Europe Recycled Plastics Market to Grow at a CAGR of 3.5% to reach US$ 15,137.84 million from 2022 to 2030

The Europe recycled plastics market size accounted for US$ 11,533.12 million in 2022 and is expected to reach US$ 15,137.84 million by 2030; the market is estimated to record a CAGR of 3.5% from 2022 to 2030.

Market Insights and Analyst View:

Recycling is a process by which waste materials are reprocessed into products, materials, or substances, whether for the original or other purposes. There are various benefits of plastic recycling, such as saving natural resources, lowering energy consumption, diverting resources from landfills, reducing the use of crude oil, and saving up to 90% of CO2 emissions. Mechanical recycling and chemical recycling are among the methods used to recycle plastic. Plastic recycling in Europe is growing significantly due to factors such as increased pressure from regulators and consumers to adopt sustainable products, growing investments in plastic recycling, and other factors. Governments and various companies in the region are also continuously discussing and refining targets to reduce waste and improve the circularity of the plastics value chain.

Growth Drivers and Challenges:

In 2022, the European Commission adopted regulation "(EU)2022/1616" on recycled plastic materials intended for direct food-contact applications. The regulation stated that only plastics containing recycled plastic content produced with notified recycling technology could be introduced into the market. Government authorities across Europe encourage measures to develop separate collections of plastic waste. In March 2023, the European Parliament revised the Packaging and Packaging Waste Directive (PPWD – Directive 94/62/EC), which includes measures to prevent packaging waste generation and promote the reuse and recycling of recovering packaging wastes—the directive aimed at increasing recycling targets of plastic packaging to 55% by 2030. In 2021, the Circular Plastics Alliance adopted measures to drive the recycled plastics market. The Alliance ensured the recycling of ~10 million metric ton of plastics by 2025 and adopted rules for monitoring the system of recycled plastics. Therefore, government regulations are promoting the Europe recycled plastics market growth. However, the challenges in plastics recycling operations, such as a lack of material standardization, inefficient pre-processing technologies, and volatile customer demand, may restrain the Europe recycled plastics market growth.

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Europe Recycled Plastics Market: Strategic Insights

Market Size Value in	US$ 11,533.12 million in 2022
Market Size Value by	US$ 15,137.84 million by 2030
Growth rate	CAGR of 3.5% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Report Segmentation and Scope:

The "Europe Recycled Plastics Market" is segmented on the basis of type, source, application, and country. Based on type, the Europe recycled plastics market is segmented into low-density polyethylene, linear low-density polyethylene, high-density polyethylene, polypropylene, polyvinyl chloride, and others. By source, the Europe recycled plastics market is segmented into residential waste, commercial waste, and industrial waste. By application, the Europe recycled plastics market is segmented into packaging, automotive, building and construction, electrical and electronics, consumer goods, and others. Based on country, the Europe recycled plastics market is segmented into Germany, France, Italy, the UK, the Netherlands, and the Rest of Europe.

Segmental Analysis:

Based on type, the Europe recycled plastics market is segmented into low-density polyethylene, linear low-density polyethylene, high-density polyethylene, polypropylene, polyvinyl chloride, and others. The polypropylene segment held the largest Europe recycled plastics market share. Also, the market for the polypropylene segment is expected to register considerable growth during 2022–2030. Polypropylene is a lightweight material comprising properties such as chemical resistance and mechanical properties. The increasing application of polypropylene in fiber, film, and sheets and its growing application in the automotive industry drive the demand for recycled polypropylene. It is used in the production of automotive components for lightweight vehicles to increase the fuel efficiency of vehicles.

Regional Analysis:

Based on country, the Europe recycled plastics market is segmented into Germany, France, Italy, the UK, the Netherlands, and the Rest of Europe. The Europe recycled plastics market was dominated by Germany, which accounted for ~US$ 2,500 million in 2022. Italy is a second major contributor, expected to account for around US$ 1,800 of the Europe recycled plastics market share. The market in France is expected to register a significant growth rate of over 7% from 2022 to 2030. The packaging industry in France has transitioned toward sustainability and uses recycled plastic for producing packaging products to minimize plastic footprints. Food and beverage manufacturers and food service operators utilize recycled plastic packaging for products. As per COTREP (France), France has set a target of utilizing 100% recycled plastics by 2025 in accordance with the French roadmap for a circular economy. All these factors are driving the recycled plastics market growth in France.

Industry Developments and Future Opportunities:

Various initiatives taken by the key players operating in the Europe recycled plastics market are listed below:

• In May 2022, Veolia Environment SA and Faurecia SE signed an agreement to jointly develop innovative materials for automotive interior components, aimed to achieve an average of 30% recycled content by 2025.
• In January 2020, Biffa Plc signed a partnership agreement with Esterform Packaging, a producer of plastic bottles for beverages and oils. The partnership aimed at a continuous supply of recycled PET plastic to the plastic bottle manufacturer.
• In March 2023, the UK Research and Innovation awarded funding of ~US$ 1.8 million to Biffa Plc, Brunel University London, and Henley Marketing for the collaborative development of recycled homeware, Reborn. The developed homeware solutions contain recycled polypropylene.
• In September 2023, Jayplas Ltd announced the development of an advanced recycling facility, with the capability of processing at least 100 thousand metric ton of flexible and rigid plastics annually.
• In October 2022, Enva UK Ltd acquired ADN Materials Limited, a plastic recycler located in Ireland. The strategy aimed at enhancing the company's existing polymer recycling operations.

COVID-19 Pandemic Impact:

During the COVID-19 pandemic, lockdowns, travel restrictions, and business shutdowns in Europe hampered the growth of several industries, including the chemicals & materials industry. The shutdown of manufacturing units of recycled plastics disturbed supply chains, manufacturing activities, and delivery schedules, negatively impacting the Europe recycled plastics market growth. Various companies reported delays in product deliveries and a slump in product sales in 2020. The negative impact of the pandemic on building and construction, packaging, automotive, and many other industries has reduced the demand for recycled plastics.

Most of the plastic recycling plants were not operational or operating at a reduced level during the pandemic, which reduced the production of recycled plastics. Plastic waste increased during the pandemic due to the increased use of single-use plastics, including disposable masks and PPE kits. Moreover, the increased online shopping also contributed to the rise in plastic waste. During the pandemic, there was an increase in the consumption of household packed goods due to increased takeaway and food delivery. On the other hand, the slowdown of industrial and commercial activities resulted in reduced generation and collection of plastic waste from those sectors.

The Europe recycled plastics market began to revive in 2021 as governments of various countries took significant measures, such as well-coordinated vaccination drives. The resumption of business activities in building & construction, packaging, automotive, and other industries gradually boosted the Europe recycled plastics market growth in 2021.

Competitive Landscape and Key Companies:

Biffa Plc, Remondis SE & Co KG, Veolia Environnement SA, Jayplas Ltd, Plastipak Holdings Inc, Recyclex SA, Enva UK Ltd, Vanden Recycling Ltd, 3P Plast srl, and CY Plastic Recycling are among the key players operating in the Europe recycled plastics market. Players operating in the Europe recycled plastics market focus on unveiling high-quality products to fulfill customer demand and adopting various strategies such as capacity expansion, partnerships, and collaborations to stay competitive in the market.