Recycled Plastics Market Trends

Growth Drivers

• Increase in the purchase of electronic items and personal care products in online mode – The growing demand for online shopping for various products such as electronics & smart devices and personal care products, including face masks, headphones, and cosmetics, is driving the demand for recycled plastics.  This plastic is majorly used in different types of packaging sources.
• Growing demand for recycled plastics in the construction industry - The growth of the construction sector in developing countries is expected to drive the demand for recycled plastics. This recycled plastic is used in the manufacturing of various components that are used in providing insulation from heat and cold, windows, and fences.
  
  According to the Plastic Soup Foundation report issued in 2021, around 18% of plastic is used in construction and building. The increased use of recycled plastic in the building & construction sector can be attributed to increased foreign investment in the construction industry.

Challenges

• People's inclination towards virgin plastic - The increasing demand for virgin plastic is due to the benefits it provides over recycled plastic. Virgin plastic has higher mechanical properties, safety, and impact resistance as compared to recycled plastic. 
  
  Moreover, the government has started promoting the use of recycled plastic in packaging but manufacturers are not sure due to the chances of contamination.
   
• Harmful effect on the environment after downcycling plastic - In the downcycling process, used or very little used plastic is recycled and fabricated into a new product with less quality as compared to virgin plastic. 
  
  This newly developed plastic is used in very limited places which becomes a major disadvantage of this recycled plastics market. The recycled plastic product cannot go for another round of recycling because it has turned into a completely different product. Such products end up in landfills harming the environment as it takes thousands of years for plastic to degrade.