Recycled Plastics Market Research Report and Outlook by 2028

The recycled plastics market is anticipated to achieve a valuation of US$ 4001.37 million by the year 2028, rising from US$ 2682.21 million in 2022. This growth trajectory indicates a compound annual growth rate (CAGR) of 6.9% from 2022 to 2028.

A significant driver of this market expansion is the increasing demand for recycled plastics within the automotive sector. The escalating levels of plastic waste in the environment have prompted manufacturers to pivot towards the production of recycled plastics, which find extensive applications across various industries. The rise in automotive production is expected to create substantial opportunities for the recycled plastics market. One of the primary motivations for incorporating recycled plastics in automotive manufacturing is the reduction of vehicle weight, which is directly correlated with lower carbon emissions. Additionally, these plastic components are resistant to corrosion, provide flexibility and durability for enhanced safety, and offer thermal insulation properties. Collectively, these advantages bolster the demand for recycled plastics in the automotive sector.

According to data from the Organisation Internationale des Constructeurs d'Automobiles (OICA), American countries produced over 16.2 million commercial and passenger vehicles in 2010, with production increasing by more than 23% to exceed 20 million units by 2019. The automotive industry in China has also been experiencing rapid growth, positioning the country as a key player in the global vehicle market. Furthermore, OICA reports indicate that the automotive sector saw a growth of over 5% in 2021 compared to the previous year. Numerous companies in the automotive market are making significant investments to enhance production and sales capabilities. For example, in July 2021, Maruti Suzuki India Ltd. announced a substantial investment of US$ 2.42 billion to establish a new manufacturing facility in Haryana, India, which is projected to produce approximately 1 million units annually. This surge in automobile production is further driving the demand for recycled plastics, thereby propelling the growth of the recycled plastics market.

In 2020, the Asia Pacific region accounted for the largest share of revenue in the recycled plastics market. The primary factor contributing to the growth of this market in the region is the robust demand for recycled plastics across various sectors, including manufacturing, automotive, packaging, textiles, construction, and consumer goods. The strong automotive and food & beverage industries in countries such as Japan, South Korea, China, and India generate significant demand for recycled plastics. These materials are extensively utilized in the production of sustainable food packaging solutions, including bottles, containers, and films. Additionally, the rising purchasing power in developing economies is driving the consumption of packaged food products. The substantial demand for recycled plastics in the automotive sector is expected to create lucrative opportunities for market growth in the Asia Pacific region.

Key players in the recycled plastics market include REMONDIS SE & CO.KG, Biffa, Stericycle, Inc., Veolia, Jayplas, Alpek S.A.B.de C.V., Republic Services, Inc., B & B Plastics Inc., Clear Path Recycling, and PLASTIPAK HOLDINGS, INC.. These companies are focusing on strategies such as investing in research and development and launching new products. They aim to create high-quality and innovative solutions that meet the evolving needs of their customers.

The overall size of the recycled plastics market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data related to the recycled plastics market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included vice presidents, business development managers, market intelligence managers, national sales managers, and external consultants, such as valuation experts, research analysts, and key opinion leaders specializing in the recycled plastics sector.