Recycled Plastics Market

Recycled Plastics 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 growing environmental awareness, stringent government regulations concerning the use of single-use plastic items, advancements in recycling technologies, and rising demand from various industries, particularly packaging and automotive, aiming to reduce their carbon footprint and promote sustainability are impelling the market growth.

Recycled Plastics Market Analysis:

• Major Market Drivers: The market is experiencing moderate growth owing to increasing concerns about plastic pollution and the necessity for waste management solutions. Additionally, the adoption of circular economy principles and incentives for using recycled materials are strengthening the market growth.
• Key Market Trends: Innovations in recycling technologies like chemical recycling are improving the effectiveness and standard of recycled plastics. Furthermore, the growing user demand for environment-friendly products and packaging is motivating manufacturers to include a higher percentage of recycled plastics in their products.
• Geographical Trends: Asia Pacific leads the market attributed to the high plastic usage and increasing recycling initiatives.
• Competitive Landscape: Some of the major market players in the industry include Avangard Innovative, B. Schoenberg & Co., Inc., Delta Plastics, UltrPET LLC, CarbonLITE Industries, Veolia Environment SA, Suez Recycling & Recovery Holdings, KW Plastics, among many others.
• Challenges and Opportunities: The expensive nature of recycling procedures in comparison to manufacturing new plastics is influencing the recycled plastics market revenue. Nevertheless, there are possibilities in advancing affordable recycling technologies and fostering partnerships among stakeholders to improve recycling infrastructure and capabilities.
   

Recycled Plastics Market Trends:

Growing Demand for Sustainable Products

With the rise in environmental consciousness, individuals are placing a higher importance on sustainability when making purchases and choosing products that lessen harm to the environment. This change is propelling companies in different industries, such as packaging, automotive, and consumer goods, to incorporate recycled plastics into their products. Companies are using recycled materials to differentiate their products, connecting with user beliefs and increasing attractiveness in the market. The focus on sustainability by users is changing industry practices and promoting a circular economy, where waste materials are reused to lower the need for new plastics and lessen environmental harm. In line with the recycled plastics market recent developments, in September 2023, Sidel launched StarLiteR, a bottle base made of 100% recycled polyethylene terephthalate (R-PET), making it easier for carbonated soft drink packaging producers to adopt material circularity.

Corporate Sustainability Initiatives

Many companies are establishing ambitious sustainability targets to decrease their impact on the environment, such as expanding the utilization of recycled materials in their products and packaging. These actions are frequently included in larger corporate social responsibility (CSR) plans with the goal of improving brand reputation and fulfilling stakeholder needs. Firms are also embracing circular economy models, which involve prolonging the lifespan of products by recycling and reusing materials. The increasing recycled plastics demand is a direct result of these corporate initiatives, which promote the use of eco-friendly materials. In June 2024, Borealis AG took a significant step towards achieving sustainability by revealing intentions to set up a compounding line for recycled-content polyolefins (rPO) in Beringen. The line was designed to recycle flakes made from polypropylene (PP) and high-density polyethylene (HDPE) scrap, facilitating the inclusion of recycled plastics in different applications.

Rising Demand in the Automotive Sector

Recycled plastics are commonly used in the automotive sector for various components like dashboards, interior trims, bumpers, and underbody shields. Utilizing recycled plastics aids manufacturers in meeting sustainability goals and helps decrease vehicle weight, which ultimately improves fuel efficiency and reduces emissions. Recycled plastics offer a sustainable option for traditional materials, helping the automotive industry achieve its environmental objectives. Moreover, utilizing recycled plastics meets both regulatory standards and user demand for more environment-friendly products. Through the utilization of these materials, car manufacturers are able to enhance the eco-friendliness of their production methods, decrease reliance on new plastics, and encourage a system where resources are reused and recycled. In December 2023, LyondellBasell unveiled CirculenRecover PPC TRC 2179N, an innovative recycled plastic created from discarded maritime equipment, signaling a major development in automotive sustainability. This new development allowed for recycled plastics to be utilized in injection molding for car interior parts, highlighting LyondellBasell's dedication to innovation and environmental accountability.

Recycled Plastics Market Segmentation:

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

Breakup by Plastic Type:

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

Polyethylene terephthalate (PET) exhibits a clear dominance in the market 

A detailed breakup and analysis of the market based on the plastic type have also been provided in the report. This includes polyethylene terephthalate (PET), high density polyethylene (HDPE), polypropylene (PP), low density polyethylene (LDPE), and others. According to the report, polyethylene terephthalate (PET) accounted for the largest market share.

Polyethylene terephthalate (PET) leads the market because of its widespread use in making beverage bottles, food containers, and packaging materials. The ability to recycle PET, in addition to its strength and transparency, makes it a popular choice for both producers and buyers. The shift of the food and beverage (F&B) industry towards sustainable packaging and strict regulations favoring recycled materials are driving the demand for recycled PET (r-PET). Additionally, progress in recycling technology is enhancing the effectiveness and standard of PET recycling procedures, simplifying the production of high-quality r-PET suitable for many different uses. In October 2023, Coca-Cola India introduced 100% r-PET bottles in 250 ml and 750 ml pack sizes. The robust system for collecting and recycling PET, particularly in advanced areas, contributes to its continued market leadership.

Breakup by Raw Material:

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

Plastic bottles lead the market, accounting for the largest recycled plastics market share

A detailed breakup and analysis of the market based on the raw material have also been provided in the report. This includes plastic bottles, plastic films, rigid plastic and foam, fibers, and others. According to the report, plastic bottles accounted for the largest market share.

Plastic bottles represent the largest segment because of their widespread use and availability as post-consumer waste. The recycling of plastic bottles, primarily made from polyethylene terephthalate (PET) and high-density polyethylene (HDPE), is driven by strong demand from industries such as packaging, textiles, and consumer goods. These bottles are relatively easy to collect, sort, and recycle, making them a preferred choice for recycling initiatives. Furthermore, the rising bottled beverage consumption and the increasing use of bottle deposit programs are elevating the rates at which plastic bottles are being collected. In May 2024, CARBIOS, L'OCCITANE en Provence, and Pinard Beauty Pack introduced an innovative 100% recycled PET bottle for L'OCCITANE's Amande range shower oil. CARBIOS utilizes its enzymatic depolymerization process to convert PET waste into original monomers at its facility in France, demonstrating a dedication to the circular economy.

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 the most prominent sector as per the recycled plastics market outlook, primarily due to its widespread utilization across consumer goods, electronics, and industrial packaging sectors. This section includes packaging items, like containers, bottles, wraps, and films, that are employed for items not meant for direct human use. The increasing focus on sustainability and circular economy is driving the need for non-food contact packaging, encouraging manufacturers to integrate higher amounts of recycled plastics to lessen their environmental footprint. The cost-effectiveness of recycled plastics compared to virgin plastics also motivates companies to use non-food contact packaging solutions.

Breakup by Region:

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

Asia Pacific is the predominant market segment

The report has also provided a comprehensive analysis of all the major regional markets, which include North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for recycled plastics.

Asia Pacific dominates the market due to the rising use of plastic and the growing focus on recycling. Rapid industrialization and urbanization are resulting in a large amount of plastic waste being produced, which is creating plenty of chances for recycling. Government measures and rules that encourage sustainable practices and the use of recycled materials are also supporting the recycled plastics market growth. Moreover, the region takes advantage of affordable labor and improvements in recycling technologies, which improve the effectiveness and profitability of recycling activities. The Asia Pacific region remains at the forefront of the market, playing a vital role in reducing plastic waste and promoting environmental sustainability. In June 2024, a team of experimenters at Nanyang Technological University (NTU), a research-focused university in Singapore, created cool paint using recycled plastics and barium sulfate. This eco-friendly option successfully decreases surface temperatures in tropical regions and simplifies plastic waste control by cutting down on the necessity of separating various types of plastic.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the industry include Avangard Innovative, B. Schoenberg & Co., Inc., Delta Plastics, UltrPET LLC, CarbonLITE Industries, Veolia Environment SA, Suez Recycling & Recovery Holdings, KW Plastics.
  
  ​​​​​​(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Recycled plastics companies are making investments in innovative recycling technologies and increasing their recycling capabilities in order to satisfy the growing need for environment-friendly materials. They are working on building strategic alliances and partnerships with waste management companies and government agencies to improve rates of plastic collection and recycling. Moreover, these businesses are concentrating on creating new products, producing premium recycled plastics that adhere to strict industry guidelines. Marketing initiatives highlighting the environmental benefits of using recycled plastics are also being ramped up to attract eco-conscious individuals. In February 2023, Waste Management (WM) spent $125 million to grow its film recycling operations, rebranding it as Natura PCR, following the acquisition of Avangard Innovative's U.S. plastics recycling venture. The investment was intended to expand the film recycling sector, with the goal of increasing PCR production capacity to 400 million pounds per year.

Recycled Plastics Market News:

• April 2023: LyondellBasell purchased Veolia Belgium's 50% stake in Quality Circular Polymers (QCP) BV, gaining full ownership of QCP's recycling plants in Belgium and the Netherlands. QCP's mechanically recycled mixes are used in different products, in line with LyondellBasell's efforts to improve its circular and low carbon solutions sector.
• October 2023: Suez Recycling & Recovery Holdings purchased Devon Contract Waste (DCW), a UK-based commercial waste collections specialist, to expand its regional recycling and waste management operations. This purchase demonstrates Suez's trust in the UK market and its strategic goals for growth, especially in the southwest region of England.
• April 2024: KW Plastics is preparing to introduce a new washing line, which will improve its olefin recycling capacity by 100 million pounds per year. They predict upcoming market expansion by maintaining extra capacity and watching for any shifts in plastic recovery rates and demand dynamics in MRF trends.

Recycled Plastics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, recycled plastics market forecast, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists 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 market and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the recycled plastics industry.