Printing inks, composed of binders, pigments, and additives, are essential components in plastic packaging but complicate recycling due to plastic contamination and degradation. While polyolefins are resistant to hydrolytic degradation, moisture generated from upstream cleaning processes, which is often ignored, can accelerate the degradation of ink binders, affecting the recyclate quality. This study has examined the impact of 3 wt.% moisture, introduced before extrusion, on the degradation of nitrocellulose (NC), polyurethane (PU), polyvinyl butyral (PVB), and cellulose acetate propionate (CAP) binders mixed with virgin, low-density polyethylene (LDPE) at varying concentrations to simulate contamination levels. Control samples were prepared by extrusion under dry conditions and using p-xylene to compare with degradation-free conditions. Analyses, including the measurement of the melt–flow index (MFI), tensile testing, FTIR (Fourier transform infrared spectroscopy), TGA (thermogravimetry analysis), and gas chromatography mass spectroscopy (GC-MS) have established that NC is fully degraded, causing discoloration and altering the MFI. Moreover, PU degrades mainly in the presence of moisture, contrary to previous findings. In contrast, PVB does not degrade but exhibits modified mechanical properties; whereas, CAP shows minimal impact. The findings of this research demonstrate the critical role of moisture in determining recyclability, informing strategies for ink selection and recycling processes to facilitate plastic packaging circularity.