Ocean Bound Plastics Market is expected to register a CAGR of 3.50% during the forecast period (2021 - 2030).
Ocean Bound Plastics (OBPs) refers to plastic waste of all sizes abandoned in the ocean (microplastics, mezzoplastics, and macroplastics) and is 50 kilometers or less from the coast in places where there is no waste management or very ineffective waste management. These plastics are very likely to end up in marine ecosystems, where they will enter the food chain and endanger the health of aquatic and terrestrial species.
COVID-19 Impact on Ocean Bound Plastics Market:
The global economy took a big hit because of the emergence of COVID-19. The outbreak caused businesses to fail, economies to contract, and waves of lockdowns to be implemented worldwide. The effects of the virus were not limited to the petrochemical sector; consumer demand patterns changed, oil prices dropped and then rose, and global supply chains were disrupted.
Some pre-COVID issues such as sustainability are resurfacing in the petrochemical industry. Sustainability targets are once again receiving serious attention from the industry. They were initially neglected at the beginning of the outbreak as the demand for single-use plastics for hygiene reasons increased and as some converters chose cheaper, virgin polymers made from fossil fuels over more expensive and scarcer recycled materials.
Ocean-bound plastic (OBP) is gaining a small but significant amount of traction in the industry, particularly from players in the rPET market. Major European retailers are now making investments in the industry. For using Bantam International's Prevented Ocean Plastic (POP) across 13 of its fresh fish products in the UK, Lidl, a German discount retailer chain, won the UK Retail Industry Awards' Sustainable Initiative of the Year 2020 last year. One of the many businesses supplying OBP globally is Bantam.
Procurement of raw materials was a major impediment, as the lockdown led to restrictions on the waste pickers across coastal lines due to the outbreak of COVID-19. Furthermore, the closure of several plastics recyclers has resulted in a drop in global consumption. Given the circumstances, many companies have halted production at their facilities worldwide. Some large companies that are still in operation are only operating at 40-60% efficiency. However, these businesses have resumed operations by government regulations. Furthermore, the imposition of various fiscal and monetary policies by governments and managements around the world to limit the damage caused by COVID -19 is expected to result in certain relief.
Environmental issues have arisen due to the massive amount of waste generated by the large-scale demand for plastics. An estimated 25 million tons of plastic waste from these coastal regions ended up in the oceans. All coastal nations contribute to these figures, but the top five nations account for 54.5 percent of marine plastics, with China accounting for more than 25% of the global total. Thus, there is a growing demand for ocean-bound plastics.
Plastic roads are a new concept presenting manufacturers of RPET with opportunities for growth. Plastic roads claim to require less building time and are expected to be three times more durable than conventional roads. The concept consists of prefabricated, modular, and hollow road structures made from recycled plastic. Recycled plastic is lightweight and modular making the construction and maintenance of plastic roads simpler, faster, and more efficient. Moreover, the hollow spaces under plastic roads can be used to store water, which is expected to prevent flooding during extreme precipitation.
Recycling is an important factor in protecting the environment, presenting numerous challenges. Poor and inconsistent bale quality, fluctuating bale prices, and low margins are just a few of the challenges faced by recycling companies. According to the Australian National Pollutant Inventory, PET packaging has antimony, similar toxicity to arsenic. Antimony has harmful effects on both humans and the environment. Exposure to antimony for a long period can cause lung diseases, heart problems, and stomach ulcers. Antimony also pollutes the soil, leading to an environmental imbalance.
Plastic waste can be converted into hydrocarbons such as high purity gas, diesel, kerosene, activated carbon, and coal using high-temperature treatment. PT developed this Viro Technology. Polymindo Permata. It is economical, and the resultant hydrocarbons produce fewer emissions than fossil fuels. Moreover, this technology can be combined with generators and turbines to create electricity. According to the company, using this technology, one ton of plastic waste can generate up to 3 MWh of electricity, sufficient for powering thousands of houses. Thus, energy recovery from plastic waste can help meet the increasing power demand worldwide. On.
Asia-Pacific is a prominent regional ocean-bound plastic market, accounting for over 50% of the global market. Countries such as China, India, Japan, and Indonesia are the key contributors to the regional market growth. Population growth, rapid industrialization, economic reforms, and government initiatives for waste recycling are the key factors driving the market growth. Most importantly, advancements in recycling technology, driven by increasing foreign direct investment (FDI), are expected to drive market growth. Europe is expected to grow due to initiatives for plastic waste recycling by the EU. The North American market is expected to grow due to an established plastic industry in the US. The use of advanced technology in the country, which has an impressive recycling rate of 28.4%, is also a key factor driving the market growth. The Latin American market accounted for 10% of the global market, driven by economic reforms in Brazil in support of industrialization. Brazil, Mexico, and Argentina are key contributors to the regional market's growth. The Middle East & Africa accounted for the smallest share of the global market due to a lack of awareness regarding recycling.
The global Ocean Bound Plastics market is highly consolidated, with prominent players accounting for most of the market share. The major players in the global market have large production bases and advanced manufacturing facilities. This allows them to supply the product to various end users worldwide in less time than small-scale manufacturers, giving them a competitive advantage in the global market. Furthermore, manufacturers are heavily involved in R&D activities to develop advanced production technologies and expand their production facilities to meet growing global needs. Furthermore, manufacturers are forming long-term alliances with key stakeholders to gain a significant market share in the global Ocean Bound Plastics market.
Some prominent global Ocean Bound Plastics market players include SUEZ, Unifi, Inc., KW Plastics, Method Products, PBC, Veolia, B&B Plastics Inc., Oceanworks, Jayplas, and Plastipak Holdings, Inc.
Some of the key developments include:
The report segments the Ocean Bound Plastics market by resin type, end-user, and region. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Ocean Bound Plastics' emerging and fast-growing segments, regions, and countries.
Objectives of the Study
|CAGR||3.50% CAGR (2022-2030)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Resin Type and End user|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa|
|Key Vendors||SUEZ, Unifi, Inc., KW Plastics, Method Products, PBC, Veolia, B&B Plastics Inc., Oceanworks, Jayplas, and Plastipak Holdings, Inc.|
|Key Market Opportunities||Increasing use of recycled plastic in construction industry|
|Key Market Drivers||Negative environmental impact of plastics disposal|
Global Ocean Bound Plastics market will register a growth of 3.50%.
Polyethylene Terephthalate (PET) resin will play a prominent role in taking the market forward.
The negative environmental impact of plastic disposal is the key driving factor for the global Ocean Bound Plastics market.
The Asia-Pacific market would enjoy the upper hand in the Ocean Bound Plastics market.
China, as the largest consumer, would set the trend in the Ocean Bound Plastics market.