The cost of recycled cardboard in the U.S. has soared recently due to increased demand from paper mills at home and abroad. This spike is largely driven by the surge in e-commerce during the pandemic, which has tripled the price of old corrugated containers (OCC) in some regions. After a dip in 2022 caused by higher interest rates and reduced business activity, prices are climbing again, great for cardboard bale pickup.

New mills producing shipping and consumer packaging materials are competing for a limited supply of recycled cardboard. This shortage is worsened by poor residential recycling practices, leading to more cardboard ending up in landfills. Additionally, international market disruptions, like the Red Sea conflict affecting Europe’s recycling routes, have intensified competition, especially on the West Coast.

National average prices for recycled cardboard have jumped to $87 per short ton from $29 last year, with some areas in the Southeast seeing prices as high as $150 per ton. This is due to increased transportation costs and a demand for cleaner, more sorted bales. For small businesses, these rising costs can impact your bottom line.

To manage this, consider optimizing your packaging to reduce waste, purchasing materials in bulk, and improving your recycling practices. Staying informed about market trends can also help you adjust your strategies. Although prices may stabilize as production recovers, being proactive now can help you navigate these changes and keep your business running smoothly.