The industry that processes and sells plastic trash that has been recovered and recycled is known as the recycled plastic market. This sector is crucial for a number of reasons, such as lowering the amount of plastic trash in landfills and oceans, protecting natural resources, and lowering greenhouse gas emissions related to the manufacture of new plastic.
Due to growing awareness of the negative environmental effects of plastic waste and government legislation intended to cut waste, the market for recycled plastic has experienced tremendous growth in recent years. Consumer preferences for eco-friendly items and business adoption of circular economy ideas both contribute to the need for recycled plastic.
Numerous products, including packaging, building supplies, automotive parts, and textiles, can be made from recycled plastic. High-density polyethylene (HDPE), polypropylene (PP), and polyethylene terephthalate (PET) are the three most used forms of recycled plastic.
The Global Recycled Plastic Market size was 42.80 billion USD in 2022. It is projected to reach 79.82 billion USD by 2030 with a CAGR of 8.1% in the forecast period of 2023-2030. The recycled plastic market is driven by several factors, including:
Growing environmental awareness: With increasing concerns about environmental sustainability, there has been a rise in demand for recycled plastic as it reduces plastic waste and conserves natural resources.
Stringent government regulations: Governments worldwide are introducing stringent regulations and policies to curb plastic waste and promote recycling. This has led to an increase in demand for recycled plastic, as companies try to meet these regulatory requirements.
Increasing demand from end-use industries: Recycled plastic is used in a wide range of end-use industries, including packaging, construction, automotive, and textiles. The increasing demand for sustainable products and materials in these industries is driving the growth of the recycled plastic market.
Manufacturers of recycled plastic are well-known, financially secure businesses in this sector. These businesses have been in business for a while and have a diverse range of products as well as effective international sales and marketing networks. Veolia, Indorama Ventures, Far Eastern New Century Corporation, Alpek, and Berry Global Inc. are notable companies operating in this area.
To enhance its recycling capacity for plastic bags and other PE film, Novolex announced a US$ 10 Mn investment at its facility in North Vernon, United States, in September 2022. It is planned to feed this new factory 40 million pounds of feedstock annually.
WM Recycle America, LLC announced in September 2022 that it will be acquiring Avangard Innovative's U.S. operations. The company will be known as Natura PCR. In five years, it is anticipated to scale up and increase its recycling capacity to create an estimated 400 million pounds of post-consumer resin (PCR).
The Global Recycled Plastic Market is segmented on the basis of source, product type, and applications.
In 2022, the plastic bottle source category dominated the market and generated the largest portion of worldwide revenue. The primary sources of recycled goods are plastic bottles. Water, oils, medications, and fizzy beverages are packaged in plastic bottles, which are utilized in a variety of applications across numerous industries. Some of the major producers of recycled plastic bottles include SKS Bottle & Packaging, Inc., CABKA Group, Maynard & Harris Plastics, and Placon.
The polymer foam market, however, is expanding significantly. For the impact-resistant packaging of electrical and electronic goods, packaging foam and sheets are frequently utilized. Recycled plastic foam is now being used more frequently by a number of businesses, including Sony Electronic, Honda Motors, and Panasonic Corporation, which will support the expansion of this market.
The market's leading product category, polyethylene, had the largest revenue share globally in 2022. The increased need for packaging materials in consumer goods, food and beverage, industrial, and numerous other industries are to blame for this high share. It is also frequently used in milk cartons, chopping boards, rubbish bins, and packaging for laundry detergents, among many other things.
The most opportunistic market, on the other hand, is anticipated to be polypropylene during the projection period. Numerous products, including packaging, labels, automotive parts, medical equipment, and other items, use polypropylene. Therefore, during the period of the forecast, this segment is anticipated to grow quickly.
According to the application, the packaging segment held a 38% revenue share of the market in 2020 and is anticipated to continue dominating over the projected period. This is because global e-commerce has grown so quickly. The vastly expanded usage of recycled plastic in product packaging as a result of the remarkable rise in the number of orders placed through online shopping platforms has fueled the expansion of this market.
The packaging industry is expanding throughout the Asia Pacific, and the sector has seen technical breakthroughs. The strong demand for consumer goods, electrical & electronics, and building & construction products, particularly from China, India, and Southeast Asia, is what fuels the expansion of the region's packaging business.
Due to China and India being the top two recycled plastic consumers, the Asia Pacific region's recycled plastic market, which had a value of USD 24.35 billion in 2020, is anticipated to continue to be the largest during the forecast period. In the area, there are several companies that produce bottled water, which leads to widespread plastic bottle consumption. The packaging sector is also expanding quickly, which enhances the market in the area even more. Due to its high production and consumption of packaging items, China dominates the region.
Due to rising demand from the packaging and automotive industries, the U.S. held a greater market share for recycled plastic in North America. Due to the slowdown in the region's construction industry, market growth in North America will be below that of Asia Pacific and Europe, but the rise in food packaging is anticipated to present profitable prospects for regional players.
The market for recycled plastic has grown significantly over the past several years and is expected to do so for some time to come. The demand for recycled plastic products is rising quickly across many industries, driven by heightened environmental consciousness and the need to reduce plastic waste. Technology developments have increased the quality of recycled plastic goods, making them a competitive alternative to virgin plastics. The usage of recycled plastic is being encouraged by governments and organizations worldwide, which will accelerate the market's expansion. Even though there are still difficulties with plastic garbage collection and sorting, the prospects provided by the market for recycled plastic are enormous and cannot be disregarded. As a result, companies and individuals should embrace this sector and benefit from what it has to offer for the economy and the environment.