Recycled Plastic Market is Estimated to Observe Significant Growth of SD 56.81 billion by Growing Rapidly with eco-friendly packaging solutions

Increasing consumer awareness for sorted plastic waste and government regulation are expected to influence the Recycled Plastics Market growth.

PUNE, India, March 20, 2023 /PRNewswire/ -- The global Recycled Plastic market size is expected to grow from USD 25.52 billion in 2022 to USD 56.81 billion by 2029, at a CAGR of 9.3% during the forecast period.

Recycled Plastic in packaging is plastic produced from recycled materials. Recycling provides many benefits to the environment. All plastic is derived from fossil fuels, and the process of manufacturing plastic produces hundreds of Millions of tonnes of greenhouse gases. Harmful pollutants are released in poorly controlled combustion facilities which results in the production of plastic recycling. A tonne of recycled plastic saves 5.774 kWh of energy as well as recycling plastic garbage save oil use by up to 40%. Per tonne of recycled plastic, equates to 16.3 barrels of oil, when less oil is used, less CO2 and other greenhouse gases are released during the manufacture of new plastics. Carbon dioxide and methane emissions from landfills decrease when there are fewer plastics which in turn is driving market revenue growth.

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Key Developments in Recycled Plastic Market

• In January 2022, Plastipak Holdings, Inc., a global leader in the design, manufacture, and recycling of plastic containers, completed a major investment to expand its PET recycling capacity at its manufacturing site in Bascharage, Luxembourg. The expansion is set to increase the annual production capacity by 136%.
• In October 2022, KW Plastics entered into a long-term scrap supply agreement with the North American division of Clean Planet Energy, a cleantech, renewable, and alternative energy company. The division is building a pyrolysis plant in Alabama, U.S. The agreement will help turn 20,000 tons of plastic residue generated at the current KW Plastics facility in Alabama into reusable circular products rather than being sent to landfill. The new facility is set to produce petrochemical feedstock that is used to manufacture plastics or ultra-low-sulfur fuels.
• In September 2022, WM Recycle America, LLC announced its plan to acquire the business of Avangard Innovative in the U.S. The business will operate as Natura PCR – an independent company expected to scale and grow its recycling capacity to produce an estimated 400 million pounds per year of Post-consumer Resin (PCR) in five years.
• In September 2022, Novolex announced a US$ 10 Mn investment at its facility in North Vernon, U.S., to increase its recycling capacity for plastic bags and other PE film. This new facility is set to be fed 40 million pounds of feedstock per year.

Recycled Plastic Market Growth Factors-

• Increase in plastic waste generation
• Awareness about the environmental impact of plastic waste
• Government regulations and incentives for recycling
• Technological advancements in recycling processes
• Rising demand for sustainable products
• Increase in cost of raw materials
• Growing consumer preference for recycled plastic products
• Increase in investment in recycling infrastructure.

Market Drivers and Restraints:

Growing Implementation in Packaging Industry to Foster Market

The demand for recycled materials is progressing in numerous industries such as food & beverage, and consumer goods. In the food & beverage industry, the utilization of recyclable polymer is surging owing to the huge demand for food-safe packaging material.

Drivers:

• Government regulations and policies promoting recycling and sustainability.
• Increasing demand for recycled plastic products due to environmental concerns.
• Growing demand for sustainable packaging materials.
• The rising cost of raw materials.

Restraints:

• Lack of proper recycling infrastructure in many regions.
• Low-quality recycled plastic products lead to limited market acceptance.
• Lack of consumer awareness about recycled plastic products.
• High cost of recycled plastic products compared to traditional plastic products.

Opportunities

• Favorable Initiatives to Promote the Use of Recycled Plastics in Developed Countries
• Increasing Use in the Textile Industry in the Developing Countries of Asia-Pacific
• New Recycling Technologies
• Opportunities for Chemical Industries

Challenges

• Ban on Imports of Waste or Scrap Plastics in China
• Difficulty in the Collection of Raw Materials
• Only Few Recycled Plastics Have Market Demand
• Pigmented Plastics are Not Accepted by Many Recycling Facilities

Best from Waste is Offering Lucrative Opportunity for Recycled Plastic Market

The recycling of plastic has become more popular in recent years as the environmental impact of creating new plastic products has become more apparent. There are many opportunities for companies in recycled plastic, and the market is growing rapidly. One option for companies is to manufacture products from recycled plastic. This can be a lucrative business, as the demand for recycled plastic products is high. There are many different types of products that can be manufactured using recycled plastic, such as packaging materials, furniture, fixtures, and toys.

Another option for companies in the global recycled plastic market is to find ways to reduce the amount of new plastic that is created. This can be done by educating consumers about the benefits of recycling, encouraging them to recycle where they can, and developing sustainable packaging options. Finally, companies can participate in the recycling process itself. This can involve sorting plastics into different categories and then shipping them off to be processed into new products.

Report Scope:

Recycled Plastic Market Leading Companies

• Indorama Ventures Public Company Limited
• Covestro AG
• Borealis AG
• LyondellBasell Industries N.V.
• Phoenix Technologies International, LLC
• UltrePET, LLC.
• Extrupet Group (Pty) Ltd
• KW Plastics
• Envision Plastics
• ALPLA Group

New strategies such as product launches, enhancements, partnerships, collaborations, and strategic acquisitions were adopted by market players to strengthen their product portfolios and maintain a competitive position in the market.

Key Market Segments: Recycled Plastic Market

Recycled Plastic Market by Type, 2023-2029 (In USD Million, Kilotons)

• Recycled PET
• High-Density Polyethylene
• Polypropylene
• Low-Density Polyethylene
• Others

Recycled Plastic Market by Application, 2023-2029 (In USD Million, Kilotons)

• Non-Food Packaging
• Food Packaging
• Construction
• Automotive
• Others

Trends in Recycled Content Sources (PCR vs. PIR)

Plastic for recycling comes from two primary sources – consumer and industrial:

• Post-consumer recycled (PCR) plastics – the plastics covered in this study – are defined as plastic products that having served their end use, are reclaimed and reprocessed into base resins. Recycling of finished plastic products by commercial and industrial consumers is included here.
• Post-industrial recycling (PIR) includes the re-use and recycling of plastic scrap and trimmings from manufacturing processes and merchant market sales of these products. These products are excluded from the current study.
• While PIR plastic has advantages as compared to PCR plastics, such as lack of contamination and relative purity of the waste stream, a large portion of PIR is captive, reducing the amount of recycled plastic available to the wider market. Additionally, as manufacturers increase their demand for recycled plastic to meet sustainability goals, PIR plastic production is unlikely to increase a sufficient amount to meet these stringent targets.

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Growth Depends on Changes to Waste Collection & Processing & on Consumer Education

In order to produce enough recycled plastic to meet new ambitious recycled content targets, a number of changes to collection and processing need to be made. To increase the amount of waste collected, consumer education is needed to improve understanding of:

• the detrimental effects of including unrecyclable waste in the recycling waste stream
• proper recycling of plastic waste, including which plastics are recyclable

More importantly, systems need to be improved to make municipal waste pick-up easier and more convenient for consumers, particularly at multifamily residences such as apartments and condominiums, which often have not access to on-site collection.

Additionally, plastic waste processing technologies need to be improved to increase the amount of collected plastic that can be converted into flake that can be reused in new packaging. Technology advancements are needed for items that are already commonly recycled – such as bottles and other rigid packaging – but more importantly for products that are not already widely recycled – including flexible packaging, hard-to-recycle plastics, and non-packaging plastic waste. Producers of a wide variety of manufactured goods target discarded plastic bottles as a source of recycled content, but there are not enough plastic bottles produced to meet all recycled content demand.

Government support for green environment

Government initiatives on growing plastic waste and support for recycled PET-based plastic have enhanced the performance of the recycled PET market. In addition, PET is the most commonly recycled plastic on the earth. According to data revealed by Plastic Ingenuity, almost every recycling program in the US accepts PET materials.

The Life Cycle Inventory Study reported in 2022 that "for every pound of recycled PET flake used, energy use is reduced by 84%; greenhouse gas emissions by 71%. This may act as one of the key drivers responsible for the growth of the market during the forecast period.

Rise in Awareness about Environmental Protection

Governments and several private organizations across the globe are developing extensive programs to channel plastic waste into collection streams to prevent the trash from seeping into oceans. These programs promote plastic bag recycling to mitigate landfill hazards. People are also increasingly preferring to recycle bottles and other plastic products to reduce waste. Various techniques, such as curbside recycling, drop-off recycling, buy-back centers, and deposit/refund centers, are helping organizations funnel in the maximum amount of trash for recycling. Plastic banks exchange plastic trash for other products, cash, or services in order to prevent littering. In October 2022, the Ministry of Marine Affairs and Fisheries, Government of Indonesia, launched a US$ 67,600 program that is expected to pay traditional fishers to collect plastic trash from the sea. The four-week initiative is part of wider efforts to cut marine plastic waste by 70% by 2025.

Extensive Use of Recycled Plastic in Packaging Sector

In terms of application, the global plastic recycling market has been classified into packaging, automotive, construction, textiles, and others. The packaging segment held major share of 38.4% of the global market in 2022, and it is expected to grow at a CAGR of 7.5% during the forecast period. The packaging sector is a major end-user of recycled plastics. Plastic packaging is usually carried out in two forms: rigid packaging and non-rigid packaging. Rigid packaging usually includes containers, rigid bottles, and boxes whereas flexible packaging includes plastic wraps, carrier bags, sachets, packets, and covers.

Economic Benefits of Plastic Recycling

Around 8% of the oil produced in the world is utilized to manufacture plastics. Plastic recycling can reduce expenditure on crude oil and electricity. Around 1,000 kg of recycled plastic saves 685 gallons of oil, nearly 5,800 kWh of electricity, and more than 30 cubic yards of landfill space. Furthermore, the price of recycled plastics is usually lower than that of its virgin counterpart. SWaCH Pune, an informal waste management service in the City of Pune in India, achieves considerable plastic waste segregation and high recycling levels. It collects around 30,000 tons of plastic material annually, thereby diverting around 52% of the plastic waste in the city from landfills. SWaCH Pune undertakes plastic waste collection and recycling activities at a much lower cost than conventional or formal mechanized and centralized waste management approaches. Waste pickers in the service save an estimated US$ 12.5 Mn each year in labor, transportation, waste collection & sorting equipment, and processing costs.

More than 70% of produced Plastic is not Recycled

The world is projected to generate more than 600 million pounds of plastic waste by 2040 from 380 million tons in 2022 in the global plastic market. Of this, only around 30% will be recycled. To put things into perspective, the world currently consumes around 460 million tons of plastic each year. If we continue on our current path, by 2040 there will be more than 2 billion tons of plastic in circulation - enough to circle the earth 9 times.

This number in the global recycled plastic market has barely changed in the last ten years. The other 70% of plastic is simply dumped into landfills or oceans where it creates huge environmental and health risks. The costs of improper disposal of plastics are enormous. In 2021, it was estimated that taxpayers in countries like China and the United States spent $24 billion and $13 billion, respectively, on environmental cleanup because of uncontrolled plastic waste. These funds could be better used to prevent pollution in the first place.

Key Question Answered

• What is the current scenario of the global recycled plastic market?
• What are the emerging technologies for the development of recycled plastic market?
• What are the historical size and the present size of the market segments and their future potential?
• What are the major catalysts for the market and their impact during the short, medium, and long terms?
• What are the evolving opportunities for the players in the recycled plastic market?
• Which are the key regions from the investment perspective?
• What are the key strategies being adopted by the major players to up their recycled plastic market shares?

Browse other research published by Exactitude Consultancy

Recycled PET Market- The global Recycled PET Market size is expected to grow from USD 8.42 billion in 2022 to USD 13.87 billion by 2029, at a CAGR of 5.7% during the forecast period.

Recycled Carbon Fiber Market - The global recycled carbon fiber market will witness a CAGR of 12.2% for the forecast period of 2023-2029. It is expected to reach above USD 320.60 Million by 2029 from USD 113.77 Million in 2022.

Carbon Fiber Market - The global Carbon Fiber Market is expected to grow at 8.2% CAGR from 2023 to 2029. It is expected to reach above USD 5 billion by 2029 from USD 2.46 billion in 2022.

Construction Plastics Market - The global construction plastics market is expected to grow at 7% CAGR from 2023 to 2029. It is expected to reach above 153.49 USD billion by 2029 from 86.09 USD billion in 2022.

Biodegradable Paper & Plastic Packaging Market - Biodegradable paper and plastic packaging market size was valued at USD 10.77 billion in 2022 and is projected to reach USD 38.51 billion by 2029, growing at a CAGR of 15.2% from 2023 to 2029.

About Exactitude Consultancy

Exactitude Consultancy is a market research & consulting services firm which helps its client to address their most pressing strategic and business challenges. Our market research helps clients to address critical business challenges and also helps make optimized business decisions with our fact-based research insights, market intelligence, and accurate data.

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SOURCE Exactitude Consultancy

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