Global Recycled PET Market - 2024-2031

Global Recycled PET Market - 2024-2031

Global Recycled PET Market reached US$ 10.5 Billion in 2023 and is expected to reach US$ 17.4 Billion by 2031, growing with a CAGR of 6.5% during the forecast period 2024-2031.

Recycled PET is in great demand for its green solutions due to growing awareness of concerns including plastic waste, ocean pollution and climate change. Governments, corporations and people are concentrating on promoting recycling programs and cutting down on plastic waste. Governments throughout the world are putting laws and policies into place to encourage the use of recycled materials and reduce plastic waste. The includes extended producer responsibility initiatives, goals for reducing plastic waste and laws requiring packaging to include a specific amount of recycled material.

Recycling, reusing and reintroducing resources into the manufacturing cycle is the core of the circular economy idea that has gained popularity. Recycled PET is essential to reaching the objectives of the circular economy since it promotes resource efficiency and reduces dependency on virgin plastics. Products with environmentally friendly packaging made of recycled materials are becoming increasingly popular. The need for recycled PET is being driven by this shift in customer expectations, which has forced firms to embrace sustainable packaging solutions. The industries include food and beverage, personal care and home items.

Asia-Pacific is the dominating region in the market due to the growing product launches by the major key players. For instance, on June 07, 2023, ALPLA, supported COCA-COLA in the launch of India’s first 100% recycled pet bottle for packaged drinking water. Kinley is India’s first packaging drinking water brand which use 100% recycled PET bottles. The company’s activities aim to support coca-colas goal of using at least 50% recycled material in all packaging by 2031. Currently 90% of the company’s packaging is recyclable and 15% of PET used is recycled globally.

Dynamics

Growing Environmental Concerns

Growing awareness of the harmful effects that plastic pollution poses to the environment has resulted in a change in consumer preferences and legislation that support recycled materials such as PET. Better waste management techniques, including recycling, are being pushed for by governments across the world. Concerns over pollution and the general effects of plastic trash on the environment are what are driving this movement.

Recycling PET reduces the demand for virgin plastic production, a process that uses a lot of resources and produces greenhouse gases in the process. By using recycled PET, carbon emissions is decreased, contributing to the prevention of climate change. The circular economy theory aims to reduce waste and increase the effectiveness of resource use. Because it closes the loop on plastic materials, uses less energy during manufacture and requires less extraction of raw materials, recycled PET is crucial for reaching these objectives. To tackle plastic waste and encourage recycling, governments are putting laws and policies into place. The includes policies that increase demand for recycled PET, such as increased producer accountability and demands that require packaging to contain recycled materials.

Growing Demand for the RPET from the Foood and Beverage Industry

The beverage and food industry are becoming increasingly conscious of environmental responsibility and sustainability. By encouraging the use of recycled materials and maintaining the principles of the circular economy, RPET packaging conforms with these goals. The need for RPET in packaging solutions is fueled by businesses that value sustainability highly. RPET shuts the door on plastic waste, enabling the food and beverage sector to implement circular economy practices. The incorporation of recycled plastic bottles into packaging materials creates a sustainable supply chain by lowering the need for virgin plastics and encouraging resource efficiency. PET waste is collected and recycled into new packaging goods.

Customers are becoming more conscious of environmental concerns that exhibit sustainability initiatives. RPET packaging appeals to environmentally conscious consumers who look for eco-friendly options and support businesses who are devoted to reducing their impact on the environment. In the food and beverage industry, RPET adoption is driven by consumers growing demand for environmentally friendly packaging choices. Recycled materials utilized in food packaging as long as they adhere to industry standards and hygienic regulations. Food and beverage producers often accept and utilize RPET that complies with regulations for applications involving food contact, assuring compliance and advancing sustainability objectives.

High Cost

The total expense of producing recycled PET is influenced by the establishment and maintenance of recycling infrastructure, which includes sorting and collection facilities, equipment for washing and processing and quality control processes. Specialized recycling technology and quality assurance procedures require significant initial and ongoing costs.

Complex gear, complex sorting methods and energy-intensive procedures are frequently needed to generate the high-quality recycled PET or Grade A material, using advanced recycling technologies and processes. Recycled PET could grow less competitive in the market as a result of production costs increasing due to the complexity of these technologies and the requirement for specialized equipment.

Strict quality control and testing procedures are needed to guarantee the safety, purity and quality of recycled PET plastic, particularly for use in food packaging, drinks and medications. Color sorting, material testing and contaminant removal are instances of quality assurance procedures that raise manufacturing costs and lead to increased pricing for Grade A recycled PET. Demand in the market, manufacturing numbers and economies of scale all affect the price per unit of recycled PET. Compared to large-scale recycling facilities, smaller recycling businesses have higher production costs because of their lower throughput, inefficient procedures and greater administrative costs. Reducing expenses per unit and enhancing market competitiveness are two benefits of achieving economies of scale.

Segment Analysis

The global recycled PET market is segmented based on source, grade, type, color, end-user and region.

Growing Industrial Adoption of Grade A Recycled PET Globally

Based on the process, the recycled PET market is segmented into mechanical, chemical–mechanical, electropolishing, chemical, plasma-assisted and others.

PET recycled that has gone through extensive sorting, cleaning and processing to fulfil exacting quality criteria is referred to as grade A recycled PET. For the production of premium recycled PET resin, pollutants, labels and impurities have to be removed. A increasing number of sectors and applications that demand the finest standards of material quality, consistency and performance are driving the need for Grade A recycled PET. PET packaging materials have to satisfy quality standards and industry regulations in many markets and industries. Grade A recycled PET fulfils or exceeds these legal requirements, making it appropriate for use in industries where purity and safety are crucial, such as food packaging, beverage containers, drugs and cosmetics. The market for Grade A recycled PET is driven by laws.

Customers are looking for things created from recycled materials, such as Grade A recycled PET, as they become more concerned about environmental sustainability. In accordance with customer desires and manufacturers utilize Grade A recycled PET in their containers and products, encouraging environmentally conscious decisions and the circular economy. Corporate responsibility, green practices and sustainability efforts receive top priority by businesses and brands. Utilizing Grade A recycled PET reduces carbon footprint, improves brand reputation and shows a dedication to environmental treatment. Demand for Grade A recycled PET is driven by market leaders and companies that care about the environment in order to accomplish sustainability targets.

Geographical Penetration

Asia-Pacific is Dominating the Recycled PET Market

Asia-Pacific is home to a significant portion of the world's population, including densely populated countries such as India and China. The population size contributes to substantial consumption of goods and packaging materials, including PET-based products. Recycled PET is extremely sought after in the area to fulfil demands for packaging. The region is a major hub for manufacturing across various industries such as consumer products, automotive and textiles. Recycled PET is used by these sectors for producing bottles, containers, textiles and other objects. The growing need for recycled PET in the area is fueled by the existence of manufacturing enterprises.

In Asia-Pacific, issues about plastic waste management and environmental sustainability are increasing. Strategies for waste reduction have been adopted by consumers and businesses. The demand for recycled PET as a competitive alternative to virgin PET is driven by the emphasis on protecting the environment. Asia-Pacific governments have enacted laws and incentives to support eco-friendly materials and circular economy operations. Extended producer responsibility for recycling encourages the usage of recycled PET and promotes market expansion. Major key players in the region increased their use of PET bottles helps to boost regional market growth over the forecast period.

For instance, on October 18, 2023, SLMG Beverages launched 100% recycled PET bottles for Coca-Cola. It helps to reflect company's dedication towards environmental stewardship but also signifies a pivotal moment in the beverage industry's landscape in India. The company successfully supplies 90% coca Coca-Cola bottles in Uttar Pradesh and 100% in Uttarakhand and it has a presence in also Bihar and Madhya Pradesh. The company has 7 plants in Uttar Pradesh with a production capacity of 41 crore bottles a day.

Competitive Landscape

The major global players in the market include Placon, Clear Path Recycling LLC, Verdeco Recycling Inc., Indorama Ventures Public Ltd., Zhejiang Anshun Pettechs Fibre Co., Ltd., PolyQuest, Evergreen Plastics Inc., Pheonix Technologies, Libolon and Biffa.

COVID-19 Impact Analysis

The pandemic affected post-consumer PET waste collection and processing by disrupting global supply systems. The supply of recycled PET feedstock fluctuated as a consequence of lockdowns and changes in consumer behavior, which had an effect on distribution. Recycled PET is utilized in packaging and textile however, the pandemic changed buying patterns and customer demand. The market for recycled PET materials was impacted by fluctuations in the demand for packaged foods and drinks during lockdowns.

The efficiency of recycling infrastructure was impacted by the closure of recycling plants and operational difficulties during lockdowns. The cost of manufacturing and pricing strategies for recycled PET products were affected by fluctuations in oil prices and market uncertainty, which in turn impacted the dynamics of the market. The supply of recycled PET to the market was hampered by delays in waste collection and disruptions in recycling operations. The pandemic caused changes in raw material costs, affecting virgin and recycled PET.

Russia-Ukraine War Impact Analysis

The war had an impact on supply chains for recycled PET, as Ukraine and Russia are major participants in the plastics sectors. Disruptions in the raw material supply and logistics cause shortages and price fluctuations in the globally market for recycled PET. Prices for natural gas and crude oil, which are crucial feedstocks for the manufacture of PET, including recycled PET, fluctuate as a result of the ongoing dispute. Fluctuations in the price of raw materials have a direct impact on the cost of producing recycled PET, as well as pricing strategies and market dynamics.

The region's recycling infrastructure is impacted by the conflict's geopolitical and financial consequences. globally variations in investment and recycling-related business practices affect the quantity and quality of recycled PET. Changes in trade patterns and regional demand are just a few of the ways that the conflict could impact market dynamics. In reaction to geopolitical changes, companies operating in the recycled PET industry could reevaluate their sourcing strategy, goals for market expansion and approaches to risk management.

By Source
• Bottles & Containers
• Films & Sheets

By Grade
• Grade A
• Grade B

By Type
• Flakes
• Chips

By Color
• Clear
• Colored

By End-User
• Fibers
• Films & Sheets
• Food & Beverage Containers & Bottles
• Non-Food Containers & Bottles
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Spain
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On October 04, 2023, Coca-Cola India launched fully recycled PET bottles for its flagship Coca-Cola brand in pack sizes of 750 ml and 250 ml across various markets in the country. The recycled bottles are made from food-grade recycled polyethylene terephthalate (PET) and is approved by US FDA and European Food Safety Authority (EFSA).
• On September 25, 2023, Indorama Ventures achieved 100 billion PET bottles recycling milestone. The has diverted 2.1 million tons of waste from the environment and saved 2.9 million tons of carbon footprint from the product lifecycles.
• On August 06, 2023, ENVICCO, a joint venture between PTT Global Chemical (GC) and ALPLA launched Thailand's first food-grade rPET to the market which is already being used for Thailand's first 100% rPET bottles. Pepsi and Mineré two companies are adopting the high-quality Post-Consumer Recycled (PCR) material from ENVICCO for their plastic bottles.

Why Purchase the Report?
• To visualize the global recycled PET market segmentation based on source, grade, type, color, end-user 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 recycled PET 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 recycled PET market report would provide approximately 78 tables, 70 figures and 201 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies