North America Aluminum Scrap Recycling Market Expected to reach $19.8 Million by 2033

According to a new report published by Allied Market Research titled, “North America aluminum scrap recycling Market Category, and End-Use: Regional Opportunity Analysis and Industry Forecast, 2024–2033.”

The North America aluminum scrap recycling market was valued at $12.4 billion in 2023 and is projected to reach $19.8 billion by 2033, registering a CAGR of 4.9% from 2024 to 2033.

Introduction

Aluminum scrap recycling is the process of collecting, sorting, cleaning, and reprocessing discarded aluminum materials, such as cans, automotive parts, and industrial waste, into reusable products. The scrap is melted in furnaces and transformed into ingots, sheets, or other forms for manufacturing. This process uses significantly less energy than producing aluminum from raw bauxite, making it cost-effective and environmentally friendly. Recycling aluminum reduces waste sent to landfills, conserves natural resources, and lowers greenhouse gas emissions, contributing to sustainability and promoting a circular economy. 

Market Dynamics

High energy savings significantly drive the growth of the North America aluminum scrap recycling market. Recycling aluminum uses much less energy as compared to producing primary aluminum from bauxite ore. This reduction in energy consumption leads to lower operational costs and a smaller environmental footprint, making it an appealing choice for industries. In North America, this energy efficiency aligns with sustainability goals and strict environmental regulations, fostering the adoption of recycling practices. In addition, cost savings associated with energy use make recycled aluminum a competitive option in manufacturing, further fueling demand and growth in the North America aluminum scrap recycling market. 

However, contamination of scrap material is a significant challenge in the North America aluminum scrap recycling market. When aluminum waste is mixed with other metals, plastics, or non-metallic materials, recycling becomes less efficient.. Contaminated scrap requires additional processing to remove impurities, increasing operational costs and reducing the quality of the final product. This lowers the efficiency of recycling plants and limits the amount of usable aluminum that can be recovered. As a result, contamination impedes the growth of the recycling market by raising costs, reducing profitability, and hindering the ability to meet sustainability goals effectively. All these factors hamper the North America aluminum scrap recycling market growth.

Technological advancements in recycling processes present a significant opportunity for the growth of the North America aluminum scrap recycling market. Innovations in sorting, cleaning, and melting technologies allow for more efficient extraction of aluminum from scrap, improving recycling rates and reducing energy consumption. Advanced techniques, such as automated sorting systems and enhanced furnace technologies, minimize contaminants and increase material quality, making recycled aluminum more viable for various industries. These improvements not only lower operational costs but also make the recycling process more sustainable. All these factors are anticipated to offer new growth opportunities for the North America aluminum scrap recycling market during the forecast period.

Segments Overview

The North America aluminum scrap recycling market is segmented into category, end use, and country. On the basis of category, the market is bifurcated into new scrap and old scrap. On the basis of end use, the market is classified into automotive, aerospace and defense, building and construction, electrical and electronics, packaging, and others. Country-wise, the market is analyzed across U.S., Canada, and Mexico. 

In 2023, the old scrap segment dominated the North American aluminum scrap recycling market accounting for nearly two-fifths of revenue. This is due to its abundant availability from post-consumer sources such as used beverage cans, automotive parts, and construction materials. Its high market share is driven by its significant role in promoting sustainability, as recycling old scrap conserves energy and reduces reliance on primary aluminum production. The projected 5.56% CAGR from 2024 to 2033 reflects growing demand across industries, advancements in sorting technologies, and increasing adoption of eco-friendly practices, aligning with circular economic goals and environmental regulations.

In 2023, the packaging segment held the largest market share in the North America aluminum scrap recycling market, accounting for more than three-fifths of revenue. This growth is due to the high demand for sustainable materials in beverage and food packaging. Aluminum’s lightweight, durability, and 100% recyclability make it ideal for cans and containers. Growing consumer awareness of eco-friendly practices and circular economy initiatives further propelled the use of recycled aluminum in the packaging sector, ensuring its top position in the market. The electrical and electronics segment is projected to experience the highest CAGR of 6.62% from 2024 to 2033, which is growing rapidly due to increased demand for energy-efficient devices, recycled aluminum in components, and sustainable manufacturing practices.

The key players analyzed in the report are Matalco Inc., Novelis, REAL ALLOY, Harbor Aluminum, Atlas Iron And Metal Co., Sims Alumisource., Berman Brothers, Inc., Orange Recycling Center, Atlas Metal And Iron Corp., Pascap Co. Inc., S&S Metal Recyclers, ASM Recycling Inc., TM Scrap Metals, RAM Iron And Metal Inc., Action Metals, and SA Recycling LLC.

Key Findings of the Study:

• On the basis of category, the old scrap segment will dominate the market in 2025. 
• On the basis of end-use, the electrical and electronics segment is the fastest-growing segment with a CAGR of 6.6% during the forecast period.