growing government policies worldwide towards reducing plastic waste to drive the market growth are driving the growth of Plastic Recycling Market at a CAGR of 8.66 % during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Plastic Recycling Market” that contains the information from 2019 to 2035.

The Global Plastic Recycling Market is estimated to register a CAGR of 8.66 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Plastic Recycling Market — CarbonLite Industries LLC, Seraphim Plastics LLC, MBA Polymers Inc., Kuusakoski Group Oy, Envision Plastics, Custom Polymers, Plastic Recycling, Inc., UltrePET LLC, KW Plastics, Inc., Green-O-Tech India and others.

The Global Plastic Recycling Market accounted for registering a CAGR of 8.66 % during the forecast period and is estimated to reach USD 47.0 billion by 2035.

Plastic packaging, particularly flexible plastic, is becoming the preferred option for many industries, especially food, beverages, healthcare, and consumer goods. Flexible plastics offer several benefits, including lightweight properties, durability, ease of transport, and reduced material usage compared to rigid packaging alternatives. This has led to an increase in the production of plastics like polyethylene (PE), polypropylene (PP), and polyethylene terephthalate (PET), all of which are recyclable materials.

As the demand for these materials rises, so does the volume of plastic waste generate. The packaging industry’s reliance on plastics presents a significant challenge in terms of waste management, but it also drives the need for efficient recycling solutions. Companies are increasingly seeking ways to mitigate their environmental impact by turning to recycled materials for packaging, which boosts the plastic recycling market.

The global push for sustainability has become a key driver in the plastic recycling market. Consumers are increasingly aware of the environmental hazards posed by single-use plastics, particularly in packaging. This awareness is creating pressure on manufacturers and brands to adopt more sustainable packaging practices, which include the use of recycled plastics.

Many companies are now setting ambitious sustainability goals, including commitments to use 100% recyclable, reusable, or compostable packaging. As part of this shift, brands are opting for recycled plastic materials (rPET, recycled PP, and PE) in their packaging solutions. This trend is pushing the recycling industry to innovate and scale up to meet the rising demand for high-quality recycled plastics that can be used in packaging applications.

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Segmental Analysis

The Global Plastic Recycling Market has been segmented based on Source, by Material, By Recycling Process and by Application.

Based on Source, this segment includes Residential, Commercial, Industrial. The Industrial segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. The industrial segment covers plastic waste generated from industrial activities, including manufacturing processes, construction, and other industrial operations. This segment often involves larger volumes of plastic waste, such as industrial packaging, plastic components, and construction materials. Industrial plastic waste is typically more homogeneous and less contaminated compared to residential waste, making it easier to recycle. The industrial segment benefits from advancements in recycling technologies that can handle specific types of industrial plastics. Additionally, there is a growing trend towards circular economy practices in the industrial sector, where companies aim to minimize waste and maximize the reuse of materials.

Based on Material, this segment includes Polyethylene Terephthalate (PET), High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), Polypropylene (PP), Polyvinyl chloride (PVC), Polystyrene (PS), BOPE, BOPP. The Polyethylene Terephthalate (PET) segment dominated the global market in 2024, while the BOPP segment is projected to be the fastest–growing segment during the forecast period. PET is widely used in beverage bottles and food packaging. It is highly recyclable and often repurposed into new bottles, fibers for clothing, and containers. The demand for recycled PET is driven by its extensive use in consumer goods and the push for sustainable packaging solutions.

Based on the Recycling Process, this segment includes Mechanical and Chemical. The Mechanical segment dominated the global market in 2024, while the Chemical segment is projected to be the fastest–growing segment during the forecast period. Mechanical recycling, the most common method, involves physically processing plastic waste into new products without altering their chemical structure. This process includes collection, sorting, shredding, washing, and reprocessing. It is cost-effective, energy-efficient, and supported by established infrastructure. Mechanical recycling is effective for widely used plastics like PET and HDPE, where the infrastructure for sorting and processing is well-established. However, it has limitations, such as a potential reduction in material quality after multiple recycling cycles and challenges in processing mixed plastic types.

Based on Application, this segment includes Packaging, Construction, Textile, Automotive, Electronics, Others. The Packaging segment dominated the global market in 2024, while the Textile segment is projected to be the fastest–growing segment during the forecast period. Packaging is the largest application segment in the plastic recycling market. Recycled plastics are extensively used in packaging materials such as bottles, containers, films, and wraps. The demand for sustainable packaging solutions is increasing due to environmental concerns and regulatory pressures. Recycled PET (rPET) and HDPE are commonly used in food and beverage packaging, offering a sustainable alternative to virgin plastics. The shift towards circular economy practices and consumer preference for eco-friendly products further boost the market for recycled plastics in packaging.

Regional Analysis

Geographically, the Global Plastic Recycling Market has been segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.

Major demand factors driving the Asia-Pacific market are the increasing use of plastic in the packaging industry and growing government policies worldwide towards reducing plastic waste to drive the market growth. The ban on the import of foreign waste has forced countries to develop their own recycling infrastructure. In response, many Asian countries like Thailand, Vietnam, and Malaysia have seen a surge in plastic recycling activities to fill the void left by China. India also plays a crucial role in the Asia-Pacific plastic recycling market. The Indian government has implemented several initiatives to curb plastic pollution, including a ban on single-use plastics and incentives for the use of recycled materials. However, informal recycling sectors still dominate in many parts of the region, which poses challenges for scaling up organized and efficient recycling.

North America, comprising the United States, Canada, and Mexico, is a significant player in the global plastic recycling market. The region’s market is driven by robust governmental policies and initiatives aimed at reducing plastic waste and promoting recycling. The United States, in particular, has seen substantial investments in advanced recycling technologies, such as chemical recycling, which breaks down plastics into their basic chemical components for reuse. Canada has also been proactive, with various provinces implementing extended producer responsibility (EPR) programs that hold manufacturers accountable for the end-of-life management of their products.

Europe is at the forefront of the global plastic recycling market, driven by stringent environmental regulations and a strong commitment to sustainability. The European Union (EU) has set ambitious goals for plastic recycling as part of its Circular Economy Action Plan, aiming for all plastic packaging on the EU market to be recyclable by 2030. The EU’s Circular Economy Action Plan also emphasizes the importance of recycling and reusing materials to minimize waste. Countries like Germany, France, and the United Kingdom are leading the way in plastic recycling efforts. Germany, for instance, has one of the highest recycling rates in the world, thanks to its well-established waste management infrastructure and strict regulations. The European market is characterized by advanced recycling technologies and a strong focus on innovation.

South America, including countries like Brazil, Argentina, and Chile, is an emerging market for plastic recycling. The region’s market is driven by increasing environmental awareness and governmental initiatives aimed at reducing plastic waste. Brazil, the largest country in the region, has implemented various policies to promote recycling, such as the National Solid Waste Policy, which encourages the recycling of plastic waste and the use of recycled materials in manufacturing. Additionally, the informal sector plays a significant role in the collection and sorting of recyclable plastics, which is then sold to processing plants.

The Middle East & Africa region, including countries like the United Arab Emirates, South Africa, and Nigeria, is a nascent market for plastic recycling. The region’s market is driven by increasing governmental initiatives aimed at reducing plastic waste and promoting recycling. The United Arab Emirates, for instance, has implemented various policies to promote recycling, such as the Dubai Municipality’s Waste Management Strategy, which aims to achieve zero waste to landfill by 2030. South Africa has also made significant strides in plastic recycling, with various initiatives aimed at promoting recycling and reducing plastic waste. However, the region faces challenges such as inadequate waste management infrastructure and a lack of consumer awareness about recycling.

Key Findings of the Study

• The Global Plastic Recycling Market is expected to reach USD 47.01 billion by 2035, at a CAGR of 8.66% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market.


• Based on the Application, the Packaging segment was attributed to holding the largest market in 2024.


• CarbonLite Industries LLC, Seraphim Plastics LLC, MBA Polymers Inc., Kuusakoski Group Oy, Envision Plastics, Custom Polymers, Plastic Recycling, Inc., UltrePET LLC, KW Plastics, Inc., Green-O-Tech India are some of the players in the market.