Plastic bottles are actually highly recyclable - if we have discipline as consumers and if a processor like China has an appetite for them. Unfortunately both tend not to be the case today. Now what?
"Paper bottles" might be a big part of the answer. They are made from wood pulp, molded into bottle shapes and treated so that they can hold liquids safely and reliably without a plastic liner. At the end of life, they can be recycled like other paper products. But that's not to say paper bottles don't face a lot of remaining R&D, especially when it comes to their use for low-cost, mass-market beverages.