Global Recycled Plastics Market Plastic Type(Polyethylene, Polyethylene Terephthalate, Polypropylene, Polyvinyl Chloride, Polystyrene, Other Products), By Source(Plastic Bottles, Plastic Films, Polymer Foam, Other Sources), By Application(Building & Construction, Packaging of Products, Electrical & Electronics, Textiles, Automotive, Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2033

Market Overview

The Recycled Plastics Market size is expected to be worth around USD 114.8 billion by 2033, from USD 52.7 billion in 2023, growing at a CAGR of 8.1% during the forecast period from 2023 to 2033.

The market is expected to grow due to an increase in plastic consumption for lightweight components. These components are used in many industries, including electrical & electronic and building & construction.

Due to the increase in online sales of personal care products and Personal Protective Equipment products. This market report gives an overview of the Recycled Plastics market growth, value, size, and other key factors.

*Actual Numbers Might Vary In The Final Report

Key Takeaways

• Market Growth Projection: The recycled plastics market is anticipated to reach a value of approximately USD 114.8 billion by 2033, showing a substantial growth from USD 52.7 billion in 2023, with an estimated CAGR of 8.1% during the forecast period.
• Drivers of Growth: Industry Demand Increased usage of plastics in various sectors, notably in lightweight components for electrical & electronic and building & construction industries, contributes to market expansion. Online Sales The surge in online sales of personal care and protective equipment products further fuels market growth.
• Plastic Types and Usage: Polyethylene Terephthalate (PET) Dominates the market share (29.3%) due to its extensive use in packaging across industries like food & beverage, consumer goods, and industrial sectors. Polypropylene (PP) is Widely utilized in laboratory apparatus, medical gadgets, and packaging due to its exceptional qualities like mechanical strength and resistance to chemicals. Its demand is set to rise in the automotive, packaging, and construction industries. Source Channel Plastic bottles account for a significant portion (65%) of global recycled plastics revenue in 2023, finding applications in various industries like oils, pharmaceuticals, and carbonated beverages.
• Application Analysis: Packaging Dominance Packaging industries (42.1% of revenue in 2023) are major consumers, driven by increased demand for packaged food, beverages, and electronics. Diverse Application Recycled plastics are increasingly used in personal hygiene items, automotive components, and various consumer goods.
• Driving Factors for Adoption: Packaging Demand Recycled plastics fulfill the need for safe packaging in the food industry, serving as a protective barrier against environmental factors Versatility Recycled plastics enhance product durability in various sectors including sports equipment, fashion accessories, and toys Personal Care Their non-reactive nature makes recycled plastics popular for packaging personal care products.
• Opportunities and Challenges: Initiatives for Recycling Supportive rules and regulations in developed countries encourage plastic recycling. Collection Challenges A major challenge lies in collecting more plastic waste (only 14% currently recycled), with new methods needed to tap into this potential revenue estimated at USD 80–120 billion.
• Challenges: Quality Concerns Industries preferring precise chemical compositions and quality may favor virgin plastics over recycled ones. Cost Advantage for Virgin Plastics: The reduction in crude oil prices has made virgin plastics more cost-effective, posing a challenge for recycled plastics.
• Regional Insights: Asia Pacific Holds the largest market share (48.3%) driven by construction industry growth and a circular economy approach. Europe has Favorable plastic recycling rates due to strict regulations and high landfill costs. North America Significant growth driven by construction and electronics industries.
• Key Market Players: Veolia, Plastipak Holdings, SUEZ SA, and Ultra Poly Corporation, among others, are competitive players investing in infrastructure, R&D, and vertical integration to meet global demand.

Plastic Type

In the market, there are different recycled plastics like Polyethylene, Polyethylene Terephthalate, Polypropylene, Polyvinyl chloride, Polystyrene, and others. The biggest chunk in the Recycled Plastics market is Polyethylene Terephthalate, making up 29.3% of the money it makes globally in 2023.

Polyethylene Terephthalate is in high demand for packaging in various industries like food & drink, consumer goods, and industrial sectors. It’s also used for packaging laundry detergent and milk cartons.

Polypropylene is frequently used in the production of laboratory apparatus, medical gadgets, packaging, and labels due to its exceptional chemical and mechanical qualities. It possesses remarkable mechanical strength and is very resistant to numerous chemical solvents, bases, and acids. It is one of the most widely used plastic formulations worldwide.

In the building and construction sector, where they can be used to create plastic hinges, piping systems, and high-quality products for everyday use, PP components are also fatigue-resistant, which is advantageous. In addition, they can be utilized to make plastic hinges, carpets, rugs, and mats. Due to the expansion of the automotive, packaging of products, and building & construction industries, there will be a rise in the demand for recycled PP throughout the projection forecast period.

Source Channel

The global market can be further divided into plastic bottles and plastic films. Plastic bottles accounted for 65% of the total global Recycled Plastics market revenue in 2023. The main source of recycled products is plastic bottles.

Plastic bottles can be used in many industries including the packaging of oils, pharmaceuticals, and carbonated beverages. Polymer foam sheets and packaging foam are used extensively in impact-resistant packaging solutions.

Expanded Polystyrene is the most widely used polymer foam within the packaging industry. Many manufacturers of automotive and electronic products, including Hitachi, Panasonic Corporation, and Honda Motor Company Ltd., are moving to adopt recycled plastic foam instead of virgin polymer foam.

Application Analysis

The packaging industry dominated the market in 2023 and accounted for more than 42.1% of worldwide revenue. This large share can be attributed to the growing demand for packaged food and beverages, the electronics industry, and textiles.

Personal hygiene items like electric trimmers and shavers and automotive components are the primary application fields propelling growth in this Recycled Plastics market. The packaging industry in the Asia Pacific is expanding and using cutting-edge technology.

The industry is expanding because of the increased demand for products and consumer goods from the Asia Pacific, including electrical & electronic equipment, building & construction materials, and other raw materials.

The limitations frequently found in Western markets can be overcome with the aid of a flexible regulatory environment. The Asia Pacific will experience rapid growth in electronics spending.

*Actual Numbers Might Vary In The Final Report

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Plastic Type

• Polyethylene
• Polyethylene Terephthalate
• Polypropylene
• Polyvinyl Chloride
• Polystyrene
• Other Products

Source

• Plastic Bottles
• Plastic Films
• Polymer Foam
• Other Sources

Application

• Building & Construction
• Packaging of Products
• Electrical & Electronics
• Textiles
• Automotive
• Other Applications

Driving Factors

Increasing Adoption in the Packaging Industry to Drive the Adoption of Recycled Plastic

Growing Demand Across Industries: Recycled materials are in high demand in various sectors like food & beverage and consumer goods. In the food industry, there’s a rising need for recyclable polymers due to the demand for safe packaging. These materials serve as a good replacement for traditional plastics, creating a protective barrier for food against environmental factors and driving overall market growth.

Ideal Material for Packaging: Recycled polyethylene terephthalate is a top choice for making water and beverage bottles, contributing significantly to the market’s expansion. Its effectiveness in maintaining product safety and its eco-friendly nature makes it widely preferred in the packaging industry.

Enhanced Durability in Different Products: Beyond food and beverage, recycled polymers play a key role in packaging sports equipment, fashion accessories, and toys, enhancing the durability of these products. This versatility further boosts market growth.

Rising Demand in Personal Care Products: The non-reactive nature of recycled plastics makes them increasingly popular for packaging items like soaps, surfactants, shampoos, and other personal care products. This expanding usage in the consumer goods sector is a significant driver for the market’s upward trajectory.

Restraining Factors

Preference for Virgin Plastics over their Recycled Alternatives to Restrict the Market Growth

Quality Concerns with Virgin Plastics: Virgin plastics, widely used in food packaging and automotive components, outshine their recycled counterparts in terms of quality. Despite regulations pushing for increased use of recycled plastics, manufacturers are hesitant due to worries about impurities in Post-Consumer Recycled (PCR) plastics.

Preference for Specific Compositions: Industries requiring precise chemical compositions and additives still favor virgin polymers. Their application versatility makes them a preferred choice, posing a challenge to the widespread adoption of recycled alternatives.

Cost Advantage for Virgin Plastics: The pandemic-induced drop in crude oil prices has led to a cost reduction for virgin plastics compared to recycled options. This economic shift further hampers the growth of recycled plastics in the market during the review period.

Opportunity

Favorable initiatives to promote the use of recycled plastics in developed countries

Supportive Rules for Recycling In North America and Europe, strict regulations encourage plastic recycling. Some U.S. states even provide tax incentives to boost plastic recycling. This is likely to increase public funding for projects related to waste, creating growth chances for recycled plastics.

Challenge

Difficulty in collection of raw materials

For the recycled plastics market to thrive, we need to collect more plastic waste. Right now, only 14% of used plastic packaging worldwide gets recycled. The rest ends up harming ocean life. If we can find better ways to collect the remaining 86%, it could bring in a huge revenue, estimated at USD 80–120 billion by the Ellen MacArthur Foundation. But, we need new methods for this, and that’s a major challenge for those in the market.

Regional Analysis

In 2023, Asia Pacific accounted for 48.3% of worldwide sales, making it the largest market. The Asia Pacific construction industry will experience significant expansion as a result of the rising demand for non-residential projects like schools and hospitals.

This will enhance demand for flooring materials, carpets, and other building supplies as well as for fences, insulation, and roofing tiles. In terms of revenue, Asia Pacific comes in second. The Recycled Plastics market is being driven by a circular economy. It lessens the environmental impact of making conventional plastic.

In Europe, plastic recycling rates have grown favorably as a result of landfill bans. Due to high landfill costs in several European nations, dumping can occasionally be more expensive than recycling plastic production. This promotes the recycling of plastic.

On a revenue basis, North America comes in third. The growth of major end-use industries such as construction and electrical & electronics manufacturers is driving the market. Considerable growth of the Recycled Plastics market is expected to be boosted by the rising demand for packaged and processed foods, as well as the rapidly growing construction industry in Canada, Mexico, and the U.S.

Key Regions and Countries

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Players Analysis

With the presence of several small- and medium-sized players, like Veolia, Stericycle, Republic Services, Inc., and Stericycle, the Recycled Plastics market is fragmented. The technology used to recycle plastic waste is what makes the market competitive developments. Major factors are involved with infrastructural developments and expansions of their plastic recycling market and R&D plants.

They also seek opportunities to vertically integrate throughout the value chain. These initiatives allow them to meet the growing demand for recycled plastics worldwide, improve their operations planning, create innovative products and technologies, reduce their recycling costs, increase their customer base, and ensure their competitive effectiveness.

Major players included in this market report are Veolia, Plastipak Holdings, Inc., SUEZ SA, Ultra Poly Corporation, Fresh Pak Corporation, B&B Plastics Recycling Inc., Alpek S.A.B. de C.V., Indorama Ventures, Far Eastern New Century Corporation, Envision Plastics Industries, Custom Polymers, Inc., Berry Global Inc., Other Key Players.

Key Market Players

• Veolia
• Plastipak Holdings, Inc.
• SUEZ SA
• Ultra Poly Corporation
• Fresh Pak Corporation
• B&B Plastics Recycling Inc.
• Alpek S.A.B. de C.V.
• Indorama Ventures
• Far Eastern New Century Corporation
• Envision Plastics Industries
• Custom Polymers, Inc.
• Berry Global Inc.
• Other Key Players

Recent Development

September 2022 Update: WM Recycle America, LLC plans to buy Avangard Innovative’s U.S. operations and rename it Natura PCR. They aim to boost recycling capacity, targeting an impressive 400 billion pounds of post-consumer resin (PCR) annually within five years.

January 2022 Development: Plastipak Holdings, Inc., a plastic container design and recycling leader, invested big to amp up PET recycling at its Bascharage, Luxembourg facility. This move is expected to increase manufacturing capacity by 136% each year.

Report Scope