the demand for non-virgin plastic is practically zero, while the cost is higher
there are no economic incentives to use recycled plastic, and regulation mandating its use is minimal to non-existing. so most plastic that could be recycled isn't, and not because it isn't available/collected/sorted.
It seems though like many of the throwaway plastic containers I can find here like shampoo, water bottles, containers for sauces - NOT the Heinz ketchup bottle in my fridge though (which does say the body is recyclable but the cap is not) mention some percent of recycled plastic contents, from 90% to 20% in the items around me.
So maybe it's more expensive but there seems to be some kind of incentive for these companies, even if it's just marketing.
Yes, processes that are bad for the environment is cheaper. I find that a failing of the capitalist system, not the recycling process. If externalities were properly priced, we wouldn’t be in this mess.