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Glossary

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Last updated: 2026 06 24

Open-loop recycling

Open-loop recycling is the conversion of used materials into new products of a different type or a lower grade than the original. It is widely used for mixed plastics, textiles and heterogeneous metals that cannot be reincorporated into their original form. Although it involves a partial loss of properties, it remains essential for extending the useful life of materials and reducing pressure on natural resources.

It is one of the core recycling routes within the circular economy, sitting below closed-loop recycling but above energy recovery and disposal in the waste hierarchy.

Concept and process

Unlike closed-loop recycling, where the material returns to the same product, in open-loop recycling the recovered material is directed to a different use. Typical examples are PET bottles turned into textile fibres, or recycled plastic converted into street furniture. The general stages are:

  1. Collection and separation.
  2. Shredding or granulation.
  3. Cleaning and sorting.
  4. Transformation through extrusion, melting or pressing.

Environmental advantages

  • Diverts from landfill materials that are not suitable for pure (closed-loop) recycling.
  • Reduces the CO2 emissions associated with producing virgin materials.
  • Creates new markets for secondary raw materials (technical plastics, recycled composites).

Examples

  • Recycled wood used in chipboard and particle board.
  • End-of-life tyres turned into rubber for road surfaces.
  • Post-consumer textiles transformed into thermal insulation.
  • Automotive plastics reused in street furniture.

Limitations

Open-loop recycling usually yields materials of lower strength or purity, so their applications are more restricted, and a given material can often only be recycled this way a limited number of times before it must be recovered for energy or disposed of. The viability of the secondary market also depends heavily on the price of virgin raw materials: when virgin prices are low, recycled materials struggle to compete.

Supporting policy

The European framework encourages open-loop recycling where it is technically and economically justified. The Waste Framework Directive 2008/98/EC, as amended by Directive (EU) 2018/851, sets targets for preparing for reuse and recycling municipal waste of 55% by 2025, 60% by 2030 and 65% by 2035, and open-loop routes help close the gap for streams that cannot be recycled in closed loop. National waste planning in Spain, under Law 7/2022 on waste and contaminated soil, similarly promotes recycling and the use of recycled content.

Technology trends

Improvements in optical sorting and the use of compatibilised polymer blends are steadily raising the quality of open-loop recycled material, widening the range of products in which it can be used. This narrows the historical quality gap with closed-loop recycling for some streams.

At Manglai we help companies measure their environmental footprint and prepare their sustainability reporting, including the waste and material data behind recycling and circular-economy strategies. Discover how Manglai can help you.

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Related terms

See all terms

PAYT ("Pay As You Throw")

Pay As You Throw (PAYT) is a variable waste-charging model that ties the fee to the waste each household or business generates, rewarding source separation and prevention.

Preparing-for-reuse indicators (PRR)

Preparing-for-reuse indicators quantify how far products and components can be checked, repaired and returned to the market, a key metric in the circular economy.

Producer responsibility organisation (PRO)

A collective extended producer responsibility scheme: a non-profit organisation through which producers fund and organise the management of the waste from their products. Examples in Spain: Ecoembes and Ecovidrio.

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