Recycled Plastic Market Report: By Source (Packaging Materials, Sheets, Pipes, Wires and Cables, Molded Products), Type (PET, PE, PP, PVC, PS), Industry (Household and Personal Care, Food and Beverage, Construction, Automotive) – Industry Size, Market Share of Key Players, Latest Developments, and Demand Forecast, 2022-2030

Market Overview

The global recycled plastic market size was stood at an estimated revenue of $59,777.3 million in 2021, which is projected to advance at a CAGR of 8.5% during 2021–2030. The growth of the industry is primarily attributed to the surging focus on reducing plastic waste volumes; supportive government policies and initiatives to increase the adoption of recycled products; and growing consciousness of energy savings.

The global uptick in industrialization and commercialization has increased the consumption of plastics, which has led to the high production of plastic waste. This high-volume waste production and lack of proper disposal channels have contributed to the creation of high levels of land- and marine-based pollution. According to the International Union for Conservation of Nature estimates, as of November 2021, at the very least 14 million tons of plastics culminate in the ocean every year.

Plastic debris is currently the most abundant type of litter in the ocean, comprising 80% of all marine debris found from surface waters to deep-sea sediments. Plastic is found on the shorelines of every continent, with extra plastic waste found near popular tourist destinations and densely populated areas. It threatens ocean health, 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 make a low amount of plastic waste, recycling plastic waste, and making products that are easily processable post use.

Major Initiatives and Policies Implemented for Recycling Plastics

• The Coca-Cola Company has set a goal to reduce packaging waste in the U.S. and around the world. The firm vowed to collect and recycle a bottle or can for every one sold by 2030, to make all of its packaging 100% recyclable by 2025, and to create bottles and cans with 50% recycled materials by 2030.
• The U.K. government through its environmental bill introduced a deposit return scheme for drinks containers to recycle plastic bottles and stop them from being landfilled, incinerated, or littered.
• In September 2020, PepsiCo Inc. signed on to the Digital Watermarks Initiative HolyGrail 2.0., facilitated by the Association des Industries de Marque (AIM), the European Brands Association, aimed at improving the sorting of packaging waste for increased and higher-quality recycling.
• The U.K. government will introduce a plastic packaging tax from April 2022, set at £200 (~$260) per ton, on plastic packaging which does not meet a minimum threshold of at least 30% recycled content. This will encourage greater use of recycled plastics, leading to increased levels of recycling and plastic waste collection, helping in tackling the problem of plastic waste and protecting the environment.

Packaging Materials Category Is Flourishing with a Healthy Growth Rate

The revenue generation from plastics recycled from packaging materials is expected to grow with over 8% CAGR during the forecast period in the market. This can be attributed to the relative ease of recycling packaging materials generated from bottles, films, pouches, and wraps; high demand for reprocessed products; and ease of commercial adoption of mechanical recycling for packaging waste. Furthermore, government initiatives and policies aimed at integrating recyclable materials in the packaging industry to reduce non-recyclable waste volume are expected to assist the market in this category to grow in the future.

Plastic Waste Generated from Food and Beverage Industry held the largest Share

The sheer volume of plastics consumed in the food and beverage industry for storage and transportation in the form of bottles, packaging films, trays, bins, and disposables is responsible for the generation of a large volume of plastic waste. Furthermore, this high-volume waste generation puts pressure on food and beverage manufacturers to integrate the recycling process in their supply chains to adhere to voluntary sustainability targets, extend producer responsibility (EPR) agreements, and develop circular economic operation models. All these factors have led to the development of an easier recycling process, and together, helped the food and beverage industry to hold the largest revenue share, accounting for more than 60% in 2021.

APAC Accounted or Largest Revenue Share in 2021

APAC is estimated to have accounted for the largest revenue share, of 52.3%, in the recycled plastic market in 2021. The region has a high capacity for producing recycled plastics, owing to high-volume imports of plastic waste and availability of domestic waste, and low labor costs, which allow for 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 reprocessing facilities in several countries in the region, such as China, Thailand, Malaysia, Indonesia, Vietnam, and India.

Whereas, the European market is expected to grow at the highest CAGR, of over 10%, in terms of revenue, during the forecast period. This can be attributed to the development of domestic recycling facilities, government initiatives for resurging local manufacturing, and environmental sustainability targets aimed at integrating recycled products across the packaging supply chain.

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Rapid Innovation of Advanced Plastic Recycling Technologies Supporting the Industry Growth

Advanced plastic recycling technologies are significantly expanding the market for used plastics by helping in keeping more plastics out of the environment and in productive use. The plastics industry is constantly evolving and coming up with new, innovative ideas for recycled plastics. As per the study published in September 2020 by AMI International, advanced recycling technologies could process 5–15 million tons of additional plastic waste annually by 2030.

Moreover, in 2019, many innovations took place in plastic recycling. For instance, Asahi Shimbun reported Ideonella sakaiensis, a bacteria identified in 2005, which 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 Kaunas University of Technology in Lithuania have created a biodegradable plastic, which is able to decompose in two years within a compost bin. Applications of this material include use as single-use packaging for goods, replacements for plastic shopping bags and storage bags, and more.

Market Players Are Expanding their Facilities and Acquiring Companies

Major industry players have been involved in facility expansions and mergers & acquisitions to gain a competitive edge in the market. For instance:

• In May 2021, Mura Technology, a U.K.-based plastic recycling service provider, built the world’s first commercial-scale recycling plant that uses chemical recycling and generates a profit in Teesside, northeast England.
• In April 2019, MOL Group announced the signing of a sales-purchase agreement to acquire Aurora, a recycled plastic compounder, headquartered in Neuenstein, with production plants in Baden-Württemberg, Germany. The acquisition would assist MOL Group in offering a wide range of high-quality PP, polyamide, and other recycled compounds, in coherence with its existing portfolio of virgin PP and PE.

Key Players in Global Recycled Plastic Market Are:

• MBA Polymers Inc.
• Phoenix Technologies International LLC
• Vikoz Enterprises Inc.
• Terracycle US Inc.
• KW Plastics
• DS Smith Plc
• PETCO
• Waste Connections Inc.
• Custom Polymers Inc.

Market Size Breakdown by Segments

The plastic recycling market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Source

• Packaging Materials
  • Bottles
  • Films
• Sheets
• Pipes
• Wires and Cables
• Molded Products

Based on Type

• Polyethylene Terephthalate (PET)
• Polyethylene (PE)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS)

Based on Industry

• Household and Personal Care
• Food and Beverage
• Construction
• Automotive

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • Italy
  • France
  • Spain
• Asia-Pacific
  •  China
  • Japan
  • India 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa
  •  Turkey
  • Nigeria
  • Egypt