Circular Polymers Market Size

Circular Polymers Market Size

Circular Polymers Market size was USD 61.49 billion in 2021 and will grow at a CAGR of 10.9% from 2022 to 2030 owing to the growing packaging industry along with rising stringent regulations. The industry size may cross 104,986.67 Kilo Tons by 2030 with an anticipated CAGR of 9.4% in terms of volume, through the projected period.

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Circular polymers are recycled polymers that are produced from either post-consumer plastic waste or industrial waste. For instance, companies including Coca-Cola are looking forward to building a sustainable business environment. Coca-Cola aims to make primary consumer packaging recyclable by 2025 and use at least 50% recycled materials in packaging by 2030. Many multinational giants in the food & beverages sector are adopting the same strategy to reduce their impact on the environment and attract new consumers.

For instance, the demand for recycled polymers, primarily recycled PET, shot up in 2022 owing to the rising prices of crude oil. The cost of recycled PET overtook the cost of its virgin counterpart as the demand for recycled polymers was far greater than surging fossil fuel prices in Europe. Companies including Nestlé, Keurig Dr Pepper, Coca-Cola, PepsiCo, and Danone have pledged to use 25% or more recycled content in their packaging.

Over the past decade, there were rising concerns regarding the usage of non-biodegradable plastics and their impact on the environment & human health. Most polymers end up in landfills and water bodies, thus contaminating the water, soil, and air. Owing to these concerns, the demand for circular polymers is gaining traction. Consumers are becoming aware and adopting more sustainable products, which are alternatives to plastics. The regulatory environment is becoming more stringent and is forcing end-use industries to shift from virgin polymers to circular polymers.

Circular polymers are produced using plastics collected from various sources such as municipal wastes and industrial wastes. The plastic circular economy is a model of closed systems that promote the reuse and recycling of polymers. This model generates value from the waste and deters sending recovered plastics to landfills. The global plastics industry is researching for alternatives to replace fossil sources with renewable resources. The circular economy is converting more plastic wastes into recyclates; thus, the circular polymers market sales is expected to rise in the coming years.

Due to the limitations of recycled materials, manufacturers prefer to use virgin plastics over recycled polymers. In the food industry, the product comes in direct contact with the material. Due to the fear of contamination by recycled polymers owing to their previous use, virgin plastics are more preferred over recycled polymers.
 

The COVID-19 pandemic had a mixed impact on the global circular polymers market as different end-user industries witnessed varied impacts. Some global industries witnessed a reduction in demand and some witnessed growth in 2020. For instance, the e-commerce sector witnessed a rise in revenue as most people were buying online to limit exposure.
 

COVID-19 had a positive impact on the demand for single-use plastics. The demand for circular polymers was also affected by lockdowns, factory shutdowns & halts, travel restrictions, etc. The total industry size shrunk by 4% in 2020. The decrease in COVID-19 cases and the recovery of economies will reinstate the market demand to the pre-COVID-19 era.