The global recycled plastic market was valued at US$ 48.2 billion in 2020 and is expected to reach over US$ 77.0 billion by 2030, poised to grow at a noteworthy CAGR of 4.8% from 2021 to 2030.
Recycled plastic is used for the production of light-weight components that are used across various industries such as construction, packaging, and electronics. The rapid growth of the e-commerce across the globe has resulted in the increased sales of various consumer goods. The rising sales through e-commerce has rapidly increased the demand for various packaging products. Therefore, the demand for the recycled plastic is growing rapidly for the packaging of goods. Furthermore, the rising popularity of purchasing electronics such as laptops, Mobile phones, and tablets through e-commerce has exponentially fostered the demand for the recycled plastic as a packaging material across the globe. Thus, the increased demand from the packaging industry is expected to drive the growth of the recycled plastic market across the globe, in the upcoming years.
Furthermore, the rapidly growing building & construction industry is anticipated to drive the consumption of recycled plastic. Recycled plastic is used to manufacture structural lumber, insulation, windows, and fences that are extensively being used in the construction industry. Moreover, the building and construction industry is rapidly growing in the emerging economies. The rising government investments in developing infrastructure and government policies to attract FDIs in the emerging nations is expected to drive the growth of the building and construction industry. Therefore, the rapid growth of the construction industry in the developing nations like China, India, and Brazil is expected to drive the growth of the global recycled plastic market during the forecast period.
The various industries such as footwear, food & beverages, and packaging are opting to use recycled plastic. Major footwear players such as ADIDAS, PUMA, and Reebok are increasingly using recycled plastics to manufacture shoes and other footwear products. The Coca Cola Company announced to invest in development of bottles using 50% recycled plastic. Therefore, increasing investments by the top players across various industries to adopt the use of recycled plastics in manufacturing their products is expected to foster the growth of the global recycled plastic market.
Based on source, the plastic bottle segment accounted 70% revenue share in 2020 and is projected to sustain its dominance over the forecast period. This can be attributed to the extensive use of plastic bottles for the packaging of soft drinks, oils, water, pharmaceuticals, and many more. The plastic wastes generated from packaged drinking water is very much high. Therefore, this segment accounted for over 70% of the market share in 2020.
On the other hand, polymer foam segment is growing at a significant rate. Packaging sheets and packaging foam are extensively being used in the impact resistant packaging of electric and electronic products. Various manufacturers such as Sony Electronic, Honda Motors, and Panasonic Corporation are now increasingly using the recycled plastic foam that would contribute to the growth of this segment.
Based on product, the polyethylene segment dominated market with revenue share of 27% in 2020. This can be attributed to its extensive use in the food & beverages and consumer goods industry for the packaging of products. Polyethylene is commonly used as a packaging material for milk, garbage bins, laundry detergents, and many more products, thereby boosting the segment growth.
On the other hand, polypropylene is estimated to be the most opportunistic segment during the forecast period. Polypropylene is widely used for packaging, labelling, automotive components, medical devices, and various other products. Therefore, this segment is expected to grow at a rapid pace during the forecast period.
Based on application, the packaging segment dominated the market with 38% revenue share in 2020 and is estimated to sustain its dominance during the forecast period. This due to the rapid growth of the e-commerce across the globe. The volume of orders through e-commerce platforms have increased dramatically that resulted in the extensive use of recycled plastic for the packaging of products, thereby fostering the growth of this segment.
On the other hand, building & construction is estimated to be the fastest-growing segment. The rapidly growing construction industry that uses recycled plasticto manufacture structural lumber, insulation, windows, and fences is boosting the demand for the recycled plastic. The developing regions like Asia Pacific is expected to foster the growth of this segment owing to rapid industrialization and urbanization in the region.
Based on region, Asia Pacific dominated the global recycled plastic market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. Asia Pacific accounted for a market share of over 45% in 2020. The rapid growth of the building & construction industry, e-commerce industry, and several other industries have significantly contributed towards the growth of the region. Rising government initiative and policies to attract FDIs and foster industrial development in this region is a key factor that boosted the usage of recycled plastic in Asia Pacific.
On the Other hand, Europe is the second largest market for recycled plastic followed by North America. The rising penetration of e-commerce, growing construction industry, and rapidly growing automotive industry is expected to drive the demand for the recycled plastic in this region in the upcoming years.
Key Companies & Market Share Insights
The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.
The various developmental strategies like new product launches with latest and innovative features fosters market growth and offers lucrative growth opportunities to the market players.
Some of the prominent players in the global recycled plastic market include:
Scope of the Recycled Plastic Market Report
|Market Size||USD 77 Billion by 2030|
|Growth Rate||CAGR of 4.8% From 2021 to 2030|
|Largest Market||Asia Pacific|
|Fastest Growing Market||Europe|
|Forecast Period||2021 to 2030|
|Segments Covered||Source, Product, Application, Region
|Companies Mentioned||REMONDIS SE & Co. KG, Shell International B.V., Waste Connections, CLEAN HARBORS, INC., Covestro AG, Biffa, Stericycle, Republic Services, Inc., WM Intellectual Property Holdings, L.L.C., Veolia|
Segments Covered in the Report
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