Recycled Aluminum Market Size
Global Recycled Aluminum Market reached US$ 48.7 billion in 2022 and is expected to reach US$ 100.8 billion by 2031, growing with a CAGR of 7.7% during the forecast period 2024-2031.
Recycled aluminum is more energy efficient solution than pure aluminum castings because secondary aluminum castings provide more useful features with less effort it aluminum recycling consumes up to 90% less energy than pure aluminum mining. Governments globally follow United Nations Environment Program guidelines to limit solid waste disposal.
Due to the high profitability and extensive use of the metal, a large number of small and medium sized companies are employed in the aluminum industry Aluminum cladding, beverage bottles, foil and auto parts are common recyclable materials to be used again. The use of electronics has expanded rapidly, making the recycled aluminum market more efficient. China will account for around 28.7% of global output in consumer electronics by 2021, according to UN Statistics Division.
North America is expected to register the second highest CAGR during the forecast period with almost 1/4th market share of global recycled aluminum market. Companies are increasingly entering the sector due to high demand for aluminum scrap. To enhance the availability of carbon-free aluminum solutions, Rio Tinto committed US$ 29 million in August 2022 for a new aluminum recycling facility at its Arvida plant in Saguenay-Lac-Saint-Jean, Quebec.
Market Summary
| Metrics | Details |
| CAGR | 7.7% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Scrap, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Rising Awareness Towards Resource Efficiency
Key aluminum manufacturing and bauxite extraction are energy-intensive processes with major environmental effects. The growing concern for the environment and their desire to support eco-friendly products has increased demand for products made of recycled resources, such recycled aluminum. Recycling aluminum lessens the requirement for this resource-intensive procedure.
The MRAI-Material Recycling Association of India has observed that the primary producers' organisation, the Aluminum Association of India, has decided to hike the import duty on aluminum. The Mumbai-based MRAI issued a statement urging government policymakers to reject calls to hike import duties on scrap materials and impose a flat rate duty on steel broken down until the country becomes materially self-sufficient.
According to the recycling organisation, Indian aluminum demand is quickly increasing due to population growth, urbanisation and industry. Domestic primary aluminum producers have the strongest carbon footprint of any global company, emitting 14 metric tons of CO2 equivalent per metric ton of aluminum, while the aluminum recycling industry does only 0.3 metric tons equivalent per ton of recycled aluminum material.
Rising Adoption of Sustainable Materials
Growing environmental awareness and need to minimize carbon footprints drive the global market demand. It reduces greenhouse gas emissions and environmental impact because it requires far less energy from scratch than aluminum production. Recycled aluminum is suitable for the applications due to its reduced environmental impact and conservation.
Moreover, governments everywhere have implemented laws and policies to promote recycling and the use of recycled materials. Examples of these policies include recycling targets, tax incentives and green procurement guidelines. Regulatory government support and incentives to develop the recycled aluminum market are creating a favorable environment.
Volatility in Collection Systems and Recycling Infrastructure
The collecting rates of used aluminum products and scrap determine the efficiency and effectiveness of aluminum recycling. Collection system volatility, such as swings in municipal recycling programmes or changes in consumer behaviour, has an impact on the overall supply of recovered aluminum. The availability of recycled aluminum vary depending on the systems in place for collection and recycling.
Pollutants like paint and coatings are examples of contamination and their market expansion is hindered by the scarcity of recycled aluminum due to inadequate collections, limited recycling facilities and uneven recycling practices. The overall growth potential of the market has hampered the costly and cumbersome process of extracting and removing pollutants.
Market Segment Analysis
The global recycled aluminum market is segmented based type, scrap, end-user and region.
Growing Adoption of Recycled Aluminum in Automotive
In 2022, automotive end-user is expected to drive the growth, holding a share of about 1/3rd of the global market. Recycled aluminum is widely used in the developing automobile sector since it is significantly less expensive to produce than new aluminum. In 2022, the International Organisation of Motor Vehicle Manufacturers projected that 69 million new automobiles would be sold or registered in OICA member countries.
Aluminum scrap is about 20–30% less expensive because it is made from trashed cars and used beverage containers. As recycled aluminum uses less energy and emits fewer carbon emissions, it is a good fit for the automobile sector. Compared to making fresh aluminum from raw ore, it requires around 90% less energy and reduces CO2 emissions by up to 26%.
Market Geographical Share
Huge Aluminum Production in Asia-Pacific
During the forecast period, Asia-Pacific will hold the majority of the global recycled aluminum market, with over 35% of the market. China, India and Japan have significant growth in various industries, including electronics, building & construction, automotive and aerospace. China recycled an about 12,771 metric kilotons of aluminum in 2021, making it a leading producer of recycled aluminum, as given by the IAI-International Aluminum Institute.
In the first two months of 2023, China produced over one million new automotives, an increase of 18% over the same period in 2021. By 2022, China displayed a surge of 97% compared to the previous year's vehicle production. Asia-Pacific's expanding automotive industry will drive the region’s market demand.
Market Competitive Landscape
The major global players in the market include Novelis Inc., Kuusakoski oy, Norsk Hydro ASA, GAL Aluminum Extrusions Pvt. Ltd., Constellium, STEINERT Global, COHEN, Stena Aluminum, Jain Resource Recycling Pvt. Ltd. and Real Alloy.
COVID-19 Impact Analysis
The pandemic caused disruption to supply chain globally. Movement restrictions and decommissioning methods had a significant impact on scrap collection, reducing the availability of reclaimed aluminum products Market recovery will improve due to financing for the resumption of operations.
The new focus on sustainability has revealed new opportunities for the recycled aluminum industry, as it conforms to circular economic principles and provides a green alternative for aluminum origin The product will provide recycled aluminum the used market has grown significantly in the post-COVID-19 era.
AI Impact
The growing usage of artificial intelligence, in particular, has numerous benefits in making daily living more convenient. Due to the nature and complexity of electronic gadgets, which have grown difficult to manage, the e-scrap business can benefit from AI. Recyclers have taken the initiative to reclaim recyclable materials using robots that can undertake the recovery operations securely.
AMP robots, a firm that is already using AI and robots to recover recyclables, claims that its equipment can pick up 80 pieces each minute. Its's twice as much as a human can do. AI robots, like humans, can be taught to recognize and identify practically anything. It can discern between different colors, forms, textures and types of damage, as well as distinguish between aluminum foil and cans.
Russia-Ukraine War Impact
Russian military activities in Ukraine had a significant influence on various businesses, most notably the aluminum industry. The war had enormous impact on the aluminum industry and a wide range of aluminum-containing products, from food and beverage cans to the aircraft industry. The war increased aluminum prices to previously unheard-of heights. Market prices declined because price increases lowered demand.
While the price of aluminum was already rising globally at the start of the year, the war undoubtedly exacerbated the situation in February 2022. The three-month contract price for aluminum on the London Metals Exchange hit a record US$ 4,000 per tons early in March 2022, up from US$ 3,224 monthly average in February 2022.
Key Developments
- On February 2023, Kuusakoski Oy, an international recycling company, announced a US$ 27.2 million investment in a major new production line being constructed at the company's recycling plant in Heinola, Finland, to increase recycling efficiency and processing capacity for non-ferrous metals such as aluminum.
- On January 2023, Emirates Global Aluminum, a global leader in aluminum production, announced the formation of the Aluminum Recycling Coalition, which intends to revolutionize aluminum recycling in UAE.
- On September 2022, Norsk Hydro ASA, a Norwegian aluminum and renewable energy firm, has announced the opening of a new aluminum recycling plant in Hungary with an annual capacity of 90,000 tons, with production set to begin in the first quarter of 2024.
Why Purchase the Report?
- To visualize the global recycled aluminum market segmentation based on type, scrap, end-user 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 recycled aluminum 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 recycled aluminum market report would provide approximately 61 tables, 55 figures, and 197 pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
