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Global Recycled Plastic Market Aiming for $75 Bn by 2028, Can Sustainability Initiatives and Technological innovations Seal the Deal? : Ken Research
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Gurugram, India, April 26, 2023 (GLOBE NEWSWIRE) — Driven by the rising consumption from various end-user industries such as packaging, automotive, electronics, and others, Global Recycled Plastics Market is forecasted to Cross US$75 Bn by 2028 says Ken Research Study.
Plastic recycling is the process of recovering plastic waste and reprocessing the material into useful products. Plastic waste is collected from landfills and other sources and sent to recycling centers, where it is typically separated into different types of polymers. Polymers are then shredded and melted back into polymer pellets. The pellets are resold to be used in new products across various end-user industries. Recycling and other collection routes help reduce environmental impact and save costs, especially in the construction, manufacturing, and retail sectors. Most plastics are not biodegradable, so recycling is part of a global effort to reduce plastics in waste streams. According to Ken Research estimates, the Global Recycled Plastics Market – which is around ~US$ 45 Bn in 2022 – and is expected to grow further into a more than US$ 75 Bn opportunity by 2028.
Ken Research shares 5 key insights on this high-opportunity market from its latest research study.
1. Increasing Consumption of Recycled Plastics in the Textile Industry is Fuelling the Market Globally
Green clothing refers to fabrics that are obtained from sustainable materials like hemp, bamboo, or recycled plastic, and, the methods used to manufacture these fabrics are highly sustainable. A considerable amount of reduction in carbon emission is witnessed while using recycled plastic fibers as compared to virgin. Using products made from recycled plastic bottles indirectly helps to create a sustainable living and environment, as it helps in the reduction of air, water, and land pollution. Owing to this environmental concern, several brands in the fashion industry are working on creating ways to reduce the environmental impact. For instance,
- The designer brand Gucci is one of the first luxury fashion brands to use ECONYL, nylon yarn, 100% regenerated from recycled fishing nets. In 2015, the company shifted from virgin plastic to recycled plastic products in its textiles.
- UNIREC, an India-based clothing company, makes shirts, blazers, and trousers from recycled polyester. Each garment made by the company recycles around 12 PET (polyethylene terephthalate) bottles. The company is recognized with an international, full-product standard that tracks and verifies the content of recycled materials in a final product, Global Recyclable Standard (GRS) certification.
- Alcis Sports offers a wide range of sports and athletic gear made up of recycled plastic. The company manufactures sportswear with the latest technologies such as dry-tech (moisture management), anti-odor, anti-static, anti-UV, and light X, keeping lifestyles and weather conditions in mind.
- A California-based clothing company is engaged in making recycled polyester from post-consumer soda bottles. The company makes its recycled polyester fibers from a blend of soda bottles, manufacturing waste, and worn-out apparel.
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2. Increasing Usage of Recycled Plastics in Various Industrial Applications such as Packaging, Electronic Components, and Automotive Interiors is the Primary Reason Driving the Market of Recycled Plastics
The packaging industry is one of the major sectors employing the usage of recycled plastic products. Most of the products used in food packaging are made from PET, which is known to be the highest recyclable plastic resin type among all others. Plastic recycling rates are slowly improving in many countries around the world and recycled packaging is being used widely. Some of the recent developments in the recycling plastic market include:
- The Body Shop, a cosmetics company has already included recycled plastic in many of its products’ packaging.
- For instance, in 2020, Nestlé announced an investment of up to USD 2 billion to lead the shift from virgin plastics to food-grade recycled plastics and to accelerate the development of innovative packaging solutions.
Recycled plastic products are also used in the electric and electronics industry, where the most common type of plastic used is ABS, Acrylonitrile Butadiene Styrene. ABS is one of the toughest thermoplastic polymers that provide a durable solution for heavy-duty needs. The environmental concerns arising from discarded electronic equipment and rising e-waste are being controlled by various companies.
- For instance, LG Electronics, headquartered in Seoul, South Korea, has set a goal to use about 600,000 metric tons of recycled plastic by 2030. The company says the goal is part of LG’s larger initiative to create a takeback ecosystem for electronic scrap and increase the use of post-consumer recycled materials in its consumer electronics and home appliance products.
- According to Plastics Europe, in 2020, European countries including Switzerland, Austria, the Netherlands, Germany, and Norway implemented landfill restrictions on recyclable waste. Switzerland, Austria, and the Netherlands have attained their targets of zero landfill.
- In November 2020, SABIC, a Saudi Arabia-based Chemicals manufacturing company, expanded its existing portfolio of polycarbonate resin, Cyloloy PC/ABS, and Lexan PC resin containing high levels of post-consumer recycled (PCR) plastic.
3. Stringent Competition for Recycled Plastics from Virgin Plastic Products Is the Major Challenge Faced by The Recycled Plastics Market
Recycled plastics have strong competition from virgin plastics in terms of quality and application. Virgin plastics can be used in many applications, including food-grade packaging where the food product comes in direct contact with the plastic; recycled plastics do not have the same advantage. Recycled plastics are rarely used in food-grade packaging applications because of safety concerns related to their contaminants from their previous use.
Some jurisdictions allow the use of recycled plastic resin in combination with virgin resin for food-grade containers, but the recycled quality cannot be maintained to the standard required for food-grade applications. For high-end products, where the chemical composition of the plastic has to be specific, only virgin materials can be used.
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4. Packaging End-User Segment Dominates the Market with the Largest Revenue Share and will Maintain Dominance during the Forecast Period
The packaging industry is the largest consumer of recycled plastics, as different plastic grades are used in food as well as non-food packaging applications. The use of recycled plastics for food packaging has continued in recent years and will likely increase due to the high price of crude oil, a feedstock for the petrochemicals used in the manufacture of plastics, as well as the recent advances in plastic recycling technologies that allow improved quality and safety of post-consumer recycled plastics intended for food packaging applications.
In 2021, Tupperware, a U.S.-based multinational kitchen and household products manufacturing company, launched its reusable Eco Straw manufactured using Eco+, circular polymers made by depolymerizing mixed plastics to produce high-quality food-grade plastic. PET bottles can again be recycled into new PET bottles, plastic sheets and film, and strapping used for shipping. They are also recycled into polyester fibers and fabric.
5. Asia Pacific dominated the Market with the Majority of the Market Share in 2021
Asia pacific dominated the recycled plastics market and is expected to continue its dominance during the forecast period. The largest share of the region can be attributed to the rise in demand from various end-use industries such as packaging, building & construction, electrical & electronics, textiles, automotive, and others.
The demand for recycled plastic is rapidly increasing in the APAC region owing to the rising number of construction projects including hospitals, schools, and colleges. Moreover, rising government initiatives such as ‘Make in India’ and revised FDI policies are enticing core companies to set up manufacturing units in the region, which is likely to propel the Plastic Recycling market during the forecast period.
- In July 2021, Maruti Suzuki India Ltd. announced an investment worth US$ 2.42 billion in a new manufacturing facility in Haryana, India. The facility is expected to manufacture ~1 million units annually. The surge in automobile manufacturing is boosting the demand for recycled plastics, thereby driving the recycled plastics market.
- China is one of the largest consumers of polyethylene terephthalate (PET) globally. The abundant availability of raw materials and low cost of production has been supporting the production growth of the engineering plastics, such as PET, in the country for the past few years.
- China is the largest base for electronics production in the world. Electronic products, such as smartphones, TVs, wires, cables, portable computing devices, gaming systems, and other personal electronic devices recorded the highest growth in the electronics segment. The country serves not only the domestic demand for electronics but also exports electronic output to other countries.
- In March 2020, Chongqing Wankai, a China-based company started its new polyethylene terephthalate (PET) bottle chip plant with a capacity of 600,000 tonnes per year. The project has a design capacity of 1.2 million tons per year of PET bottle chip, including two 600,000 tons per year production lines, and the total investment involved in the project was USD 507 Million.
Market Taxonomy
By Product Type
- Polyethylene (PE)
- Polyethylene Terephthalate (PET)
- Polypropylene (PP)
- Polyvinyl Chloride (PVC)
- Polystyrene (PS)
- Others
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By Source
- Plastic Bottles
- Plastic Films
- Polymer Foam
- Others
By End-User
- Building & Construction
- Packaging
- Electrical & Electronics
- Textiles
- Automotive
- Others
By Region
- North America (U.S., Canada, Mexico)
- Europe (Germany, U.K., France, Italy, and Rest of Europe)
- Asia Pacific (China, Japan, India, Australia, and Rest of Asia Pacific)
- Latin America Middle East and Africa (LAMEA)
Key Companies
- B. Schoenberg & Co.
- Covetsro AG
- B&B Plastics
- Green Line Polymers
- KW Plastics
- Republic Services
- Ultra Poly Corporation
- Veolia
- Shell International B.V.
- Custom Polymers
- Plastipak Holdings
For more insights on the market intelligence, refer to below link:-
Global Recycled Plastics Market
According to Ken Research Analysis, the Global Composites Market is expected to record a positive CAGR of ~8% during the forecast period (2022-2028) and is expected to reach approximately US$ 120 billion by 2028. The COVID-19 outbreak had a huge impact on supply chains since key economies had to halt commerce. Additionally, the demand for composites had decreased across a range of end-use industries, including aerospace, automotive, and construction. However, the situation improved in 2021 due to the removal of trade barriers, which restored the market’s growth trajectory.
Over the next five years, the Biocomposites market in North America is forecasted to grow at least 12% CAGR, owing to the stable long-term usage among end-user industries and government efforts for use of more eco-friendly products, especially in developed countries such as the USA. Consumer products such as music instruments, casings and cases, furniture, tables, toys, combs, and trays are made from wood and natural fiber plastic granulates. Customer preferences for these products due to their distinct appearance and feel, great quality, and value will help the Biocomposites market to grow. The Biocomposites market is also expected to grow because of the consistent growth in traditional industries such as construction and automotive.
The industry is expected to witness significant growth in terms of demand by FY’2025 with increasing number of applications of PVC paste and growth of end-user industries such as synthetic leather and automotive industry. The impetus of the government to proliferate domestic production by removing import duty on EDC import, increasing import duty on PVC from 7.5% to 10% and finished PVC products such as vinyl flooring from 10% to 15% is expected to positively impact the market in the future. Increasing demand for PVC emulsion for manufacturing coir mats, adhesives & sealants and conveyer belts among other products is further expected to stimulate industry growth.
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Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
Ankur@kenresearch.com
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