Recycled Plastics Market

Recycled Plastics Market

The global recycled plastics market size is valued at USD 69.4 billion in 2023 and is projected to reach USD 120.0 billion by 2030, growing at 8.1% cagr during the forecast period. The market has observed stable growth throughout the study period and is expected to continue with the same trend during the forecast period. Growing awareness among individuals regarding energy savings and government initiatives are expected to drive the growth of the market in the upcoming years.

Attractive Opportunities in the Recycled Plastics Market

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Recycled Plastics Market Dynamics

Driver: Increasing use in packaging, automotive, and electrical & electronics industries

The growing consumption of recycled plastics by major stakeholders in the packaging, automotive, and electrical & electronics industries will directly contribute to the increasing demand for these plastics. Altogether, these companies consume more than 6 million tons of plastic packaging per year. Hence, it is anticipated that the market for recycled plastics would continue to expand as a result of the growing use in packaging, automotive, and electrical & electronics industries.

Restraint: Adverse impact of downcycling

Downcycling is the process in which used and often unused plastics are recycled and refabricated to produce new items of lesser quality. This means that the plastic, instead of becoming another new container, becomes a different, less useful product. Recycled plastics’ limited use places them at a disadvantage compared to new plastics and other recycled materials. After downcycling, plastic is generally unfit for another round of recycling. As a result, it ends up in a landfill despite having seen a secondary use as a less useful product.

Opportunity: Favourable initiatives to promote use of recycled plastics in developed countries

In the developed economies of North America and Europe, several regulations are in place or have been introduced to promote the recycling of plastics. Moreover, several states in the US offer some tax incentives or credits to promote the recycling of plastics. This is expected to trigger significant growth in public sector funding for waste-related projects. Therefore, such favorable initiatives undertaken by developed economies are expected to create growth opportunities for recycled plastics.

Challenge: Difficulty in collection of raw materials

The recycled plastics market is highly dependent on the proper collection of raw materials (plastic wastes or scraps). Globally, only 14% of the plastic packaging used is recycled, whereas the rest ends up in the oceans each year, causing harm to the aquatic biodiversity. Recycling the remaining 86% of used plastics could create a huge revenue of around USD 80–120 billion, according to the Ellen MacArthur Foundation. However, the realization of this revenue cannot be expected without designing new methods. Thus, limitations in the collection of raw materials is a major challenge for the market players.

Recycled Plastics Market Ecosystem

Prominent companies in this market include well-established, financially stable recycled plastic manufacturers. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Veolia (France), Indorama Ventures (Thailand), Far Eastern New Century Corporation (Taiwan), Alpek (Mexico), and Berry Global Inc. (US).

Based on plastic type, the polyethylene terephthalate (PET) segment accounted for the largest recycled plastics industry.

The polyethylene terephthalate (PET) segment held the largest share of the global recycled plastics market in 2022. PET is the largest recycled resin globally, as recycled PET (rPET) can be utilized in many products such as new containers, carpet, textiles, protective packaging, industrial strapping, automotive parts, and construction materials.

Based on source, the films segment is accounted for the second largest share of recycled plastics industry.

The films segment accounted for the second largest share of the market in 2022 owing to its major use in non-food applications such as shopping bags, and dry-cleaning bags, among other retail bags. Also, they are utilized in production of composite lumber for making decks, benches, and playground sets, which is expected to result in a significant volume of spent plastic films.

Based on region, Asia Pacific is projected to account for the largest share of the global recycled plastics industry.

Increasing demand for recycled plastics from building & construction industry is leading to the growth of Asia Pacific market. The rising population, economic growth, and development of industrial  sector in emerging economies such as India, Japan, and China are among the other factors which are driving the Asia Pacific market.

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Recycled Plastics Market Players

Alpek (Mexico), Biffa (UK), Cabka (Germany), Far Eastern New Century Corporation (Taiwan), Indorama Ventures (Thailand), Jayplas (UK), Loop Industries, Inc. (Canada), MBA Polymers Inc. (US), Plastipak Holdings, Inc. (US), Republic Services (US), Stericycle (US), and Veolia (France) are among the major players leading the market through their innovative offerings, enhanced recycling capacities, and efficient distribution channels.

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Recycled Plastics Market Report Scope

This research report categorizes the recycled plastics market based on source, plastic type, process, type, end-use industry, and region.

Recycled Plastics Market by Source:

• Bottles
• Films
• Foams
• Fibers
• Others

Recycled Plastics Market by Plastic Type:

• Polyethylene Terephthalate (PET)
• Polyethylene (PE)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS)
• Others

Recycled Plastics Market by Process:

• Mechanical
• Chemical

Recycled Plastics Market by Type:

• Post-Consumer Recyclate
• Industrial Recyclate

Recycled Plastics Market by End-use Industry:

• Packaging
• Building & Construction
• Textiles
• Automotive
• Electrical & Electronics
• Others

Recycled Plastics Market by Region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe
• North America
  • US
  • Canada
  • Mexico
• South America
  • Brazil
  • Argentina
  • Rest of Europe
• Middle East & Africa
  • Saudi Arabia
  • South Africa
  • Rest of Middle East & Africa

Recent Developments

• In April 2023, Indorama Ventures and Evertis, a pioneer in sustainable PET barrier films, announced their collaboration to use flake from recycled PET trays to produce PET film suitable for food packaging trays. The partnership supports Evertis’ 2025 target of 50% post-consumer recycled content in their products.
• In February 2023, Loop Industries, SUEZ, and SK geo centric confirmed the Grand Est region of France as the manufacturing site to produce virgin-quality PET plastic made from 100% recycled content. The three partners aim to start construction work in early 2025 with plant commissioning slated for 2027.
• In November 2022, Plastipak Holdings, Inc. announced the opening of a recycling plant in Toledo, Spain. The new recycling facility converts PET flake into food-grade recycled PET (rPET) pellets suitable for direct use in new preforms, bottles and containers.

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