The California Carpet Stewardship Program reported that carpet collections increased in third quarter 2023 while recycled output decreased slightly.
A combination of factors resulted in the recycling rate declining to 33%, the first drop in over 7.5 years.
The slowdown in the residential sector – which makes up about 86% of sales – continues to impact the collection of carpet. Sales in third quarter were 14.4 million square yards and 1 million square yards below budget, resulting in a lower revenue stream than expected. The residential sector slowdown continues to impact the collection of carpet, despite adding 17 new public drop-off sites year to date. In addition, the pad markets, while not covered by the carpet steward law, have collapsed putting further financial pressure on recyclers. Virgin resin prices remain at decade lows and oil prices have declined.