The recycled plastics market consists of recycling of various types of plastic waste generated from different sources such as domestic waste, industrial waste, and commercial & institutional waste. Plastics are used in a wide range of packaging and non-packaging applications such as bottles, containers, films, automotive components, furniture, fibers, and construction materials. However, the non-biodegradable nature of plastics poses serious threats to the environment. Thus, recycling of plastic waste helps reduce the pressure on landfills and lower carbon footprint. The Global Recycled Plastics Market Size is estimated to be valued at US$ 79.95 Bn in 2024 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Environmental Concerns: Rising environmental concerns regarding the disposal of plastic waste is a major driver fueling growth of the recycled plastics market. Plastics are non-biodegradable in nature and causes serious pollution if not recycled properly. Landfills are filling up rapidly due to huge volumes of plastic wastes. Recycling helps reduce burden on landfills and prevent plastic pollution. Furthermore, it lowers the carbon footprint as production of recycled plastics requires less energy compared to virgin plastics.
Increasing Demand from Packaging Industry: Another key factor propelling growth of the market is rising demand for recycled plastics from packaging industry. Packaging is the largest end-use segment of plastics globally. However, plastic packaging materials are mostly used only once and then discarded. This has elevated the volumes of plastic waste. Recycling of plastic packaging waste helps reduce its usage of virgin plastic in production of new packaging materials. It further aids in cost reduction for packaging manufacturers.
Segment Analysis
The recycled plastics market is dominated by the packaging sub-segment which holds around 35% market share. Plastics used in packaging applications like bottles, containers, films, etc are widely recycled due to significant collection and sorting infrastructure available. Being lightweight and durable, plastics have replaced traditional packaging materials and the recycling of post-consumer plastics packaging helps reduce plastic waste.
PEST Analysis
Political: Regulations promoting use of recycled plastics and banning single-use plastics in many countries is driving market growth. Environmental laws incentivizing plastic recycling industry will boost market further.
Economic: Lower feedstock and production costs than virgin plastics is incentivizing companies to use recycled plastics. Growing plastics waste management industry is creating new business opportunities.
Social: Rising awareness about environmental hazards of plastic waste is positively impacting demand. Social media campaigns are encouraging reducing, reusing and recycling of plastics.
Technological: Advanced recycling technologies allow separation of complex plastic combinations. Investments in automation and artificial intelligence are improving sorting capabilities.
Key Takeaways
The global recycled plastics market is expected to witness high growth over the forecast period of 2024 to 2031 supported by regulations and awareness.
Asia Pacific region currently dominates the market due to large production and recycling volumes in China and other countries.
Key players like F. Hoffmann-La Roche Ltd. (Switzerland), Danaher Corporation (US), and PHC Holdings Corporation (Japan) operate in the market and are investing in recycling technology development.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
