Recycled Plastics Market Forecasts to 2028 – Global Analysis By Source (Bottles, Fibers, Films, Foams), Recycling Process (Mechanical, Chemical), End User (Automotive, Building & Construction, Electrical & Electronics), and By Geography

Recycled Plastics Market Forecasts to 2028 – Global Analysis By Source (Bottles, Fibers, Films, Foams), Recycling Process (Mechanical, Chemical), End User (Automotive, Building & Construction, Electrical & Electronics), and By Geography

According to Stratistics MRC, the Global Recycled Plastics Market is accounted for $26.77 billion in 2021 and is expected to reach $52.83 billion by 2028 growing at a CAGR of 10.2% during the forecast period. The plastic recycling refers to the process of collecting and re-using different types of plastic wastes. Before recycling takes place, the waste and scrap undergo a series of five different stages which include sorting, washing, shredding, identification and classification of plastic, and extruding. Products manufactured from plastics are usually non-biodegradable in nature and can lead to various environmental concerns. Hence, recycling plastic helps to reduce the amount of waste disposed of at landfill sites, thereby lowering the amount of greenhouse gas emissions released from landfills.

Market Dynamics:

Driver:

Rising inclination from the textile industry in the emerging regions

Textile is one of the major end-use sectors of recycled plastics, as recycled PET, which is the most widely recycled resin globally, finds the highest usage in fiber applications. In the past five years, there has been a significant growth in major clothing companies, businesses, and environmental organizations that have started using plastics in their fabrics in an effort to reduce plastic pollution. The clothes made of recycled plastics do not differ from normally made clothes in terms of quality and texture. Hence, the products made from recycled plastic bottles indirectly help in contributing to a sustainable economy. Therefore, the use of these plastics in textiles is significantly increasing.

Restraint:

Ban imposed on imports of scrap plastics in China

China, being the world’s largest user of scrap plastics, announced that it would stop importing plastic waste from other countries in 2017. Apart from consuming locally produced recycled plastics, China was also the largest importer of recycled materials until 2016. In 2016, the country imported 51% of global plastic scrap. Hence, the sudden proposed ban on its scrap imports became the biggest challenge in the industry, as China had been the major consumer of recycled materials and reprocessing it to useful materials, which were used for many applications such as bottles, pipes, and carpets.

Opportunity:

Obstructive environmental impact of plastics disposal

The plastics are lightweight, inexpensive, and durable materials which are readily moulded into a variety of products. As a result, the production of plastics has increased manifold over the past few decades. However, their current usage has led to the generation of a huge amount of waste, resulting in environmental concerns. Landfill is the conventional method for waste disposal; however, landfill area has become scarce in many countries. Even though this method has limited environmental impacts, there are long-term risks of contamination of soil and groundwater associated with it, thus polluting it.

Threat:

Rigid competition from virgin or newly created plastics

The recycled plastics have strong competition from newly created plastics in terms of application and quality. Recycled plastics are rarely used in food-grade packaging applications because of safety concerns related to their contaminants from their previous use. Virgin plastics can be used in many applications, including food-grade packaging where the food product comes in direct contact with the plastic; recycled plastics do not have the same advantage. Some jurisdictions allow the use of recycled plastic resin in combination with virgin resin for food-grade containers, but the recycled quality cannot be maintained to the standard required for food-grade applications. For high-end products, where the chemical composition of the plastic has to be specific, only virgin materials can be used.

The polypropylene (PP) segment is expected to be the largest during the forecast period

The polypropylene (PP) segment is estimated to have a lucrative growth. Polypropylene is majorly used in the manufacturing of automotive components, packaging & labeling, medical devices, and diverse laboratory equipment among various others, owing to its excellent chemical and mechanical properties. It is resistant to several chemical solvents, acids, and bases and has excellent mechanical strength. Moreover, components produced using polypropylene are fatigue resistant, which is beneficial in the building & construction industry for producing plastic hinges, piping systems, consumer-grade daily-use products, manufacturing mats, and carpets & rugs among various other applications. The growth of the automotive, packaging, building & construction sectors is expected to drive the demand for recycled polypropylene over the forecast period.

The packaging segment is expected to have the highest CAGR during the forecast period

The packaging segment is anticipated to witness the fastest CAGR growth during the forecast period due to the high demand for packed foods & beverages, electrical & electronics, and textiles. The personal hygiene products, such as electronic trimmers, shavers, and automotive components, and clothing produced from recycled plastics are the major products driving the demand for recycled plastics in this segment. Asia Pacific is characterized by the rising packaging industry and technological advancements in the industry. In addition, the growth of the packaging industry in the region is driven by the high demand for building & construction products, consumer goods, and electrical & electronics, especially from India, Southeast Asia, and China. Moreover, a flexible regulatory environment is expected to offset constraints that are usually evident in the Western markets.

Region with highest share:

Europe is projected to hold the largest market share during the forecast period due to the growing adoption of a circular economy to reduce the carbon footprint associated with the conventional method of plastic production by increasing plastic recycling in the region. In addition, the landfill bans have resulted in the positive growth of plastic recycling in European countries. As landfill taxes in some European countries are extremely high, dumping becomes more expensive than plastic recycling. This encourages the collection and recycling of plastic waste.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. The packaging industry is the largest and projected to be the fastest-growing end user of recycled plastics in North America. Various companies in this region are focusing on making use of recycled materials in their products. This is expected to help the region stay free of pollution caused by plastics. In addition, the rising demand for packed & processed food and rising construction industry in Mexico, Canada, and the U.S is expected to drive the market growth over the forecast period.

Key players in the market

Some of the key players profiled in the Recycled Plastics Market include Alpek, B&B Plastics, B. Schoenberg & Co, Biffa, Clear Path Recycling, Custom Polymers, Indorama Ventures Public Ltd, Jayplas, KW Plastics, MBA Polymers, Plastipak Holdings, Remondis SE & Co. KG, Republic Services, Suez, and Veolia.

Key Developments:

In June 2021, Indorama Ventures Public Ltd has acquired CarbonLite Holdings’ facility in Texas as part of the company’s commitment to increasing PET recycling capacity. The facility will recycle more than 3 billion PET plastic beverage bottles per year and support more than 130 jobs directly. IVL is the world’s largest producer of recycled PET for beverage bottles. With this acquisition, IVL expands its U.S. recycling capacity to 10 billion beverage bottles a year, towards its global target of recycling 50 billion bottles (750,000 metric tons) annually by 2025.

In April 2021, Veolia and Suez announce that their respective boards of directors reached an agreement in principle last night on the key terms and conditions of the merger between the two groups. The two groups have agreed on a price of €20.50 per Suez share (coupon attached) subject to the signature of the Combination Agreement. Subject to obtaining a fairness opinion in accordance with applicable regulations, this offer would be recommended by the Board of Directors of Suez upon signature of the definitive agreements.

In May 2021, Plastipak Holdings has invested in new recycling plant at its manufacturing facility in Toledo, Spain. This plant will commence production in early 2022 and produce food-grade recycled PET (rPET) pellets from PET flake for application in preforms, bottles and containers. This plant will produce 20 kiloton of food-grade pellet annually.

Sources Covered:
• Bottles
• Fibers
• Films
• Foams

Products Covered:
• Polyethylene Terephthalate (PET)
• Polyethylene (PE)
• Polyvinyl Chloride (PVC)
• Polypropylene (PP)
• Polystyrene (PS)
• Polyamides

Recycling Processes Covered:
• Mechanical
• Chemical

End Users Covered:
• Automotive
• Building & Construction
• Electrical & Electronics
• Packaging
• Textile

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
Comprehensive profiling of additional market players (up to 3)
SWOT Analysis of key players (up to 3)
• Regional Segmentation
Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances