Recycled Plastics Industry Growth, Business Overview 2024, and Forecast to 2032
The global recycled plastic industry size was USD 46.89 billion in 2022 and is projected to grow from USD 50.78 billion in 2023 to USD 88.96 billion in 2030 at a CAGR of 8.3% during the forecast period. The industry has observed stable growth throughout the study period and is expected to continue with the same trend during the forecast period. Growing awareness among individuals regarding energy savings and government initiatives are expected to drive the growth of the industry in the upcoming years.
Recycled Plastics Industry: Trends and Challenges
Growth Drivers:
- Rising Demand: The packaging, automotive, and electrical & electronics industries are increasingly using recycled plastics. This is due to factors like energy savings and growing environmental awareness. These industries consume a significant amount of plastic (over 6 million tons annually for packaging alone), and their shift towards recycled materials is a major driver for industry growth.
Restraint:
- Downcycling: The process of downcycling reduces the quality of plastic during recycling. Downcycled plastics become less useful products, often unfit for further recycling, and ultimately end up in landfills despite their initial processing. This limited usability puts recycled plastics at a disadvantage compared to virgin plastics and other recyclable materials.
Opportunities:
- Government Initiatives: Developed nations like those in North America and Europe are implementing regulations and offering incentives to promote plastic recycling. This includes tax credits and increased public funding for waste management projects. These initiatives create favorable conditions for the growth of the recycled plastics industry.
Challenges:
- Raw Material Collection: A major hurdle for the industry is the difficulty in collecting enough recycled plastic. Currently, only 14% of plastic packaging is recycled globally. According to the Ellen MacArthur Foundation, proper collection and recycling of the remaining 86% could generate significant revenue (USD 80-120 billion). However, new and improved collection methods are needed to tap into this potential.
Source- https://www.fortunebusinessinsights.com/recycled-plastic-market-102568
industry Scope of the Report:
The industry estimates presented in the report result from a comprehensive research approach involving various research channels such as primary research, secondary research, and subject-matter expert consultations. These industry estimates consider the influence of existing industry dynamics and a range of economic, social, and political factors on the Recycled Plastic industry. Additionally, the industry data is shaped by regulations, government expenditures, and advancements in research and development. Both positive and negative industry changes are factored into these estimations.
industry Segmentation:
The study offers detailed segmentation of the global Recycled Plastic industry based on Type, End User, and region. The report provides in-depth discussions of these segments and their sub-divisions, supported by tables and figures. industry players and investors can strategize their approaches based on the high-revenue and rapidly growing segments highlighted in the report.
Asia Pacific Leads the Recycled Plastics Industry
The Asia Pacific region reigns supreme in the recycled plastics industry, boasting a dominant share of over 47.97% in 2023. This leadership stems from a booming packaging industry and continuous advancements in recycling technology. Furthermore, the region is poised for explosive industry growth driven by surging electronics spending in countries like China, India, and Japan.
The presence of numerous electronics manufacturers in Asia Pacific is another key factor propelling the industry. These companies, including giants like ASE Electronics Malaysia, Foxconn, Samsung, and Lenovo, are heavily invested in research and development activities for recycled plastics. This focus on innovation will undoubtedly fuel industry expansion in the coming years.
Within Asia Pacific, China stands out as a significant player. It held a leading share in the region's recycled plastics industry and is expected to maintain its rapid growth trajectory with a projected CAGR of 10.3%. However, a recent ban on importing 24 specific types of plastic waste poses a potential hurdle for China's continued industry dominance.
Meanwhile, India is emerging as a strong contender, exhibiting the fastest projected CAGR in the region. This growth is attributed to a growing environmental consciousness among Indian consumers, along with government initiatives like the "Swachh Bharat Mission" (Clean India Mission) that promote plastic recycling. Additionally, the flourishing packaging, automotive, and construction sectors in India are creating a significant demand for recycled plastics.
Research Approach:
The report incorporates primary information collected directly from key stakeholders through quantitative and qualitative analyses utilizing the Porter Five Force model’s parameters. The report emphasizes macroeconomic indicators, trends within the parent industry, and growth drivers. A comprehensive understanding of the industry is achieved through both primary and secondary research. Rigorous checks were performed on the data used in the report to ensure its authenticity and quality. The credibility of evaluations and industry segments is established using both bottom-up and top-down methodologies.
Key Inquiries Addressed in the Recycled Plastic industry:
What is the global industry size for the Recycled Plastic industry?
Which screen size is most preferred by Recycled Plastic consumers?
What distribution channel is preferred by Recycled Plastic manufacturers?
Which age group is the target for Recycled Plastic manufacturers?