The California Carpet Stewardship Program, the recycling initiative by the Carpet America Recycling Effort (CARE), has reported a 38% recycling rate for 2024, surpassing its 34% target despite facing significant market headwinds. While the fourth quarter saw a seasonal decrease in both gross collections and recycled output, the annual performance remained strong, according to CARE Executive Director Bob Peoples. 

Market conditions proved challenging throughout 2024, with unexpectedly weak demand for both nylon 6 and nylon 6,6 due to a slowdown in the automotive sector. New tariffs, with uncertain future implications, could further impact the U.S. auto industry—a key market for post-consumer carpet. Additionally, carpet pad markets, which aren't covered by the carpet stewardship law, remained severely depressed for the last three quarters.

Fourth-quarter sales hit a record low at 12.3 million square yards, falling below budget projections. Overall, 2024 sales are expected to miss the Plan budget by approximately 600,000 square yards, though it's worth noting the current sales budget already reflected a 32% reduction over the Plan's lifetime.

On the financial front, 74% of total expenses were distributed as subsidies, with 77% of those subsidies going to California recyclers. The program ended the quarter with a $7 million fund balance—an increase of $5 million (+230%) compared to Q4 2023. However, reaching the target of approximately $20 million by the end of 2025 remains a significant challenge.

A complete report addressing a gross collections calculation error (approximately 10%) has been submitted to CalRecycle, and full-year results are currently being compiled. Market improvements, if they materialize, aren't anticipated until the second half of 2025.  Read more about CARE here.