Not Everything Labeled ‘Recyclable’ Actually Is: What to Know

Despite the familiar “chasing arrows” symbol stamped on labels and packaging, the reality is stark: Less than 10% of plastic waste is recycled globally, and in the U.S., that number drops to 5%-6%. Most of it ends up in landfills, oceans or burned, but consumers are demanding better options. A total of 82% say they’re willing to pay more for sustainable packaging, with Gen Zers at 90%.

In fact, vague labels on products and packaging that can’t be recycled do more long-term damage, lowering trust, costing companies sales and even stirring up public backlash.

For entrepreneurs, the path forward is embedded in making circular solutions from the beginning — everything from packaging choices and the circular systems around them to honest and transparent communication.

Materials like aluminum, which can be recycled infinitely without losing quality, offer both credibility and efficiency. Just as important, clear instructions about how to recycle or reuse packaging help customers follow through and reinforce confidence in the brand. Creating closed-loop solutions will ensure products don’t just get put in a recycling bin but the material actually remains in the system.

When businesses take this approach, packaging can stop being a cost center and become a growth driver, building stronger brands, deeper loyalty and long-term profitability. Here’s how.

Related: Going Green Can Save You Money and Attract Top Talent — 3 Essential Ways to Become More Eco-Friendly

The real solution to plastic waste isn’t recycling — it’s packaging

Each year, 52 million metric tons of plastic waste are produced globally, and despite global promises and decades of recycling campaigns, the harsh reality is that less than 10% of plastic waste is recycled worldwide. This gap is not due to the lack of public interest in recycling but in the design realities of plastics themselves: most are created for single use, are combined with materials that are not recyclable, and are cheaper to produce from virgin petrochemicals than from recycled content.

To overcome these challenges, entrepreneurial leaders must go beyond vague labels and traditional, linear economic models. True success — and even growth — for businesses comes from prioritizing circularity, which starts in the materials we choose. Take Eva NYC: When they moved from plastic to aluminum packaging for its masstige hair care products, they saw a 100% spike in orders in just the first two weeks!

Packaging made from infinitely recyclable materials — such as metals — boasts recycling rates that often exceed 70% and saves up to 95% of the energy required to produce new metals from raw materials. Companies like Trivium Packaging provide metal packaging solutions that are well-positioned for a circular economy, as metal is 100% recyclable without any loss of quality, and is easily sorted among waste due to its magnetic properties. In addition, because metals are so widely used, there is a high demand for metal scrap, which increases the incentives for collection and recycling. That means metal stays in the loop, enabling a circular economy.

Another option is glass, which is more energy-intensive, but it does not degrade after reprocessing. For businesses, the focus should be on investing in packaging that is not just theoretically recyclable but is actually collected, processed and repurposed at scale.

Related: How Your Business Can Unpack and Prioritize Sustainability Through Recycling

Transparency drives trust, profit and brand loyalty

Clear, simple labeling is one of the most powerful ways brands can support customers and build loyalty. Instead of relying on a generic recycling symbol, instructions like “rinse before recycling” or “check locally” help prevent contamination and build consumer trust.

And through the Metal Recycles Forever label initiative, consumers are reminded that every can, tin or aluminum package they place in the recycling stream comes back in a new form.

That clarity pays off. Public Inc.’s Conscious Consumer report found that vague messaging is the number one barrier in retail, with 50% of shoppers abandoning products that lack clear labeling, and among highly conscious consumers, that number spikes to 87%.

On the flip side, when brands are transparent, they win both loyalty and revenue. For almost 90% of consumers, trust is the number one reason they’ll pay more, and loyal customers spend 67% more than new ones. Even a modest 5% increase in retention can drive profits up by 25%.

Clarity builds trust, and trust builds growth.

The circular movement requires systems and policy support

In a traditional linear model, products are designed for single use, materials are discarded rather than recovered, and value is lost at every step. As a result, only 6.9% of materials are cycled back into the global economy. Circular systems, on the other hand, prioritize keeping materials in use for as long as possible. This approach doesn’t just reduce waste; it creates new opportunities for growth and builds consumer trust.

When businesses invest in circular packaging solutions, it provides consumers with sustainable options that require minimal effort. Consumer habits are hard to break, which is why companies need to play a role in offering convenient solutions that don’t rely on major behavior change. A good example comes from KOPU Water, which shifted to premium aluminum bottles and paired them with a recycling service for hotels and resorts. The company created a closed-loop system for their hotel partners where bottles are collected, recycled and reintroduced into circulation.

Just as important, businesses must advocate for industry-wide policy change that addresses the full lifecycle of packaging — creating the infrastructure and standards needed for circularity to succeed at scale. In Europe, the Packaging and Packaging Waste Regulation (PPWR) helps to drive innovation in circular design and create a playing field where sustainability isn’t optional. It’s required.

By implementing closed-loop systems, companies can significantly decrease waste, advance sustainability goals and make responsible business practices the norm rather than the exception.

Related: 3 Ways We Can Help Eliminate Waste by Creating a Circular Economy

Recycling alone isn’t enough

The real opportunity for business leaders is to treat packaging as a growth strategy, not just a compliance box to check. Prioritizing clear labels, circular materials and policies that support recycling infrastructure helps to build stronger brands and more resilient businesses.

Entrepreneurs who act now will be ahead of the curve. They’ll win consumer trust and tap into a growing market willing to pay for products that keep their promises. In the end, sustainable packaging can be a real lever to lead the market in a way that creates lasting value for both the business and the planet.

Despite the familiar “chasing arrows” symbol stamped on labels and packaging, the reality is stark: Less than 10% of plastic waste is recycled globally, and in the U.S., that number drops to 5%-6%. Most of it ends up in landfills, oceans or burned, but consumers are demanding better options. A total of 82% say they’re willing to pay more for sustainable packaging, with Gen Zers at 90%.

In fact, vague labels on products and packaging that can’t be recycled do more long-term damage, lowering trust, costing companies sales and even stirring up public backlash.

For entrepreneurs, the path forward is embedded in making circular solutions from the beginning — everything from packaging choices and the circular systems around them to honest and transparent communication.