Plastic Recycling Market Expected to Reach $61 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Plastic Recycling Market," The plastic recycling market was valued at $27.9 billion in 2021, and is estimated to reach $61 billion by 2031, growing at a CAGR of 8.7% from 2022 to 2031.

Plastic recycling refers to the process of converting plastic waste materials into new products or raw materials that can be used again in the manufacturing process. The aim of plastic recycling is to reduce the amount of plastic waste that ends up in landfills or oceans and conserve natural resources by reducing the need for virgin plastic production. Recycling plastic has many benefits, including reducing pollution and conserving energy. When plastic waste is recycled, it is diverted from landfills or the environment, reducing the amount of pollution that it creates.

The rising demand for recycled plastics is a major growth factor of the plastic recycling market. As companies are becoming environmentally conscious, they are looking for ways to reduce their carbon footprint and incorporate sustainable practices into their operations. Recycling plastic is a great way to achieve this goal. Recycled plastics are cost-effective and offer similar properties as virgin plastics, which makes them an attractive option for manufacturers. In addition, many end-use industries, such as packaging, construction, automotive, and textiles, are increasingly using recycled plastics in their products. This is because recycled plastics can help them meet their sustainability goals, while also reducing their costs. The growing demand for recycled plastics is expected to continue to drive the growth of the plastic recycling market in the coming years.

However, some of the limited infrastructure is a significant constraint on the plastic recycling market size. Proper recycling facilities are necessary to collect, sort, and process plastic waste. In many areas, such facilities are either non-existent or insufficient to handle the amount of plastic waste generated. This lack of infrastructure limits the potential of plastic recycling, as it makes it challenging to carry out the necessary steps to recycle plastic waste. Additionally, even in areas where recycling facilities exist, they may not have the necessary technology to recycle certain types of plastic or may not have the capacity to handle large volumes of plastic waste.

The plastic recycling market plays a crucial role in promoting environmental sustainability by reducing the amount of plastic waste that ends up in landfills and oceans. Recycling plastic not only conserves natural resources but also reduces energy consumption, greenhouse gas emissions, and pollution associated with the production of new plastic products. It also creates employment opportunities in the recycling industry and helps to conserve landfill space, which is a valuable resource. Therefore, promoting and investing in plastic recycling is an important step towards achieving environmental sustainability. These factors are anticipated to boost the market growth in the upcoming years.

The global plastic recycling market share is segmented based on product, source application, and region. By product, it is classified into polyethylene (PE), polyethylene terephthalate (PET), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), and others. By source, it is classified into plastic bottles, plastic films, polymer foam, and others. By application, it is classified into building and construction, packaging, electrical and electronics, textiles, automotive, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the plastic recycling market forecast report include REMONDIS SE & Co. KG, Biffa, Stericycle, Republic Services, Inc., WM Intellectual Property Holdings, L.L.C., Veolia, Shell International B.V., Waste Connections, CLEAN HARBORS, INC., and Covetsro AG.

The report offers a comprehensive analysis of the global plastic recycling market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of Covid-19 on the Global Plastic Recycling Industry

• Due to lockdowns and restrictions on movement, there has been a significant reduction in the amount of plastic waste generated by households, commercial establishments, and industries. This reduction in plastic waste has impacted the supply of raw materials for the recycling industry.
• The pandemic has disrupted the global supply chain, including the supply of plastic waste for recycling. With restrictions on movement and transportation, the collection and transportation of plastic waste have been affected, leading to a shortage of raw materials for recycling.
• The pandemic has also impacted the demand for recycled plastic, as many industries have reduced or halted production due to the economic slowdown. This reduced demand has led to a decrease in the prices of recycled plastic.
• Social distancing norms, closed borders, and production constraints, due to the pandemic, across various countries such as China, India, and the U.S. have affected the global market.

Key Findings of the Study

• Based on product, the polyethylene terephthalate (PET) sub-segment emerged as the global leader in 2021 and is anticipated to be the fastest growing sub-segment during the forecast period.
• Based on source, the plastic bottles sub-segment emerged as the global leader in 2021 and is predicted to show the fastest growth in the upcoming years.
• Based on application, the packaging sub-segment emerged as the global leader in 2021 and automotive sub-segment is predicted to show the fastest growth in the upcoming years.
• Based on region, the Asia-Pacific market registered the highest market share in 2021 and is projected to maintain the position during the forecast period.