Tip: What happens to your recycling?
When recyclable materials are organized, they are shipped off to different markets for processing into new raw materials.
Many of the most common items/materials - plastic bottles and papers - are recycled back to their original state/product. This effectively eliminates the ‘life cycle’ of these products, as they can continue to be recycled and reused. Other more complex materials that are recycled are used in creating totally new products, ranging from furniture to clothes.
Original source can be found here