Dublin, March 29, 2023 (GLOBE NEWSWIRE) -- The "Recycled Plastics Market, By Source, By Type, By End-Use, and By Region Forecast to 2030" report has been added to ResearchAndMarkets.com's offering.
The global market for recycled plastics was valued at USD 27.96 billion in 2021 and is projected to experience a revenue CAGR of 9.4% throughout the forecast period.
The market is being propelled by several factors, including a growing awareness of the environmental harm caused by plastic waste and the need for energy conservation. Plastic recycling is the process of retrieving discarded or wasted plastic materials and repurposing them into useful items that are different from their original form. This process helps to conserve energy and decrease oil usage, which in turn reduces greenhouse gas emissions and mitigates pollution.
Plastic waste is known to pollute the environment and put countless animal lives at risk, both on land and in water bodies. The generation of less plastic waste through recycling can lead to a reduction in pollution and save animal lives. The increasing popularity of e-commerce platforms is also driving demand for recycled plastic, as it is being used more frequently as a packaging material for products such as computers, mobile phones, and tablets, among others.
Market Dynamics
Drivers:
The recycled plastics market is witnessing revenue growth due to the increasing usage of recycled plastics in various sectors, including packaging, automotive, and others. Vehicle makers prefer plastics as they are lightweight, inexpensive, corrosion-resistant, durable, and flexible, providing more design flexibility than metals.
Polypropylene, which is highly resilient and chemical-resistant, is the most prevalent plastic used in autos for applications such as bumpers, cable insulation, and carpet fibers, driving the market revenue growth. PET is becoming the material of choice for sports brands in the textile industry due to its strength, impermeability, and flexibility. Additionally, PET produces 75% fewer CO2 emissions throughout the textile garment production process than virgin polyester, driving the market revenue growth.
The rising demand for High Density Polyethylene (HDPE) and Low-Density Polyethylene (LDPE) with and without additives, Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), and polyethylene terephthalate used for packaging goods is another driver for market revenue growth.
The increasing demand for 100% recycled bottles among consumers and reusing plastic rather than creating it from scratch eases the burden on fossil fuels such as coal, natural gas, and petroleum, reducing carbon dioxide emissions and greenhouse gases into the atmosphere, driving market revenue growth.
Restraint:
The recycling of plastics releases Volatile Organic Compounds (VOC) into the atmosphere during the melting process, which is harmful to nearby plant and animal life, and causes health concerns to those who use the plastic. The production of recycled plastic containers using petroleum resin also contaminates food. The plastic melting process also releases carbon emissions, and the waste materials create pollutants such as chemical stews, which are hindering the market revenue growth. Plastic recycling also leads to an increase in low-quality occupations, such as rubbish sorting and toxic cleanup, which hinders the revenue growth of the recycled plastic market.
Key Takeaways
Source Outlook
The global market for recycled plastics is divided into different segments based on source, type, and end-use. In terms of source, the market is segmented into bottles, films, fibers, foams, and others. The bottles segment has a significant revenue share because recycling plastic bottles requires less energy and fossil fuels, resulting in lower carbon emissions. This segment's revenue growth is driven by using recycled materials, which reduces greenhouse gas emissions created during the production of virgin materials.
Type Outlook
In terms of type, the market is segmented into polyethylene terephthalate, polyethylene, polypropylene, polystyrene, polyvinyl chloride, and others. The polyethylene segment is expected to have significant revenue growth due to its easy recycling process and usage in various applications such as packaging film, trash and grocery bags, and others. This type of recycled plastic is preferred by manufacturers as it reduces the risk of leakage of breakdown products.
The polyethylene terephthalate segment is expected to have moderate revenue growth due to its easy availability and usage in food packaging industries for sports drinks, soft drinks, and others. This type of recycled plastic is appropriate for packing liquids and food and reduces the risk of leakage of breakdown products.
End-Use Outlook
In terms of end-use, the market is segmented into packaging, building & construction, textile, automotive, electrical & electronics industry, and others. The building & construction segment is expected to have moderate revenue growth due to plastic's low mechanical equipment, machinery, and labor requirements, which accelerate construction. Plastics such as polyethylene and PVC are widely used in manufacturing as they are less likely to wear out. Polyurethane insulation made from recycled plastics is used in green and low-energy structures, which significantly drive the market revenue growth of this segment.
Regional Outlook
In terms of geography, the Asia Pacific region dominated the global recycled plastics market in 2021, with a significant share of the revenue. This growth can be attributed to the increasing demand for non-residential building projects like hospitals, schools, and universities. Additionally, the implementation of environmental regulations by international agencies like the Environmental Protection Agency (EPA) has also boosted the market growth in this region. The Indian government's initiatives on environmental protection, such as the Swachh Bharat Abhiyan and Namami Gange Program, have also played a role in driving revenue growth in this region.
Europe is expected to witness significant growth in the recycled plastics market over the forecast period due to the high landfill charges in several European countries. The cost of dumping is often higher than recycling plastic, which has led to an increased demand for recycled plastic in the region. Germany and the United Kingdom are the largest markets for recycled plastics in Europe. Research suggests that the European plastics recycling industry generated sales worth USD 3 billion in 2021. In the U.K. alone, up to 9 million tonnes of plastic are produced annually, driving the market revenue growth in the region.
The North American market is expected to grow at a moderate pace over the forecast period, driven by the increasing usage of recycled plastics in various industries such as food and beverage, automotive, and others.
For instance, The Coca-Cola Company has made efforts to promote a circular economy for plastic packaging by producing bottles made entirely of recycled PET plastic. Similarly, Braskem and Ailyx have announced a partnership to investigate advanced recycling projects in North America, aimed at producing circular Polypropylene (PP) with the essential qualities for high-demand consumer applications like food packaging, consumer goods, and hygiene items.
Key Topics Covered:
Chapter 1. Market Synopsis
Chapter 2. Executive Summary
Chapter 3. Indicative Metrics
Chapter 4. Recycled Plastics Market Segmentation & Impact Analysis
Chapter 5. Recycled Plastics Market By Source Insights & Trends
Chapter 6. Recycled Plastics Market By Type Insights & Trends
Chapter 7. Recycled Plastics Market By End-Use Insights & Trends
Chapter 8. Recycled Plastics Market Regional Outlook
Chapter 9. Competitive Landscape
Chapter 10. Company Profiles
- REMONDIS SE & Co. KG
- Biffa
- Stericycle Inc.
- Republic Services Inc.
- WM Intellectual Property Holdings L.L.C.
- Veolia
- Waste Connections
- CLEAN HARBORS.INC.
- Covestro AG.
- B & B Plastics Inc.
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