The global recycled plastic granules market is estimated to be valued at USD 3.25 Bn in 2024 and is expected to reach USD 4.43 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.
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Strict government regulations and rules regarding plastic waste disposal and rising awareness about environmental protection are driving more companies to use recycled plastic granules. The market is witnessing positive trends owing to the implementation of stringent laws prohibiting the use of virgin plastics and landfill disposal of plastic waste across various countries. Moreover, sustainable production practices and focus on circular economy is further buttressing the demand for recycled plastic granules from industries such as construction, automotive, and packaging.
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Insights By Product Type - PP Granules Segment Leads Due to Wide Range of Applications
In terms of product type, PP granules segment is expected to contribute 35.4% share of the market in 2024, owing to their versatility and widespread usage. Polypropylene (PP) is a thermoplastic polymer that can be easily recycled and reprocessed. It possesses desirable properties such as resistance to moisture, chemicals, and microorganisms. These characteristics make PP highly suitable for varied applications. The versatility of PP granules, coupled with advancements in recycling technologies, is expected to maintain their market leadership in the coming years.
Insights By Application - Automotive Remains the Largest Consumer of Recycled Plastic Granules
In terms of application, the automotive segment is expected to contribute 37.4% share of the market in 2024. Rising vehicular production and stricter environmental regulations are key growth drivers. Automakers actively pursue light-weighting to improve fuel efficiency without compromising safety. Plastic components help achieve this goal while retaining strength and durability. Recycled plastic granules allow automakers to procure cost-effective, sustainable plastic raw materials.
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Regional Analysis:
Dominating Region: Asia Pacific
The Asia Pacific region is expected to command the largest share of the market, with a projected 45.3% of the market share in 2024. This dominance is driven by strong government policies that promote sustainability and waste reduction. Additionally, the region benefits from a significant presence of major recycling companies and a well-established infrastructure for waste collection and sorting, creating an ideal environment for large-scale plastic recycling.
Fastest-Growing Region: Europe
Europe exhibits the fastest growth, driven by a rapidly expanding plastic manufacturing industry alongside rising environmental consciousness. Countries like the U.K. and Germany are aggressively focusing on developing domestic recycling capabilities to meet the growing need for recycled feedstock.
Recycled Plastic Granules Market Outlook for Key Countries
Sustainable Packaging Demand and Government Initiatives in the U.S.
The U.S. leads the global recycled plastic granules market, driven by the increasing demand for sustainable packaging solutions. In December 2023, Coca-Cola announced the launch of a fully-recycled PET bottle, reinforcing the trend toward circular economies. The U.S. government has also prioritized plastic waste management through initiatives like the “Save Our Seas 2.0” plan, aiming to reduce plastic waste and increase recycling efforts.
Germany Dominates the Europe Recycled Plastic Granules Market with Strict Recycling Laws and Technological Innovation
Germany remains a dominant player in the Europe recycled plastic granules market due to stringent recycling laws and technological advancements in waste processing. For instance, according to European Parliament report in June 2024, the total plastic waste produced in the EU in 2021 was 16,13 million tons. Around 6,56 million tons of plastic waste were recycled. In September 2023, BASF announced an investment in advanced recycling technology to boost the use of recycled plastics in production.
China Drives the Asia Pacific Recycled Plastic Granules Market Growth with Strong Government Support and New Policies
China is a key driver in the Asia Pacific recycled plastic granules market, with strong governmental support for recycling initiatives. In March 2023, the Chinese government introduced a new policy mandating that plastic packaging be made from at least 50% recycled materials by 2025. This is expected to significantly boost the demand for recycled plastic granules.
Government Investments in Recycling Infrastructure in India Drives Market Growth
The India recycled plastic granules market is growing rapidly, driven by a rising focus on sustainability and plastic waste management. In 2024, the Indian government allocated US$ 59 million to improve plastic waste recycling infrastructure as part of the Swachh Bharat Mission. This initiative is expected to significantly enhance recycling capacity and demand for recycled granules.
Japan Boosts the Recycled Plastic Granules Market Growth with Innovation and Government Support for Circular Economy Initiatives
Japan is a leading market for recycled plastic granules due to its innovative recycling technologies. The Japanese government has implemented a policy requiring all plastic packaging to be recyclable by 2025. In February 2024, Mitsubishi Chemical announced a collaboration with Tokio Marine & Nichido and ABT, a recycling firm, to produce high-quality recycled plastic pellets for use in automotive manufacturing.
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Top Strategies Followed by Global Recycled Plastic Granules Market Players
Emerging Startups in the Global Recycled Plastic Granules Market
Innovative Technologies: Companies are developing smart sensors integrated with AI and IoT. RePolySense has invented a technology using sensor fusion and machine learning algorithms. It collects real-time data on recycling streams to increase sorting accuracy and reduce contamination. Another startup Recyclotron is using robotics, computer vision and machine learning to automate plastic sorting with high efficiency.
Sustainable Solutions: Startups focus on eco-friendly products and closed-loop recycling. Companies like Closed Loop Partners are commercializing bio-based plastic made from food and agricultural waste combined with recycled plastics using novel chemical processes.
Market Contribution: Startups target niche sectors. Agilyx develops plastics-to-fuel technology converting non-recyclable plastics to diesel and gasoline helping reduce landfill waste. Polywood collaborates with furniture brands to manufacture outdoor furniture using recycled plastic lumber helping construction industry achieve sustainability goals.
Key Takeaways from Analyst
Recycled Plastic Granules Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2023 | Market Size in 2024: | US$ 3.25 Bn |
Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
Forecast Period 2024 to 2031 CAGR: | 4.5% | 2031 Value Projection: | US$ 4.43 Bn |
Geographies covered: |
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Segments covered: |
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Companies covered: |
Veolia Environnement S.A., BASF SE, Plastipak Holdings, Inc., Suez Recycling and Recovery, Repreve (Unifi, Inc.), Clear Path Recycling, Green Line Polymers, Customized Polymers, Inc., KW Plastics, EcoStar, A&E Plastics, Inc., Berry Global, Inc., Loop Industries, Inc., RPC Group plc, and Constar International LLC |
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Growth Drivers: |
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Restraints & Challenges: |
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Market Driver - Increasing government regulations promoting recycling and sustainable practices
With growing concerns around plastic waste polluting land and sea, governments across the world are introducing stricter regulations to promote recycling and sustainability. Plastic production has been increasing exponentially each year due to its inexpensive and durable properties. However, most plastic items have a very short use cycle and end up as waste. Landfills are filling up at an alarming rate with plastic waste that takes centuries to decompose. Burning plastic waste releases toxic fumes into the air.
Market Challenge - High costs associated with the recycling process and technology
This market is facing significant challenges due to the high costs associated with plastic recycling process and technology. Recycling plastic requires multiple steps of sorting, cleaning, and processing the used plastic into fluid and feedstock. This recycling process is complex and requires sophisticated machinery. The machinery and equipment needed for sorting, cleaning, and processing used plastic comes with very high initial investment costs. Additionally, the maintenance and operation of these recycling plants incurs substantial operating expenses.
Market Opportunity - Innovations in recycling technologies enhancing efficiency and effectiveness
This market is witnessing significant new opportunities arising from ongoing innovations in recycling technologies. Carbios has developed an enzymatic recycling technology that breaks down PET plastics into their original building blocks, which can then be used to produce new, high-quality plastic. New melt filtration and degradation techniques are helping produce higher quality recycled plastic granules from mixed plastic waste streams. Emerging recycling robotics and automation are optimizing operations and reducing labor costs.
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About Author
Pankaj Poddar is a seasoned market research consultant with over 12 years of extensive experience in the fast-moving consumer goods (FMCG) and plastics material industries. He holds a Master’s degree in Business Administration with specialization in Marketing from Nirma University, one of India’s reputed institutions, which has equipped him with a solid foundation in strategic marketing and consumer behavior.
As a Senior Consultant at CMI for the past three years, he has been instrumental in harnessing his comprehensive understanding of market dynamics to provide our clients with actionable insights and strategic guidance. Throughout his career, He has developed a robust expertise in several key areas, including market estimation, competitive analysis, and the identification of emerging industry trends. His approach is grounded in a commitment to understanding client needs thoroughly and fostering collaborative relationships. His dedication to excellence and innovation solidifies his role as a trusted advisor in the ever-evolving landscape of not only FMCG but also chemicals and materials markets.
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