Plastic Recycling Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The global plastics industry is a market with high growth potential, with a projected value of $20.53 billion in 2025 and a forecast of $47 billion by 2035. This growth rate translates into a high compound annual growth rate of 8.66% over the next decade. A growing awareness of the environment and the implementation of stricter regulations for the management of plastic waste, in particular, are pushing the demand for effective solutions. The industry is seeing a shift towards more efficient and less costly plastics reprocessing processes. The market is also driven by technological developments, such as the chemical recycling of waste and improved sorting systems, which improve the quality and yield of recycled materials. Strategic initiatives by major companies, such as the development of sustainable packaging and the establishment of a global network of reprocessing plants, are also driving the market. Veolia, Suez and Waste Management are among the major companies which have been active in the development of the circular economy. These initiatives are strengthening their market position and are contributing to the growth of the plastics industry.

Regional Market Size

Regional Deep Dive

The market for the plastics market is undergoing significant growth in all regions, owing to the increasing awareness of the environment, the stricter regulations and the technological developments. North America is characterized by a high focus on sustainability and social responsibility. Many companies have already adopted the principles of circular economy. Europe is the world leader in terms of regulations for the use of recycled materials, while Asia-Pacific is expanding its collection and sorting capacities rapidly, as a result of its growing plastic waste. The Middle East and Africa are faced with particular challenges, including a lack of proper facilities, but they are beginning to adopt innovative solutions. Latin America is characterized by an increase in local initiatives to increase the amount of plastic waste, which is in line with the increasing awareness of the general public.

Europe

• The European Union's Circular Economy Action Plan has set legally binding targets for recycling, pushing member states to enhance their recycling infrastructure and practices.
• Innovative projects like the 'Plastics Pact' in the UK are fostering collaboration between businesses and governments to improve plastic waste management and recycling rates.

Asia Pacific

• China's National Sword policy has drastically changed the landscape of plastic waste importation, prompting countries in the region to enhance their domestic recycling capabilities.
• Countries like Japan are leading in advanced recycling technologies, such as chemical recycling, which allows for the breakdown of plastics into their original monomers for reuse.

Latin America

• Brazil has seen a rise in community-led recycling initiatives, with organizations like 'Cooperativa de Catadores' empowering local waste pickers to improve recycling rates.
• Countries like Chile are implementing extended producer responsibility (EPR) laws, requiring manufacturers to take responsibility for the entire lifecycle of their plastic products.

North America

• The U.S. has implemented the 'Break Free From Plastic Pollution Act,' which aims to reduce plastic waste and promote recycling initiatives, influencing corporate strategies across the region.
• Major companies like Coca-Cola and Unilever are investing heavily in sustainable packaging and recycling technologies, setting ambitious targets for using recycled materials in their products.

Middle East And Africa

• The UAE has launched the 'UAE National Waste Management Strategy 2030,' which aims to divert 75% of waste from landfills, significantly impacting plastic recycling efforts.
• Innovative startups like 'Dcycle' in South Africa are developing mobile applications to facilitate recycling and educate communities about the importance of plastic waste management.

Did You Know?

“Approximately 91% of plastic waste is not recycled globally, highlighting the urgent need for improved recycling systems and consumer awareness.” — National Geographic

Segmental Market Size

The plastics industry is booming, driven by increasing awareness of the environment and by stricter government regulations that aim to reduce the amount of plastic waste. The Single-Use-Plastics Directive of the European Union, for example, was enacted in March this year to reduce the consumption of plastic. The increasing efficiency of the production of new materials is also attracting more and more people to the business. The market is currently in a growth phase, with companies such as Veolia and Waste Management leading the way with their innovation. In Europe and North America, circular economy initiatives are gaining ground. Examples of this include the commitment made by Coca-Cola to use recycled PET in its bottles. Sustainability and the drive for carbon neutrality are accelerating the growth. Technological advances, such as chemical recycling and advanced sorting systems, are also shaping the future of the industry.

Future Outlook

The plastics industry is still in its infancy, but it is growing rapidly. A growing concern for the environment is helping to drive this growth, as are stricter regulations aimed at reducing plastic waste. By 2035, the use of recycled plastics in various industries, such as the packaging, automobile and construction industries, will have increased significantly, and the use of recycled plastics in packaging alone could be up to 30 percent, depending on the progress of consumer demands and the efforts of corporations to reduce their environmental impact. Various technological advances, such as the improvement of sorting and processing methods, are also expected to revolutionize the efficiency of the industry. In addition, innovations in chemical recycling and the development of biodegradable alternatives will complement mechanical methods and allow for a wider variety of plastics to be recycled. Government policies, meanwhile, will play a crucial role in shaping the industry, especially the implementation of extended producer responsibility schemes. The demand for recycled plastics will grow as companies adopt more sustainable practices. The plastics industry will be a vital part of the global effort to curb plastic pollution and to ensure a sustainable future.