Conversion of Plastic Waste into Useful Synthetic Resins Becomes a Median for Technological Innovations Within Global Recycled Plastics Market

February 2022

Increasing awareness and sensitivity toward environmental concerns has largely discouraged the demand for single-use plastics. This has led to stricter government regulations upon Consumer Packaged Goods (CPGs) across various regions. Alongside this, consumer demand for sustainable packaging has inflated, ensuing a widespread requirement for recycled plastics. Fairfield Market Research finds that the global recycled plastics market was worth US$19.5 Bn in 2019 and is forecasted to reach US$30.2 Bn in 2026, registering a healthy CAGR of 8.1% between 2022 and 2026. Development of innovative technology through research in the field of synthetic resins becomes a focal area for companies operating in the industry. In the face of such advancements, global market for recycled plastics can expect multiple opportunities for growth under its perusal.

Key Insights and Trends Dominating the Global Recycled Plastic Market

• Food packaging will be the fastest growing application category in terms of volume. Polyethylene terephthalate (PET) was found to be a leading category of recycled plastics in 2019. In terms of value, it is projected to reach US$ 14.1 Bn by 2026, growing with a CAGR of 8.7% owing to the higher demand from food as well as non-food packaging applications.

• Growing demand for sustainable plastic materials from the automotive industry is likely to boost the demand for recycled plastics as well. To tap this potential, plastic recyclers have developed technologies to effectively separate and recycle plastic from end-of-life vehicles (ELV).

• Recycled plastics are being increasingly uses for carpeting, flooring tiles, roofing tiles, indoor insulation, bricks, and fences. Residential as well as commercial construction sectors are benefitting owing to the durability, lighter weight, and high strength in case mix-compound recycled plastics as these materials are cost-competitive compared to virgin plastics.

Various Properties of Classified Recycled Plastics Ensue Market Growth Through Different Sectors

Lack of polypropylene and virgin polyethylene availability is projected to encourage the use of recycled polythene. As consumers become increasing sensitive to environmental concerns, they raise demand for sustainability commitments with the packaging industry. With a benefit of their own in the face of long-term cost-cutting, companies adapt to the new trends of durable packaging. Due to this, market for recycled high-density polyethylene (HDPE) and low-density

polyethylene (LDPE) are forecasted to experience surging growth. Major use of recycled polypropylene for producing outdoor furniture and other construction consumer products is expected to have a share in the expansion of the global recycled plastics market.

Countries of Southeast Asia to Enlist a Fast-Paced Market Growth

Europe has been at the forefront in taking pragmatic measures to recycle and reuse plastic. The European Union aims to recycle all plastic packaging in the market by 2030 by introducing various bans across the region. The commission sanctioned an initiative “The Circular Plastics Alliance (CPA)’’, which aims to boost the EU market for recycled plastics to 10 million tons by 2025.  Despite this, Asia Pacific took up a dominant share in the market in 2019, owing to China’s leading demand. However, regions such as India and Southeast Asia are going to be the fastest growing markets in volume terms chiefly driven by sustained efforts to reduce plastic pollutions

Key market players in the recycled plastics market are Remondis SE & Co. KG; Biffa; Stericycle; Republic Services, Inc.; WM Intellectual Property Holdings, L.L.C.; Veolia; and Shell International B.V.