Recycled Plastic Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Recycled Plastic Market Analysis

• The global recycled plastic market generated revenue of USD 68.2 billion in 2023, which is expected to reach USD 122.7 billion by 2030, demonstrating a CAGR of 8.8% during the forecast period (2024–2030). The growth in the market can be attributed to the increasing pressure to lower waste dumping, the surging establishment of plastic recycling facilities in North American and European countries, and the rising demand for reprocessed materials by various industries.
• In recent years, the increased outcry on plastic pollution has led to the growing public interest in lowering such waste. In coherence, large multinational corporations have inculcated sustainability targets and are adopting more-circular economy approaches. Public agencies have also followed suit and introduced regulations, targets, and incentive schemes to support and encourage polymer salvage and reuse measures.
• Furthermore, the strong potential of developing and integrating innovative technologies that can improve efficiency and value and allow for the effective recycling of underutilized feedstock will boost the growth of the market in the forthcoming period.

Recycled Plastic Market Trends & Drivers

Advancements Plastic Recycling Technologies

• Advanced plastics recycling, also known as chemical recycling, refers to a variety of techniques for converting post-consumer polymer back into their original building blocks, specialty polymers, feedstocks for new plastics, fuels, waxes, and other useful goods. Such advanced technologies are significantly driving the market for used plastics to help keep more plastics out of the environment and in productive use.
• The continuously evolving plastics industry is coming up with new, innovative ideas for recyclable materials. As per a study, advanced technologies could process up to 15 million tons of additional plastic waste annually by 2030.
• Moreover, in 2019, many discoveries took place in this area. For instance, Asahi Shimbun reported that Ideonella sakaiensis, a bacteria identified in 2005, has been proven to decompose PET film with a thickness of 0.2 millimeters in less than a month. PET was previously thought to be non-biodegradable due to its petroleum origins; therefore, this revelation could have a significant impact on the future of plastic recycling and disposal. Moreover, scientists at the Kaunas University of Technology in Lithuania have created a biodegradable plastic that is able to decompose in two years within a compost bin. Applications of this material include single-use packaging and replacements for virgin-plastic shopping bags and storage bags.

Increasing Focus to Reduce Plastic Waste Volumes

• The global uptick in industrialization and commercialization has increased the consumption of plastics, which has led to the high production of waste. This high-volume waste production and lack of proper disposal channels have contributed to the creation of high levels of land and marine pollution. According to the International Union for Conservation of Nature estimates, every year, at least 14 million tons of plastics culminate in seas. Plastic debris is presently the most-voluminous garbage in the ocean, comprising 80% of all debris in surface waters and deep-sea sediments. Plastic is found on the shorelines of every continent, with more polluting densely populated areas and popular tourist destinations. It threatens oceans, health of marine species, food safety and quality, human health, and coastal tourism and contributes to climate change.
• Several stakeholders, including governments, manufacturers, and customers, are increasingly changing plastic consumption patterns, overhauling traditional manufacturing lines to reduce the amount of plastic waste, recycling waste polymers, and making products that are easily processable post use. Waste and bio-contamination are serious issues, which have led local municipalities to create parallel economies to manage waste volumes.
• For instance, municipalities in North America and Europe run polymer collection and sorting centers to ensure feedstock availability for reprocessing facilities. In the same way, governments are providing monetary incentives to recyclers, launching policies to reduce waste production, and assisting entities in improving reprocessed plastic adoption volumes. Re-processors have been forced to comply with EPR programs, increase their usage of recycled plastics in lieu of regulations, and alter packaging to make products more easily recyclable.
• Furthermore, the increasing customer awareness of waste generation and the rising environmental consciousness are expected to propel the adoption of plastic recycling, thereby offering traction to the recycled plastic market.
• The residual effects of the ban by China on the imports of non-industrial plastic waste, in the long run, could drive North America and Europe to domestically manage the burgeoning waste volumes. All these factors are likely to translate into an increase in the adoption of the plastic recycling processes to lower waste volumes sustainably.

Government Policies and Initiatives to Increase Adoption of Recycled Products

• The increasing outcry by environmental agencies and non-government organizations, the prevalence of low-volume domestic recycling capacities, and the rising concerns of individuals across the globe over the high pollution levels have led to an increase in the focus on integrating recycling operations in several countries. Other initiatives, such as monetary support to recyclers, product stewardship programs, and provisions compliance under the EPR program, are further expected to draw investments in the recycled plastic market.
• Traditionally, the European Union (EU) has exported plastic waste in high volumes to China. Post the ban on the imports of plastic waste in China, EU countries have routed a share of their plastic waste to other South Asian economies, but their reprocessing capacities are dwarf compared to China. This has forced an increase in the plastic recycling rate in Europe, with the bulk of the waste allocated to incinerators and landfills for disposal. In the aftermath of the ban, the EU has adopted a series of steps to increase the adoption of the process of plastic recycling, such as a change in foreign policies, improvements in domestic recycling capabilities, and development of a circular economy for plastic waste.

Challenges in Recycling Processes

• Unsustainable consumer usage and waste disposal patterns are responsible for the generation of a large volume of non-recyclable plastic materials. Further, a large volume of it is riddled with impurities and foreign particles owing to poor waste collection and disposal strategies, which ultimately lead to the discarding of the recyclable substrates.
• The cost of recycling is also affected to a major extent by the cost incurred in the transportation of the waste. In certain cases, this renders the entire process commercially unviable, leading to the high preference for the substitution of disposal by incineration and in landfills.

In-Depth Segmentation Analysis

Sources Insights

• The revenue generation from the plastics recycled from packaging materials is expected to grow with over 9.3% CAGR during the forecast period in the market.
• This can be attributed to the relative ease with which bottles, pouches, wraps, and films can be recycled, high demand for reprocessed products, and ease of implementing mechanical techniques for recycling packaging waste.

During the study, five sources of plastic waste are covered in the report:

• Packaging Materials (Largest and Fastest-Growing Category)
  • Bottles
  • Films
• Sheets
• Pipes
• Wires and Cables
• Molded Products

Plastic Type Insights

• In 2023, PE was the most-recycled material, producing reprocessed material for adoption in downstream industries as a substitute for virgin material. The market in this category is also projected to witness a CAGR of 9.4% during the forecast period.
• This can be attributed to the high production volume of virgin PE, high waste disposal and generation rate, and an appreciable recycling rate for it.
• HDPE forms a key raw material of packaging for detergents, bleaches, jugs, buckets, and bins. On the other hand, LLDPE and LDPE are majorly used to produce packaging films, bags, toys, lids, and insulations. This effectively creates a significant consumption base and low product lifecycle, all in correlation with high rates of disposal of the plastics post use.

Five types of plastics have been covered in the report:

• Polyethylene Terephthalate (PET)
• Polyethylene (PE) (Largest Category)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC) (Fastest-Growing Category)
• Polystyrene (PS)

Industry Insights

• Based on industry, the food and beverage category held the largest revenue share, of around 45%, in the recycled plastic market in 2023.
• In 2023, the food and beverage industry was the largest source of post-consumer waste in North America.
• The food and beverage industry employs a wide array of plastics, such as PET, HDPE, LDPE, PP, and PS, for packaging, storage, ease of transportation, preservation, and enhancing the aesthetic appeal of processed food and beverages, especially perishable items.
• Consumers dispose of these packaging materials after use, which creates high-volume waste, which is used as feedstock by reprocessing facilities.

During the study, the following industries were analyzed in the report:

• Household and Personal Care
• Food and Beverage (Largest & Fastest-Growing Category)
• Construction
• Automotive

Asia-Pacific Holds 50% in Global Revenue

• The North American recycled plastic market is progressing at a CAGR of 8.5% during the forecast period. The growth can be attributed to the development of domestic capabilities to increase plastic recycling volumes and the improvement in the plastics recycling supply chain via the integration of innovative and efficient processes. Moreover, the increasing pressure on federal and local governments to manage domestic waste using environmentally sound practices, such as recycling, over the adoption of landfills and incinerators, is expected to drive the market growth.
• APAC accounted for the largest revenue share, of around 50%, in the recycled plastic market in 2023. The region has a high capacity for reprocessing polymers owing to high-volume imports of plastic waste and availability of domestic waste and low labor costs, which allow for the easier operation of labor-intensive allied operations, such as collection, cleaning, and sorting. Both these factors have assisted in the development of low-to-high-volume reprocessing facilities in several countries in the region, such as China, Thailand, Malaysia, Indonesia, Vietnam, and India.
• The European market is expected to grow at the highest CAGR, of over 9.4%, in terms of revenue, during the forecast period. This can be attributed to the development of domestic recycling facilities, government initiatives for augmenting local manufacturing, and environmental sustainability targets aimed at integrating recycled products across the packaging supply chain.

The regions and countries analyzed for this report include:

• North America
  • U.S. (Larger & Faster-Growing Country Market)
  • Canada
• Europe (Fastest-Growing Regional Market)
  • Germany (Largest & Fastest-Growing Country Market)
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country)
  • Mexico (Fastest-Growing Country)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Turkey (Largest & Fastest-Growing Country Market)
  • Nigeria
  • Egypt
  • Rest of MEA

Competitive Analysis

• The global recycled plastic market is highly fragmented and categorized by the presence of highly concentrated low-capacity players across several regions.
• These regional players and local vendors possess a low-volume plastic processing capacity and have collection systems or buy waste from residential and industrial waste producers.

Recycled Plastic Industry News

• In October 2023, Mura Technology opened the commercial-scale HydroPRS advanced plastic recycling plant in Teesside, U.K.
• In December 2023, LyondellBasell announced being part of a value chain partnership that aims to turn marine garbage from end-of-life industries into creative plastics.