Recycled Plastic Market to Cross $101.95 billion Revenue by 2030

Recycled Plastic Market Overview

“The Recycled Plastic Market Predictable at $42.65 billion in 2022, is estimated to increase at a CAGR of 8.87% from $48.85 billion in 2023 to $101.95 billion by 2030.”

Recycling plastic involves collecting, sorting, cleaning, and processing waste into new items like bottles, containers, or fibers. This process diverts trash from landfills, conserves natural resources, and reduces the demand for virgin plastic production, as it breaks down plastic into smaller pieces, melts, and molds into different shapes.

Recycled plastics are created by reusing and recovering plastic waste, resulting in useful and valuable items. They are used in packaging, textiles, automotive, and construction industries, after sifting, cleaning, identifying, extruding, and reprocessing.

Governments worldwide are implementing legislation to promote the adoption of recycled packaging. The European Union introduced a plastic tax on non-recycled packaging in January 2021, while the UK imposed a fee on containers without 30% recycled content by April 2022. California is leading the way with a minimum recycled plastic content of 15% in PET bottles.

Polyethylene Terephthalate is expected to significantly dominate the recycled plastic market in the forecast period due to its high resin type.

The growth of all product segments is expected to be 2-5%, with PET experiencing the largest growth due to its high demand due to its availability in recovered waste scrap, lower cost compared to other recycled plastics, and high recycling rate.

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Market Dynamics

Growth Factors

The global expansion of e-commerce has led to a surge in consumer goods sales, increasing demand for diverse packaging products. This has led to a rapid increase in the demand for recycled plastic for product packaging. The increasing popularity of purchasing gadgets via e-commerce has further fueled this demand. As a result, the global expansion of the recycled plastic market is expected to be accelerated due to the growing demand from the packaging industry.

The building and construction industry is rapidly expanding, promoting the use of recycled plastic for structural lumber, insulation, windows, and fences. Emerging nations, such as China, India, and Brazil, are experiencing rapid growth in the construction sector, which is expected to fuel the growth of the industry. Government investments in infrastructure development and initiatives to attract foreign direct investment are expected to further boost the global recycled plastic market.

Recycled plastic is increasingly being used in various industries, including footwear, food and beverage, and packaging. Major footwear companies like ADIDAS, PUMA, and Reebok are using recycled plastics in their production. Coca-Cola plans to invest in 50% recycled plastic bottles, driving the global recycled plastic market forward. Increased investments by top players in various sectors are expected to drive this trend.

Growth Drivers

Rising demand for environmentally friendly packaging

Plastic packaging in food packaging safeguards food from environmental, chemical, and physical contamination. Its primary function is to preserve the product during shipping and in the warehouse and retail location before sale. Different forms of packaging are used for different items.

Implementation of supportive initiatives on recyclable plastic by various governments

Countries are promoting the use of recycled plastic products due to growing environmental concerns and the growing issue of plastic pollution. Governments recognize that increasing the use of recycled plastic reduces landfill waste and ocean and waterway pollution, which is a major global concern. This is driven by the growing awareness of the environmental impact of plastic waste.

Governments support recycled plastic items to achieve circular economy goals. They believe plastic is a useful material that should be recycled and repurposed. Implementing policies that encourage the use of recovered plastic can boost the market for recycled materials, support recycling technology innovation, and create new business opportunities for companies specializing in plastic recycling. These restrictions also help reduce greenhouse gas emissions associated with plastic production and combustion.

Opportunities

Technological advancements in plastic recycling

Technological advancements are seen as market expansion opportunities due to their potential to improve product quality, cost and energy efficiency. Recycling, for instance, utilizes advanced technologies like sorting systems, mechanical and chemical recycling, enhancing efficiency and addressing issues like contamination and restricted recyclability, resulting in higher-quality products.

Transition to a Circular Economy

A circular economy is an economic strategy that promotes sustainability, waste reduction, and resource utilization. It involves recycling, reuse, and repair to keep goods and materials in use, reducing reliance on finite resources and encouraging regenerative behaviors. The goal is to create a system where resources are used properly, waste is minimized, and the environment conserved for long-term economic, social, and environmental benefits.

Restraint

Plastic garbage segregation and disposal are ineffective.

Poor waste segregation and disposal in plastic waste sorting lead to landfill accumulation and the release of harmful contaminants into the environment, affecting ecosystems and fauna. Improper disposal reduces the recovery of potential plastic resources, affecting recycling and increasing industry strain. Inconsistent nature and contaminants in recycled plastics can decrease demand, as they may not meet industry standards and contribute to the production of new virgin plastics.

Challenge

The high expense of producing recycled plastics

Plastic recycling faces challenges such as higher costs compared to raw ingredients, complex processes for collecting and processing plastic waste, and regionally distributed garbage generation. Waste generation in various locations poses significant challenges to waste collection, and high collection and transportation expenses from remote areas make plastic recycling less economically feasible. The complex process of recycling and the diverse range of plastics contribute to the high cost of recycled plastics production.

. Competitive Landscape of the Recycled Plastic Market

• CLEAN HARBORS, INC.
• Covestro AG
• Biffa
• Stericycle
• Honeywell
• Republic Services, Inc.
• WM Intellectual Property Holdings, L.L.C.
• Veolia
• ExxonMobil
• REMONDIS SE & Co. KG
• Shell International B.V.
• Waste Connections

Recent Developments in Recycled Plastic Market

On October 2020, Nestle joined hands with Plastic Energy to explore the scope for the first- commercial large-scale facility in U.K. Plastic Energy’s recycling technology offers both a sustainable solution and an innovative source of high quality recycled products to use in Nestle products.   

In November 2022, Lyondellbasell decided to install an advanced recycling plant in Germany. Using LyondellBasell’s proprietary MoReTec technology, this commercial scale advanced recycling plant would convert pre-treated plastic waste into feedstock for new plastic production.   

In November 2021, the commercialization of Honeywell's "UpCycle Process Technology" plastic recycling method was announced.

In October, 2021, ExxonMobil announced the construction of its facility for advanced recycling of plastic trash at its Baytown, Texas plant. By the end of 2022, the plastic recycling facility is anticipated to be operational. With an initial planned capacity to recycle 30,000 metric tonnes of plastic trash per year, the plant is expected be one of the biggest plastic waste recycling facilities in North America.

In September 2021, Sumitomo Chemical introduced Meguri, which is a new brand incorporating plastic products that are developed using recycling technology. The brand includes several recycled plastic products, such as acrylic resin, polyethylene and polypropylene. The new launch enabled the company to cater to the growing industry need for sustainable solutions and reduce of greenhouse gas emissions.

In October 2019, Dow launched a new resin, AGILITY CE, comprising 70 percent recycled plastic. This resin is made of low-density polyethylene and recycled plastic shrink film. The product is aimed at expanding the company’s portfolio of sustainable solutions.

Regional Insights

In 2020, Asia Pacific dominated the global recycled plastic market with a market share of over 44.85%. This growth is attributed to the growth of the building and construction sectors, e-commerce, and other businesses. Government initiatives and policies to attract foreign direct investment (FDI) and encourage industrial development have further expanded recycled plastic usage in the region.

Europe ranks second in the global market for recycled plastic, behind North America, likely to increase demand due to the growing construction and automobile industries.

Segments Covered in the Recycled Plastic Market

Recycled Plastic Market By Source

• Plastic Bottles
• Plastic Films
• Polymer Foam
• Others

Recycled Plastic Market By Product

• Polyethylene
• Polyethylene Terephthalate
• Polypropylene
• Polyvinyl Chloride
• Polystyrene
• Others

Recycled Plastic Market By Application

• Packaging
• Building & Construction
• Textiles
• Electronics
• Automotive
• Others

Recycled Plastic Market By Region

• North America
• Europe
• Asia Pacific
• Rest of the World

Frequently Asked Questions:

What is the current size of recycled plastic market?

The Recycled Plastic Market Predictable at $42.65 billion in 2022, is estimated to increase at a CAGR of 8.87% from $48.85 billion in 2023 to $101.95 billion by 2030.

What is the growth rate of recycled plastic market?

The global recycled plastic market is growing at a CAGR of 8.87% from 2023 to 2030.

Who are the major players operating in the recycled plastic market?

The major players operating in the recycled plastic market are REMONDIS SE & Co. KG, Shell International B.V., Waste Connections, CLEAN HARBORS, INC., Covestro AG, Biffa, Stericycle, Republic Services, Inc., WM Intellectual Property Holdings, L.L.C., Veolia

Which are the driving factors of the recycled plastic market?

Increasing government initiatives to adopt the use of recycled plastic and rising demand from the various industries are the driving factors of the recycled plastic market.