The global recycled plastics market is expected to reach USD 54.57 billion by 2025. Rising environmental concerns coupled with a stringent framework to reduce carbon footprint and conserve energy, as recycling consumes around 80.0 percent less energy than producing new plastic, are expected to drive the market in the near future. Its usage is expected to increase in multiple sectors, including packaging and automotive.
Multiple companies including Nestlé’ and Volvo plan to use recycled plastic. Nestlé’ plans to make 100 percent of its packaging reusable by 2025, while Volvo plans to have recycled plastics account for around 25 percent of all plastics used in its new vehicles from 2025.
The plastic recycling rate is expected to witness growth over the next few years. By the end of 2030, it is expected that around 300 million tons of plastic will be recycled, if the current flow of landfill and its incineration is managed, re-directed and well captured.
Recycled polyethylene (PE) dominated the market with more than 29.0 percent volume share in 2017. PE is widely used in manufacturing reusable bags, toys, trays, agriculture films, food packaging films, milk bottles, shampoo bottles, containers and housewares. Increasing collection volume coupled with the increasing adoption of automation in the sorting and processing of waste plastic in countries including the U.S. and Germany has led to the growth in PE recycling.
Polyethylene Terephthalate (PET) bottles are 100 percent recyclable and are considered an attractive material for recycling owing to low recycling cost. Increasing adoption of plastics including PET as a lightweight material is expected to have a positive impact on the market.
Packaging is expected to reach 34.67 million tons by the end of 2025. Increasing consumption of packed food coupled with the trend of food take away and delivery services is expected to remain one of the key factors adding to market growth.
Electrical & electronics market is also among the key contributors to the growth of the market. Some of the key products that present a promising growth opportunity for the market include digital cameras, computers, video game consoles, and mobile phones.
Replicating the efforts to reduce carbon footprint, Samsung plans to use recycled plastics and paper for packaging its mobile phones and home appliances from the first half of 2019. The company also plans to use 500 thousand tons of recycled plastic by 2030.
Published in the March 2019 Edition