Recycled Plastic Granules Market Is Estimated To Witness High Growth Owing To Sustainable Practices And Significant Government Support For Plastic Recycling
The global recycled plastic granules market is estimated to be valued at USD 3.25 Bn in 2024, exhibiting a CAGR of 4.5% over the forecast period (2024-2031). Furthermore, stringent regulations such as material recovery facilities (MRFs) Standards regarding the use of virgin plastics along with the availability of tax incentives and subsidies for using recycled plastics are contributing to the growth of the market.
Market Dynamics:
The growth of the global recycled plastic granules market is determined by two key drivers - stringent regulations and growth in plastic recycling. Regulatory bodies across regions have implemented stringent regulations regarding the use of virgin plastics to curb plastic waste. This has fostered the demand for recycled plastic granules from end-use industries. Additionally, with significant initiatives by governments and private organizations to promote plastic recycling, the collection and recycling rates of post-consumer plastic waste have increased substantially over the years. This has augmented the supply of recycled plastic granules, driving their adoption among manufacturers. While regulatory push and recycling promotion offer opportunities, inconsistent supply of recycled feedstock, and challenges in attaining desired quality standards continue to hinder the market growth to some extent.
Increasing Concerns Over Plastic Waste Accumulation Drives the Demand for Recycled Plastic Granules
One of the major drivers for the global recycled plastic granules market is the growing concerns regarding plastic waste accumulation and its adverse impact on the environment. Plastic is one of the most widely used materials across various industries due to its versatility and low-cost. However, this has also led to a massive accumulation of plastic waste that ends up in landfills or oceans. The rest causes severe pollution problems. There is a growing push from governments and environmental agencies around the world to reduce dependency on virgin plastic and increase plastic recycling rates. Recycled plastic granules provide an excellent solution as they can be used as a substitute for virgin plastics in various applications like packaging, construction materials, etc. This is expected to significantly drive the demand for recycled plastic granules.
Rising Legislation Promoting the Use of Post-Consumer Recycled Content Drives Market Growth
Governments around the world are introducing stricter legislation that promotes the use of post-consumer recycled content in plastic products. For example, the European Union has mandated that all plastic packaging must contain at least 30% recycled content by 2030. California became the first U.S. state to require retailers and manufacturers to use recycled content in plastic bottles. Similar legislation is expected to be introduced in other regions to promote a circular economy. This allows recycled plastic granules producers to find new avenues of demand. Manufacturers also prefer using recycled granules to conform to regulations and meet sustainability targets. The need to adhere to regulations promoting recycled plastic use acts as a key driver for the recycled plastic granules market.
Lack of Standardization in Production Restrains Market Growth
One of the major restraints affecting the recycled plastic granules market is the lack of standardization in production processes. Recycled plastics vary significantly based on the type of plastics recycled, collection and sorting methods, and recycling technologies used. This leads to inconsistencies in quality, properties and colors of recycled plastic granules. Manufacturers find it difficult to consistently source granules of the required specifications. The variations can also impact the performance of final products. Additionally, different regions and companies follow different recycling practices making global trade challenging. The lack of standard processes increases production costs and uncertainty for plastic product manufacturers. This acts as a key restraint for greater adoption of recycled plastic granules.
Risk of Contamination Hampers Market Prospects
Another major challenge faced by the recycled plastic granules industry is the risk of contamination in feedstock. Plastics collected for recycling often contain other materials like paper, metals which cannot be effectively separated. Even small amounts of contamination can downgrade the quality and properties of recycled plastic granules rendering them unsuitable for high-quality applications. Advanced sorting and cleaning technologies are required to produce contamination-free granules which increases costs. The presence of contaminants also raises concerns over food-grade applications and product safety. The potential health and performance risks due to contamination limit the end-uses of recycled plastic granules. This acts as a significant restraint for the market especially in developed markets with stricter product standards and regulations.
Emergence of Advanced Sorting Technologies Unlocks New Opportunities
One of the key opportunities for recycled plastic granules producers is the advancement of plastic sorting technologies. Traditional sorting methods based on manual inspection or basic sensors had limitations in separating different plastic resins and removing contamination. However, emerging technologies like near-infrared and X-ray sensing combined with machine learning algorithms have significantly improved plastic sorting accuracy. These advanced automated solutions can filter out over 90% of contamination and appropriately separate and categorize numerous plastic resins at high-speeds. Wider adoption of such technologies especially in developing nations will enhance plastic waste collection and sorting infrastructure. This will augment the supply of uniformly high-quality recycled feedstock. As a result, recycled plastic granules producers can better cater to the stringent quality needs of plastic converters and OEMs across diverse industries.
Growing Demand for Sustainable Plastics Presents Huge Market Potential
Sustainability has become one of the biggest driving forces across industries in recent years. Major brands and manufacturers such as BASF are actively pursuing green initiatives and diversifying into sustainable materials to attract eco-conscious customers and millennials. Recycled plastic granules perfectly fit the criteria of a sustainable raw material. They not only help reduce dependency on fossil fuels but also keep plastic waste out of the environment. A growing number of industries like automotive, packaging, construction and consumer goods have started utilizing recycled granules.
Link - https://www.coherentmarketinsights.com/market-insight/recycled-plastic-granules-market-5112
Key Developments:
- On December 2, 2024, Berry Global’s European Flexibles division reported a significant 36% increase in the use of post-consumer recycled (PCR) polyethylene (PE) across its industrial, non-contact sensitive consumer, and agricultural film products. This achievement underscores the company’s dedication to promoting sustainable packaging solutions and helping clients meet their environmental goals.
- In 2021, Veolia’s acquisition of Suez marked a key milestone, forming a global leader in environmental services. This strategic merger combined the strengths of both companies in waste management, water treatment, and recycling, expanding Veolia's presence in the plastic recycling sector and enhancing its role in providing recycled plastic granules and sustainable solutions. Suez is a global leader in environmental services, specializing in water and waste management solutions.
Key Players:
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
