Plastics Recycling Market in India

Plastics Recycling Market in India

Plastic recycling is the process of collecting scrap plastic and reprocessing it into a functional and valuable product. The process is primarily used to reduce the harmful effects of plastic waste while reducing the reliance on virgin polymers to produce new plastic products. Plastic recycling aims to reduce plastic pollution, reduce reliance on landfills, conserve resources, and reduce greenhouse gas emissions.

Market insights:

In FY 2021, India's market for recycled plastics grew to 6.06 million tonnes. It is anticipated to increase at a compound annual growth rate (CAGR) of 15.90% from FY 2022 to FY 2027, reaching 20.50 million tonnes. The plastic recycling industry in India is flourishing due to an increase in small-scale processing plants and a greater emphasis on the secondary use economy by non-governmental organizations.

Impact of COVID-19:

The COVID-19 pandemic and lockdown measures substantially impacted plastics production, use, and waste in 2020. Plastic use declined in most sectors in line with decreased demand and output, particularly in large-scale plastics-using industries such as motor vehicles, trade, and construction. Disposable PPE item littering, particularly face masks, gloves, and cleaning wipes, increased almost immediately after the government recommended their use as soon as the pandemic began.

Government initiatives:

Several initiatives undertaken by the Indian government in the last few years have directly or indirectly influenced the plastic recycling market in India. Swachh Bharat Mission assists Gram Panchayats in raising awareness about reducing single-use plastic use and effectively managing plastic waste. In collaboration with Hindustan Coca-Cola Beverages Private Limited, Hindustan Unilever Limited, HDFC Bank, and Coca-Cola India Foundation, UNDP India is broadening existing programs to diminish the impact of plastic waste on the environment in India.

Key growth drivers of the market:

With rising concerns over the excessive usage of plastics, there is an increasing demand for alternatives to conventional plastics. Due to rapid innovation and the introduction of new products, manufacturers have shifted toward using recycled plastics since they reduce the carbon footprint used in the manufacturing process. Increasing usage of consumer electronics has driven the demand for recycled plastics in electronics and packaging applications.

Key deterrents to the growth of the market:

Virgin plastics are used in various applications, including the packaging of food to produce automotive components. They are superior to their recycled alternatives in terms of quality. The high cost of recycled plastics to the end-user than conventional plastics has also hindered the market's growth.