Published Date : 08 Feb 2024
The global recycled plastic market size surpassed USD 44.94 billion in 2022 and is expected to rake around USD 104.09 billion by 2032, poised to grow at a CAGR of 9.30% from 2023 to 2032.
The recycled plastic market offers, creates and distributes materials derived from recovering discarded or waste plastic transformed into a valuable and functional product. Polycarbonate, polylactic, nylon, acrylic, PS, PP, LDPE, PVC, HDPE, and PET are recyclable. The plastic recycling process typically involves sorting by polymer type, shredding, washing, melting, pelletizing, and ultimately using the recycled material to create new products. From a technical perspective, plastic can undergo various recycling processes, including thermal decomposition, heat compression, distributed recycling, and pyrolysis.
As most plastic is non-biodegradable, recycling becomes a crucial process to transform it into a useful product. The rise in plastic recycling is a response to the escalating pollution issue. Recycling plastic contributes positively to the environment by reducing pollution, minimizing landfills, and decreasing dependence on foreign countries for crude oil. Government initiatives at regional and national levels, coupled with increased pressure on brand owners to make packaging fully recyclable, are driving the production of recycled plastics. There is a lucrative opportunity to use recycled plastic for construction, such as building materials for structures and roads.
A significant trend shaping the growth of the recycled plastic market is the rising demand within the automotive industry. Plastics and composites, known for their lightweight properties, are extensively employed in various automotive applications, including structural, powertrain, exterior, interior, and electronic and electrical components. This surge in demand aligns with the automotive industry's focus on manufacturing lightweight, fuel-efficient, and environmentally friendly vehicles, adhering to stringent environmental regulations. Using recycled plastics in vehicle production contributes to reduced weight, lower fuel consumption, and decreased greenhouse gas emissions. As global vehicle production rises, the demand for recycled plastics will follow suit in the forecast period.
Asia-Pacific is anticipated to dominate the global recycled plastic market throughout the forecast period. This prominence is attributed to the widespread use of recycled plastics in critical industries within the region, such as automotive, textile, and construction. In the automotive sector, recycled plastics are favored for their properties, including high tensile strength, creep resistance, stiffness, and wear resistance.
Applying recycled plastics in vehicles reduces overall mass and improves fuel efficiency, aligning with the increasing trend in automotive production. Additionally, recycled plastics play a vital role in the construction industry, including concrete, indoor insulation, roofing tiles, PVC windows, bricks, structural lumber, and fences. As the construction sector expands in Asia Pacific, it is expected to drive the growth of the recycled plastic market in this area throughout the forecast period.
The growing population, continuous product innovations, and rapid industrialization have led to extensive plastic use across various industries in India, contributing significantly to market expansion. The Government of India (GoI) is actively implementing policies and recycling programs to manage waste production and promote sustainable plastic disposal. Technological advancements, such as integrating artificial intelligence (AI) for sorting plastic waste and improving recycled product quality, positively impact the market's growth. The burgeoning environmental awareness and increased recognition of the adverse impacts of plastic waste further drive the development of the recycled plastic market in India.
|Market Revenue in 2023
|USD 46.87 Billion
|Projected Forecast Revenue by 2032
|USD 104.09 Billion
|Growth Rate from 2023 to 2032
|CAGR of 9.30%
|2023 to 2032
|North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
Implementation of supportive initiatives by various governments
Governments worldwide are implementing supportive policies for recycled plastic products due to growing concerns about the environmental impact of plastic pollution. With plastic pollution negatively affecting ecosystems, wildlife, and public health, promoting recycled plastic helps reduce landfill waste and ocean pollution. Furthermore, supporting recycled plastic aligns with circular economy goals, emphasizing the importance of recycling and repurposing plastic rather than discarding it.
Government regulations encouraging the use of recovered plastic boost the recycled plastic market, foster innovation in recycling technology, and create new business opportunities. Additionally, these measures contribute to lowering greenhouse gas emissions associated with the production and incineration of plastics, contributing to the global fight against climate change.
An increase in demand for biodegradable plastics
Growing consumer preferences for eco-friendly packaging have led to an increased demand for biodegradable plastics, posing a potential challenge to the growth of the recycled plastic market. Manufacturers are responding by favoring biodegradable materials, and government regulations supporting such plastics further encourage this shift, diverting attention away from traditional plastics.
Growing e-commerce opportunities
The global surge in e-commerce has significantly boosted the sales of consumer goods, contributing to a substantial increase in the use of recycled plastic as a packaging material worldwide. Recycled plastic is crucial in producing lightweight components in diverse industries like construction, packaging, and electronics. This heightened demand is particularly notable in packaging electronics like mobile phones, laptops, and tablets. As a result, the rising need from the packaging industry is expected to drive the global growth of the recycled plastic market during the forecast period.
Shift towards a circular economy
A circular economy, promoting sustainability and resource efficiency, focuses on extending the lifespan of items through recycling, reuse, and repair to minimize waste and pollution. This approach aims to disconnect economic growth from resource consumption by reducing reliance on finite resources and promoting regenerative practices. Simultaneously, the substantial demand for recycled plastic in various industries, such as packaging and automotive, remains a driving force for market growth.
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