Global Recycled Plastics Market Highlights 2019-2028
The global recycled plastics market attained a revenue of USD 36,186.0 Million in 2019 and is expected to reach a value of USD 45,748.1 Million by the end of 2028 by growing at a CAGR of 4.5% over the forecast period, i.e., 2021-2028. The growth of the market can primarily be attributed to the negative environmental impact of plastic disposal. Plastic is durable, lightweight, inexpensive, and extensively used material. The increase in production and usage of plastics lead to a rise in ecological disbalance, which further causes health problems in human beings. Moreover, increasing demand for single-use plastics is resulting in the piling up of wastes and ultimately leading to landfills. The rising concern for such ill-effects of plastics is therefore raising the need for recycling of plastic wastes, which in turn is anticipated to drive the market growth. According to the statistics by the United Nations Environment Program, it has been estimated that more than 8.3 billion tonnes of plastic has been produced since the year 1950. Further, it has also been studied that around 60% of these plastics had ended either in a landfill or in the natural environment.
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Moreover, according to UNCTAD, the coronavirus induced lockdown has led to an increase in plastic wastes, backed by rise in product delivery and food packaging. Also, with the skyrocketing sales of single-use face mask, which according to the UNCTAD, registered to around USD 166 Billion in 2020, up from about USD 800 Million in the year 2019, the concern for wastes generated from the disposal of these face masks is also high, which in turn is expected to drive the need for proper recycling practices. On the other hand, the use of recycled plastic helps in saving energy as it eliminates the need to manufacture from scratch. Plastic manufacturing is a very labor-intensive job as it requires significantly higher energy for extraction, refining, production, and transportation. Hence it becomes easier for the manufacturer to manufacture the same product with fewer energy requirements.
Further, the increase in the utilization of recycled plastic in the packaging industry by several conglomerates is further expected to drive the demand for recycled plastics, and in turn boost the market growth. The companies are taking several initiatives to increase the utilization of recycled plastics in their facilities and are designing supply chain processes that could help to lower plastic wastes. Several MNCs such as Nestlé S.A., PepsiCo, Inc., Unilever plc, The Coca-Cola Company, Mars, Incorporated, L’Oréal S.A., and others are moving towards the goal of 100% reusable, recyclable, and compostable packaging by 2025. Moreover, these plastics are also widely being used in the automotive and electrical & electronic sectors. Companies are participating voluntarily in UNIDO's green industry initiative, backed by an increase in awareness for sustainable production processes. Significant players in the electrical and electronics industry such as Dell Technologies, Lexmark International, Inc., Samsung Electronics Co., Ltd., Hewlett-Packard Development Company, L.P., and others are widely utilizing recycle plastics for making several ICT products. Such factors are expected to drive the market growth during the forecast period.
Global Recycled Plastics Market Segmentation Regional Synopsis
Regionally, the global recycled plastics market is segmented into five major regions comprising of North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa. Among the markets in these regions, the Asia Pacific recycled plastics market held the leading market share in 2019 and is projected to attain a revenue of USD 15,723.6 Million in 2021 and USD 22,097.8 Million in 2028 by growing at a CAGR of 5.0% during the forecast period. Further, amongst all the countries in the Asia Pacific region, the market in China is expected to garner the largest revenue of USD 3313.7 Million by the end of 2021, while the market in Singapore is projected to hold the second leading stance by attaining a value of USD 4198.6 Million by the end of 2028. The market in China is also anticipated to hold the leading share of 20.04% by the end of 2028. On the other hand, the market in Europe captured the second leading stance in 2019 by registering a revenue of USD 7063.5 Million in the same year. The growth of the market in the region can primarily be attributed to the high demand for recycled plastic in the region's construction and automotive industries. In the European region, Germany is projected to generate significant growth opportunities for the market growth by attaining a revenue of USD 1,416.2 Million in 2021, while U.K. is projected to reap USD 1,091.5 Million in revenue during the same year. Strict government regulations to limit single-use plastic is anticipated to significantly drive the market in these regions in the coming years. In 2020, the European Union announced a tax on plastic packaging bags to reduce ocean pollution and also announced to ban virgin plastics by 2021.
The market in the Asia Pacific is expected to be one of the leading markets owing to the rapid growth in the population in countries, such as India and China. Backed by the large population, the consumption of single use plastics is also high in the region, which in turn is generating a huge quantity of plastic wastes. These wastes ultimately enter the rivers, soils, and oceans, and further pollutes the water bodies. The rise in awareness for pollution in water bodies generated due to plastic wastes is therefore expected to drive the need for recycling, and in turn drive the market growth. On the other hand, plastic production is booming in the Asia Pacific region, and the waste management techniques are still lagging. The governments of countries such as in Malaysia, India, Indonesia, and others are therefore increasingly working towards developing policies such as Swachh Bharat Abhiyan, Plastic Shopping Bag Charging Scheme, and Zero Waste Masterplan, that encourage plastic recycling, which in turn is anticipated to drive the market growth.
Growth Drivers and Challenges Impacting the Growth of the Global Recycled Plastics Market
Growth Drivers
- Increasing Awareness for the Environment
- Growing Number of Initiatives that Promote Plastic Recycling
Challenges
- Difficult Recycling Process
Global Recycled Plastics Market Segmentation Synopsis
The global recycled plastics market is segmented by recycling process into mechanical recycling and chemical recycling, out of which, the mechanical recycling segment accounted for the highest share in 2019, and is further estimated to hold this position throughout the forecast period. Alternatively, the chemical recycling segment is anticipated to grow with the highest CAGR of 6.4% during the forecast period. Further, the market is segmented based on recycled plastic type into bottles, collapsible & squeezable tubes, films, polymer foams, bags, caps & lids, and others. Out of these, the bags segment is expected to garner the largest revenue of USD 9183.4 Million by the end of 2028. The market is also segmented on the basis of resin into polyethylene, polyethylene terephthalate (PET), polypropylene (PP), polyvinyl chloride (PVC), polystyrene, and others. Out of these segments, the polyethylene terephthalate (PET) segment is anticipated to hold the largest revenue of USD 16292.2 Million by the end of 2028. Further, the market is segmented by scrap into rigid and non-rigid, the non-rigid segment is expected to grow with the highest CAGR of 5.8% during the forecast period. Moreover, the market is also segmented by end-use into building & construction, personal care & cosmetics, food & beverage, electrical & electronics, automotive, textile, and others. Out of these segments, the food & beverage segment is expected to hold the largest revenue of USD 10,688.5 Million by the end of 2028.
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Top Featured Companies Dominating the Market
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global recycled plastics market that are included in our report are Veolia Environnement SA, Suez S.A., Imerys S.A., Plastipak Holdings, Inc., D S Smith Plc, Polindo Utama, B. Schoenberg & Co., Inc., Advanced Drainage Systems, Inc. (Green Line Polymers), KW Plastics, and others.
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