Recycled Plastics Market

Market Overview:

The global recycled plastics market size reached US$ 41.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 61.7 Billion by 2032, exhibiting a growth rate (CAGR) of 4.3% during 2024-2032. The imposition of various environmental regulations, increasing corporate sustainability initiatives, rising consumer awareness and preferences, recent technological innovation and increasing collaboration between supplier, manufacturer, and recyclers are some of the major factors propelling the market.

Recycled plastics are materials that have been reclaimed and reprocessed from used plastic products. It includes polyethylene terephthalate (PET), high-density polyethylene (HDPE), polyvinyl chloride (PVC), polypropylene (PP), and polystyrene (PS). Its manufacturing process involves plastic collection, cleaning, and shredding, followed by melting to remold into new shapes. Recycled plastics are widely used in packaging, textile fibers, construction materials, automotive parts, electrical devices, furniture, sporting goods, and road building. They aid in improving energy efficiency, reducing greenhouse gas emissions, and diverting waste from landfills.

The recent innovations in sorting, cleaning, and processing to improve the quality of recycled plastics, thus broadening their applicability in various products and industries, are propelling the market growth. Furthermore, the introduction of various incentives by governments and organizations to encourage businesses to utilize recycled material, such as plastics, is boosting the market growth. Besides this, the increasing collaboration between suppliers, manufacturers, and recyclers to enable better planning and streamline the recycling process is positively influencing the market growth. Moreover, the signing of various international agreements and initiatives to reduce waste and promote sustainability is strengthening the market growth. Other factors, including increasing volatility in raw material prices, rapid urbanization activity, growing collaboration with waste management entities, and rising public awareness, are anticipated to drive the market growth.

Recycled Plastics Market Trends/Drivers:

The imposition of various environmental regulation

The implementation of various environmental regulations is positively impacting the recycled plastics market. Governments worldwide are recognizing the urgent need to reduce plastic waste that harms ecosystems and contributes to climate change. Furthermore, these regulations often include mandates, targets, and incentives to increase the use of recycled plastics in various industries. In addition, the setting up of ambitious targets by various governments for recycling is contributing to the market growth. Moreover, the imposition of regulations compelling businesses to comply with these regulations by seeking sustainable alternatives to virgin plastics is boosting the market growth. Additionally, it also fosters innovation in recycling technology and creates opportunities for new entrants in the recycling industry. As a result, the effect of such regulations to achieve shared environmental goals is driving a worldwide movement towards recycling and sustainable material management.

The increasing corporate sustainability initiatives

The increasing corporate sustainability initiatives that are prioritizing the use of recycled plastics are propelling the market growth. Consumers, shareholders, and regulatory bodies are becoming more conscientious about environmental sustainability. They are actively working to reduce their ecological footprint by incorporating recycled plastics into products, packaging, and even operational processes. Furthermore, they are actively focusing on complying with regulations and also enhancing brand image, and attracting a growing segment of eco-conscious consumers. In line with this, large corporations are taking the lead, setting internal targets for the utilization of recycled materials and transparently reporting their progress. Moreover, these initiatives often involve collaborating with suppliers, recyclers, and other stakeholders to ensure an integrated approach.

The rising consumer awareness and preferences

Consumer awareness and preferences for environmentally friendly products are pivotal in shaping the recycled plastics market. In line with this, the increasing consumer awareness regarding global environmental challenges, such as pollution and climate change, coupled with a desire to make responsible and sustainable choices is favoring the market growth. Furthermore, brands are actively promoting the use of recycled materials which in turn is fueling the market. Moreover, various non-governmental organizations (NGOs) and media are playing essential roles in educating consumers about the benefits of recycling, which is further reinforcing this trend. This collective shift towards valuing sustainability is creating a significant, lasting impact on the demand for recycled plastics across a broad spectrum of products and industries.

Recycled Plastics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global recycled plastics market report, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on plastic type, application and raw material.

Breakup by Plastic Type:

• Polyethylene Terephthalate (PET)
• High Density Polyethylene (HDPE)
• Polypropylene (PP)
• Low Density Polyethylene (LDPE)
• Others
   

Polyethylene terephthalate (PET) dominates the market

The report has provided a detailed breakup and analysis of the market based on the plastic type. This includes polyethylene terephthalate (PET), high density polyethylene (HDPE), polypropylene (PP), low density polyethylene (LDPE), and others. According to the report, polyethylene terephthalate (PET) represented the largest segment.

Polyethylene terephthalate (PET) is dominating the market as it is extensively used in a variety of products, such as food containers, beverage bottles, and more, leading to a large quantity available for recycling. Furthermore, it is easily recyclable, as its properties allow for efficient sorting, cleaning, and reprocessing, making it a favored material in recycling facilities. Besides this, PET retains much of its quality during the recycling process, which enables it to be used in applications that require strong and clear materials, thus broadening its appeal. Moreover, the imposition of regulations and incentives by governments and organizations to encourage the recycling of PET is positively influencing the market growth. Apart from this, the increasing investment in technologies that are improving the processing techniques required for PET recycling is contributing to the market growth.

Breakup by Application:

• Non-Food Contact Packaging
• Food Contact Packaging
• Construction
• Automotive
• Others
   

Non-food contact packaging dominates the market

The report has provided a detailed breakup and analysis of the market based on the application. This includes non-food contact packaging, food contact packaging, construction, automotive, and others. According to the report, non-food contact packaging represented the largest segment.

Non-food contact packaging is dominating the market as it has a simplified recycling process, which makes it more economically attractive. Furthermore, it encompasses a diverse array of products, including shipping materials, household containers, retail packaging, and more, which translates to broad market demand. Besides this, recycled plastics in non-food packaging often do not require the same high quality and purity levels as those in direct contact with food. This allows for the utilization of mixed and lower-grade recycled plastics, thus facilitating increased usage. Moreover, the escalating environmental concerns, which are prompting many companies to incorporate recycled materials in their packaging to reduce their ecological footprint, are positively influencing the market growth. Apart from this, the increasing number of consumers' preference for environmentally responsible products is acting as another growth-inducing factor.

Breakup by Raw Material:

• Plastic Bottles
• Plastic Films
• Rigid Plastic and Foam
• Fibres
• Others
   

Plastic bottles dominate the market

The report has provided a detailed breakup and analysis of the market based on raw material. This includes plastic bottles, plastic films, rigid plastic and foam, fibres, and others. According to the report, plastic bottles represented the largest market segment.

Plastic bottles are dominating the market as they are the most commonly used packaging materials for beverages, detergents, and other consumer products. Furthermore, several communities have established collection systems specifically for plastic bottles, making them one of the most easily recyclable items. Additionally, plastic bottles are highly recyclable as their material properties allow them to be reprocessed multiple times without significant degradation in quality. Moreover, the recognizable shape and common recycling symbols on plastic bottles encourage consumer participation in recycling programs, thus increasing the availability of this raw material. Apart from this, the recycling of plastic bottles is economically viable, owing to the established technologies and markets for recycled material. In addition, several beverage and consumer goods companies have made specific commitments to use recycled content in their bottles, which is further bolstering the market growth.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance in the market, accounting for the largest recycled plastics market share

The report has also provided a comprehensive analysis of all the major regional markets, which includes North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. According to the report, Asia Pacific represented the largest market segment.

Asia Pacific has some of the most densely populated countries, leading to substantial consumption of plastic products. Furthermore, the region's fast-paced industrial growth, which demands more raw materials, including plastics, is positively influencing the market growth. Apart from this, the implementation of robust regulations and initiatives by regional governments to promote recycling is boosting the market growth. Moreover, the increasing awareness of environmental issues, including plastic pollution among regional consumers, is resulting in a strong push towards recycling and sustainable practices. Besides this, the escalating investment in developing recycling infrastructure across the Asia Pacific region is contributing to the market growth. In addition, the presence of cost-effective labor, coupled with the availability of raw materials in the Asia Pacific, which makes the recycling process more economically viable, is favoring the market growth.

Competitive Landscape:

Several recycled plastic companies are developing new recycling technologies, improving existing processes, and innovating new products using recycled plastics. Furthermore, they are expanding their recycling capacities by building new facilities or upgrading existing ones. Apart from this, leading market players are collaborating with suppliers, manufacturers, waste management companies, and even competitors to enable a more streamlined and efficient supply chain, allowing for better quality control and market responsiveness. Additionally, companies are emphasizing sustainability by setting ambitious recycling targets, reducing energy consumption in operations, and actively participating in sustainability initiatives and global accords. Moreover, they are implementing rigorous quality control measures to ensure that the recycled plastics meet specific industry standards and customer requirements. Besides this, many firms are moving beyond traditional linear models towards a circular economy approach by designing products for easier recycling and fostering end-to-end sustainability in their operations.

The report has provided a comprehensive analysis of the competitive landscape in the global recycled plastics market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Avangard Innovative
• B. Schoenberg & Co., Inc.
• Delta Plastics
• UltrPET LLC
• CarbonLITE Industries
• Veolia Environment SA
• Suez Recycling & Recovery Holdings
• KW Plastics

Recent Developments:

• In November 2022, Avangard Innovative announced its plan to establish a US$ 100 Million recycling facility in Indiana.
• In February 2021, Delta Plastics launched upgraded tech tools for farmers called Push for Pick Up to accelerate the collection of polytubes.
• In June 2021, Indorama Ventures completed the acquisition of CarbonLite’s Texas PET recycling facility to expand its recycling capacity.

Recycled plastics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the recycled plastics market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global recycled plastics market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the recycled plastics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.