Latin America tightens plastics recycling requirements

New recycling and extended producer responsibility rules across Latin America are reshaping the economics of plastics production and creating stronger demand for high-quality recycled materials. Brazil, Chile and Colombia are among the countries introducing mandatory recovery and recycled-content targets that require manufacturers and importers to take greater responsibility for the plastic they place on the market.

The regulatory shift is encouraging investment in more advanced recycling infrastructure, particularly in technologies capable of transforming post-consumer plastics into consistent secondary raw materials suitable for new packaging and industrial applications.

Brazil introduces mandatory recycled content

Brazil has become one of the latest major markets in the region to strengthen its regulatory framework. Decree No. 12,688/2025 established new requirements for the reverse logistics of plastic packaging, including recovery targets and a mandatory minimum recycled-content level.

From 2026, plastic packaging covered by the rules must incorporate at least 22% recycled content. Companies that fail to meet applicable obligations can face significant penalties, increasing the commercial importance of reliable supplies of recycled resin.

Chile and Colombia also raise ambitions

Brazil’s measures follow regulatory developments already underway in neighbouring countries. Chile’s extended producer responsibility framework targets a plastic recovery rate of 32% in 2026, while Colombia has introduced minimum recycled-content requirements for PET bottles.

Colombian legislation requires PET bottles to contain at least 50% recycled material, with the target increasing to 90% by 2030. Together, these measures are creating a more regulated regional market where recycled plastics are increasingly driven by compliance requirements rather than voluntary commitments alone.

Recupac expands LDPE recycling capacity

Chile-based Recupac, part of the Coipsa Group, illustrates how recycling companies are responding to this new environment. The company manages more than 150,000 tonnes of waste annually and has developed an LDPE recycling facility in San Bernardo with a production capacity of around 500 tonnes per month.

The recycled pellets produced at the facility already replace approximately 40% of the virgin resin used in new plastic film production, demonstrating the potential for post-consumer material to return to demanding flexible packaging applications.

Advanced washing improves recyclate quality

The facility uses washing technology from Lindner Washtech integrated with downstream extrusion equipment. Effective washing is critical in post-consumer recycling because contamination, labels, adhesives and other residues can affect the quality and consistency of the final recycled polymer.

By combining controlled washing with extrusion, Recupac says it has achieved greater process stability, improved cleaning efficiency and more consistent pellet quality. These characteristics become increasingly important as customers demand recycled materials suitable for higher-value applications.

Technology providers expand regional presence

Lindner is also increasing its presence in Latin America as regulatory changes stimulate investment in recycling capacity. The company established a subsidiary in São Paulo in 2025 to provide local technical support, project development and commercial assistance across the region.

As recycled-content mandates expand, suppliers of sorting, washing and extrusion technologies are likely to play a growing role in helping recyclers achieve the quality standards required by converters and packaging producers.

Regulation creates a structural market for recyclates

The developments across Brazil, Chile and Colombia suggest that recycled plastics are gradually moving from an optional sustainability choice towards a regulated industrial requirement. Mandatory recovery and recycled-content targets can create more predictable demand for secondary raw materials and encourage investment in collection and processing infrastructure.

For Latin America’s packaging sector, the transition could strengthen local recycling markets while increasing pressure on producers to demonstrate traceability, material quality and compliance. Advanced processing technologies will be essential if recycled plastics are to meet the growing technical and regulatory expectations of packaging manufacturers.