Recycled Plastics Market Overview:
According to the Pacific Institute, an American think-tank, producing bottles for American consumption, alone, requires energy equivalent to 17 million barrels of oil; and the figure doesn’t include the energy consumed during transportation of the same. Moreover, the institute assessed that producing one unit of bottled water requires three liters of water. The data was documented in 2006, and the consumption of water from plastic bottles has only increased since then, not only in the U.S., but all over the globe. While the world is threatened by the depletion of energy sources, it has become imperative to save energy that is consumed through manufacturing of plastic for various purposes. This is significantly driving the recycled plastics market that achieved a valuation of $39,623m in 2018. The demand for recycled plastics is poised to observe an increment of 6.5% CAGR during the forecast period 2019 to 2025.
Plastic disposal is one of the greatest environmental challenges faced by countries in APAC. Indonesia’s Citarum River has become the most polluted river in the world, and this is commonly attributed to the disposal of tons of plastics into the river. Similarly, many water bodies in the APAC region are contaminated by plastic waste. While plastic production is booming in APAC, the waste management techniques are still lagging, causing a spurt in waste management movements in countries such as Malaysia, India, Indonesia, and others. These movements are encouraging plastic recycling, which is leading to increased growth prospects in the recycled plastics market. In 2018, APAC held the maximum share in the recycled plastic market..
Recycled Plastics Market Outlook:
Recycled plastics are products acquired through processes such as Thermal depolymerization and waste plastic pyrolysis. The plastics obtained by recycling can be polyethylene terephthalate, high-density polyethylene, and Polyvinyl chloride. Recycled plastics find application in a gamut of industries that range from food & beverages, packaging, E-commerce, and others.
The growing packaging machinery market had a lucrative market size ranging between $39 billion to $40 billion in 2018, and the demand is projected to observe a growth of four to five percent during the forecast period 2019 to 2025. The building and construction sector is witnessing steady progress owing to increasing urbanization and growth of the real estate industry. Furthermore, the automotive sector utilizes a lot of plastic in building vehicle components. The application of recycled plastics in packaging, building & construction, and automotive industries is estimated to propel the recycled plastics market at a CAGR of 7.35% through to 2025.
Recycled Plastics Market Growth Drivers:
· The Demand Influx from the E-Commerce Sector –
In the contemporary world, billions of people are using mobile applications for making new purchases, which is leading to a boom in the E-commerce sector. Consequently, this is creating a lot of opportunities for vendors in the recycled plastics market, especially because the e-commerce industry uses a substantial quantity of plastic for packaging goods that are transported from one place to another. The future will see an increased number of transactions in the e-commerce sector, which will further grow the recycled plastic market.
· Growth of the Flexible Packaging Segment –
According to the Flexible Packaging Association (FPA), the industry in the U.S. alone experienced revenue of $30.9 billion in 2017 with a year-on-year growth of 2.4%. Apparently, most of the revenue is attributable to the use of plastic in the packaging industry. Similar to the U.S., other countries are also observing a rising demand for flexible packaging. The robust growth potential in the flexible packaging segment of the packaging industry is poised to offer opportunities to vendors in the recycled plastics market.
· Government Regulations Driving the Market –
According to the Organization for Economic Co-operation and Development (OECD), plastic recycling hasn’t reached its peak potential yet, and governments worldwide should support the recycled plastics market by enforcing some rules and regulations pertaining to plastic waste management that would make the application of recycled plastics mandatory. The future will observe some stringent regulations by governments across the globe that will give rise to lucrative opportunities in the recycled plastics market.
Recycled Plastics Market Trends –
· In October 2018, Unilever and Veolia announced a collaboration for sustainable packaging which entailed application of disposed plastic for recycling and further usage. The collaboration was executed to cater to the future demand for recycled plastic.
· In March 2019, Veolia and Nestle announced a collaboration to work on waste collection, and sorting and recycling of recycled material. Owing to growing demand for flexible packaging, the organizations will be placing emphasis on flexible plastic packaging. With two collaborations, Veolia has positioned itself eminently in the recycled plastics market.
· In March 2018, Suez and LyondellBasel announced a joint venture that will focus on plastic recycling.
Recycled Plastics Market Challenges –
Even though the recycled plastics market is poised to boom in the future, the industry hasn’t attained its full potential yet. The biggest challenge faced by vendors in the recycled plastics market is that the production of plastic products has been surpassing the recycling of the same because of limited facilities for recycling. This has created an overwhelming gap between the production, application, and recycling, which is dwarfing the recycled plastics market size. However, increased R&D is leading to advancements in technologies and systems for the collection of plastic waste and further recycling. The future will also witness stringent regulations for plastic waste management from governments worldwide, which will create lucrative prospects in the recycled plastics market. Furthermore, there is growing awareness about plastic waste disposal among the public, which will make it easier for vendors to collect plastic waste and recycle for further application.
Recycled Plastics Market Key Players Perspective –
The major players in the recycled plastics market include Veolia, Suez, KW Plastics, B. Schoenberg & Co., Jayplas, B&B Plastics, Green Line Polymers, Clear Path Recycling, Custom Polymers, Plastipak Holdings, Joes Plastics Inc., Ultra Poly Corporation, and UNM International Limited.
Recycled Plastics Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the recycled plastics market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The recycled plastics market research report also analyses the application of recycled plastics for myriad of purposes such as demand from the F&B, building & construction, and automotive.
Recycled Plastics Market Report: Industry Coverage
The recycled plastics market report identified the current trends, opportunities, and challenges in the industry along with a detailed depiction of strategies by the existing market players.
The report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
Key Questions Addressed in the Recycled Plastics Market Report
Is the market demand for recycled plastics growing? How long will it continue to grow and at what rate?
Which type of recycled plastics presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for the recycled plastics market?
A Few Focus Points Of This Research Are Given Below: