Global Plastic Recycling Market - 2023-2030

Global Plastic Recycling Market - 2023-2030

Global Plastic Recycling Market reached US$ 28.3 billion in 2022 and is expected to reach US$ 60.2 billion by 2030, growing with a CAGR of 8.9% during the forecast period 2023-2030. Various advancements in recycling technologies have improved the efficiency and cost-effectiveness of plastic recycling processes, which makes them more attractive for businesses and consumers.

Several companies are adopting sustainable solutions and commitments, which drives the demand for recycled plastic materials. Manufacturers are increasingly adopting sustainable and cost-effective alternatives to traditional plastic. The demand for recycled plastic as a raw material for various industries, which includes packaging, automotive and construction is driving the growth of plastic recycling.

PepsiCo India has launched its Pepsi Black soft drink in 100% recycled PET bottles (rPET) as part of its sustainability initiative, PepsiCo Positive (PEP). For instance, on 18 July 2023, the move aligns with the Indian Government's Swachh Bharat Mission and increasing regulations on single-use plastics. Other companies, such as Coca-Cola India with its water brand Kinley, are also adopting rPET bottles.

Market Dynamics

Rising Collaboration for Plastic Recycling in Automotive Industry

Automotive manufacturers are collaborating with recyclers, material suppliers and research institutions to develop and implement efficient plastic recycling solutions. The partnerships aim to address technical challenges and optimize the recycling process for different types of automotive plastics.

Eastman, in collaboration with U.S. Automotive Materials Partnership LLC, automotive recycler PADNOS and Yanfeng, has successfully completed a closed-loop recycling project for automotive mixed plastic waste. The initiative aims to address the 10 to 20 percent of end-of-life vehicles' materials, known as automotive shredder residue, which consist of mixed plastics and other non-recycled materials that often end up in landfills or are processed through waste-to-energy technology.

Rising Government Initiatives

Governments may offer financial incentives to assist the creation and growth of the infrastructure for recycling plastic, such as grants, subsidies, tax exemptions or low-interest loans. Government incentives promote private sector engagement and aid in overcoming the early investment costs. The above factors boost the growth of the plastic recycling market. India is taking significant steps to tackle plastic pollution through various recycling initiatives.

While single-use plastic has been banned by the government, there is a lack of viable alternatives for certain products like milk packets. However, some practical solutions have been proposed, such as making a cut in the packets to make recycling easier. For instance, 0n 27 August 2022, the Milk Bag Project and Akshayakalpa Organic are two successful initiatives that saved a considerable number of milk packets from entering landfills.

Akshayakalpa Organic, an organic dairy enterprise based in Bangalore, has also taken proactive steps to address plastic waste. As India's first certified organic dairy, they have taken the initiative to recycle about 1,93,208 discarded milk and milk product packages from their consumers. Both projects that are Milk Bag and Akshayakalpa Organic have a potential practical solution that leads to reducing plastic waste.

Cost and Infrastructure

Advanced plastic recycling techniques like chemical recycling and depolymerization can be costly to implement and call for a sizable investment in infrastructure and research. The high price of these technologies may prevent their general acceptance and restrict the scaleability of attempts to recycle plastic. It's possible that some areas lack the technology and infrastructure needed for effective plastic recycling.

A lack of access to suitable recycling equipment, insufficient recycling facilities or transportation issues. Different types and compositions of plastic may require different recycling techniques. The difficulty of classifying and separating various plastic types can increase prices and make recycling more difficult. Thus making it a costly process.

COVID-19 Impact Analysis

The consumption of certain plastic products changed due to changes in consumer behavior. Like there was an increase in single-use plastic items like personal protective equipment (PPE), which might not have been easily recyclable. The disruptions caused by the pandemic influenced investment decisions and long-term planning for businesses involved in plastic recycling and it leading to potential delays in expansion projects and capacity growth.

Governments and municipalities temporarily suspended recycling programs. Redirected resources to prioritize handling medical waste, impacting recycling rates and volumes. On the positive side, the pandemic brought attention to issues of plastic waste and hygiene. It marks the importance of sustainable waste management and increases public awareness of the significance of recycling.

Russia-Ukraine War Impact

Geopolitical developments may cause market turbulence and fluctuating commodity prices, which may have an indirect effect on the economics of recycling plastic. Changes in the price of virgin plastics, for instance, can have an impact on the demand for recycled plastics as an alternative.

Economic uncertainty may have an impact on consumer and corporate confidence as a result of geopolitical tensions and conflicts. Uncertainty can result in less money being invested in recycling infrastructure and technology, which might potentially hinder the market's expansion for recycled plastics.

Segment Analysis

The global plastic recycling market is segmented based on material, application and region.

Technology Advancement in the Packaging Industry

Packaging application is expected to grow at the highest CAGR during the forecast period. Technology advancement in the plastic recycling industry is a cost-effective and efficient process for recycling plastic waste into high-quality materials used for packaging applications. Various innovations in cleaning and processing technologies have improved the overall economics of plastic recycling in the packaging industry.

PlastCert, a department of RIGK, on 14 July 2023 offers certification services for plastic packaging and products based on the RecyClass system's specifications. The certification has two crucial aspects i.e., Recyclability and Recycled Content. The Recyclability Certification assesses the recyclability of plastic packaging, promoting responsible packaging design and instilling consumer confidence in sustainable use. The Recycled Content Certification confirms the percentage of recyclate used in plastic packaging, facilitating transparent utilization of recycled materials and reducing plastic taxes in certain countries.

Geographical Penetration

Government Collaboration Drives the Growth of the Market

Asia-Pacific is expected to grow at the highest CAGR in the global plastic recycling market during the forecast period. Countries such as India, China and Japan in the region witnessed collaboration between governments, industries and research institutes, play a significant role in promoting plastic recycling. Partnerships enable knowledge-sharing, resource mobilization and the development of efficient recycling systems.

LyondellBasell and Genox Recycling have signed a memorandum of understanding to establish a joint venture in Zhaoqing, China, that aims of building a plastics recycling plant using mechanical recycling technology. For instance, on 10 October 2022, the plant will recycle post-consumer plastic waste and produce new polymers under the LyondellBasell Circulen Recover product portfolio. Collaboration between organizations seeks to reduce plastic waste sent to landfills and supports the demand for circular and sustainable solutions.

Competitive Landscape

The major global players include Plastipak industries Inc., CarbonLITE Industries, HUD Group, Plastima, Iavglobal Co., LTD., Nam Phong Industry, KW Plastics, Custom Polymers, MBA Polymers Inc. and Wellpine Plastic Industrial Co.,Ltd.

Why Purchase the Report?
• To visualize the global plastic recycling market segmentation based on material, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of plastic recycling market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global plastic recycling market report would provide approximately 53 tables, 50 figures and 181 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies