Recycled Plastic Market Size

Market Size Snapshot

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

The world market for plastics is set to grow to a size of $46.9 billion in 2024 and is expected to reach $80 billion by 2035. A CAGR of 4.97% is to be expected for the period 2025 to 2035, a trend that reflects the growing demand for recycled plastics, driven by growing awareness of the environment and the tightening of regulations. This is a trend that will continue as both consumers and companies place an ever-greater emphasis on the concept of the circular economy. The growing demand for recycled plastics is also due to technological developments that have improved the efficiency and quality of the material that can be recycled. And as chemical recycling and improved sorting technology increase the amount of plastics that can be recycled, the demand for these materials will also grow. The main players in the market, such as Veolia, BASF and Dow, are responding to this growing demand by investing in research and development, establishing strategic alliances and launching new products. In particular, there are increasing numbers of companies collaborating to develop sustainable packaging solutions, a move that reflects the growing interest in reducing plastic waste and promoting the use of recycled materials in various sectors.

Regional Market Size

Regional Deep Dive

The Recycled Plastics Market is experiencing significant growth across various regions, owing to the rising awareness about the environment, the stricter regulations on plastic waste, and the advancement in the plastics recovery technology. The Recycled Plastics Market is characterized by a unique set of factors that influence its growth, such as the government support, the consumers’ behavior towards the environment, and the presence of key players. In the near future, the demand for recycled plastics is likely to increase, which in turn is expected to increase the innovation and the investment in the plastics recovery technology.

Europe

• The European Union's Circular Economy Action Plan aims to make all plastic packaging recyclable by 2030, significantly boosting the recycled plastic market through regulatory support.
• Innovative projects like the 'Plastics Pact' in the UK are fostering collaboration among businesses to increase the use of recycled materials, which is expected to enhance the supply chain for recycled plastics.

Asia Pacific

• China's National Sword policy has restricted the import of plastic waste, prompting countries in the region to enhance their domestic recycling capabilities and invest in local recycling infrastructure.
• Countries like Japan are leading in technological advancements for recycling, with companies like Teijin developing innovative methods to recycle polyester from plastic bottles into high-quality fibers.

Latin America

• Brazil is seeing a rise in community-based recycling programs, which are increasing the collection and processing of recycled plastics, thus enhancing market growth.
• Innovative startups in Mexico are developing new technologies for recycling plastics, such as Biofase, which produces biodegradable plastics from avocado pits, showcasing a shift towards sustainable practices.

North America

• The U.S. has implemented several state-level initiatives aimed at reducing plastic waste, such as California's SB 54, which mandates a significant increase in recycled content in plastic products by 2030.
• Major companies like Coca-Cola and Unilever are investing heavily in recycled plastic technologies and have committed to using 50% recycled content in their packaging by 2030, driving demand for recycled plastics.

Middle East And Africa

• The UAE has launched initiatives like the 'UAE National Plastic Campaign' to promote recycling and reduce plastic waste, which is expected to stimulate the local recycled plastic market.
• South Africa's government is implementing regulations to encourage the use of recycled materials in manufacturing, which is driving growth in the recycled plastics sector.

Did You Know?

“Approximately 9% of the world's plastic waste is recycled, highlighting the vast potential for growth in the recycled plastic market as global awareness of plastic pollution increases.” — National Geographic

Segmental Market Size

The reclaimed plastics market is growing at a significant rate, driven by an increased concern for the environment and increasing regulations. The demand for sustainable products and the strict regulations of governments to reduce plastic waste are the main factors driving this market. For example, the European Union’s Single Use Plastics Directive requires a reduction in the use of single-use plastics, thereby promoting the use of reclaimed materials. At present, the market is in a mature stage of development, with companies such as Coca-Cola and Unilever leading the way in reclaimed plastics packaging. In the packaging, automotive and construction industries, reclaimed plastics are increasingly being used to improve their products’ sustainability. The trend towards the circular economy and the increased focus on the responsibility of companies are promoting this growth. The market is being shaped by new developments in sorting and chemical recycling. These are enabling the processing of reclaimed materials to be more efficient and increasing the range of possible applications.

Future Outlook

From 2024 to 2035, the value of the recycled plastics market is expected to grow at a CAGR of 4.97% from $46.9 billion to $80 billion. The growing importance of the circular economy and the concept of sustainability are driving both the demand for and the regulatory support for recycled products. In order to meet the requirements of the circular economy and the preferences of consumers, industry is increasingly adopting recycled plastics. By 2035, the penetration of recycled plastics in various applications such as packaging, automobiles and construction is expected to increase significantly, and the total share of recycled plastics is expected to reach 30%. The development of key technology, such as the improvement of physical and chemical processes, will improve the quality and cost of recycled plastics, and will gradually become competitive with virgin materials. Government policies to reduce plastic waste and increase the number of plastics recycling plants will also boost the market. In the future, the development of biodegradable plastics and the development of collaboration between manufacturers and plastics recovery plants will also play a significant role in the development of the market. The report says that as the whole supply chain aligns with the concept of the circular economy, the market will evolve and will bring new opportunities for innovation and investment.