- Recycling failure: According to an EverestLabs study, 8.6 million tons ($4B worth) of the top recyclable materials are sent to landfills annually through losses in residential recycling and at material recycling facilities (MRFs).
- The company states that advanced technologies can dramatically increase recovery. When combined with better curbside recycling access and recycling education, along with EPR legislation, these solutions will provide a “beacon of hope.”

Recycling in the United States faces complex challenges as communities grapple with increasing contamination rates, fluctuating global markets, and insufficient infrastructure. The Recycling Partnership recently released its 2024 State of Recycling Report. It was identified that only 73% of households currently have access to recycling, and only 43% participate in recycling. To decrease losses at the household level, 100% of households need access to recycling from their home, and they need to be fully engaged.
Despite widespread public support for recycling, confusion about what can and cannot be recycled has led to a significant amount of non-recyclable material contaminating the recycling stream. This contamination reduces the quality of recyclable materials and increases the recycling process’s cost and complexity. Additionally, changes in international policies have contracted overseas markets for U.S. recyclables, placing further pressure on local and state governments to find sustainable solutions for managing waste domestically. This situation underscores the urgent need for innovative strategies and investments to revitalize the recycling ecosystem and ensure its future viability.
Quantifying the Impact of Material Losses in Recycling
In a first-ever study by EverestLabs, highly accurate depth-sensing cameras paired with cutting-edge vision AI models were used to identify recyclables in the recycling stream as they travel from collection operations through a materials recovery facility (MRF). Data produced by EverestLabs’ AI was then used to determine the type, volume, and value of recyclable materials sent to landfills. This study was conducted over two years by anonymous sampling from several last-chance lines in MRFs nationwide, focusing on commercially operated single-stream facilities.
EverestLabs only pulled data on specific material types that are valuable recyclable commodities that can be readily reprocessed back into raw material. These material types include HDPE, aluminum, PP, and PET. Evaluating losses for other materials like fiber, cardboard, and glass would add to these figures.
This study found that:
- Through losses in residential recycling and at MRFs and recyclers, 8.6 million tons, or $4 billion, worth of valuable recyclable materials are sent to landfills annually.
- Only 32% or 3.6 million tons ($1.7 billion worth) of recyclable materials are diverted to MRFs annually.
- However, 27% or 960,000 tons ($385 million), still end up in landfills through losses at MRFs and recyclers, which can be recovered with automation technologies like robotics. Of the 960,000 tons ($385 million), 41,000 tons ($57 million) are aluminum, 135,000 tons ($19 million) are PP5, 152,000 tons ($98 million) are HDPE, and 632,000 tons ($211 million) are PET.
- A typical single-stream MRF loses up to $2,000 of valuable recyclables annually for every ton processed per day. For example, an MRF that processes 500 tons per day can lose $1 million annually, but fortunately, this can be relatively easily recovered.
The Economic and Environmental Benefits of Reducing Material Loss
Capturing $4 billion of lost materials is important for the environment and the economy but it is a big undertaking. Luckily with new technology, like AI and robotics, and new legislation, increasing recycling rates to capture this is now more achievable than ever.
Enacting recycling legislation will be crucial in increasing the nation’s recycling rate. Extended Producer Responsibility (EPR) is a new piece of recycling legislation that places responsibility on the producers for end-of-life packaging. This means producers will be held financially and operationally responsible for recovering and recycling their packaging. EPR legislation is being enacted in states across the US and will substantially help increase recycling rates as it will incentivize packaging recyclability and support end markets.
Implementing AI and Robotics to Meet EPR Requirements
Under EPR, recycling companies and brands will face greater scrutiny in their operations, which is where AI and robotics can help. EverestLabs’ robotic sorting equipment can be placed on any existing conveyor belt to augment the current sorting process delivering higher recovery rates which will be mandatory under EPR. At the same time, EverestLabs’ recycling data can serve as a basis for EPR-driven audits. Additionally, AI-driven robotics is the only solution that can adapt to new packaging and material types subject to EPR programs within days to weeks of observing the new object.
If EPR and other recycling policies are successful, more material will be diverted to recycling facilities. As the EverestLabs’ data has shown, much material is sent to landfills through losses at MRFs. Recycling facilities must add new technology, like AI and robotics, to reduce missorting and increase recovery.
Reducing Material Loss in the Recycling System
EverestLabs notes that its AI, data, and robotics solution, RecycleOS, can dramatically increase recovery rates at recycling facilities without overhauling the whole recycling system. RecycleOS can be placed on any line in a recycling facility without plant retrofits or downtime. It occupies the same space as a human sorter but recovers 2-3 times more material, with an impressive uptime of 99%, and with a minimal maintenance requirement.
EverestLabs’ AI solution can also be deployed throughout a recycling facility to identify and capture data and analytics on what material is coming in, being recovered, and being sent to landfills. EverestLabs’ AI and analytics can provide a recycling facility with various types of data, including material characterizations, bale quality, landfill costs, lost value, and other data insights that can result in increased recovery, profits, and efficiency. Don’t forget, if you can’t measure it, you can’t manage it. Therefore, having access to measurable data can assist recycling facilities in making operational improvements to boost material recovery across their plants.
Finally,
Conclusion: The Path Forward in Recycling Technology and Policy
The findings from EverestLabs, alongside corroborating evidence from the Ball Corporation, highlight a grave inefficiency in our recycling infrastructure that bears significant environmental and economic tolls. With over $4 billion worth of recyclables being lost annually, introducing innovative technologies like AI and robotics bolstered by implementing Extended Producer Responsibility (EPR) legislation presents a beacon of hope. These advancements promise a reduction in material loss and herald an era of enhanced recycling efficiency and environmental stewardship.
Source: EverestLabs
Rick LeBlanc, EMBA, is the founder and editor of Reusable Packaging News (subscribe to the free newsletter) and editor of Western Pallet Magazine. A supply chain journalist with more than 30 years of experience, he specializes in pallets, reusable packaging, material handling and related operations. Rick is co-author of Pallets: A North American Perspective and Pallets & Progress: A Collected History of Pallets and Palletized Handling 1922–1945. He is also an advisory board member of the Virginia Tech Center for Packaging and Unit Load Design. Read Rick’s full bio.


