Recycled Plastic Market Expected to Reach $141.9 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Recycled Plastic Market," The recycled plastic market was valued at $66.7 billion in 2022, and is estimated to reach $141.9 billion by 2032, growing at a CAGR of 7.9% from 2023 to 2032.

Recycled plastics refer to plastics that have undergone a process of recycling, which involves collecting used or discarded plastic products, breaking them down into their raw material form, and then using these materials to create new plastic products. The goal of recycling plastics is to reduce the environmental impact of plastic waste by reusing the material rather than disposing it in landfills or incinerating it.

Recycled plastic market can offer unique properties and appearances that differ from virgin plastics. This opens up opportunities for innovative product designs that utilize these distinctive characteristics. Industries are leveraging these possibilities to create aesthetically pleasing and functional products. Furthermore, using recycled plastic market size can often be more cost-effective than using virgin plastics, especially when considering the rising costs of raw materials and waste disposal. Industries that adopt recycled plastic market can benefit from reduced material costs and potential tax incentives or subsidies for environmentally-friendly practices. Moreover, many regions are implementing regulations aimed at reducing plastic waste and promoting recycling. Industries are encouraged to incorporate recycled content into their products to comply with these regulations. Additionally, businesses are recognizing the importance of Environmental, Social, and Governance (ESG) initiatives, and using recycled plastics aligns with their sustainability goals. Businesses are using the integration of recycled plastic market share as a way to differentiate themselves in competitive markets. Products that highlight their use of recycled materials can stand out and appeal to a wider customer base.

However, the viability of the recycled plastic market growth depends on the availability of a robust recycling infrastructure. When petroleum prices are low, the financial incentive to invest in and expand recycling facilities may decrease, potentially slowing down the growth of the recycled plastics market. This can lead to a lack of capacity to process and supply recycled plastics, limiting their availability even when demand is present. Moreover, manufacturers and recyclers in the plastics industry often work with thin profit margins. Fluctuations in petroleum prices can directly impact their profitability. When petroleum prices rise, the cost of producing virgin plastics can increase, potentially making recycled plastics more competitive. Conversely, when petroleum prices are low, manufacturers may opt for virgin plastics over recycled ones, affecting the demand for recycled materials.

Recycled plastics offer opportunities for developing innovative products with unique properties. The unique properties of recycled plastics can enable the creation of entirely new product designs that were previously not possible with conventional materials. For instance, lightweight yet robust structures could be developed for applications in industries such as automotive, aerospace, and construction. Developing innovative products using recycled plastics aligns with the principles of the circular economy. This approach aims to minimize waste and extend the lifecycle of materials by reusing and recycling them. Companies that adopt circular economy practices can benefit from positive public perception and regulatory support. Developing innovative products using recycled plastic market forecast can establish a company as a leader in sustainability and innovation within its industry. This can lead to positive media coverage, brand recognition, and increased market share. As governments and regulatory bodies implement stricter rules on plastic usage and waste management, companies that proactively adopt recycled plastics in their products can position themselves for compliance and avoid potential penalties. These factors are anticipated to boost the market expansion in the upcoming years.

The recycled plastics market share is segmented on the basis of type, end-use industry, and region. By type, it is classified into polyethylene terephthalate (PET), high density polyethylene (HDPE), polypropylene (PP), and others. By end-use industry, it is classified into agriculture, farming & gardening, building & construction, packaging, automotive, electrical & electronics and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the recycled plastics market report include KW Plastics, Veolia, Green Line Polymers, Custom Polymers, Clear Path Recycling, B. Schoenberg & Co., Jayplas, Plastipak Holdings, Ultra Poly Corporation, and Joes Plastics Inc. 

The report offers a comprehensive analysis of the global recycled plastics market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the plastic recycling.

Impact of COVID-19 on the Global Recycled Plastics Industry

• The COVID-19 pandemic disrupted supply chains globally, affecting the collection, processing, and transportation of recyclable materials, including plastics. Lockdowns, restrictions on movement, and reduced workforce availability led to challenges in maintaining the recycling infrastructure.
• Many industries that use recycled plastics, such as automotive and construction, experienced reduced demand due to economic uncertainties and lockdown measures. This resulted in decreased demand for recycled plastic materials. The price of virgin plastic is closely tied to the price of oil, and the dramatic fluctuations in oil prices in the early months of the pandemic had an impact on the cost competitiveness of recycled plastic industry compared to their virgin counterparts.
• The pandemic led to changes in consumer behavior, with an increase in online shopping and takeaway food orders. This resulted in a higher demand for single-use plastic packaging, partially offsetting the push for sustainable alternatives and potentially affecting the demand for recycled plastics.
• Despite the challenges posed by the pandemic, the sustainability agenda has not been abandoned. Many governments, industries, and consumers continue to prioritize reducing plastic waste and promoting recycling efforts as part of broader environmental goals.

Key Findings of the Study

• Based on type, the polyethylene terephthalate (PET) sub-segment emerged as the global leader in 2022 and is anticipated to be the fastest growing during the forecast period.
• Based on end-use industry, the agriculture, farming & gardening sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
• Based on region, Asia-Pacific registered the highest market share in 2022 and LAMEA is projected to be the fastest growing during the forecast period.