Recycled Plastics Market Size, Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3562
Global recycled plastics market size is expected to grow at a robust CAGR over the forecast period 2021-2027. Mounting environmental concerns and the ongoing efforts to implement sustainable approaches is augmenting the use of recycled plastics across key end-use verticals including automotive, packaging, personal care, and others. Continuous developments in plastics recycling will positively impact the industry outlook.
The growth of the recycled plastics industry is also driven by supportive government and regulatory initiatives promoting sustainable practices. These initiatives are aimed at reducing the burgeoning volume of plastic waste worldwide. Currently, more than 300 million tonnes of plastic waste is generated each year, according to the World Economic Forum. Many of the leading companies in the world are pledging to improve sustainability to reduce their carbon footprint. For instance, Coca-Cola has pledged to adopt 100% recycled plastic packaging by the year 2025.
Considering the type of plastic, the market for recycled polyethylene (PE) is projected to gain substantial growth momentum through 2027. PE plastics including high-density polyethylene (HDPE) and low-density polyethylene (LDPE) are among the most widely used materials worldwide. These are also among the most recycled plastics across the world. The growing focus over minimizing the carbon footprint across industries and the adoption of sustainable approaches will certainly promote PE recycling in the forthcoming years.
The personal care sector is likely to emerge as one of the largest end-users of the recycled plastics industry. From premium cosmetics to daily-use personal care products, plastics are a material of choice. They are used to manufacture no-spill and shatterproof bottles, tubs, jars, caps, closures, tubes, and flexible pouches. As cosmetics and personal care brands increasingly look to minimize their environmental impact, they are seeking ways to use recycled content. This, in turn, will promote the use of recycled plastics for packaging.
In terms of the regional landscape, the market for recycled plastics in Europe is anticipated to grow at a steady pace between 2021 and 2027. This growth is primarily driven by the changing regulatory landscape across the region. In January 2021, the European Union had passed a tax of USD 1 per kg of nonrecycled plastic packaging waste. The tax is part of the Union’s USD 900 billion COVID-19 economic recovery package and aims to offer incentives for the member states to promote recycling an reduce plastic waste. To promote a circular economy and comply with the latest regulatory standards, the regional brands are likely to increase their usage of recycled plastics in the future.
Clear Path Recycling, SUEZ Recycling and Recovery UK, Custom Polymers, KW Plastics, Green Line Polymers, Ecosheet, B & B Plastics, Plastipak, B. Schoenberg & Co, and The Shakti Plastics Industries are some of the notable names in the recycled plastics industry. The market players are adopting strategies such as partnerships, acquisitions, and mergers to expand their plastics recycling capacities.
For instance, in September 2020, SUEZ had partnered with plastics technology company Loop Industries to build the first Infinite Loop plastics recycling facility in Europe. With this expansion, the companies aim to produce high-quality, food-grade, completely recycled and infinitely recyclable plastic. Also, SUEZ and LyondellBasell had jointly announced the acquisition of Belgian plastics recycling company TIVACO in December 2020. TIVACO will be part of the companies’ 50/50 plastics recycling joint venture Quality Circular Polymers (QCP), increasing its plastics recycling capacity to nearly 55,000 tonnes per year.
COVID-19 crisis and its impact on recycled plastics market forecast
A weakened product demand across key industry verticals such as automotive, personal care, and others has impacted the recycled plastics industry trends slightly. Additionally, supply chain issues and restrictions on movement have created challenges for plastics recycling companies. However, the consumption of plastics packaging has increased significantly during the pandemic due to the rise in online shopping and food deliveries amid lockdown restrictions. Further, to offset the increased use of single-use plastic waste generated during the coronavirus pandemic, significant efforts will be put towards boosting recycled plastics consumption over the next few years.
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