Top 5 Material Science and Recycling Trends to Watch in 2026

1. Extended Producer Responsibility (EPR) Transitions from Planning to Execution

2026 is expected to be a pivotal year as several Extended Producer Responsibility (EPR) programs in the United States transition from planning into early operational phases. State-level programs in California, Oregon, Colorado, and Maine are advancing toward implementation, with others like Minnesota, Maryland, and Washington continuing to refine timelines and regulatory frameworks. 

Brands selling into multiple states will face a more complex but increasingly coordinated system of reporting, compliance deadlines, and eco-modulated fee structures.

This next phase of EPR brings both pressure and opportunity. Companies already tracking packaging formats, material composition, and recyclability performance are likely to be better positioned. As data collection expands and oversight increases, transparency and traceability are becoming core expectations rather than optional best practices.

2. AI Boosts Efficiency in Plastic Recycling

Artificial intelligence continues to reshape how recycling systems operate, particularly in materials identification and facility optimization. Advances in spectroscopy, sensor technology, and machine learning allow recyclers to identify polymers, colors, and additives with greater accuracy and speed. While adoption remains uneven across regions and facility types, AI is increasingly proving its ability to reduce contamination, improve resin quality, and support the recovery of more complex materials.

AI also helps streamline logistics and reduce downtime in recycling facilities. Predictive maintenance and smart inventory management allow operators to minimize material loss while maximizing throughput. Together, these gains improve both environmental performance and the underlying economics of recycling.

3. Enzyme-Based Recycling Advances Toward Industrial Application

Enzyme-based recycling has reached a new level of technical maturity. While most applications remain pre-commercial, 2026 is seeing intensified collaboration between researchers and industry partners aimed at translating lab-scale enzyme breakthroughs into industrially viable solutions. These approaches show promise for processing PET and other polyesters with fewer emissions and lower energy use than conventional methods.

Recent studies at the National Renewable Energy Laboratory and other institutions have demonstrated enzymes capable of breaking down plastic polymers into reusable monomers under moderate temperatures and near-neutral pH conditions. These technologies offer potential pathways for recycling contaminated or colored plastics that are difficult to process mechanically, though scalability and cost competitiveness remain central challenges.

4. Closed-Loop Recycling Gains Ground Across Sectors

Closed-loop recycling is expanding beyond consumer goods into sectors like hospitality, automotive, and industrial packaging. The goal is to keep high-value materials in circulation by designing systems that return packaging and products into the supply chain.

In 2026, several pilot programs are scaling cautiously. Radisson Hotel Group’s closed-loop recycling initiative collects used textiles and packaging for reuse in new operations. Brands like Unilever and Coca-Cola continue to support efforts that integrate mono-material packaging with dedicated recovery channels. Vehicle manufacturers are also exploring how plastic components in end-of-life vehicles can be separated, recycled, and remanufactured as part of a larger circular economy model.

Materials recovery partners and private equity investment are helping fund the infrastructure required to support these systems, including formats that have historically been difficult to recycle.

5. Smart Packaging Goes Mainstream

Smart packaging is becoming a powerful tool in the drive for circularity and transparency. In 2026, brands are deploying QR codes and digital product passports more widely to meet both consumer expectations and regulatory requirements. These systems link packaging to real-time data on origin, material content, recyclability, and proper disposal instructions.

Adoption is accelerating due to smart packaging’s ability to improve traceability, support EPR reporting, and enable more precise environmental claims. As labeling regulations continue to evolve, digital solutions offer brands greater flexibility to update information without redesigning physical packaging components.

Looking Ahead

Each of these trends reflects a broader shift toward more data-driven, system-aware, and science-backed approaches to material design and recovery. At the same time, significant challenges remain, including infrastructure gaps, uneven policy alignment, cost barriers, and the complexity of scaling emerging technologies.

The actions companies take now to adapt and collaborate will shape how effectively the industry transitions into a more transparent, resilient, and circular system.