ID: MRFR/PNT/2113-CR | October 2020 | Region: Global | 188 pages
Plastic Recycling Market Overview
Plastic Recycling Market is projected to be worth USD 67.32 billion by 2030, registering a CAGR of 7.19% during the forecast period (2022 to 2030), the market was valued at USD 38.51 billion in 2021.
The plastic recycling market is rapidly gaining momentum due to the increasing awareness among the general public regarding environmental safety. With the aid of government regulations and protection guidelines, plastic recycling is expanding across the globe. The depletion of natural resources due to the intensive usage and dumping of plastics in the ocean are creating huge stress in the overall environment.
Also, the manufacturing companies are focusing on the recycling methodologies that help in reducing the environmental pollution. With the changes in the market trends, the growth of the plastic recycling industry is spurring up with a CAGR of 5.82% during the forecast period.
COVID 19 Analysis:
The COVID 19 pandemic has created severe economic shock across the manufacturing and industrial units and has made them struggle to combat the economic loss. Several industrial verticals were facing distress due to the loss in supply and demand ratio, lack of labor, and many other issues. The plastic recycling industry was also facing distress throughout the pandemic as the collection of plastics from the key manufacturing locations and other key places had become difficult as there were stringent restrictions for movement. Transportation and reaching out to the processing plants have become difficult for the key market players and have imposed a significant decline for the overall growth of the plastic recycling industry.
However, on the other hand, the pandemic and the intensive usage of medical supplies and pharmaceutical products have led to the huge generation of plastics across the globe which has propelled the government and non-governmental organizations to indulge in plastic recycling activities. Such factors have increased the plastic recycling market growth despite the widespread of COVID 19.
Similarly, the awareness among the people has increased significantly, and they are more inclined towards adopting lifestyle change that favors the growth of the plastic recycling industry.
The growing population and industrialization across the globe combined with the exponential rise in the economic condition and the increasing industrial activities are generating enormous amounts of plastic waste and are contributing to the growth of the plastic recycling market growth.
The reports generated by the governmental and non-governmental organizations reveal the status of the plastic waste available on the planet is propelling the growth of the plastic recycling industry. For instance, a recent report states that there are over 8 million tons of plastic waste in the water bodies that potentially affect the marine ecosystem. Such reports increase the awareness regarding the environmental impact created by plastic waste and thereby increase the overall growth of the plastic recycling industry.
Increasing awareness across the globe and improving technologies in the plastic recycling industries in recent times combined with the favorable government initiatives to restrict plastic wastage are expected to boost the overall growth of the plastic recycling industry during the forecast period.
The demand for recycled plastics especially the type PET and HDPE are increasing among various end-user industries and the increasing industrial verticals that are utilizing recycled plastics for varied consumer goods are expected to propel the plastic recycling market growth during the forecast period.
Several countries have a poor collection and sorting systems and therefore the plastic recycling activities were extremely minimal in those countries. Also, the unavailability of financial support for government initiatives worsens the condition. Moreover, most of the plastic recycling plants have solutions that are highly inefficient in utilizing the fuel and are costlier than virgin plastics.
Some of the end-users and consumers show a higher preference for virgin plastics over recycled plastics for the better quality and cheaper price. As the recycling process is difficult and involves significant procedures incurs manufacturing costs that affect the selling price of the recycled plastics. This factor is considered as the major restraint of the overall growth of the plastic recycling industry.
There is no established method or procedure in collecting the plastic waste from the manufacturing plants and production areas or sorting them according to the category of the plastics. This factor is considered as the major challenge for the plastic recycling market growth.
Increase requirements for efficient and better recycling technologies and advancements in the sorting segment that would potentially reduce the manual intervention, especially removing the plastic waste from the water sources and other areas are extremely difficult and require manual collection which consumes more time. Such factors are the primary challenge for the overall growth of the plastic recycling industry.
Cumulative growth analysis:
The plastic recycling market value was atUSD 38.51 billion in 2021 and it is expected to surpass the market value of over USD 67.32 billion by 2030, registering a CAGR of 7.19% during the forecast period (2022 to 2030). The estimated growth rate is primarily driven by the excessive generation of plastic waste across the globe. Also, the generation of PET waste which is utilized to manufacture several consumer goods such as combs, bottles, racks, and similar other objects is expected to grow with a higher growth rate during the forecast period. The recycling of PET plastics accounts for about 70% of the overall plastic recycling operations and thereby leading the other segments in the plastic recycling market growth. The recycled PET products are considered to be more suitable for the applications such as packaging, textiles, films, and molded parts that are used in the automotive industry and electronics industry.
Similarly, the increasing number of regulations imposed by the government and other organizations that surge the adoption of recycled products combined with the increased awareness and responsible public is further augmenting the plastic recycling market growth in recent years.
Value chain analysis:
The packaging segment in several end-user industries is generating a huge amount of plastic wastage compared to other segments. Especially, the food and beverage industry and pharmaceutical industry, due to the increasing demand across the globe has increased their production activities and has been found to generate a huge amount of plastic wastage in recent years. Especially the inclination towards the ready-to-eat food systems and fast food systems in the developed regions are generating a higher amount of plastic wastage. Such factors are augmenting the plastic recycling market growth. Moreover, the presence of leading market players and their innovation in the industry in recent years are considered as the major drivers of the plastic recycling industry. For instance, one of the leading market players, Agilyx Corporation has decided to join hands with Exxon Mobile chemical company in the year 2021 and together they have been focusing on recyclability and supplying the wastage to the recycling industries. These acquisitions of the leading market players and novel innovations in technology are driving the plastic recycling market growth.
Mechanical pressing is the method that is intensively utilized in the plastic recycling industry. Especially, the lower price point and easy availability of the equipment are presenting opportunities for the plastic recycling industries to deploy the mechanical pressing equipment to foster the overall growth of the plastic recycling industry.
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Currently, the Asia-pacific region is dominating the plastic recycling industry since 2018. This is due to the increasing number of small industries in the market and their significant operation. Moreover, the region imports and recycles the waste plastic and converts them for significant applications. The presence of cheap labor and major industrial areas across the countries like China are considered as the major drivers of plastic recycling market growth across the region. The intensive usage of automotive industries and industrialization across the region are impacting the overall growth of the plastic recycling industry across the Asia-pacific region.
On the other hand, European countries are also exhibiting a higher growth rate in the plastic recycling industry, owing to the restrictions and strict norms regarding the wastage of plastics. Some reports generated in the European countries states that over 4.4 million tons of plastic waste are generated across the European countries, which are becoming landfills over the year. Such reports have propelled the European government to increase recycling activities and create more awareness among the industrial verticals.
In the year 2021, one of the leading market players, BP Plc which is based in the UK had decided to join hands with another leading market player, SABIC which is based in Saudi Arabia to promote plastic recycling techniques. They have since then worked together to drive the petrochemical complex activities.
In the year 2021, one of the leading market players, Plastipak holdings has increased their investment in the new manufacturing plant which is located in Toledo, Spain. This manufacturing plant is primarily expanded to manufacture recycled PET, especially r-PET pellets that are derived from PET flake. The manufacturing plant is anticipated to produce kiloton of food-grade pellets annually.
In December 2017, the Asian market was at boom as one of the management and post-consumer plastic production plants in India has utilized electronic and automotive plastic waste to produce post-consumer plastic.
In June 2017, Kuusakoski Group and Rosk’n Roll Oy and Itä-Uudenmaan Jätehuolto Oy collaborated and opened a joint venture Revanssi Oyto manage comprehensive waste in southern Finland.
In June 2017, Kuusakoski Group formed a joint venture with Rosk’n Roll Oy and Itä-Uudenmaan Jätehuolto Oy, with a 51% share in the company called Revanssi Oy to offer comprehensive waste management services in southern Finland.
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|Market Size||2030: USD 67.32 billion|
|CAGR||7.19% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Source, Method and End-User|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Asia Plastic Recycling Holding Limited, B & B Plastics Recycling Inc, B. Schoenberg & Co., CarbonLITE Industries LLC, Clear Path Recycling, Consolidated Container Company, GreenLine Polymers, Imerys SA, Indorama Ventures Public Company Limited, 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, RJM International Inc., Seraphim Plastics, Shakti Plastics Industries, Suez, Teijin Limited, Ultra Poly Corporation , UltrePET, LLC, Veolia, Custom Polymers, Inc., Envision Plastics , Plastic Recycling Inc., KW Plastics, Inc., UltrePET, LLC , Seraphim Plastics , MBA Polymers Inc. , Green-O-Tech India|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The plastic recycling market can thrive at 7.19% CAGR by 2030.
Plastic Recycling Market is projected to be worth USD 67.32 billion by 2030.
Seraphim Plastics (US), and Kuusakoski Group Oy (Finland), and MBA Polymers Inc. (US) are some reputed names in the plastic recycling market.
The growing utility of recyclable packages can prompt the global plastic recycling market expansion.
North America plastic recycling market growth can spur due to high utility of PET.
North America is expected to grow at the fastest pace due to the high utility of PET.