Recycled Plastic Market

The global Recycled Plastic Market is valued at USD 46.5 Billion in 2022 and is projected to reach a value of USD 67.1 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 4.7 between 2023 and 2030.

Premium Insights

Plastic waste is a pressing global concern, with projections indicating a substantial increase by 2060. Despite escalating consumption, there’s a silver lining as innovative solutions and corporate initiatives redefine the landscape of Recycled Plastic. Projected plastic recycling advancements, technological breakthroughs, and sectoral shifts forecast a 16% reduction by 2060 in plastic required for USD 1 of economic output. Recycling, a process requiring less energy than producing new materials, curtails the demand for fossil-fuel-based raw materials and conserves landfill space, alleviating environmental pollution. Moreover, the alarming disposal of plastic in non-environmentally friendly ways has spurred global concern. Acknowledging this, several companies lead the charge by investing in recycling. Scientists and researchers, recognizing the need for sustainable solutions, explore diverse sectors such as construction, fuel production, household goods, and textiles for recycling plastic. Construction material modified with plastic waste emerges as a frontrunner, offering the dual benefit of minimizing landfill waste and lessening the environmental impact of the construction industry. Also, the automotive industry followed suit, with Ford transforming over 650 million plastic bottles into car mats for the Ecosport model. This remarkable feat showcases innovative repurposing and underlines the automotive sector’s commitment to sustainability.

• There is a rise in demand for recycled PET due to its sustainability benefits and ability to be recycled into new products, driving the growth of the global Recycled Plastic market
• The Asia Pacific region accounted for the highest growth, with a revenue share of 48% in 2022.
• Europe is anticipated to be the fastest-rising market over the forecast period.
• In 2022, the Plastic Bottles segment accounted for significant market growth, contributing more than 72% of the total revenue share.
• The Polyethylene Terephthalate (PET) segment revealed the most significant market growth in 2022 due to the increased awareness of environmental sustainability.
• Based on the End-use Industry, the Packaging segment contributed to major market growth of around 36% of the total revenue share in 2022.

Top Market Trends

1. Consumers are becoming aware of the environmental repercussions of plastic pollutants and are seeking greater sustainable alternatives. This heightened consciousness is producing a surge in the demand for products crafted from Recycled Plastic.
2. Numerous governments are passing measures to diminish plastic waste and encourage the utilization of recycled materials. This regulatory landscape fosters a conducive atmosphere for the growth of the Recycled Plastic market.
3. Ongoing advancements in technology are streamlining and improving the performance of plastic recycling processes. This reduces the cost of Recycled Plastic, rendering it more competitive when compared to virgin plastic.
4. Several sectors, such as construction, packaging, and automotive, progressively incorporate Recycled Plastic into their operations. This heightened integration is fueling an increased demand for the material.
5. Investors increasingly recognize the potential of the Recycled Plastic market and are investing in new technology and organizations. This is propelling market development.

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Economic Insights

In developed economies, increasing restrictions on alternative recycling has the ripple effect of enhancing recycling efforts. Measures like imposing taxes on landfill use, as seen in nations like France and the UK, or outright prohibiting the disposal of certain styles of waste in landfills prove to be the simplest approach to decreasing the extent of plastic waste finishing up in landfills. The European Union has set a goal to limit plastic waste despatched to landfills to 10% by 2030, a giant reduction from the current rate of around 30%. The imposition of taxes on incineration is also gaining traction to curb this waste processing method. However, the success of recycling relies on suitable infrastructure and well-defined collection regulations. Enhanced efficiency is achieved through separated collection systems, incorporating deposit mechanisms, or innovative arrangements that involve collaboration between consumers and brands. In October 2018, the European Parliament endorsed a 90% collection target for European plastic bottles by 2025.

Market Segmentation

The Global Recycled Plastic Market is segregated into the below-mentioned segments as:

The global Recycled Plastic market can be categorized into Product, Source, End-Use Industry, Region. The Recycled Plastic market can be categorized into Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), Other Products based on Product. The Recycled Plastic market can be categorized into Bottles, Films, Foams, Fibers, Other Sources based on Source. The Recycled Plastic market can be categorized into Packaging, Building & Construction, Electrical & Electronics, Textiles, Automotive, Other End-Use Industries based on End-Use Industry. The Recycled Plastic market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Product

Polyethylene Terephthalate (PET) Segment Expected to Lead the Market Share

In 2022, the Polyethylene Terephthalate (PET) segment dominated the market. Polyethylene terephthalate is the most extensive segment, primarily because of its widespread use in food packaging and bottling. Global government regulations have prompted bottled water and beverage manufacturers to transition from virgin PET to recycled PET for crafting packaging bottles.

Based on Source

Plastic Bottles Segment Forecast to Dominate the Global Market Share

The plastic bottle segment is experiencing the most significant market growth and will likely continue during the forecast period. Recycled products primarily originate from plastic bottles, which find extensive use in diverse industries for packaging water, oils, pharmaceuticals, and carbonated drinks.

Based on the End-use Industry

Packaging Segment Estimated to Lead to the Maximum Market Share in the Projected Period

The Packaging segment dominated the Recycled Plastic market in 2022. This is because of the rapid expansion of e-commerce at the global level. The high surge in order volumes through e-commerce platforms has brought about massive adoption of Recycled Plastic for product packaging, thereby stimulating the growth of this sector.

Based on Region

Asia Pacific Forecast to Dominate Global Sales in Estimated Period

Geographically, Asia Pacific dominated the market in 2022. Increasingly, the environmental effect of plastic waste is becoming a massive situation in regions with excessive population densities and inadequate waste control infrastructure. This has led to awareness and a strong call for sustainable waste management practices, especially plastic recycling, in the Asia Pacific. Additionally, the demand for Recycled Plastic is rising in response to the region's expanding consumer goods and packaging industries.

Competitive Landscape

The market is fragmented in nature, with the presence of numerous small-sized and medium-sized players. Significant players in the market compete based on technology used to recycle plastic waste. For instance, major corporations, such as Coca-Cola are taking proactive measures to address the plastic crisis. Still sticking with packaging, Coca-Cola invested in recycling by manufacturing 50% Recycled Plastic bottles and producing bottles from 100% rPET in North America.

The key players in the global Recycled Plastic market include - Veolia (France), Plastipak Holdings Inc. (U.S.), Biffa PLC (UK), Alpek (Mexico), MBA Polymers (U.S.), Cabka (Netherlands), Jayplas (UK), Loop Industries Inc. (Canada), Republic Services Inc. (U.S.), KW Plastics (U.S.), Stericycle (U.S.), Far Eastern New Century Corporation (Taiwan), Indorama Ventures (Thailand), Remondis SE & Co. KG (Germany), WM Intellectual Property Holdings LLC (U.S.), Waste Connections (U.S.), Clean Harbors Inc. (U.S.), Covetsro AG (Germany) among others.

Recent Market Developments

• In April 2023, Indorama Ventures and Evertis joined forces to utilize recycled PET tray flakes to create PET film designed for food packaging trays. This collaboration marks a significant move towards redirecting PET trays away from landfills or incineration, aligning with the recycling goals of the European Union and fostering a circular economy for PET trays.
• In October 2022, at the year’s K 2022, the premier trade fair for plastics and rubber in Düsseldorf, Germany, Veolia introduced its latest offering, PlastiLoop, as part of its commitment to advancing the circular economy for plastics. Veolia positions itself as a pioneer by establishing the world’s first integrated circular polymers platform. PlastiLoop is a global solution that allows customers to access Recycled Plastics through a tailored range of polymers designed to meet their specific requirements. This initiative responds effectively to the increasing number of industries seeking to transition to Recycled Plastics, reducing their carbon footprint and contributing to resource conservation.
• In May 2022, Faurecia, a FORVIA Group company, and Veolia entered a collaborative research agreement to jointly create pioneering compounds for automotive interior modules, extending to an average of 30% recycled content by 2025. This partnership aims to expedite the adoption of innovative and sustainable interior solutions in Europe, focusing on instrument panels, door panels, and center consoles. Starting in 2023, Veolia will commence the production of these recycled materials at its existing recycling facilities in France.

Segmentation of the Global Recycled Plastic Market