Plastic Recycling Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Plastic Recycling Market is segmented By Material (Polyethylene (PE), Polypropylene (PP), Polystyrene (PS), Polyethylene Terephthalate (PET)), By Application (Packaging, Automotive, Construction, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Size

Global Plastic Recycling Market reached USD 28.3 billion in 2022 and is expected to reach USD 60.2 billion by 2031, growing with a CAGR of 8.9% during the forecast period 2024-2031. A shift in the consumer lifestyle there is a growing concern about environmental issues, such as plastic pollutants and their effect on marine life and ecosystems, which has led to an increased emphasis on recycling plastic waste. 

Governments worldwide implement various stringent rules and regulations for promoting plastic recycling which leads to reducing plastic waste. During the forecast period, Asia-Pacific is expected grow with the highest CAGR in the global plastic recycling market. The region witnessed major awareness of the harmful impact of plastic waste on the environment and marine life has led to an increased emphasis on plastic recycling as a sustainable solution. 

World Environment Day, which is on 5 June 2023, aims to combat plastic pollution. China has taken significant steps to address this issue through technological innovation and a circular economy for plastics. In comprehensive waste plastic recycling system, China leads the world in recycling capacity and output. By June 2022, over 15,000 companies and 900,000 individuals were involved in waste plastic recycling.

Market Scope

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Market Dynamics

Rising Collaboration for Plastic Recycling in Automotive Industry

Automotive manufacturers are exploring closed-loop recycling systems, where plastic waste generated in their production processes is collected, sorted and recycled to produce new components. By adopting this approach, the consumption of traditional plastic materials is reduced and valuable feedstocks are in circular loop.

Collaboration between two companies: for instance on, 28 November 2022, LyondellBasell and Audi collaborated for the first time on the PlasticLoop project to close the loop for mixed automotive plastic waste. Audi is using plastic seatbelt buckle covers made from Lyondell Basell plastic, sourced from mixed automotive plastic waste. The collaboration allows for the recycling of automotive plastic waste that was previously mostly suitable only for energy recovery, reducing the need for fossil-based primary materials in the production of the Audi Q8 e-tron.

Rising Government Initiatives

Governments have taken the initiative to solve plastic pollution problems on a global scale, Governments may work in conjunction with other nations, international organizations and nations. To improve recycling initiatives around the world, this includes exchanging best practices, information and technology. To create efficient recycling systems, governments work with the business sector, which includes plastic producers, retailers and trash management firms. 

Better infrastructure development and creative solutions can result from public-private cooperation. The government of India has recognized plastic waste as an ecological hazard and has taken significant steps to overcome these problems. For instance, 4 October 2019, the Department of Science & Technology (DST) has plays a significant role in supporting various initiatives to recycle plastic waste and develop innovative technologies. 

One such technology, developed by the Indian Institute of Technology, Hyderabad, utilizes citrus peel extract, an agricultural waste, to recycle polystyrene (thermocol) waste into a non-woven fabric. The fabrics can selectively absorb oil, making it suitable for applications such as kitchen napkins, flexible packaging and oil spillage remediation.

Contamination and Collection Issue

One of the issues with plastic recycling is the contamination of recycled plastic. The production of high-quality recycled products is hampered when plastics of different sorts or residues are mixed. During collection, sorting and processing, contamination can happen and have an impact on the recycled material's overall quality and worth.

The volume of plastic garbage that can be recycled is restricted in many areas by insufficient or ineffective collecting systems. To guarantee that plastic waste is diverted into recycling streams rather than landfills or the environment, proper collection is crucial. The growth in the plastic recycling market is hindered due to these factors.

Plastic Recycling Market Segment Analysis

The global plastic recycling market is segmented based on material, application and region.

Growing Demand for Eco-friendly Packaging Solution

During the forecast period, the packaging application is expected to hold around 1/3rd of the global market. As consumers and businesses become more conscious of environmental issues, there is a growing demand for sustainable and eco-friendly packaging solutions. Plastic recycling helps to reduce the environmental impact of packaging by diverting plastic waste from landfills and reducing the need for traditional plastic production. 

Amazon is taking various initiatives to optimize its packaging and reduce plastic waste as part of its sustainability efforts. For instance, on July 18, 2023, the company aims to provide the right-sized and recyclable packaging to minimize waste and ensure safe product delivery. It is constantly working to eliminate unnecessary packaging and improve the materials used for packaging to increase recyclability. 

The science-based approach that includes lab testing, machine learning, materials science and partnerships, Amazon optimizes packaging options. It uses lighter, right-sized options to reduce waste and carbon emissions while ensuring safe product delivery.

Market Geographical Share

The Increasing Usage of Eco-friendly Products in Asia-Pacific

Asia-Pacific is expected to capture around 1/3rd of the global plastic recycling market owing to the increasing focuses on eco-friendly products that encourage businesses to incorporate recycled plastic. As region experiences rapid urbanization and increased consumers, the volume of plastic waste generated has also increased. Plastic recycling becomes crucial to manage this escalating waste stream.

Chinese scientists from the University of Science and Technology of China develops a new method of recycling polyethylene plastic waste that could significantly reduce costs and produce valuable petroleum-based materials. For instance, on 7 July 2023, the research team used existing technology from the oil industry, employing a "hydrogen breathing" strategy with catalysts to break down the chemical structure of waste plastic. The plastic is reorganized into high-value ring-shaped hydrocarbons through this process, which can serve as raw materials for drugs, dyes, resins and fiber synthesis.

Key Players

The major global players include Plastipak industries Inc., CarbonLITE Industries, HUD Group, Plastima, Iavglobal Co., LTD., Nam Phong Industry, KW Plastics, Custom Polymers, MBA Polymers Inc. and Wellpine Plastic Industrial Co.,Ltd.

COVID-19 Impact Analysis

Due to the pandemic, various regions are under lockdowns and restrictions, which led to disruptions in waste collection and sorting operations. Reduced workforce availability and health concerns affected the capacity to collect and process recyclable plastic waste. Reduced transportation and industrial activities. Oil prices rise during the early stages of the pandemic.

Lower oil prices can make less plastic production more economically viable than using recycled plastic. It potentially impacts the demand for recycled plastic. The global plastic recycling industry relies on a complex supply chain. COVID-19 disruptions affected transportation, logistics and the availability of raw materials.

Russia- Ukraine War Impact 

Trade and supply chains, including the flow of raw materials, machinery and equipment needed in the plastic recycling industry, may be disrupted as a result of the conflict between Russia and Ukraine. The availability of recycled plastics or the ability of recycling facilities to function effectively could be impacted if these interruptions take place. Thus, having supply chain disruptions.

Changes in the dynamics of trade and international relations may result from geopolitical tensions. The dynamics of the plastic recycling market may alter as a result and specific geographic areas may see modifications to the demand, supply or trading patterns. In reaction to the geopolitical environment, governments may enact new laws or regulations that have an impact on recycling procedures, export-import rules or waste management procedures.

By Material

• Polyethylene
• Polypropylene
• Polystyrene
• Polyethylene Terephthalate
• Others

By Application

• Packaging
• Automotive
• Construction
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On 20 July 2023, NOVA Chemicals Corporation is embarking on a significant sustainability initiative with the development of its first mechanical recycling facility in Connersville, Indiana. The facility will focus on processing post-consumer plastic films to produce SYNDIGO recycled polyethylene (rPE) at a commercial scale.
• On 17 July 2023, British Columbia is taking significant steps to tackle hard-to-recycle single-use plastic items with the implementation of the Single-Use and Plastic Waste Prevention regulation. A range of items, including shopping bags, disposable food service accessories, oxo-degradable plastics and food service packaging made of polystyrene foam, PVC, PVDC and compostable or biodegradable plastics, will be covered by this regulation.
• On 3 April 2023, Honeywell has partnered with Biotrend Energy to build an advanced waste recycling plant in Turkey using Honeywell's UOP UpCycle technology. The plant will transform mixed waste plastics to recycled polymer feedstock (RPF), helping to establish a plastics circular economy.

Why Purchase the Report?

• To visualize the global plastic recycling market segmentation based on material, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of plastic recycling market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global plastic recycling market report would provide approximately 53 tables, 50 figures and 181 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies