Recycled Plastics Market Forecast and Growth Insights 2031

The recycled plastics market size is projected to reach US$ 111.83 billion by 2031 from US$ 52.29 billion in 2023. The market is expected to register a CAGR of 9.8% in 2023–2031. Rising innovation in plastic recycling is likely to remain key recycled plastics market trends.

Recycled Plastics Market Analysis

Increasing packaging, automotive and electrical and electronics sector is a major driver of recycled plastics. The automotive sector is witnessing tremendous growth due to increasing passenger car sales and new vehicle production in emerging economies, which is driving the market growth. Automotive companies use recycled plastics in auto parts such as dashboards and gearboxes.

The main reason for using recycled plastic in automotive is, that the components manufactured using recycled plastics are light weight and a lighter car consumes less fuel, which also translates into less exhaust emissions. In addition, plastic parts are not prone to corrosion and offer flexibility and safety compared to other plastic.

As per Organization, International Organization of Motor Vehicle Manufacturers (OICA) the American countries recorded over ~16.2 million commercial and passenger car production in 2010, which grew by more than 23%, and registered over ~20 million commercial and passenger production in 2019. The automotive industry in China has been growing rapidly, and the country is playing an increasingly important role in the global vehicles market. Further, as per the report of OICA, the automotive industry witnessed a growth of over ~5% in 2021 compared to 2020. Numerous companies operating in the automotive market are investing heavily in the automobile manufacturing sector to increase production and sales. For instance, in July 2021, Maruti Suzuki India Ltd. announced an investment worth US$ 2.42 billion in a new manufacturing facility in Haryana, India. The facility is expected to manufacture ~1 million units annually. The surge in automobile manufacturing is boosting the demand for recycled plastics, thereby driving the market for recycled plastics.

Recycled Plastics Market Overview

Plastic recycling is a method for reusing scrap or plastic waste and the reprocessing of the material into useful products. Plastic waste has become one of the serious environmental concerns, so the important motive behind recycling of plastic is to reduce the plastic waste and to reuse for industrial purpose. There are various sources of plastic waste used for recycling such as bottles, films, foams etc. The awareness related to plastic waste among consumers has led the recycled plastic industry in gaining traction. Further, increasing demand for the food & beverage and other types of packaging and the utilization of recycled plastic in automotive industry for manufacturing of different components are the key drivers of the recycled plastic market. It is also used in the building and construction industry to large extent and the consumption of recycled plastic in this industry will rise soon. However, due to the high cost of recycled plastic over conventional, virgin plastic, its adoption in emerging countries is at a slower pace. This factor might create significant challenges for the recycled plastic manufacturers over the coming years.

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Recycled Plastics Market: Strategic Insights

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Recycled Plastics Market Drivers and Opportunities

Rising Expansion of Construction Industry to Favor Market

Rapid urbanization with an increasing global population is driving the demand for recycled plastic in construction. The steady revenue growth can be attributed to the increasing population in Asia Pacific in countries such as India and China and the rising need for residential and commercial infrastructure and projects. Growing demand for more environment-friendly homes with a lower carbon footprint and open green spaces is augmenting the growth of recycled plastic. Further, roofing titles are an essential part of any building and take considerable money to install. Recycled plastics are used to build roofing titles, which are less expensive than other construction materials. Increasing government expenditure and investment to improve domestic infrastructure and sustain the economic growth of recycled plastic in the construction industry, especially in developing countries, are the major factors, among others, driving the market growth.

Stringent Government Regulations to Upsurge the Recycling Rate of Plastics to Provide Massive Growth Opportunities

Recycled plastics are resins that are manufactured by reusing waste plastic products. Furthermore, they are produced by recovering plastic scraps and other wastes and then reprocessing them into useful products. Further, recycling plastics is witnessing a boost in its growth due to the rising awareness about the environment. The plastic waste which is produced is non-biodegradable and the only way to dispose them is to recycle them and reuse.  Many organizations are recruiting companies to opt for recycled plastics in their manufacturing facilities. For instance, the association of Plastic Recyclers, USA recruited companies such as Walmart, Coca-Cola, and Unilever. Rising environmental concerns and the need for frameworks to conserve energy coupled with versatile applicability support stringent government regulations in many regions.

Recycled Plastics Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Recycled Plastics Market analysis are type, source, application, and geography.

• Based on type, the recycled plastics market is divided into polyethylene terephthalate, polyethylene, polypropylene, polystyrene, and others. The polyethylene terephthalate segment held a larger market share in 2023. Polyethylene terephthalate is the most widely used plastic; it is clear, strong, lightweight, and 100% recyclable. Polyethylene recycled plastics can be identified by recycling code#1; as they have a short lifespan, it is easy to recycle them. The low diffusion coefficient makes polyethylene terephthalate more suitable for production of plastic bottles, containers among others than other plastics materials. Post use polyethylene terephthalate plastics are collected and processed through a series of special washing processes or a chemical treatment to break down the polyethylene terephthalate into its raw materials or intermediates further used to produce recycled polyethylene terephthalate flakes. Due to increased packaged food and beverage demand, polyethylene terephthalate is used for food packaging and bottling applications.
• Based on application, the recycled plastics market is segmented into packaging, textile, automotive, building and construction, electrical and electronics, and others. The packaging segment held a larger market share in 2023. The market demand for recycled plastics in packaging is anticipated to grow significantly during the forecast period. Rapidly growing key application industries, including food & beverages, pharmaceuticals, and personal & household care, drive the demand for recycled plastics Recycled plastics offer flexibility, rigidity, and are transparent and lightweight. Furthermore, recycled plastic packaging survives in extreme environments and does not degrade in extreme temperatures, thus preserving the integrity of products, such as food and beverages. These factors are driving the packaging segment growth.

Recycled Plastics Market Share Analysis by Geography

The geographic scope of the Recycled Plastics Market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The Asia Pacific recycled plastics market held the largest market share in 2023. Many APAC countries, such as China and India, are the world's fastest-growing populations. With a growing population, the automotive, packaging, and construction industries are growing rapidly in APAC. The package printing industry is expanding in the APAC region because of its wide range of applications. The presence of established sectors, such as food & beverages and consumer electronics, in nations such as China, India, Japan, and South Korea has increased the demand for packaging solutions in the region. The market for recycled plastic packaging across APAC has witnessed notable growth due to the rapidly expanding packaging industry, growing food retail sector, and rising consumer awareness about sustainable packaging solutions across the region.

Recycled Plastics Market Regional Insights

The regional trends and factors influencing the Recycled Plastics Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Recycled Plastics Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Recycled Plastics Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Recycled Plastics Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Recycled Plastics Market are:

1. REMONDIS SE and Co.KG
2. Biffa
3. Stericycle, Inc.
4. Veolia
5. Jayplas
6. Alpek S.A.B. De C.V.

Disclaimer: The companies listed above are not ranked in any particular order.

Recycled Plastics Market News and Recent Developments

The Recycled Plastics Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for speech and language disorders and strategies:

• BIFFA has completed a £10 million deal to acquire Scotland’s only post-consumer plastics recycling facility (PRF). Located in Grangemouth, the facility was previously owned by Green Circle Polymers Ltd (GCP). It is one of the largest PRFs in the UK, with it processing around 50,000 tonnes of plastics each year to be turned into new recycled plastic material. (Source: Biffa, Press Release/Company Website/Newsletter, 2020)
• To reduce the carbon footprint of cosmetic packaging, Veolia and L'Oréal are joining forces to build a circular economy for plastics: Veolia will supply L'Oréal worldwide with high-quality recycled plastic that will avoid between 50% and 70% of CO2 emissions compared to a standard bottle. (Source: Veolia, Press Release/Company Website/Newsletter, 2023)

Recycled Plastics Market Report Coverage and Deliverables

The “Recycled Plastics Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles