Lots of things. Usually, any sort of recyclable is transferred and moved around so much in the process that it’s impossible to track. However, the link below details what happens to a recycled item, and I recommend reading it, as it’s quite informative.
The majority of recycled shopping bags are turned into something called composite lumber. Composite lumber is basically wood made from sawdust and melted-down plastic bags.
Of course, recycled bags can be turned into a bunch of other things as well.
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