Global Recycled Plastics Market Forecast 2024-2032

Global Recycled Plastics Market Forecast 2024-2032

In terms of revenue, the global recycled plastics market was valued at $58582.82 million in 2023 and is expected to reach $117930.36 million by 2032, growing at a CAGR of 8.15% during the forecast period 2024-2032. In terms of volume, the global recycled plastics market size is expected to reach 55.62 thousand kilotons by 2032, growing at a CAGR of 2.69% during the forecasted period.

Recycled plastic refers to plastic that has been recovered from scrap or waste materials and reprocessed into new products. This process plays a critical role in significantly reducing the volume of plastic waste that would otherwise end up in landfills or pollute the environment. By converting discarded plastics into reusable materials, recycling addresses several key environmental and economic challenges.

The production of virgin plastics relies heavily on non-renewable resources such as petroleum and natural gas. By reusing existing plastics, we can reduce the extraction and consumption of these finite resources, preserving them for future generations. Recycling plastic reduces greenhouse gas emissions. The manufacturing of virgin plastics is an energy-intensive process that contributes significantly to carbon emissions. In contrast, recycling plastics typically requires less energy, resulting in lower carbon footprints and helping to combat climate change.

MARKET INSIGHTS

Key growth enablers of the global recycled plastics market:
• Environmental concerns regarding plastic waste
• Application of recycled plastics in automotive, packaging and electronics sectors

Recycled plastics are witnessing increased applications within the automotive sector. Aligning with this, in 2023, Ford announced a milestone achievement, with over 85% of its vehicle parts and materials being recycled, signaling a significant commitment to sustainability.

Additionally, there has been a notable surge in the adoption of recycled plastics within the packaging sector, driven by increasing environmental awareness and sustainability initiatives. Accordingly, numerous companies are transitioning towards incorporating recycled plastics into their packaging materials as part of their commitment to reducing environmental impact.

With the proliferation of electronic gadgets and devices, there is a corresponding increase in electronic waste (e-waste) generated globally. To address this issue, electronics manufacturers are exploring ways to incorporate recycled plastics into their products, thereby reducing the need for virgin plastic materials and diverting e-waste from landfills.
• Advancements in recycling technologies
• Shift in consumer preferences toward recycled plastics

Key growth restraining factors of the global recycled plastics market:
• Degraded quality of recycled plastics due to plastic contamination and downcycling

The contamination of plastics poses a considerable obstacle to the market for recycled plastics. The presence of impurities complicates the extraction process, making it economically unviable or technically challenging to produce high-quality recycled materials.

Industries reliant on recycled plastics for manufacturing face constraints in sourcing materials that meet their quality standards, hindering the widespread adoption of recycled plastics as a viable alternative to virgin materials.

Moreover, the contamination issue exacerbates environmental concerns associated with plastic waste management. Inefficient recycling processes lead to increased energy consumption and greenhouse gas emissions, diminishing the environmental benefits typically associated with recycling initiatives.
• Lack of infrastructure for collecting and processing recyclable material
• High costs associated with recycled plastic production
• Lack of differentiated demand for recycled plastics

Global Recycled Plastics Market | Top Trends
• By aligning policy objectives with sustainability goals, governments are playing a pivotal role in accelerating the transition towards a circular plastics economy, fostering innovation, and driving positive environmental outcomes. The European Commission’s Circular Plastics Alliance has set an ambitious goal of incorporating 10 million metric tons of recycled plastics into European products by 2025.
• Eco-design for plastics is emerging as a pivotal trend shaping the market for recycled plastics, driven by the recognition of the increasing compositional complexity and heterogeneity of plastic products, particularly packaging. By emphasizing design choices that prioritize recyclability, eco-design seeks to mitigate challenges in collection, sorting, and recycling processes.

SEGMENTATION ANALYSIS

Market Segmentation – Recycling Process, Source, Type, Plastic Type, and End-User –

Market by Recycling Process:
• Chemical Recycling

In terms of revenue, chemical recycling is expected to be the fastest-growing recycling process in the market.

Chemical recycling breaks down polymers into monomers or other valuable chemicals. This process allows for a wider range of plastics to be recycled, including mixed or contaminated plastics that are difficult to process through traditional methods.

In chemical recycling, plastic waste is subjected to various chemical processes such as depolymerization, pyrolysis, or gasification.

Also, chemical recycling can handle a wider range of plastic waste, including contaminated or mixed plastics that are unsuitable for mechanical recycling. Moreover, it can address the issue of plastic waste that is difficult to recycle due to its complex composition or the presence of additives.
• Mechanical Recycling

Market by Source:
• Bottles
• Films
• Foam
• Other Sources

Market by Type:
• Post-Consumer Recycled Plastics

Post-consumer recycled plastics is the largest revenue-generating type in the global recycled plastics market, with an expected share of 67.31% by 2032.

Post-consumer recycled plastics (PCR plastics) are materials that have been reclaimed after being used by consumers. This makes them distinct from post-industrial recycled plastics derived from manufacturing waste.

The process of converting used plastics into PCR plastics involves breaking down the plastic waste into small pieces, melting them, and remolding them into new items. This not only helps in reducing the volume of waste sent to landfills but also conserves resources by reducing the need for virgin plastic production.

Companies that incorporate PCR plastics into their products often appeal to environmentally conscious consumers, who are increasingly demanding sustainable alternatives.
• Post-Industrial Recycled Plastics


Market by Plastic Type:
• PET (Polyethylene Terephthalate)
• PVC (Polyvinyl Chloride)
• PP (Polypropylene)
• PE (Polyethylene)
• PS (Polystyrene)
• Other Plastic Types

Market by End-User:
• Packaging
• Building & Construction
• Automotive
• Electrical & Electronics
• Textile
• Other End-Users

REGIONAL ANALYSIS

Geographical study based on four major regions:
• North America: The United States and Canada
• Europe: The United Kingdom, Germany, France, Italy, Spain, the Netherlands, Norway, and Rest of Europe

In 2023, Europe captured the highest revenue share of 39.72% in the global recycled plastics market.

Europe is focusing on a circular economy, emphasizing the reuse and recycling of resources, including plastics, across various industries. Moreover, strict regulations in European countries aim to reduce plastic waste, promote recycling, and increase the use of recycled plastics in products.

Growing consumer awareness of plastic pollution is further driving the demand for sustainable products, encouraging manufacturers to use recycled plastics in packaging.
• Asia-Pacific: China, Japan, India, South Korea, Indonesia, Thailand, Taiwan, Australia & New Zealand, and Rest of Asia-Pacific
• Rest of World: Latin America, the Middle East, and Africa

Our market research reports offer an in-depth analysis of individual country-level market size and growth statistics. We cover the segmentation analysis, key growth factors, and macro-economic trends within the recycled plastics market, providing detailed insights into –
• Canada Recycled Plastics Market
• Germany Recycled Plastics Market
• India Recycled Plastics Market

COMPETITIVE INSIGHTS

Major players in the global recycled plastics market:
• Veolia Environment SA
• Indorama Ventures PCL
• Plastipak Holdings Inc
• Ultra-Poly Corporation
• Berry Global Inc

Key strategies adopted by some of these companies:
• In April 2024, Far Eastern New Century Corporation (FENC) commenced the construction of its latest Green PET production plant in Malacca, Malaysia, which will have an annual capacity of 50,000 metric tons.
• In June 2023, Envision Plastics invested to expand the EcoPrime manufacturing capacity by 50%.


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Frequently Asked Questions (FAQs):
• What is post-consumer recycled plastic?

A: Post-consumer recycled plastic is material recovered after it has been used by consumers. This contrasts with post-industrial recycled plastic, which comes from manufacturing waste.
• Is recycled plastic safe?

A: Recycled plastic is generally safe for many applications, including food packaging, provided it meets regulatory standards. Safety depends on the source of the recycled material and the thoroughness of the recycling process.
• What are recycled plastic bottles used for?

A: Recycled plastic bottles, primarily made from PET, are used to produce a variety of new products, including new bottles and containers, polyester fibers for clothing and textiles, carpeting and upholstery, industrial strapping and building materials.
• What are the environmental benefits of using recycled plastics?

A: Using recycled plastics offers significant environmental benefits. Primarily, it reduces the amount of plastic waste that ends up in landfills and oceans, mitigating pollution and its detrimental effects on marine and terrestrial ecosystems. The recycling process generally consumes less energy compared to manufacturing new plastics, further conserving energy resources and reducing the overall carbon footprint.

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