Downcycling, also known as "degradative recycling", is the process of reusing waste or waste materials to produce lower value products. It differs from upcycling, in which waste materials are transformed into new products that have a higher value than the original material.

In downcycling, waste materials are processed into a form that prepares them for reuse or recycling, but the properties and quality of the original material are lost in the process. An example of this is the recycling of plastic bottles into plastic fibres for textiles or insulation materials, where the purity and quality of the plastic is lost.

Downcycling has some disadvantages compared to upcycling , it reduces the lifespan of the material and the amount of waste that needs to be stored in landfills, but it helps to reduce the dependence on natural resources and it can help to strengthen the local economy by creating new jobs and business opportunities.