Global Plastic Recycling Market Overview
Plastic Recycling Market Size was valued at USD 69.40 billion in 2023. The plastic recycling industry is projected to grow from USD 73.20 Billion in 2024 to USD 129.60 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.40% during the forecast period (2024 - 2032). Increasing the use of plastic in the manufacturing of lightweight components utilized in many different industries, including electrical and electronic, building and construction are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Plastic Recycling Market Trends
-
Growing adoption in the packaging sector to boost market growth
The need for recycled materials is rising in many sectors, including food and beverage and consumer products. Due to the strong demand for packaging materials that are safe for use in food and beverages, the consumption of recyclable polymers is rising in this sector of the economy. As a barrier between food goods and environmental variables, these materials can efficiently replace traditional plastics, expanding the market. Recycled polyethylene terephthalate is a highly preferred material in water and beverage packaging bottles.
According to Verge, the demand for low-cost consumer electronics products, such as laptops, cellphones, modems, and other items, has significantly increased. The rising usage of consumer electronics has raised the need for recycled plastics, which is expected to fuel market expansion in the electrical & electronics, and packaging industries. The plastics business is anticipated to be driven by the expanding use in the construction, medical device, automotive, and electrical & electronics industries. Due to governmental intervention to lower the gross vehicle weight, increase fuel efficiency, and eventually reduce carbon emissions, automotive Original Equipment Manufacturers (OEMs) have been obliged to employ plastic as a substitute for metals, such as steel and aluminum.
Government and regulatory regulations in North America and Europe encourage using recycled plastic in various applications. For instance, recycling is being encouraged among polymer makers by rules in European nations regarding the development of recycling methods, collecting programs, and product innovation. The prohibition on single-use plastic enacted by nations including the United States, Brazil, India, and Canada to limit plastic pollution will also assist the industry. Therefore, such factors have recently enhanced the plastic recycling market CAGR ly.
Figure 1: Plastic waste generation in the world. 
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
However, Plastics are in high demand due to their lightweight nature, durability, and other advantageous features, which hurts the environment is another factor driving the growth of the Plastic Recycling market revenue.August 2023: The Ellen MacArthur Foundation released a report highlighting the need for a "New Plastics Economy" with a focus on eliminating plastic waste and pollution. The report emphasized the importance of increased recycling rates and innovation in plastic design September 2023: The Association of Plastic Recyclers (APR) launched a new initiative to improve the quality of recycled plastic feedstock. This initiative aims to establish consistent standards for sorting and processing recycled plastics, ultimately leading to higher-quality recycled content in new products
Plastic Recycling Market Segment Insights
Plastic Recycling Material Insights
The Plastic Recycling market segmentation, based on material, includes polyethylene terephthalate (PET), high-density polyethylene (HDPE), low-density polyethylene (LDPE), polypropylene (PP), and others. The polyethylene terephthalate segment held the majority share in 2021, contributing around ~35% concerning the Plastic Recycling market revenue. This is primarily because it is widely used for food packaging and bottling applications. Due to its non-toxicity, lightweight, durability, and ease of recycling, it is in high demand for packaging food and beverage goods.
Plastic Recycling Process Insights
The Plastic Recycling market segmentation, based on recycling processes, includes mechanical and chemical. The mechanical segment dominated the market for Plastic Recycling in 2023 and is projected to be the faster-growing segment during the forecast period, 2023-2032. This is due to the machine's increasing use in segregating and collecting waste. Hence, rising applications of a mechanical process for Plastic Recycling positively impact market growth for Plastic Recycling.
Plastic Recycling End User Insights
Based on application, the plastic recycling market data has been segmented into packaging, construction, textile, automotive, and others. Packaging held the largest segment share in 2023; the increased demand for packaged meals, beverages, electrical & electronics, and textiles is to blame for this high share. The primary application areas driving the category growth include personal hygiene items like electric trimmers and shavers, automotive components, and apparel made from recycled plastics.
The second fastest-growing segment in the plastic recycling market revenue is construction. The demand for building & construction applications is anticipated to increase due to the expanding usage of recycled polymer in producing many construction-related items such as flooring, wall panels, wallpaper films, pipes & fittings, and other building materials.
Figure 2: , 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Plastic Recycling Regional Insights
By Region, the study provides the market insights for Plastic Recycling into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific Plastic Recycling market accounted for USD 16 billion in 2021 and is expected to exhibit a significant CAGR of 41.50% during the study period because there is a growing need for non-residential construction projects including hospitals, schools, and colleges. This will increase demand for numerous construction materials, including flooring, insulation, fences, carpets, and roofing tiles. After Asia Pacific, Europe is ranked second in revenue. Moreover, China’s Plastic Recycling market held the largest market share, and the India Plastic Recycling market was the fastest-growing market in the Asia-Pacific region.
Further, the major countries studied in the market report for Plastic Recycling are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: PLASTIC RECYCLING MARKET SHARE BY REGION 2021 (%) 
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Plastic Recycling market accounts for the second-largest market share due to the demand for goods from the automotive and construction industries expanding significantly. Regulations proposed by the European Union in 2021 to significantly lower the use of single-use plastics in the area will boost industry growth. Further, the Germany Plastic Recycling market held the largest market share, and the UK Plastic Recycling market was a the fastest-growing market in the European region.
The North America Plastic Recycling Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because the packaging and automobile industries are both seeing increased demand.
Plastic Recycling Key Market Players & Competitive Insights
Major market players are investing a lot of money in R&D to expand product lines, which will spur further growth in the Plastic Recycling market. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new mergers and acquisitions, product launches, contractual agreements, increased investments, and collaboration with other organizations. Competitors in the Plastic Recycling industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to cut operating costs is one of manufacturers’ main business tactics in the plastic recycling industry to benefit customers and increase the market sector. The Plastic Recycling market major players such as KW Plastics, Novolex, WM Recycle America, LLC, and others, are working on expanding the Plastic Recycling market demand by investing in research and development activities.
Numerous polyethylene and polypropylene inner page-image-resin post-consumer resins (PCR) are produced by KW Plastics and KW Plastics Recycling Division for use in the personal care, automotive, agricultural, construction, pipe, paint & coatings, recreation, and flexible packaging/sheet applications industries. In October 2022, With the North American subsidiary of the cleantech, renewable, and alternative energy company Clean Planet Energy, KW Plastics agreed to a long-term scrap supply arrangement. In Alabama, United States, the division is erecting a pyrolysis facility.
Also, leading the way in packaging innovation, variety, and sustainability is Novolex. They produce goods using paper, plastic, and renewable materials for food packaging, delivery and carryout, food processing, and industrial markets. In September 2022, at its facility in North Vernon, United States, Novolex announced a US$ 10 Mn investment to boost its recycling capacity for plastic bags and other PE film. It is planned to feed this new factory 40 billion pounds of feedstock annually.
List of the Key Companies in the Plastic Recycling Market Includes
Plastic Recycling Industry Developments
September 2022: It was announced by WM Recycle America, LLC that it would buy Avangard Innovative's U.S. operations. The company will be known as Natura PCR. In five years, it is anticipated to scale up and increase its recycling capacity to create 400 billion pounds of post-consumer resin (PCR) annually.
January 2022: A large investment was made by Plastipak Holdings, Inc., a leader in the design, production, and recycling of plastic containers, to increase the capacity of PET recycling at its production facility in Bascharage, Luxembourg. The development is anticipated to raise the manufacturing capacity annually by 136%.
Plastic Recycling Market Segmentation
Plastic Recycling Process Outlook (USD Billion, 2018-2030)
Plastic Recycling Process Outlook (USD Billion, 2018-2030)
Plastic Recycling End User Outlook (USD Billion, 2018-2030)
-
Packaging
-
Construction
-
Textile
-
Automotive
-
Others
Plastic Recycling Regional Outlook (USD Billion, 2018-2030)
-
North America
-
Europe
-
Germany
-
France
-
UK
-
Italy
-
Russia
-
Spain
-
Rest of Europe
-
Asia-Pacific
-
China
-
Japan
-
India
-
South Korea
-
Australia & New Zealand
-
Rest of Asia-Pacific
-
Latin America
-
Mexico
-
Brazil
-
Argentina
-
Rest of Latin America
-
Middle East & Africa
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 69.40 billion |
| Market Size 2024 |
USD 73.20 billion |
| Market Size 2032 |
USD 129.60 billion |
| Compound Annual Growth Rate (CAGR) |
7.40% (2024-2030) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018 & 2020 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Material, Recycling Process, Application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the rest of the World |
| Countries Covered |
The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Jayplas, Joe’s Plastics Inc., Kuusakoski Group Oy, KW Plastics, Montello S.p. A., MTM Plastics GmbH, Plasgran Ltd., Plastipak Holdings Inc., Recycled Plastics UK |
| Key Market Opportunities |
Authorities' regulations to promote the adoption of recycled products |
| Key Market Dynamics |
Increasing adoption in the packaging industry |
Plastic Recycling Market Highlights:
Frequently Asked Questions (FAQ) :
The Plastic Recycling market size was valued at USD 69.40 Billion in 2023.
The Plastic Recycling market is projected to grow at a CAGR of 7.40% during the forecast period, 2024-2032.
Asia Pacific had the largest share of the market for Plastic Recycling.
The key players in the market for Plastic Recycling are Jayplas, Joe’s Plastics Inc., Kuusakoski Group Oy, KW Plastics, and Montello S.p. A.
The polyethylene terephthalate (PET) category dominated the market in 2023.
Packaging had the largest share in the Plastic Recycling market.
