Global Plastic Recycling Market By Type (Sheets, Pipes, Wires & Cables), By Application (Food and Beverage, Construction, Automotive), By Region, And Segment Forecasts, 2023 to 2032

The plastic recycling market has gained significant traction in recent years due to increasing environmental concerns, regulatory pressures, and the global push towards sustainable practices. Plastic recycling involves the process of recovering waste or scrap plastic and reprocessing it into useful products. The market is driven by the need to reduce plastic waste, conserve resources, and decrease greenhouse gas emissions associated with plastic production.

The Plastic Recycling market was valued at USD 69.5 billion in 2024 and is projected to reach USD 120.31 billion by 2031, growing at a CAGR of 8.2% during the forecast period. Usually, the industry is propelled by the need to confront the growing problem of plastic pollution and its detrimental effect on society. Significant advancements like artificial intelligence algorithms, optical sorting and other technologies have improved the speed and accuracy of plastic sorting.

Premium Insights:

• The plastic recycling industry not only helps conserve resources but also creates economic opportunities through job creation and the development of new markets for recycled products.

• Recycling plastic significantly reduces the environmental footprint by lowering the demand for raw materials and reducing the volume of plastic waste that ends up in landfills and oceans.

Plastic Recycling Market Dynamics:

Drivers: Increasing plastic pollution, focus on circular economy and waste reduction, technological advancements and rising cost of virgin plastics

The ever-growing global plastic waste crisis is a major driver. Landfills are overflowing, and plastic pollution in oceans poses a severe threat to marine ecosystems. Plastic recycling offers a crucial solution to mitigate this problem.

The growing emphasis on circular economy principles encourages resource recovery and waste minimisation. Plastic recycling aligns with these principles by transforming plastic waste back into usable materials.

Advancements in sorting, cleaning, and reprocessing technologies are improving the efficiency and cost-effectiveness of plastic recycling. Additionally, innovations like chemical recycling are expanding the types of plastic that can be recycled.

Fluctuations in oil prices can lead to increased costs of virgin plastic. Recycled plastic can offer a more stable and potentially cost-competitive feedstock option for manufacturers.

Restraints: High initial costs, limited demand for recycled plastic and competition from virgin plastic production 

The setup costs for plastic recycling facilities and the investment in advanced recycling technologies are high, which can be a barrier for new entrants and small-scale players.

Not all types of plastic are readily recycled, and the market for recycled plastic content in products can be limited depending on application and consumer preferences.

The established infrastructure and economies of scale for virgin plastic production can pose competition for recycled plastic in terms of cost and availability.

Opportunities: Government incentives and extended producer responsibility, investment in chemical recycling technologies and increasing consumer awareness

Government support through subsidies, tax breaks, or EPR schemes that hold producers responsible for end-of-life plastic management can significantly incentivise investment in plastic recycling infrastructure.

Chemical recycling offers the potential to break down even complex plastic types into usable building blocks. Investing in and scaling up these technologies can broaden the scope of plastic that can be effectively recycled.

Raising public awareness about the importance of plastic recycling, proper waste sorting practices, and the benefits of using recycled plastic products can drive responsible consumer behaviour and market demand.

Market By Plastic Recycling Type Insights:

Based on type, the market is segmented into polyethene terephthalate (PET), high-density polyethene (HDPE), polypropylene (PP), and low-density Polyethylene (LDPE). The polyethene terephthalate (PET) segment holds the largest market share as of 2023. This is because PET is one of the largest recycled resins globally and  can be utilised in many products such as new containers, carpets, textiles, protective packaging, and automotive parts among others

Based on the source, the market is segmented into bottles, films, foams, fibres and others. The film segment accounted for the largest market share in 2023, owing to its major use in non-food applications such as shopping bags, and dry cleaning bags among others. They are also used in the production of composite lumber that is used to make benches, playground sets, and decks resulting in a substantial volume of spent plastic films 

Market By End-Use Insights:

The packaging industry is the largest consumer of recycled plastics. Recycled plastics are used in the production of bottles, containers, and films. The demand for sustainable packaging solutions is driving this segment.

Market By Region Insights:

Based on regional coverage the global recycling market is segmented into Asia-Pacific, North America, Europe, Latin America and Middle East & Africa. Europe is the leading market in this industry accounting for over 77.1% share in 2023, especially due to the European Union setting ambitious recycling goals forcing businesses to find ways to use more recycled plastic in their products

Competitive Scenario:

Major players in the global plastic recycling market include REMONDIS SE & Co. KG, Biffa, Stericycle, WM Intellectual Property Holdings, Republic Services, Inc., L.L.C., Waste Connections, Veolia, Shell International B.V. 

Scope of Work: Plastic Recycling Market

Key Market Developments

• April 2023- Biffa announced that it has acquired Esterpet Ltd., a polyethene terephthalate (PET) plastic recycler located in North Yorkshire. Esterpet produces high-purity plastic pellets from 25,000 tonnes of plastic flakes produced from recycled bottles annually. With the addition of this most recent acquisition, Biffa's strong capabilities in closed-loop food-grade plastic recycling are further enhanced. The company already recycles over 165,000 tonnes of plastic annually into high-quality recycled polymers at its facilities in Seaham, Redcar, and Washington.

• September 2023- WM recently declared the grand opening of a new 100,000-square-foot recycling facility located in Cleveland. It is projected that the facility will process close to 420 tonnes of recyclables every day. Approximately 40 automated or planned new recycling facilities are included in WM's previously announced enterprise-wide initiative to invest over USD 1 billion in recycling infrastructure. This project is a part of that initiative. By 2026, it is anticipated that the new facilities will manage an additional 2.8 million tonnes.

• January 2024-Republic Services, Inc. declared the grand opening of their new recycling facility in Salt River. With newer technology and a larger capacity than its predecessor, the new facility will be essential to raising recycling rates in the Valley. Located in the Salt River Pima-Maricopa Indian Community, it is a 51,000-square-foot recycling facility intended to handle recyclables from more than 2,000 businesses and 1.4 million residents.

Frequently Asked Questions (FAQs)

1. What factors are driving the growth of the plastic recycling market?

Ans. Key factors include Increasing plastic pollution, focus on circular economy and waste reduction, technological advancements and rising cost of virgin plastics

2. What opportunities exist in the plastic recycling market?

Ans. Opportunities include Government incentives and extended producer responsibility, investment in chemical recycling technologies and increasing consumer awareness

3. Who are the key players in the plastic recycling market?

Ans. Major players include REMONDIS SE & Co. KG, Biffa, Stericycle, WM Intellectual Property Holdings, Republic Services, Inc., L.L.C., Waste Connections, Veolia, Shell International B.V. 

4. What are the main challenges faced by the plastic recycling market?

Ans. Challenges include high initial costs, limited demand for recycled plastic and competition from virgin plastic production