CARE Executive Director Bob Peoples reports on the Q3 2025 results for the California Carpet Stewardship Program:
Results for Q3 reflect a major market pullback across many plastic recycling sectors, both in the U.S. and in Europe. While gross collections were up, we saw a major drop in Recycled Output of about 24%, resulting in an overall Q3 Recycling Rate of 30%, a major drop from Q2 at 41%.
Overall, ALL markets have continued to erode with demand for nylons collapsing. Cheap virgin nylon, tariffs, very low oil prices and economic uncertainties remain key concerns. Nylon prices are down 4-6 cents in the last two months of 2025. Carpet pad markets, not covered by the carpet stewardship law, have also collapsed and are putting additional pressure on recyclers in terms of financials. Between the market collapse and no pad outlets, storage capacity is now a major issue. The closure of Aquafil’s Chula Vista location adds to the challenge for both collection and movement of carpet in the San Diego area. CARE is working to understand and blunt the concerns, but frankly, it is beyond our capacity to influence these massive market dynamics.
Sales in Q3 were 13.3 million square yards, up slightly from Q2 but again down 7% vs. Q2 2024. Recycler Recycled Output projections for 2H are significantly below forecasts from the start of 2025.
Overall, 69% of total expenses were paid out in the form of subsidies, and 79% of all those subsidies were paid to California-based recyclers. Revenue exceeded expenses, resulting in a fund balance of $19.7M, up by $13.8M vs. Q1.
