Latin American regulations drive plastic recycling market growth

New regulations in Chile, Brazil, and Colombia are driving a structural transformation in the Latin American plastic recycling market. These legal frameworks mandate extended producer responsibility, requiring manufacturers and importers to reintegrate plastics into the production cycle.

In Brazil, Decree No. 12.688/2025 establishes recovery indices and mandates a minimum of 22% recycled content starting in 2026, with potential fines reaching BRL 50 million. Chile has been implementing the REP Law (Law No. 20.920) since 2016, targeting a 32% plastic recovery rate by 2026. Colombia’s Law 2.232 requires PET bottles to contain at least 50% recycled content, increasing to 90% by 2030.

In response to these shifts, companies like Recupac have developed facilities, such as a polyethylene recycling plant in Santiago, capable of producing 500 tons of pellets monthly to replace virgin resin. Meanwhile, consumer data from the Reciclando-Ando survey indicates that recycling rates in Chile have stabilized at 53%, a significant increase from 17% in 2009, though experts note the ongoing challenge of converting intent into consistent daily habits.