A market study published by Global Industry Analysts Inc. titled “Plastic Recycling – Global Market Trajectory & Analytics” presents a different perspective on a significantly transformed post COVID-19 marketplace.
Growth in the global market is being driven by ongoing efforts toward environmental sustainability, prompting industries to focus on plastic recycling. The increasing focus is also attributed to its increasing use in various industrial applications like product packaging, electronic components and automotive interiors. Some of the textile makers are also using recycled plastic for material production.
Another prominent factor boosting the market is availability of advanced plastic waste management technologies. Growing government support in countries such as India, China, Southeast Asia, Brazil and European nations to promote the use of recyclable plastic products augurs well for the market. Increasing landfill tax, funding for the recycling related programs, taxes on plastic bags are some such initiatives taken by the governments to curb the environmental effects and thus promote the use of recycled plastics.
In this regard, several countries have announced legislations to restrict single-use plastics to reduce their environmental impact. For instance, China has banned the use of non-recyclable plastic in metropolitan cities in 2020 that is expected to be expanded throughout the country by 2022.
Amid the COVID-19 crisis, the global market for Plastic Recycling estimated at US$36.4 Billion in the year 2022, is projected to reach a revised size of US$47.3 Billion by 2026, growing at a CAGR of 6.1 percent over the analysis period. PET, one of the segments analyzed in the report, is projected to grow at a 6.9 percent CAGR to reach US$15.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the HDPE segment is readjusted to a revised 5.9 percent CAGR for the next 7 year period. This segment currently accounts for a 19.6 percent share of the global plastic recycling market. Polyethylene terephthalate (PET) is the dominant segment due to its widespread usage in applications such as food packaging and bottling. Recycled PET has replaced virgin PET in manufacturing packaging bottles due to regulations by many governments on virgin PET. Recycled PET is also used in manufacturing furniture, fibers and carpets, which boosts the market further. Recycled HDPE finds use in manufacturing toys, pipes, ropes and bins.
The U.S. market is estimated at $3.2 billion in 2022, while China is forecast to reach $17.6 billion by 2026
The plastic recycling market in the U.S. is estimated at US$3.2 billion in the year 2022. The country currently accounts for a 8.9 percent share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of US$17.6 billion in the year 2026 trailing a CAGR of 6.7 percent through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 4.7 percent and 4.9 percent respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.3 percent CAGR while Rest of European market (as defined in the study) will reach US$18.8 billion by the end of the analysis period.
Asia-Pacific and China account for a substantial share of the global plastic recycling market. Presence of many bottled water manufacturers makes the region the largest consumer of recycled plastic. However, the ban on import of scrap and waste plastics by China is impacting the market.
The US is another major regional market for plastic recycling due to the large volumes of plastic waste being generated. In Europe, the recycled plastic market is driven by the rising use of plastic in packaging, automotive and construction industries and the adoption of regulations to restrict plastic pollution.
LDPE segment to reach $7.3 billion by 2026
Recycled LDPE is used in applications such as floorings, wall panels, furniture, bubble wraps for packaging and garbage cans. In the global LDPE segment, USA, Canada, Japan, China and Europe will drive the 5.1 percent CAGR estimated for this segment. These regional markets accounting for a combined market size of US$3.6 billion will reach a projected size of US$5.1 billion by the close of the analysis period.
China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India and South Korea, the market in Asia-Pacific is forecast to reach US$2.1 billion by the year 2026, while Latin America will expand at a 5.3 percent CAGR through the analysis period.
The full report can be accessed via Global Industry Analysts, Inc.’s website.
