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recycling

Downcycling

Recycling where the output material is of lower quality or value than the original. For example, clear PET bottles recycled into fibre for clothing rather than back into food-grade bottles.

Downcycling (or open loop recycling) occurs when packaging waste is recycled into a product of lower quality or value than the original. While still preferable to disposal, it does not maintain materials at their highest value.

Examples of downcycling:

  • PET bottles recycled into polyester fibre (not back to bottles)
  • Mixed plastic recycled into park benches or fence posts
  • Paper recycled into lower-grade paper products
  • Mixed glass cullet used as aggregate rather than new containers

From a circular economy perspective, closed loop recycling is preferred because it keeps materials at their highest value. However, downcycling still displaces virgin material production and keeps materials out of landfill. The modulated fee framework under pEPR may eventually consider whether packaging enables closed loop or open loop recycling, further incentivising design for quality recycling outputs.

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