Sustainable Solutions: Challenges & Expansion in the Recycled Plastics Industry

The global recycled plastics market was valued at USD 51.70 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2030. This growth is largely attributed to the increasing plastic consumption in the production of lightweight components, which are utilized across a wide range of industries, including building construction, automotive, electrical electronics, and various other sectors. The demand for these components is expected to continue driving market growth over the forecast period.

A notable trend contributing to the expansion of the market is the rise in online purchases of products such as electrical electronics, personal care products, and personal protective equipment (PPE), including gloves, face masks, and other essential products. These shifts in consumer behavior are creating higher demand for recycled plastics, particularly for use in various types of packaging materials.

According to The Verge, the demand for affordable consumer electronics such as laptops, mobile phones, modems, and other devices has significantly increased through e-commerce websites. This surge in demand for consumer electronics has further boosted the need for recycled plastics, particularly in the electrical electronics sector as well as in packaging applications. This trend is expected to accelerate the demand for recycled plastics throughout the forecast period.

The construction industry's growth in emerging economies such as Brazil, China, India, and Mexico is another key driver expected to push demand for recycled plastics. These plastics are increasingly being used in the manufacturing of components like insulation, fixtures, structural lumber, windows, fences, and other building materials. The growth in the use of recycled plastics within the building construction sector can be largely attributed to increased foreign direct investment (FDI) in these regions' construction industries. This is driven by the easing of FDI regulations and the growing need for the redevelopment of public and industrial infrastructure in these developing markets.

Curious about the Recycled Plastics Market? Download your FREE sample copy now and get a sneak peek into the latest insights and trends.

Detailed Segmentation:

Product Insights

The polyethylene segment led the market in 2023 with the largest revenue share of 26.0%. This significant share is attributed to the rising demand for packaging materials in a variety of industries, including consumer goods, food beverage, and industrial sectors. Polyethylene is widely used in the production of everyday items such as laundry detergent packaging, milk cartons, cutting boards, garbage bins, and several other products, which further supports its market leadership.

Application Insights

In terms of application, the packaging segment dominated the market with the largest revenue share of over 37.4% in 2023. This segment's substantial share is driven by the high demand for packaging materials across several industries, particularly in the building construction, consumer goods, and electrical electronics sectors. The market growth in regions such as China, India, and Southeast Asia is a key factor, as these areas are experiencing rapid industrialization and increased consumer demand. Additionally, a flexible regulatory environment in these regions is helping to overcome typical constraints that are often seen in Western markets, further fostering growth in the packaging segment.

Source Insights

Based on source, the plastic bottles segment held the largest revenue share of 74.14% in 2023. Plastic bottles are one of the major sources of recycled plastics, and they are widely used in various applications across different industries. These bottles are typically used for packaging water, oils, pharmaceuticals, carbonated drinks, and other consumer products. Leading manufacturers of recycled plastic bottles include companies such as SKS Bottle Packaging, Inc., CABKA Group, Maynard Harris Plastics, and Placon, which play a significant role in the production and supply of recycled plastic materials.

Regional Insights

The North America recycled plastics market is projected to grow at a significant CAGR over the forecast period. In 2023, the region accounted for a revenue share of 18.27%. This growth is primarily driven by the expansion of key end-use industries such as electrical electronics, construction, and packaging. The increasing demand for packed processed food, along with the growing construction industry in the U.S., Mexico, and Canada, is expected to further bolster market growth in North America over the forecast period.

Key Recycled Plastics Companies:

The following are the leading companies in the recycled plastics market. These companies collectively hold the largest market share and dictate industry trends.