With Growing Recycling Initiatives, Global PET Bottle Recycling Market Likely To Rise To The Worth USD 17.01 Billion By 2030

Global PET Bottle Recycling Market

PET bottle recycling is the process of recovering plastic waste and reprocessing it into useful products. The PET bottle recycling process includes waste collection, sorting & shredding, and molding. PET bottle has become one of the most vital requirements. However, it is produced from finite resources, such as petroleum. As petroleum prices increase, it is becoming economically viable to recycle polymers rather than produce them from raw materials. Consequently, plastic waste recycling can help save resources and reduce process waste. Therefore, there is an increase in awareness among local authorities and end users to recycle plastic waste. Moreover, over the years, there has been the development of recycling technologies, such as mechanical recycling and feedstock recycling. PET bottle recycling is widely used in the packaging industry in food & beverages. The use of PET bottle recycling in various end-use industries, majorly in packaging, is projected to boost the demand for PET bottle recycling during the forecast period. The use of PET bottles in the packaging industry is expected to drive the global PET bottle recycling market in the coming years. The increasing government initiatives for the textile industry also bolster global market growth.

Market Synopsis

According to the MRFR analysis, the global PET bottle recycling market is projected to witness USD 17.01 Billion by 2030, exhibiting a CAGR of 5.76%.

The use of PET bottle recycling in various end-use industries, majorly in packaging, is projected to boost the demand for PET bottle recycling during the forecast period. The use of PET bottles in the packaging industry is expected to drive the global PET bottle recycling market in the coming years. The increasing government initiatives for the textile industry also bolster global market growth. Designing PET bottles to facilitate recycling is projected to create lucrative opportunities for the players operating in the global PET bottle recycling market. However, the high cost and slow recycling of PET bottles are expected to hamper the global PET bottle recycling market.

The global PET bottle recycling market was valued at USD 10.87 Billion in 2022 and expected to reach USD 17.01 Billion by 2030, registering a CAGR of 5.76% over the forecast duration. North America accounts for the largest market share (34.47%) followed by Europe (28.55%) and Asia-Pacific (27.05%). Asia Pacific is expected to register the highest CAGR (3.65%) followed by North America (2.83%) over the forecast duration 2023-2030.

During the coronavirus pandemic, the revenue generated by the packaging industry was reduced for a few months. However, it rebounded quickly due to the increasing demand for packaged foods during the pandemic. The outbreak of COVID-19 has had a negative impact on the production of PET bottle recycling due to the disruption in the supply chain across the globe and while the COVID-related supply shortages and resulting chain breakdown were nearly impossible to predict, with smarter recycling, the supply of recycled PET would be undisputable. Companies in the market have limited employee travel and in-person meetings to shield staff from the spread of the new coronavirus. According to the United Nations, the global economy is projected to contract by around 3% instead of registering the 2.5% growth projected by the World Economic Situation and Prospects report 2020.

Companies aggressively safeguarded their employees' health and well-being while supporting government goals of maintaining critical business activities in healthcare, power generation, and food production. Manufacturers have witnessed a decline in revenue during the first half of 2020 to 2019. The decline in revenue is mainly attributed to the minimum workforce, disruption in raw material procurement, and trade restrictions across the globe. Enterprises in various countries faced more difficulties in pandemic prevention, resumption of work, orders, and markets, and both the upstream and downstream industries of PET bottle recycling are facing a crisis. However, the outbreak of COVID-19 also prompts changes in the PET bottle recycling marketing channels and consumption patterns. To innovate, develop, transform, and upgrade in response to changing market conditions and combat the economic crisis brought on by the pandemic, many businesses integrate the Internet and new technology.

Competitive Landscape

The global PET bottle recycling market is distinguished by the presence of numerous global, regional, and local vendors. The market is extremely competitive, with all players competing for market share. Intense competition and rising demand for recycled PET bottles are major challenges to market growth. They compete on price, product quality, and dependability. To survive and succeed in the intensely competitive market environment, market players must provide cost-effective and high-quality recycled material. The competitive scenario is fragmented between the tier-1, tier-2, and tier-3 companies, while tier-1 and tier-2 companies in the market hold over 70% of the global market share.

The growth of the market players is dependent on market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding the production capacity to meet the demand and enhance their services. Indorama Ventures Public Company Limited, Krones Ag, Plastipak Holdings, Inc., UltrePET, LLC, and Phoenix Technologies are the major companies in the market at present that are competing in terms of quality, price, and availability. These players are primarily focusing on the development of recycled PET bottle products. Although the international players are dominating the market, regional and local players with small market shares also have a moderate presence. The international players with a presence across the globe, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, Asia-Pacific, and the rest of the world.

Segmentation-

By Recycling Process:

1. Mechanical: The starting stage of PET recycling involves the collection of bottles, which are primarily procured from curbsides. Collected plastic containers are delivered to a material recovery facility (MRF) or a plastics intermediate processing facility (IPC) to begin the recycling process. MRFs integrate collected recyclables and separate them into respective material categories. In the reclaiming process, the impure material passes through a series of sorting and cleaning stages to separate required plastic material from others. The material derived from processing is known as clean flake. The clean flake or pellet is then processed into fiber, sheet, or compounded pellet and finally sold to end users for manufacturing new products.


2. Chemical: The chemical recycling of PET is carried out using different catalysts. Chemical recycling is either total depolymerization or partial depolymerization and the processes can be divided into: Glycolysis, Methanolysis, Hydrolysis, Other processes. PET recycling by glycolysis is one of the important methods in chemical processing. It is used widely on a commercial scale. The glycolysis reaction is the molecular degradation of PET polymer by glycols in the presence of trans-esterification catalysts, mainly metal acetates, where ester linkages are broken and replaced with hydroxyl terminals. The Methanolysis process consists of the degradation of PET by methanol at high temperatures and under high-pressure conditions. The main products of PET methanolysis are DMT and EG, which are the raw materials for polymer. Catalysts such as zinc acetate, magnesium acetate, cobalt acetate, and lead dioxide enhance the reaction. Hydrolysis for the chemical recycling of PET is the only method that produces terephthalic acid (TPA) and EG, which are monomers. Other processes, such as the aminolysis process are the least widely used method for PET chemical recycling, especially for deep polymer degradation.

By Application:

1. Beverages: PET resin is primarily used to manufacture beverage bottles, with an estimated 90%–95% of all PET resin utilized for this application. The global PET bottle recycling market is expected to witness impressive growth due to the increase in demand in the packaging industry. Hence, the beverages application segment is expected to register the highest CAGR of 5.97% during the forecast period.


2. Personal Care: The personal care segment is expected to witness a significant growth rate during the forecast period due to the increasing use of lightweight plastics for their ease of use and durability, resulting in a trend of using recycled materials in the personal care industry.


3. Pharmaceuticals: The pharmaceuticals application segment is projected to register a significant growth rate during the forecast period. The demand for pharmaceutical products is increasing continuously. Many products are manufactured using higher percentages of recycled PET. Moreover, the use of recycled PET in the pharmaceuticals industry is projected to increase mainly owing to the low cost and low energy requirements involved in the production of recycled plastic.


4. Consumer Goods: Recycled PET is widely used for consumer goods, with several goods made from 100% recycled materials and others containing a certain percentage of recycled PET. Thus, the demand for recycled PET is increasing in the industry as it is cost-effective and eco-friendly. Manufacturers also emphasize the display of relevant and important information on the package as well as the recyclability of the packaging material. A rise in the consumption of consumer goods is leading to increased demand for packaging solutions.


5. Others: The others segment includes electronic components, consumer products, industrial machinery, and transportation. In all these applications, recycled PET is used to reduce costs and increase the durability of components. Moreover, as the electronics industry is expected to grow significantly in the future, there will be a rise in the demand for recycled plastic products.

By Region

1. North America: The North America segment accounted for the largest market share of 34.47% in 2021, with a market value of USD 1,501.00 million; it is expected to register a CAGR of 5.04% during the forecast period. The Americas is the largest market for PET bottle recycling, which is attributed to the advancements in recycling technology and awareness regarding recycling. Various regulations related to waste management drive the market. Therefore, it is estimated that the market for PET bottle recycling in the Americas would register a CAGR of 5.04% during the forecast period. In US, plastic recycling market has been witnessing tremendous growth over the past few decades and has led to various recycling initiatives and regulations by various government and non-profit organizations.


2. Europe: The European plastic industry ranks seventh in Europe in industrial value-added contribution. Mostly, plastic materials are derived from fossil feedstocks, such as natural gas, oil, or coal. However, only 4 to 6% of all the oil and gas used in Europe is employed in the production of plastic materials. According to the European trade association Petcore Europe 2 out of 3 PET bottles are collected for recycling in Europe. European PET recyclers have 10 to 12 billion unused bottles, some of which are awaiting approval to be recycled into food contact materials. The industry is prepared to recycle more, and in a closed loop scenario: turning bottles back into bottles.


3. Asia- Pacific: Rapid economic growth, rising population, and numerous laws and regulations supporting waste management and environmental protection are characteristics of the Asia-Pacific region. China has been the receiving global hub of plastic waste and has been one of the leaders in scrap consumption. With growing awareness and economic health in Asia-Pacific, there has been a strong set of frameworks for waste management. It is estimated that the market for PET bottle recycling in Asia-Pacific would grow at 6.32% CAGR during the forecast period.


4. Rest of the World: PET bottle recycling in the Middle East is still in a nascent stage, but there is a tremendous scope for growth. The gross urban waste generation from the Middle Eastern countries exceed 150 million tons per annum, 10% of which is contributed by PET bottle waste. The use of PET bottles has grown at a tremendous rate over the past two decades as it plays an important role in all aspects of the modern lifestyle. Hence, it is estimated that the market for PET bottle recycling in the Rest of the World would have a CAGR of 5.17% during the forecast period.