Plastic Recycling Market Size, Share, Trends, Growth 2032

Plastic Recycling Industry Prospective:

The global plastic recycling market size was evaluated at $50.04 billion in 2023 and is slated to hit $70.12 billion by the end of 2032 with a CAGR of nearly 3.82% between 2024 and 2032.

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Plastic Recycling Market: Overview

Recycled plastics are utilized for manufacturing light-weight parts which find a slew of applications in the construction, electronics, and packaging sectors. The thriving e-commerce sector is likely to contribute notably towards the expansion of the plastic recycling business globally. Reportedly, recycled plastic is a kind of plastic waste that is processed into useful plastic products. Growing restrictions on the use of single-use plastics and strict laws implemented by EU countries as well as India & Brazil have promoted the demand for plastic recycling activities across the globe.      

Key Insights

• As per the analysis shared by our research analyst, the global plastic recycling market is projected to expand annually at the annual growth rate of around 3.82% over the forecast timespan (2024-2032)
• In terms of revenue, the global plastic recycling market size was evaluated at nearly $50.04 billion in 2023 and is expected to reach $70.12 billion by 2032.
• The global plastic recycling market is anticipated to grow rapidly over the forecast timeline owing to a surge in the plastic used in lightweight component production.
• In terms of material, the polyethylene terephthalate segment is slated to register the highest CAGR over the forecast period.
• Based on recycling process, the mechanical segment is predicted to lead the segmental space in the upcoming years.
• Based on application, the packaging segment is expected to dominate the segmental sphere in the next few years.
• Region-wise, the North American plastic recycling industry is projected to register the fastest CAGR during the projected timespan.

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Plastic Recycling Market: Growth Factors

Growing plastic usage in the manufacture of lightweight parts to boost the expansion of the global market

The surge in the plastic used in lightweight component production is anticipated to embellish the expansion of the global plastic recycling market. The rise in the use of plastics in the building & construction, electrical & electronics, and automotive sectors will embellish the growth of the global market. Reportedly, the utilization of recycled plastics is made for manufacturing windows, structural lumbers, fences, and insulations.

A prominent increase in infrastructural growth and favorable government policies for attracting foreign direct investments in emerging economies will proliferate the global market demand. Apart from this, the rise in the penetration of recycled plastics in packaging, footwear, and food & beverages sectors will promulgate the scope of the global market growth in the years ahead.

Plastic Recycling Market: Restraints

The surge in the purchase of substitute products can restrict the expansion of the global industry by 2032

The negative effect of the down-cycling process used for plastic recycling can restrict the expansion of the global plastic recycling industry in the coming years. A surge in the demand for virgin plastics as compared to recycled plastics can impede the progression of the global industry.

Plastic Recycling Market: Opportunities

Favorable government laws encouraging the use of biodegradable products can open new avenues of growth for the global market

Supportive government policies promoting the usage of recycled plastics in developed nations will open new growth opportunities for the global plastic recycling market. In addition to this, rising economies of scale will further contribute to the expansion of the global market size in the coming years.

Plastic Recycling Market: Challenges

Surging raw component prices can put brakes on the expansion of the global industry over 2024-2032

A rise in the costs of raw materials along with supply chain disruptions can pose a big threat to the expansion of the global plastic recycling industry. A surge in operational costs can prove to be detrimental to the growth of the industry across the globe.

Plastic Recycling Market: Segmentation

The global plastic recycling market is sectored into the material, recycling process, application, and region.                                         

In material terms, the plastic recycling market across the globe is segregated into high-density polyethylene, polyethylene terephthalate, polypropylene, and low-density polyethylene segments. Furthermore, the polyethylene terephthalate segment, which acquired nearly 36% of the global market revenue in 2023, is predicted to record the highest CAGR in the years to come. The expansion of the segment from 2024 to 2032 can be credited to a rise in the application of polyethylene terephthalate in bottling as well as food & beverage packaging applications. Favorable features of the material such as longevity, lightweight, and recyclability will drive the segmental growth.                

Based on the recycling process, the global plastic recycling industry is separated into chemical and mechanical segments. Additionally, the mechanical segment, which gathered a lucrative share of the global industry in 2023, is forecast to lead the segmental space in the coming eight years. The segmental upsurge from 2024 to 2032 can be due to an increment in the utility of mechanical processes in collecting plastic wastes.

Based on the application, the global plastic recycling market is divided into automotive, packaging, textile, construction, and other segments.  Apart from this, the packaging segment, which collected nearly three-fourths of the global market revenue in 2023, is anticipated to continue its segmental dominance in the upcoming years. The uplifting of the segment from 2024 to 2032 can be due to a rise in the preference for packaged foods, electronic & electrical equipment, and clothes. Apart from this, an immense use of recycled plastics in materials used for packaging such as automotive parts, electric shavers & trimmers, and clothes will spur the segmental surge.

Plastic Recycling Market: Report Scope

Plastic Recycling Market: Regional Insights

Europe is anticipated to maintain the leading position in the global plastic recycling market in the years to come

Europe, which accounted for nearly 77% of the global plastic recycling market revenue in 2023, is likely to establish its domination in the coming eight years. Apart from this, the regional market surge over the forecast timeframe can be credited to strict laws banning the use of single-use plastics by the European Union. Moreover, the UK and Germany have contributed sizably towards the expansion of the market in the continent.

North American plastic recycling industry is set to register the fastest CAGR in the forecast timespan. The expansion of the industry in the sub-continent can be subject to thriving packaging and automotive sectors in countries such as the U.S. and Canada. In addition to this, the presence of key players in these countries will steer the growth of the industry in the sub-continent.

Key Developments

• In the first half of 2022, Plastipak Holdings, Inc., a key firm in the production, design, and plastic container recycling business, declared of increase the production capacity of its PET recycling unit at Luxemborg by 136%. The strategic move is likely to boost the growth of the plastic recycling market in Europe.  
• In the first quarter of 2023, Indorama Ventures, a petrochemical firm, and Evertis, a firm producing recycled content PET barrier films for food packaging, joined hands to use flake made from recycled PET trays for producing PET films.

Plastic Recycling Market: Competitive Space

The global plastic recycling market profiles key players such as:

• Shell International B.V.
• REMONDIS SE & Co. KG
• CLEAN HARBOR INC.
• Biffa
• Waste Connections
• Republic Services Inc.
• WM Intellectual Property Holdings L.L.C.
• Stericycle
• Veolia
• Covetsro AG.

The global plastic recycling market is segmented as follows:

By Material

• Polyethylene Terephthalate
• Polypropylene
• High-Density Polyethylene
• Low-Density Polyethylene

By Recycling Process

• Chemical
•  Mechanical

By Application

• Packaging
• Automotive
• Construction
• Textile
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa