Recycled Plastic Market

Recycled Plastic Market Outlook (2024 to 2034)

The global recycled plastic market is projected to reach US$ 85.18 billion in 2024 and thereafter increase at 7.8% CAGR to end up at US$ 180.51 billion by 2034, as stated in a newly published report by Fact.MR.

Manufacturers are primarily focusing on producing recycled plastic as various companies are now only using them. Moreover, certain stringent laws regarding the use of virgin plastic are also implemented in several countries. These companies are also investing in facilities and technologies to make recycling operations more efficient and scalable.

One of the key factors that is contributing to market expansion is the increasing use of recycled plastic in various industries. The use of recycled plastic is increasing in the packaging industry for creating bottles, containers, bags, and other items. Also, when added to building materials such as concrete, tiles, and insulation, they offer sustainability and durability. In automotive the utilization of recycled plastic is increasing for items such as interior trim and bumpers for reducing vehicle weight and costs. Even consumer goods manufacturers are widely preferring recycled plastic for products such as clothing and home accessories.

Key Market Growth Drivers

• Increasing plastic pollution and its negative impact on the environment is boosting manufacturing as well as demand for recycled products because it is a sustainable alternative option.
• Governments from various countries are implementing strict rules and regulations on the use of normal plastic-based products. They are encouraging the use of sustainable products that have less impact on the environment, which is contributing to the recycled plastic market size expansion.
• The ongoing recycled plastic market trend is innovation in recycling technologies such as processing, enhanced sorting, chemical recycling methods, and others are improving the quality and efficiency of end products.
• Various companies and consumers are widely adopting recycled plastic due to the move toward eco-friendly practices and corporate social responsibility (CSR). Several companies are using recycled plastic for product packaging.
• Another key factor that is driving the recycled plastic market growth is its increased use in various applications such as consumer goods, automotive parts, construction materials, packaging, and others.
• The growing need for environment-friendly packaging options and the goal to use less non-recyclable plastic are driving up demand for recycled plastic as it helps to lessen the negative effects on the environment.

Report Attribute	Detail
Recycled Plastic Market Size (2024E)	US$ 85.18 Billion
Forecasted Market Value (2034F)	US$ 180.51 Billion
Global Market Growth Rate (2024 to 2034)	7.8% CAGR
East Asia Market Share (2024E)	36.5%
North America Market Value (2024E)	US$ 24.36 Billion
Plastic Bottles Segment Value (2034F)	US$ 44.33 Billion
Key Companies Profiled	Clean Harbors, Inc.; Shell International B.V.; Covestro AG; Waste Connections; WM Intellectual Property Holdings, LLC.; Alpek; Plastipak Holdings, Inc.; Veolia; MBA Polymers Inc.; Green Line Polymers; CarbonLite Industries LLC; ReVital Polymers; Dow Chemical Company; INEOS Olefins & Polymers.

Which Global Trends are Supporting Demand for Recycled Plastic?

“Growing Developments in Recycling Technologies Positively Affecting Market Expansion”

The recent ongoing developments regarding recycling-related technologies are enhancing the effectiveness and caliber of recycled plastic. Some advancements happening in sorting technology, utilizing advanced sensors, and automated systems are improving material separation accuracy. Enhancements in processing methods are making it possible to convert discarded plastic into raw materials of superior grade.

Other than this, improvements in chemical recycling techniques are making it possible to break down plastic into its basic monomers, which opens the door to the production of new and high-purity polymers from recycled materials.

How is Market Growth Being Restrained to Some Extent?

“Quality Issues and High Processing Cost Limiting Market Growth”

Quality and contamination problems are common with recycled plastic, which affect their performance and restrict their use in certain applications. The quality of recycled plastic is lowered by contamination from non-plastic elements or residues, which cause variations in their physical characteristics and possibly compromise their longevity and safety. Virgin plastics have a more consistent quality than recycled ones. Because of this, they are generally considered more appropriate for high-performance or crucial applications due to these quality issues.

Other than this, high processing costs are further becoming a serious obstacle in market expansion. Recycling-related technology, such as advanced equipment for sorting, cleaning, and reprocessing, comes with a high initial cost and ongoing operating costs.

Country-wise Insights

The East Asian region is poised to account for 36.5% of the worldwide recycled plastic market share in 2024. The growing implementation of strict rules and regulations regarding the use of regular or virgin plastic products in countries such as China, Japan, and South Korea is driving the market expansion in the region. North America is projected to hold a significant portion of the global market throughout the projection period due to well-established recycling infrastructure in the United States and Canada because of a strong focus on sustainability.

Why is the Adoption of Recycled Plastic Increasing in the United States?

“Strict Rules and Regulations Limiting Use of Virgin Plastic”

Attribute	United States
Market Value (2024E)	US$ 17.68 Billion
Growth Rate (2024 to 2034)	8.3% CAGR
Projected Value (2034F)	US$ 39.17 Billion

In the North American region, the United States is projected to account for 72.6% market share in 2024. The utilization of recycled plastic is rising in the United States due to regulatory pressure. Stricter laws are being passed by the federal government to combat plastic waste and encourage recycling. Manufacturers are required to undergo programs such as extended producer responsibility (EPR) to oversee the entire lifecycle of their products, including recycling and disposal. Laws encouraging the use of recycled content in goods and packaging are also pressuring businesses to use renewable materials.

What is the Demand Outlook for Recycled Plastic in Japan?

“Advanced Recycling Technologies and High Adoption Rate of Renewable Materials in Several Industries”

Attribute	Japan
Market Value (2024E)	US$ 9.19 Billion
Growth Rate (2024 to 2034)	8.1% CAGR
Projected Value (2034F)	US$ 19.96 Billion

Japan is well-known for its advanced recycling technologies, which are driving the market expansion. The country is one of the leaders in East Asia in creating effective recycling systems that improve the quality and utility of recycled plastics. Some examples of these systems are advanced chemical recycling techniques and high-precision sorting. Due to these advancements, recycled materials made in Japan are becoming more competitive with virgin plastics, which is boosting their use in various industries such as automotive, packaging, consumer goods, and others.

Category-wise Insights

Based on product type, the market is segmented into high density polyethylene, low density polyethylene, polypropylene, polyethylene terephthalate, polyamides, polystyrene, and PVC. The high density polyethylene segment holds a significant market share. The reason behind this is a high percentage of plastic scrap including margarine tubes, detergent bottles, grocery bags, and others mostly consisting of HDPE resins.

“Why are Bottles Used as the Primary Source of Recycled Plastic?

Plastic Bottles Widely Used for Beverages and Consumer Goods”

Attribute	Plastic Bottles
Segment Value (2024E)	US$ 21.77 Billion
Growth Rate (2024 to 2034)	7.4% CAGR
Projected Value (2034F)	US$ 44.33 Billion

Plastic bottles, particularly those made through PET (polyethylene terephthalate) are becoming a key source in the market. Plastic bottles have a huge and steady supply because they are commonly utilized for beverages and other consumer goods. Also, compared to other plastic products, they are simpler to sort and process due to their consistent composition and design. Additionally, the premium resin derived from recycled bottles is widely applied to new bottles as well as garment fibers. Governments, institutes, and companies in various countries are taking the initiative for collecting plastic products which mostly contain bottles, subsequently contributing to segment growth.

Why is the Application of Recycled Plastic Increasing in Packaging?

“Implementation of Strict Regulations in Several Countries and Trend Toward Eco-Friendly Packaging Solution”

The utilization of recycled plastic is increasing in packaging as a result of regulatory requirements and environmental concerns in various countries. Companies are increasing the percentage of recycled material in packaging to decrease the problem of plastic pollution. This change is addressing resource depletion and helping to lower carbon footprints by reducing dependency on virgin polymers.

The growing global trend toward the use of environmental-friendly products is further pushing packaging companies to use recycled plastic. Additionally, ongoing technological advancements in the recycling process are making recycled plastic more appropriate for various packaging applications.

Competitive Landscape

Key players in the recycled plastic market are heavily investing in producing advanced recycling technologies to improve their quality and efficiency. Several companies are also focusing on diversifying their product offering to incorporate different recycled plastic grades and applications.

• In June 2024, in an important move toward encouraging circularity and bringing about change in the waste management industry, Dow unveiled its ground-breaking line of REVOLOOP Recycled Plastics Resins.
• In May 2024, the Coca-Cola Company finished switching all of the 500ml bottles in its sparkling beverage line in Canada to 100% recycled plastic, according to the Globe and Mail.
• In March 2024, the firms PepsiCo, INEOS Olefins & Polymers Europe, and Amcor announced their collaboration to present a new snack packaging solution for application in Sunbites crisps that uses 50% recycled plastic.
• In October 2022, during the K 2022 trade show in Dusseldorf, Germany, Veolia unveiled "PlastiLoop," a new brand of recycled plastics and related services. Veolia's global network of 37 plastic recycling plants and its vast network of professionals make this innovative offering possible. Customers can choose from a wide range of ready-to-use recycled resins, including PP, PET, PS, HDPE, LDPE, ABS, and PC, with this new offering.

Fact.MR provides detailed information about the price points of key manufacturers of recycled plastic positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Recycled Plastic Market Research

• By Product Type :

  • High Density Polyethylene (HDPE)
  • Low Density Polyethylene (LDPE)
  • Polypropylene
  • Polyethylene Terephthalate (PET)
  • Polyamides
  • Polystyrene
  • PVC

• By Source :

  • Plastic Bottles,
  • Plastic Films
  • Rigid Plastic & Foam
  • Synthetic Fiber

• By Application :

  • Packaging
  • Construction
  • Automotive

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa