India aluminum scrap market Expected to Reach $11.2 billion by 2034—Allied Market Research

According to a new report published by Allied Market Research, titled, “India aluminum scrap market by Type, by Source and End-Use: Opportunity Analysis and industry forecast, 2023–2033”, the India aluminum scrap market  size was valued at $3.8 billion in 2024, and is projected to reach $ 11.2 billion by 2034, registering a CAGR of 10.8% from 2025 to 2034.

Introduction

Aluminum scrap recycling involves transforming discarded aluminum products, including automotive parts, used beverage (UB) cans, sheet-based products, wires, extrusions, and various industrial wastes, into reusable aluminum materials. This recycling process encompasses collection, sorting, cleaning, and melting aluminum scrap in specialized furnaces to produce molten aluminum. Subsequently, the molten aluminum is cast into ingots, sheets, or other forms suitable for numerous industrial applications. Recycling aluminum significantly conserves energy, requiring only approximately 5% of the energy needed for producing aluminum from primary bauxite ore. This practice substantially contributes to the conservation of natural resources, reduction of landfill waste, and the lowering of greenhouse gas emissions, thereby making it environmentally beneficial and economically sustainable.   

Market Dynamics

The significant energy savings associated with recycling aluminum are a key driver of the India aluminum scrap market. The substantial reduction in energy consumption directly translates to lower operational costs and a reduced environmental footprint. With India's commitment to sustainability goals and stringent environmental regulations, recycling aluminum aligns well with national priorities and industrial standards, thus fostering greater adoption across multiple sectors. In addition, the cost benefits linked with reduced energy consumption make recycled aluminum highly competitive for industries such as automotive, construction, packaging, and aerospace, further enhancing market growth.

However, fluctuations in aluminum scrap prices represent a notable challenge for the India aluminum scrap market. The volatility in prices due to global market dynamics can disrupt operational planning and impact profitability, thus discouraging investments in advanced recycling technologies. Such instability can also create uncertainty in scrap availability and affect the consistency of recycling operations, impeding overall market growth.

Technological advancements present substantial opportunities for the market. Innovations in sorting and cleaning methods, along with advanced melting technologies, enhance the efficiency of recycling processes, increase material quality, and lower contamination levels. Automated sorting systems and sophisticated furnace technologies help extract higher-quality aluminum from scrap, boosting recycling rates and further reducing energy usage and operational costs. These advancements significantly increase the viability and competitiveness of recycled aluminum, presenting new avenues for growth.

Segments Overview

The India aluminum scrap market is comprehensively segmented on the basis of scrap type, source, and end-use. By scrap type, the market is bifurcated into new scrap and old scrap. On the basis of source, it is categorized into UB-based scrap, sheet-based scrap, wire-based scrap, extrusion-based scrap, and others. By end-use, the market is segmented into automotive, aerospace and defense, building and construction, electrical and electronics, packaging, and others, highlighting the extensive industrial applications of recycled aluminum across various sectors.

Competitive Analysis

The major players operating in the India aluminum scrap market  include Gravita India Ltd., Novelis Inc., Ananta Metal Recycling Pvt Ltd., Sanajri Recycling, Jain Metal Group, SPAS Recycling Pvt Ltd., Mahavir Enterprises, CMR Green Technologies Ltd., Mahindra Accelo., and Palco Recycle Industries Ltd.

Key Findings of the Study

• As per India aluminum scrap market analysis, by type, the old scrap segment was the highest revenue contributor, growing with a CAGR of 9.8%.
• As per India aluminum scrap market analysis, by source, the others segment was the highest revenue contributor, growing with a CAGR of 9.9%.
• As per India aluminum scrap market analysis, by end-use, the automotive segment was the highest revenue contributor, growing with a CAGR of 11.7%.

Key Regulation Analysis of India Aluminum Scrap Market

• Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 - In India, these rules play a crucial role in governing waste management, including aluminum scrap. They outline proper procedures for handling, storage, recycling, and disposal of hazardous and other wastes, ensuring environmental compliance and reducing pollution risks. By enforcing strict guidelines, these regulations encourage recycling facilities to adopt safer and more sustainable operational practices.
• Extended Producer Responsibility (EPR) Framework - India's Ministry of Environment, Forest and Climate Change has introduced the EPR regulations to hold producers accountable for the end-of-life management of their products. Under EPR, manufacturers are incentivized to adopt recyclable materials and develop efficient recycling channels for products such as packaging, electronics, and automotive parts. This significantly increases the availability and quality of recyclable aluminum scrap in the market.
• Solid Waste Management Rules, 2016 - These rules aim to systematically manage municipal solid waste, thus encouraging segregation, collection, and recycling practices. These regulations support aluminum recycling by ensuring better collection and segregation infrastructure, which enhances the quality and availability of aluminum scrap, thus promoting the recycling industry's growth.
• National Resource Efficiency Policy (NREP) - Launched by the Ministry of Environment, Forest and Climate Change, NREP emphasizes sustainable resource management and aims to double India's recycling rate. It actively encourages industries to adopt circular economy practices, significantly boosting aluminum scrap recycling activities through improved resource efficiency and reduced reliance on virgin materials.
• Goods and Services Tax (GST) Reforms - GST reforms have had significant implications on recycling businesses by standardizing tax rates across states and improving ease of doing business. This unified tax system simplifies transactions, reduces operational complexity, and helps recycling facilities remain competitive, thus enhancing their ability to scale operations.
• Automotive Industry Standards and Regulations - The Automotive Mission Plan (AMP) 2026 and Bharat Stage emission standards indirectly impact aluminum scrap recycling by mandating lighter and more efficient automotive components. This encourages greater use of recycled aluminum due to its lightweight and energy-saving properties, consequently increasing demand in the aluminum recycling sector.
• Energy Efficiency and Carbon Reduction Initiatives - Initiatives like the Perform, Achieve, and Trade (PAT) scheme by the Bureau of Energy Efficiency (BEE) incentivize industries, including aluminum recyclers, help improve energy efficiency and reduce carbon emissions. Since recycling aluminum requires significantly less energy compared to primary production, such initiatives positively influence the aluminum scrap market by making recycled aluminum more economically attractive and environmentally beneficial.