Asia is rapidly expanding its recycling infrastructure across plastics, e-waste, and packaging; however, weak supply chains, inconsistent regulation, and low end-market penetration continue to widen the growth gaps, preventing the establishment of a fully functional circular economy. With average circularity rates below global benchmarks, such as the 6.9% input recapture found in the 2025 Circularity Gap Report, Asia’s recycling systems require holistic innovation, precisely where Klean Industries’ integrated recovery technologies can step in.

Asia is home to some of the world’s fastest-growing economies and, increasingly, some of its fastest-growing waste streams. In 2025, with plastic consumption on the rise and environmental pressure mounting, recycling has become a primary effort in the region. It’s center stage.

Asia’s recycling systems remain uneven despite increased investments in recent years. Rapid progress is evident in some countries, such as Thailand and South Korea, while deep-rooted inefficiencies persist in others, including Indonesia and Cambodia. According to recent industry estimates, the Asia-Pacific recycled plastics market is expected to experience exponential growth, driven by increasing demand for sustainable packaging, textiles, and other consumer goods. However, the gap between recyclable material and actual recycling remains wide.

A big part of the problem? Collection and sorting. “With no regulations or proper enforcement for waste collection, Asia Pacific will suffer,” said one Southeast Asia-based recycler.

Although major brands across Asia pledge to use more recycled content, supply continues to remain unreliable, especially high-grade, food-safe flakes or resin.

In many parts of Asia, recycling still relies heavily on informal networks. Small-scale collectors and processors are recognized as the backbone of waste management, particularly in countries such as India, Indonesia, and Vietnam. While these networks help ensure that recyclable materials are kept out of landfills, they also face challenges such as inconsistent feedstock quality and a lack of traceability and transparency. Unsafe working conditions also limit the amount of waste that can be recycled into higher-value end applications.

China, once the world’s top importer of plastic waste, is shifting its focus towards domestic circularity. State-backed efforts are underway to establish large-scale recycling hubs and enhance the recovery of materials, including plastics, metals, and textiles. India is also aggressively pushing ahead with extended producer responsibility (EPR) mandates nationwide. Producers are now legally responsible for recovering a set percentage of the plastic they put into the market, a move that’s forcing companies to rethink everything from packaging design to logistics.

However, execution remains patchy. Several recyclers based in the Indian subcontinent report that the plastics they receive under EPR programs are often contaminated or poorly sorted, making it hard to meet quality specs. Additionally, they often struggle to obtain flakes or bales of consistent quality, which increases the difficulty of ensuring the quality of the end products.

Chemical recycling, also known as advanced recycling, is defined as chemical processes that break down plastic waste that is difficult to recycle mechanically at the molecular level, creating recycled plastics with properties similar to those of virgin plastics. This alternative form of recycling is gaining momentum and attention across Asia. Methanolysis, pyrolysis, and depolymerization technologies are beginning to scale, with projects underway in more developed countries such as Japan, South Korea, and Singapore. These methods promise to convert hard-to-recycle waste, such as multilayer food packaging or polyester textiles, into high-value feedstocks. However, they’re still capital-intensive, and feedstock supply chains remain a sticking point.

Asia’s recycling economy in 2025 is a mix of momentum and friction. While governments are tightening regulations, brands are reducing their commitment to circularity. Recent developments in U.S.-China trade relations have added another layer of complexity to Asia’s recycling economy.

U.S. tariffs have also had a significant ripple effect on global shipping costs, resulting in higher freight costs worldwide. Coupled with delicate trade routes, this added further pressure to Asia’s recycling industry. Shipping routes have become more volatile, with freight companies adjusting pricing to account for uncertain demand and rerouted cargo flows. Container shortages, combined with the rush to move goods during tariff reprieves, have led to price spikes on key trans-Pacific routes.

For recyclers and exporters of recycled PET (rPET) based in Asia, these elevated logistics costs have eroded already thin margins, making it harder for them to compete with low-cost virgin plastics that are more readily available. Coupled with the absence of mandatory regulations that enforce the use of recycled plastics, this results in rPET being less desirable in comparison to its virgin counterpart.

As Asia advances on its path towards circularity, the region continues to face a delicate balancing act, trying to scale innovation while navigating policy shifts, trade turbulence, and infrastructure gaps. While the potential for recycled plastics remains strong, progress will require coordination and collaboration across the entire value chain, supported by robust government regulations.

Bridge the Recycling Gap in Asia with Klean

Asia’s recycling systems are at a tipping point, but uneven execution from collection to end-markets leaves key waste streams unutilized. Klean Industries offers modular recycling platforms, ranging from plastics and carpet processing to recovered carbon black systems, to help governments, multinationals, and O&M operators build reliable, circular pathways.

Let’s collaborate on infrastructure that can close growth gaps and scale Asia’s circular transition.

Request a Regional Recycling Strategy Call » GO.