapsing.

Forces completely beyond industry’s control have converged to create the most severe market disruption we’ve seen in decades. Every recycling program, across every material, is feeling the shock.

In the U.S., markets have contracted to the point of paralysis. Inventories are overflowing. Even pad markets-normally a critical source of cash flow and historically resilient-have effectively gone dark. Oil prices have plunged below $60 per barrel, pulling virgin polymer and post-industrial fiber prices down with them. PET bale prices have crashed to the low single digits, and even at those levels, sales are difficult to secure.

All four carpet polymer streams have seen steep declines, but nylon 6 and 6,6 are being hit the hardest. Years of aggressive over-expansion in Asia have now resulted in virgin N6 flooding global markets at prices not seen in decades. Post-consumer materials can’t compete with this collapse in virgin pricing, and post-industrial values are falling right alongside it-further choking the movement of post-consumer carpet.

On top of this, the removal of the <$800 tariff de minimis threshold is cutting deeply into U.S. commerce. Four million packages a day now face new costs-half originating from China-delivering a heavy blow to small businesses. Automotive production is down 5% compared to 2024, eliminating one of the largest outlets for compounded nylons. Consumer sentiment has fallen to its lowest level in two years.

Adding to the pressure, major chemical companies are pulling back-terminating or delaying recycling-related projects nationwide. And across Europe, recyclers are shuttering operations at an alarming rate.

Carpet sales in California are down 7% year-to-date versus 2024-and down 50% since 2013. Carpet manufacturers have eliminated thousands of jobs. PET profitability was destroyed by over-capacity years ago, and now nylon is following the same path.

The industry needs a long, painful realignment, and the hard truth is this: nothing about the first half of 2026 offers any relief.

The storm is here, and it is going to take years to rebuild from it.