Spain has made notable strides in the development of its recycling industry and today, household plastic recycling now exceeding 600,000 tons per year. This equates to approximately 13 kilograms of plastic waste recycled per capita annually, a figure surpassed only by the Czech Republic. However, despite this progress, the country continues to lag behind the European average in terms of effective recycling of plastic waste that ends up in landfills. Spain still struggles with implementing energy recovery systems at the same level as other European nations. Such systems are crucial in ensuring that a higher percentage of plastic waste is diverted to recycling plants, where it can be repurposed rather than left to accumulate in landfills. Spain has already surpassed the European Union’s mandated target of recycling at least 50% of packaging waste by 2025. The Ministry of Ecological Transition and the Demographic Challenge has since raised the national commitment to 60%, a target that is within reach. In support of this goal, the National Association of Plastics Recyclers (Anarpla) reports that the country’s recycling facilities possess an additional capacity of half a million tons per year—more than 40% of the total plastic consumed by various industries. Spain’s recycling industry faces a critical supply-demand imbalance in the production of recycled polyethylene terephthalate (rPET) for packaging. The Center for Innovation and Development for the Circular Economy (CIDEC) highlights this issue in its recent study. The report suggests that modernizing and enhancing the competitiveness of Spain’s rPET industry through targeted investments could significantly improve the efficiency of collection and recycling processes. As Spain continues to develop its circular economy, the focus must be on increasing the efficiency of waste collection, expanding energy recovery solutions, and boosting investment in rPET infrastructure. Spain has the potential to establish itself as a leader in plastic recycling within Europe.