Recycled Plastics Market Size, Share & Trends Analysis Report By Product (PET, PVC), By Source (Plastic Bottles, Polymer Foam), By Application (Packaging, Automotive), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global recycled plastics market size was valued at USD 46.09 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 4.8% from 2022 to 2030. Increasing plastic consumption in the production of lightweight components, which are used in various industries including building & construction, automotive, and electrical & electronics, is expected to propel the growth of the market over the forecast period. Amid the global COVID-19 pandemic, the demand for various packaging products was high on account of the rise in online purchases of electrical & electronics, personal care products, and Personal Protective Equipment (PPE) products, such as gloves and face masks.

According to The Verge, the demand for affordable consumer electronic products, such as laptops, mobile, modems, etc. has increased majorly through e-commerce websites. Rising usage of consumer electronics has propelled the demand for recycled plastics in electrical & electronics and packaging applications, which is expected to boost the market growth. The global plastics market is likely to be driven by the increasing consumption of plastics in construction, automotive, medical devices, and electrical & electronics industries. Regulatory intervention to reduce the gross vehicle weight to improve fuel efficiency and ultimately reduce carbon emissions has driven automotive Original Equipment Manufacturers (OEMs) to use plastic as a substitute for metals, such as steel and aluminum, for fabricating automotive components.

Moreover, the growth of the construction industry in emerging economies, such as Brazil, China, India, and Mexico, is expected to drive the product demand in the manufacturing of components, such as insulation, fixtures, structural lumber, windows, and fences, over the forecast period. High product consumption in the building & construction sector is credited to increased foreign investments in these countries due to supportive FDI norms & requirements for the redevelopment of public & industrial infrastructure. However, the COVID-19 pandemic severely affected the manufacturing industries in 2020, which further affected the demand for plastics.

Product Insights

Based on products, the market has been divided into Polyethylene (PE), Polyethylene Terephthalate (PET), Polypropylene (PP), Polyvinyl Chloride (PVC), Polystyrene (PS), and others. The Polyethylene (PE) product segment led the market and accounted for more than 31% share of the global revenue in 2021. This high share is attributed to the rising demand for packaging material in consumer goods, food & beverage, industrial, and various other industries. In addition, it is commonly used in laundry detergent packaging, milk cartons, cutting boards, and garbage bins, among various other applications.

Polypropylene (PP) is extensively used in manufacturing automotive components, packaging & labeling, medical devices, and diverse laboratory equipment owing to its excellent chemical and mechanical properties. It is resistant to several chemical solvents, acids, and bases and has excellent mechanical strength. It is also among the most widely formulated plastics across the globe. In addition, components produced using PP are fatigue resistant, which is beneficial in the building & construction industry for producing plastic hinges, piping systems, consumer-grade daily-use products, manufacturing mats, and carpets & rugs among various other applications. The growth of the automotive, packaging, building & construction industries is expected to drive the demand for recycled PP over the forecast period.

Source Insights

Based on sources, the global market has been further segmented into plastic bottles, plastic films, polymer foam, and others. The plastic bottles source segment led the market and accounted for more than 74% share of the global revenue in 2021. Plastic bottles are the major source of recycled products. Plastic bottles are used in various applications across several industries, such as in the packaging of water, oils, pharmaceuticals, and carbonated drinks. SKS Bottle & Packaging, Inc., CABKA Group, Maynard & Harris Plastics, and Placon are some of the key recycled plastic bottle manufacturers. The polymer foam source segment includes packaging foam and sheets, which are widely used in impact-resistant packaging solutions.

Expanded Polystyrene (EPS) is the most commonly used polymer foam in the packaging industry. A number of automobile and electrical & electronics manufacturers, such as Panasonic Corporation, SONY Electronics Inc., Ltd.; Hitachi, Ltd.; and Honda Motor Company Ltd., are moving towards the adoption of recycled plastics foam over virgin polymer foam.

Application Insights

The packaging application segment led the market in 2021 and accounted for more than a 36% share of the global revenue. This high share is attributable to the rising demand for packaged foods & beverages, electrical & electronics, and textiles. Personal hygiene products, such as electric trimmers and shavers, along with automotive components and clothing products manufactured from recycled plastics are the major application areas that are driving the segment growth. Asia Pacific is characterized by the growing packaging industry and technological advancements in the industry. The growth of the packaging industry in the region is driven by the high demand for building & construction products, consumer goods, and electrical & electronics, especially from China, India, and Southeast Asia.

In addition, a flexible regulatory environment is expected to offset constraints that are usually evident in the Western markets. Asia Pacific will witness immense growth owing to the rising electronics expenditure in countries, such as China, India, and Japan. In addition, the presence of various electronic product manufacturers, including ASE Electronics Malaysia, Foxconn Technology Group, Honeywell International Inc., SAMSUNG, Lenovo, and Bajaj Electronics, which are involved in R&D activities will propel the industry growth over the forecast period. Rising environmental concerns among consumers coupled with the government policies, such as the “Swachh Bharat Mission” are anticipated to fuel the demand for recycled plastics in the country.

Growing packaging, automotive, and construction industries in the country are further propelling the product demand. According to the Organisation Internationale des Constructeurs d’Automobiles (OICA), the automobile production in India was 4.5 million units in 2019, a decline of 12.2% as compared to that in 2018. The drop in the production of automobiles was due to the global economic slowdown and decline in demand from other countries, which is now recovering at a significant rate. Moreover, the growing production of Electric Vehicles (EVs) in the country is anticipated to generate high product demand over the forecast period.

According to the Plastic Waste Management Institute (PMMI), the country’s plastic recycling rate is 84%, the highest in Asia Pacific. The most common plastic waste generated in the country includes Polyethylene (PE), Polypropylene (PP), Polystyrene (PS), and Polyvinyl Chloride (PVC). The country recycles 23% of the plastic waste through mechanical recycling, 4% through chemical recycling, and the rest through thermal recycling by burning the plastic to produce energy.

Regional Insights

Asia Pacific dominated the market and accounted for over 47% share of global revenue in 2021. The Asia Pacific construction industry is expected to witness considerable growth owing to the increasing demand for non-residential construction projects, such as hospitals, schools, and colleges. This will drive the product demand for the roofing tiles, insulation, fences, floor tiles, carpets, and various other construction applications. Europe ranks second in terms of revenue after Asia Pacific. The market is driven by the adoption of a circular economy to reduce the carbon footprint associated with the conventional method of plastic production.

Landfill bans have resulted in the positive growth of plastic recycling in European countries. As landfill taxes in some European countries are extremely high, dumping sometimes becomes more expensive than plastic recycling. This scenario is encouraging plastic recycling. North America ranks third in terms of revenue. The market is driven by the growth of the major end-use industries, such as electrical & electronics, construction, and packaging. The rising demand for packaged & processed foods and the rapidly growing construction industry in the U.S., Mexico, and Canada are also anticipated to augment the market growth over the forecast period.

Key Companies & Market Share Insights

The market is fragmented with the presence of various small- and medium-scale players, such as Republic Services, Inc., Stericycle, and Veolia. Companies in the market compete based on technology used for the recycling of plastic waste. Major players are involved in infrastructural development and expansion of their plastic recycling and R&D facilities and are also seeking opportunities to vertically integrate across the value chain. Such initiatives help them cater to the increasing global recycled plastics demand, ensure competitive effectiveness, enhance their operations planning, develop innovative products & technologies, bring down their recycling costs, and expand their customer base. Some of the prominent players in the global recycled plastics market include:

• REMONDIS SE & Co. KG

• Biffa

• Stericycle

• Republic Services, Inc.

• WM Intellectual Property Holdings, LLC

• Veolia

• Shell International BV

• Waste Connections

• Clean Harbors, Inc.

• Covetsro AG

Recycled Plastics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global recycled plastics market report based on product, source, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Polyethylene (PE)

  • Polyethylene Terephthalate (PET)

  • Polypropylene (PP)

  • Polyvinyl Chloride (PVC)

  • Polystyrene (PS)

  • Others

• Source Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Plastic Bottles

  • Plastic Films

  • Polymer Foam

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Building & Construction

  • Packaging

  • Electrical & Electronics

  • Textiles

  • Automotive

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    •  U.S.

    •  Canada

    • Mexico

  • Europe

    •  Germany

    •  U.K.

    •  France

    • Italy

  • Asia Pacific

    •  China

    •  India

    • Japan

  • South East Asia

    •  Malaysia

    •  Indonesia

    • Thailand

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia