They are collected — this is probably good, it means that at least it doesn't end up in the (local) environment — and a part of that is certainly reused, but have a look at the reporting digging into the actual numbers from the past few years. What do you think happens with those plastic recyclers who file for bankruptcy? In one case a local municipality is now stuck with thousands of bales of shredded PET left on the facility's grounds that no one other recycler wants to have, not even for free.

In part, it is the oil industry itself which kept the myth of plastic recycling going:

https://www.nytimes.com/2024/09/23/climate/california-exxon-...