Recycled Plastics Market size was over USD 64.2 Billion in 2023 and is anticipated to exceed USD 106.1 Billion by the end of 2036, growing at over 8.4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of recycled plastics is evaluated at USD 72.2 Billion.
With the growing awareness regarding environmental and energy concerns, countries across the world have started focusing on reducing greenhouse gas emissions. Plastic products can serve the purpose of ensuring that achieve greener and more sustainable living standards. These products require much less energy in the manufacturing process as compared to other materials. Various applications like construction, transport, electronics, and packaging require less energy. According to report published by Plastivision in 2021, emissions of greenhouse gases could increase by 61% if plastics are replaced with alternative materials and it can also boost lifecycle energy consumption by 57%.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024–2036 |
|
CAGR |
8.4% |
|
Base Year Market Size (2023) |
USD 64.2 Billion |
|
Forecast Year Market Size (2036) |
USD 106.1 Billion |
|
Regional Scope |
|
Product (Polyethylene, Polyethylene Terephthalate, Polypropylene, Polyvinyl Chloride, Polystyrene)
Polyethylene terephthalate segment is set to capture over 32% recycled plastics market share by 2036. The large-scale adoption of PET for packaging various products and bottling is the major factor resulting in segment growth. It is lightweight, can be recycled easily, and has higher durability. Moreover, the government is supporting to use of recycled PET instead of virgin PET for packaging bottles and other beverages.
Recycled PET has various other applications including manufacturing furniture, carpets, and fibers. According to the International Bottled Water Association, more than 1.5 billion pounds of used PET plastic bottles and containers majorly containing beverage bottles and cosmetics containers are recovered in the United States each year for recycling.
Source (Plastic Bottles, Films, Foams, Fibers)
By the end of 2036, plastic bottles segment is expected to capture around 45% recycled plastics market share. The segment growth can be attributed to the large-scale use of plastic bottles for the packaging of soft drinks, water, cosmetics, oils, pharmaceuticals, and others.
The majority of the plastic waste generated is from packaged drinking water. Recycled plastic is used for manufacturing drinking bottles with the cause of saving our environment. Moreover, the government has introduced various regulations which state the compulsory use of recycled plastic for manufacturing water bottles. As per a recent report issued in 2021, around 1.3 billion plastic bottles are used every single day worldwide, which is about 1 million per minute.
Application (Packaging, Building & Construction, Textiles, Electronics, Automotive)
In recycled plastics market, packaging segment is expected to account for around 37% revenue share by 2036. The segment growth is due to the increasing adoption of recycled plastic for various applications majorly plastic containers leading to rapid growth of e-commerce worldwide.
The massive orders received through e-commerce platforms have increased progressively leading to the large-scale use of recycled plastic for product packaging, resulting in segment growth. For instance, the world produces around 141 million tonnes of plastic packaging a year which contributes to 1.8 billion tonnes of carbon emissions annually.
Our in-depth analysis of the recycled plastics market includes the following segments:
|
Product |
|
|
Source |
|
|
Application |
|
APAC Market Statistics
By 2036, Asia Pacific recycled plastics market is projected to capture over 36% revenue share. The market growth in the region is also expected on account of the increasing population leading to higher demand for plastic products in various industries. Additionally, inadequate collection of waste and processing infrastructures are the major drivers of plastic pollution in the APAC region. Conversion of plastic waste into sustainable packaging materials helps in reducing the plastic waste present in the region. According to a recent report, around half of the world's plastics (52% of 390.7Mt globally) are generated in the Asia-Pacific (APAC) region in 2021.
Increasing consumer awareness regarding the sustainable use of recycled plastic in Indonesia is resulting the growth of recycled plastics market. Plastic waste generation is quite high in the region as it’s a tourist place. According to the World Bank, Indonesia generates around 7.8 million tons of plastic waste annually out of which 4.9 million tons of plastic waste is not properly managed.
The recycled plastics market in China is growing due to the conversion of plastic waste into fuel. According to the State Council report issued in 2022, China's complete focus is on plastic recycling which has helped reduce crude oil consumption by 510 million tons and prevented 61.2 million tons of carbon dioxide emissions. These measures taken by the government also prevented 90 million tons of solid waste from being generated.
North American Market Analysis
The North America region will also encounter huge growth for the recycled plastics market during the forecast period and will hold the second position owing to the fast development of the building & construction industry with increasing demand for recycled plastic in these industries having significantly contributed towards the growth of the recycled plastics market in the region.
According to the Associated General Contractors (AGC) of America, more than 919,000 construction establishments took place in the U.S. in the 1st quarter of 2023 which has given employment to 8.0 million employees and created nearly USD 2.1 trillion worth of structures each year. With the growing construction rate, demand for recycled plastics is gradually increasing.
In the US, recycled plastic is majorly used in making fibers, sheet and film, strapping, food and beverage bottles, and nonfood containers. The country has a huge potential to convert recycled plastics into useful products. For instance, only 5% to 6% of plastics get recycled in the United States as plastic consumption is very high in the region.
The recycled plastics market in Canada is growing as the region is completely focusing on recycling plastic. According to the government of Canada, the country can recycle around 9% of its plastic waste every year, while producing more than 3 million tons annually.
The major key players in the recycled plastics market are completely focusing on turning plastic waste into products that can be used commercially resulting in protecting the environment from landfills.
Author Credits: Rajrani Baghel
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?