Cereal Bags & Box Liners Put in Garbage See Alternatives Tears Like Paper? Not Recyclable If a cereal box liner tears like paper, then it isn’t made from plastic #2, and it cannot be recycled with plastic bags. Either reuse it or throw it in the trash. Empty the Crumbs When recycling plastic bags, they should always be clean of all food, so dump the crumbs out of your cereal bag before recycling. Alternative Ways to Recycle TerraCycle Malt-O-Meal® Cereal Bag Recycling Program Recycle plastic cereal bags and box liners for free through this program. Drop off items or mail them into TerraCycle with a free shipping label. Learn more about the Malt-O-Meal recycling program. Ways to Reuse Wax Paper Substitute Plastic cereal bags work well as wax paper for tasks like separating burger patties, rolling out cookie dough or pie crusts, and drying chocolate-dipped candies.