Recycled Plastics Market | Size, Share, and Forecast [2021-2031]
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
Market Size Value in US$ 44,378.26 million in 2022 Market Size Value by US$ 82,416.87 million by 2028 Growth rate CAGR of 9.4% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Recycled Plastics Market: Strategic Insights
| Market Size Value in | US$ 44,378.26 million in 2022 |
| Market Size Value by | US$ 82,416.87 million by 2028 |
| Growth rate | CAGR of 9.4% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, Source, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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