The global Recycled Plastic Granules market is a diverse and dynamic industry that produces plastic materials from recycling post-consumer and post-industrial plastic waste. Recycled Plastic Granules can be used to manufacture various products across many different industries including packaging, construction, automotive, textiles and electrical & electronics. Common packaging items produced using Recycled Plastic Granules include plastic bottles, containers, caps & closures, films and wraps. In the construction industry, Recycled Plastic Granules are integral components for various insulation and piping systems. The automotive industry utilizes Recycled Plastic Granules for interior and exterior components like bumpers, trims and dashboards. The textiles industry employs Recycled Plastic Granules in clothing lines, rugs and other fibers. Electrical components, electronics goods and appliances also incorporate Recycled Plastic Granules in their manufacturing processes.
The global Recycled Plastic Granules Market is estimated to be valued at US$ 3.65 Mn in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising industrial applications of Recycled Plastic Granules across various sectors such as packaging, construction, automotive and others is one of the major drivers boosting the Recycled Plastic Granules market. For example, approximately 26% of Recycled Plastic Granules produced globally are consumed by the packaging industry alone to manufacture plastic wrappers, bottles, containers and more. In addition, stringent government regulations regarding the sustainable and responsible disposal of plastic waste is also fueling the demand for recycled plastic solutions like granules. Many nations have enacted legislation promoting circular plastic recycling processes and limiting single-use plastic products. This is compelling industries to seek out recycled plastic alternatives and support responsible waste management practices.
Segment Analysis
The Recycled Plastic Granules market is dominated by the packaging sub-segment which holds around 35% market share. Plastic packaging materials have gained widespread acceptance in food & beverage processing and packaging industries over the years. Demand for eco-friendly packaging has increased from major end-use industries like food & beverages, construction, automobile due to stringent government regulations regarding the use of plastic. This has propelled the growth of the packaging sub segment in the Recycled Plastic Granules market.
PEST Analysis
Political: Regulations promoting the use of recycled plastics over virgin plastics have supported market growth. Many countries have either banned or imposed heavy taxes on virgin plastics to reduce plastic waste.
Economic: Lower manufacturing costs and feedstock prices compared to virgin plastics boost profit margins of recycled plastic product manufacturers. The construction industry’s growth also accelerates demand.
Social: Growing environmental concerns and awareness about sustainable products among consumers and industries favor market expansion. Recycled plastics are perceived as environment-friendly alternatives to reduce plastic pollution.
Technological: Advancements in plastic recycling technologies like mechanical recycling help achieve a high recycling rate of post-consumer plastic waste and improve recycled plastic quality. This supports increased industrial use of Recycled Plastic Granules.
Key Takeaways
The global Recycled Plastic Granules market is expected to witness high growth.
The market in the Asia Pacific region dominates with around 35% market share and is expected to maintain its dominance during the forecast period. Factors such as large plastic manufacturing base, growing construction industry, and government initiatives for sustainable development drive market growth in the Asia Pacific region.
Key players operating in the Recycled Plastic Granules market are Roche, Teva Pharmaceutical Industries Ltd., Sun Pharmaceutical Industries Ltd., Hikma Pharmaceuticals PLC, Dr. Reddy’s Laboratories Ltd., Aurobindo Pharma Ltd., Mylan N.V., Apotex Inc., Sandoz AG, Accord Healthcare Ltd. These players are focusing on capacity expansion and new product launches to strengthen their market position. For instance, in 2021, Apotex Inc. expanded its production capacity for generics and APIs in Bangalore, India to cater to the growing demand in emerging markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it