FUKUTOMI GAZETTE

Over the past four decades, the plastics recycling industry has remained a vital pillar of the global circular economy, reducing waste, lowering emissions, and supporting resource recovery worldwide. We have always believed in the transformative power of recycling. Yet as we move into 2026 and beyond, the global landscape is shifting rapidly, compelling the recycling sector to re-examine its role and future direction.

Today, the global plastics recycling rate remains below nine percent. This figure does not reflect a lack of effort across the industry; rather, it reveals deep structural challenges rooted in the inherent properties of plastics, the limitations of waste-collection systems, economic constraints, and technological barriers. Packaging materials have grown increasingly complex: multilayer films, composite structures, adhesive layers, metallized films, barrier coatings, and mixed-material designs all make mechanical recycling extraordinarily difficult. These materials are not inherently unrecyclable, but under current technologies and cost structures, they cannot be recycled economically or at scale. As a result, large volumes of plastics continue to end up in landfills or incinerators.

Agricultural plastics present another formidable challenge. Greenhouse films, mulch films, irrigation tubing, and shade nets are often heavily contaminated with soil, moisture, and chemical residues. The cleaning and processing required far exceed what traditional recycling systems can handle efficiently. In many countries, agricultural waste-collection networks also remain underdeveloped, complicating efforts to establish viable recycling models.

At the same time, the global recycling sector is undergoing rapid localization. Countries are adopting “process your own waste” policies that significantly restrict cross-border flows of scrap plastics. While well-intentioned, these measures reveal a deeper concern: most nations lack the infrastructure, technology, and processing capacity to effectively recycle their own waste. Asia, once the world’s recycling hub, has seen a sharp decline in transboundary waste movement due to strengthened regulations. This shift forces each country to confront the limitations of its own recycling capabilities and underscores the urgent need for investment in new solutions.

Against this backdrop, chemical recycling has emerged as a highly promising pathway. Unlike mechanical recycling, chemical recycling breaks plastics down into molecular-level feedstocks that can be reintroduced into petrochemical production with near-virgin material quality. This enables the processing of complex packaging, mixed plastics, and heavily contaminated waste, which mechanical recycling struggles to manage.

However, chemical recycling also faces substantial challenges, including high capital requirements, technical complexity, residue and emission management, significant energy consumption, lengthy permitting processes, and—most critically—regulatory uncertainty. In the United States, some states remain cautious, while others have formally recognized chemical recycling as “advanced recycling.” In Europe, several major petrochemical companies have paused investment, stating clearly that large-scale projects cannot proceed until chemical recycling is legally defined and accepted.

Once regulatory clarity is achieved, chemical recycling will unlock new opportunities for ESG compliance, including full supply-chain traceability, quantifiable carbon- reduction pathways, premium sustainability-driven business models, and closer alignment with brand commitments for 2030 and beyond. As recycled-content requirements expand across packaging, automotive, electronics, and other sectors, mechanical recycling alone will be insufficient to meet these targets due to material degradation in each thermal cycle. Chemical recycling, which is not as a substitute but as a complement, will become indispensable.

With forty years of experience in this industry, we understand both the challenges and the opportunities ahead. In the coming years, we will continue strengthening partnerships with global brands, petrochemical companies, and technology leaders; advancing traceability and ESG-driven business models; responding proactively to regulatory developments across regions; and supporting the next phase of circular-economy growth in Asia through technical expertise and innovation.

Circularity is not a slogan—it is a long-term journey requiring persistence, collaboration, and technological evolution. As we enter 2026 and 2027, let us approach change with courage, clarity, and purpose, working together to build a more resilient, transparent, and sustainable future for plastics.