The U.S. paper recycling market experienced a setback in 2025 as the American Forest & Paper Association (AF&PA) reported a 4% decline in recovered paper consumption, mirroring a similar drop in overall paper and paperboard production. The latest industry survey indicates that paper mills used less recycled fiber due to softer demand across key sectors, including packaging, printing papers, and commercial paper products. Despite the decline, recovered paper remains a vital raw material for manufacturers and a cornerstone of the circular economy. Industry analysts say the reduction reflects broader economic pressures and shifting market conditions rather than a long-term decline in recycling efforts. The AF&PA data underscores the challenges facing the paper industry while highlighting the continued importance of recovered fiber in supporting sustainable paper production and recycling initiatives.