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The global recycled plastic market size was USD 37.8 billion in 2018 is projected to reach USD 72.6 billion by 2026, exhibiting a CAGR of 8.5% during the forecast period.
Recycled plastic is scrap or waste plastic materials that are processed into useful products. Since most of the plastic materials used globally are non-biodegradable, recycling of plastics is the solution to reduce the burden of plastics present in the environment. With end-use industries across the globe taking steps to reduce the usage of single-use plastics, these plastics are expected to perform the functions as a replacement to these plastics. These plastics are primarily used in the manufacture of packaging products as they are majorly produced from thermoplastics, which can be easily remolded with the usage of heat.
The growing spending power across the globe had led to ignorance of humankind from recycling plastic waste, but initiatives taken by governments in Europe, China, India, Southeast Asia, and Brazil have brought up the issue of waste and promoted the usage of recyclable products. Many governments have also placed regulations on the usage of single-use plastics to reduce the impact they cause to the environment. For instance, China has declared a ban in metropolitan cities on non-recyclable plastics by the end of 2020 which is to be expanded countrywide by 2022.
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These are made by breaking down the polymeric chain present in conventional plastics to respective monomers and then carrying out the polymerization reaction. The formation of a phase boundary between two distinct plastic layers leads to a reduction of strength at these boundaries, limiting the usage of such plastics. Two essential polymers, polyethylene (PE) and polypropylene (PP) are one such pair of plastics that form phase boundary, which tremendously reduces their utility for recycling.
“Increasing Demand for Recycled Plastic in Packaging Industry to Drive the Market”
The demand is advancing in various industries such as construction, consumer goods, and automotive & transportation. In food & beverage industry, the consumption of these plastics is increasing owing to the high demand for food-safe packaging material. Recycled plastic can effectively replace conventional plastics as a barrier between the food products and the environmental factors, which ultimately increases the market. Furthermore, packaging materials produced from these plastics use lower energy input and have a reduced impact on the environment, which makes them an attractive alternative for food packaging applications. Especially recycled polyethylene terephthalate, are significantly used in the manufacture of bottles for bottled water and beverage packaging.
Besides food and beverage manufacture, these plastics are also used in the packaging of products such as sports equipment, fashion accessories, and toys, which helps in increasing the durability of these products. Further, it's have found increased demand in the packaging of materials such as soaps, surfactants, shampoos, and other personal care products due to its non-reactive nature, which further boosts the market.
“Polyethylene Terephthalate to Remain Leading Type Throughout the Forecast Period”
The recycled plastic market is segmented into polyethylene terephthalate (PET), high-density polyethylene (HDPE), polypropylene (PP), low-density polyethylene (LDPE), and others, based on types. Polyethylene terephthalate is the largest segment owing to its large scale usage for food packaging and bottling application. It witnesses a high demand for the packaging of food & beverage products as it is non-toxic, lightweight, durable, and has easy recyclability. The regulations placed by many governments across the globe have made bottled water and beverage manufacturers shift from virgin PET to recycled PET for the manufacture of the packaging bottles. Furthermore, recycled PET finds application in the manufacture of carpet, furniture and fibers, which is further expected to boost the market.
PP is one of the majorly used plastics owing to its high demand for application in packaging, and automotive. Several manufacturers use recycled PP for packaging their products as it is not only equally durable but also more sustainable than its traditional counterparts. Automotive companies are even replacing parts made of virgin PP with recycled PP as it reduces their overall carbon footprint.
HDPE is regarded as the most comfortable plastic to recycle. Around 30 million tonnes of HDPE waste is created every year globally. As HDPE is non-biodegradable, it becomes imperative to reuse and recycle HDPE to reduce its impact on the environment. Production of recycled HDPE reduces dependence on petroleum for raw material and is also cost-effective as compared to the production of virgin plastic. Along with traditional applications of HDPE, recycled HDPE is also used in the manufacture of ropes, toys, pipes, and bins.
LDPE, on the other hand, is considered to be a clean and safe plastic, but its production requires sizeable amounts of petroleum products, which makes it imperative to develop a more sustainable, recycled alternative. Recycled LDPE finds application in construction as wall panels and floorings. It is also used in the manufacture of furniture, garbage cans, and packaging bubble wrap, which further creates a growth opportunity for the market.
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“Packaging Segment Is Expected to Generate Highest Revenue”
The market is categorized into non-food packaging, food packaging, construction, automotive, and others based on the applications. The non-food packaging segment currently holds the largest market share and is expected to remain largest throughout the forecast period due to the high demand for recycled PET for the manufacture of bottles and other packaging products like films and wraps. These plastics are generally cheaper than virgin plastics, which further boosts their demand for the manufacture of packaging products.
On the other hand, these plastics also find significant application in food packaging. Food products manufacturers seek materials that are not only safe for food handling but also are sustainable and cheap. These prerequisites are met by recycled plastic, which leads to high demand for such plastics from food products manufacturers.
The construction segment is considered to be one of the most prominent segments in terms of the application of the market. The growing use of recycled plastic in the production of numerous construction-related products such as flooring, wall panels, wallpaper films, pipes & fittings, and other building materials is expected to surge the demand in building & construction applications.
Similarly, the automotive application segment is expected to provide substantial growth in the forecast period. The increase in the use of these plastics in the automotive industry as a replacement to costlier conventional plastics for the manufacture of body parts is expected to create growth opportunities for the market.
North America Recycled Plastic Market Size, 2018
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The Asia Pacific accounted for the largest share of the recycled plastics market in 2018 and is expected to remain largest throughout the forecast period due to China and India being the leading consuming countries. A large number of bottled water manufacturers are present in the region, which results in large-scale consumption of recycled plastic. Additionally, the packaging industry is swiftly growing, which further accentuates the market in the region.
On the other hand, in Europe, the demand for application from the construction and automotive industry is growing at a substantial rate. The recycled plastic market growth will be supported by regulations put forward by the European Union in 2019 to effectively reduce the usage of single-use plastics in the region.
In North America, the U.S. accounted for the largest market share ue to the increase in the demand from packaging and automotive industries. The market growth in North America will be subpar as compared to Asia Pacific and Europe due to the slowdown of the construction industry in the region, but the use in food packaging applications is expected to create lucrative opportunities for stakeholders in the region.
In the Middle East & Africa, the key factors influencing the growth of the market are the increased demand for food packaging and construction applications. In this region, food packaging shall be the primary application for recycled plastic. The rise in demand for lightweight yet sustainable food packaging shall augment the use of these plastics over traditional plastics in the region.
Latin America is projected to witness considerable growth in the market. Brazil is the largest market in this region. The increased consumption of recycled plastic due to the ban placed on single-use plastic products in the country and the growing number of packaging products manufacturers are some factors expected to boost the market growth in Brazil. Furthermore, the coastal countries in Latin America & Caribbean regions are expected to follow in the footsteps of Brazil, which will further lead to the growth of the market in the region.
“Key Market Players Would Strengthen their Position by Carrying Out Product Innovation to Improve the Performance of their Offerings”
The major producers are present throughout the globe. One of the major company Moisture Shield deals with the recycling of plastics. It provides a wide variety of products made from recycled polyethylene. The Coca-Cola Company Incorporated is expanding throughout the globe by using strategies such as joint ventures. The Coca-Cola Company, Diageo, Nestlé, and Unilever formed the ‘African Plastics Recycling Alliance’ to change the plastic recycling market across sub-Saharan Africa.
An Infographic Representation of Recycled Plastic Market
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The recycled plastic market report provides qualitative and quantitative insights on the recycled plastic industry and detailed analysis by size & growth rate for all possible segments in the market. The market is segmented by type, application, and geography.
Based on the type, the market is classified into polyethylene terephthalate, high-density polyethylene, polypropylene, low-density polyethylene, and others. By application, the market is divided into non-food packaging, food packaging, construction, automotive, and others. Geographically, the market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. These regions are further categorized into countries.
Along with this, the report provides an elaborative analysis of the recycled plastic market share, dynamics, and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key industry trends, competitive landscape, and company profiles.
Value (USD Billion) and Volume (Million Ton)
Fortune Business Insights says that the market value stood at was USD37.8 Billion in 2018 and is projected to reach USD 72.6Billion by 2026.
Growing at a CAGR of8.5%, the market will exhibit substantial growth during the forecast period (2019-2026).
Non-Food Packaging segment is expected to lead the market during the forecast period.
Increasing demand from the packaging industry is the key factor driving the global market.
Asia Pacific is expected to hold the highest market share in the global market.
The rising demand for recyclable plastics from the automotive industry is the key trend in this market.
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