Closed-loop recycling is recycling in which a used product is turned back into the same type of product, for example shrink film recycled into new shrink film, or a lubricant bottle into a new bottle. The material stays in its original application instead of moving to a lower-value use.
It is the opposite of open-loop recycling and downcycling, where material shifts to a different and often less demanding product. Closing the loop needs clean, well-sorted feedstock, tight process control and a buyer willing to specify recycled content. Many brand programmes work this way: packaging waste is collected, recycled into PCR granules and supplied back into the same brand’s packaging.
