Plastic Recycling Market Expected to Reach $54,019.1 Million by 2026Download Sample Reports Overview
Plastic Recycling Market Overview:
According to plastic recycling market analysis by Research Dive, the global market forecast will be $54,019.1 million by the end of 2026, at a 6.5% CAGR, growing from $32,640.0 million in the end of 2018.
Adverse environmental effect of plastic disposal is driving the growth of the market because, usage of conventional plastic materials causes marine and land pollution. Hence, government are taking initiatives to reduce the disposal of plastics into the environment, which is impacting the demand for plastics. This factor is projected to drive the market size. Moreover, growing utilization of recycled plastics in several industrial applications including in packaging of products, parts of electronics devices and interior parts in the automobiles is boosting the market size in the forecast period.
Furthermore, constantly increasing R&D investments by manufacturers to produce ecofriendly and biodegradable plastics by using plastic waste is anticipated to provide ample growth opportunities in the global plastic recycling market. Also, increasing utilization of recycled plastic products for material production in the textile sector is estimated to impel the growth of the marketin the near future.
Nevertheless, lack of awareness about recycled plastics importance in the reduction of virgin plastics coupled with huge cost of the recycled products due to collection of plastic wastes is a difficult task; these factors are hampering the plastic recycling market growth. Moreover, setting up a bank of plastic waste or ban of raw plastics import from china is a challenging factor for the growth of the market.
Mechanical recycling process segment will experience a noticeable growth and is projected to hold a good share of the global market by the end of forecast time. In mechanical recycling process, plastic wastes can be converted into raw constituents without alteringthe structure of plastics, minimizing the production cost. This aspect will drive the size of the market in the coming years. Plastic recycling market for chemical recycling process generated major revenue in the global market and is estimated to grow at a healthy CAGR of 5.4% during the forecast period.
Polyethylene terephthalate (PET) segment held a considerable size of the global plastic recycling market in 2018 and is estimated to be the most lucrative material type in the coming years. This growth is attributed to PET plastics being widely used in end use industries because of cost associated with the recycling process being low. Moreover, recycled PET plastics are not harmful for food & beverage packing, and there are lower CO2 emissions and other benefits; this factor is predicted to boost the size of the market in the upcoming years. Polypropylene (PP) segment registered for subsequent position in the global market after PET and is predicted to generate a revenue of $12,964.6 million by 2026. The growth in PP recycled plastic market is owing to the growing usage in packaging application due to its resistance to most oils and solvents and for electronic components manufacturing; these aspects are anticipated to impel the market growth in the forecast time.
North America plastic recycling market will witness to grow at a highest CAGR of 7.1% and is estimated to continue its trend throughout the forecast time. This growth in North America market is mainly owing to stringent regulations on virgin plastic usage and governments promoting the use of recycled plastics. In addition, major consumer goods suppliers including Coca-Cola, Walmart, Campbell and other suppliers have replaced conventional plastics with recycled products; this aspect favors the growth of the market in the upcoming years.
Asia-Pacific plastic recycling market dominated the overall industry and is projected to grow at a moderate CAGR 5.8% during the forecast time period. This dominance attributed to Asia-Pacific is the major hub for plastic recycling process due to cheap labor costs and presence of large consumer base. In addition, promising government guidelines to encourage recycled plastic is also estimated to propel the market growth in this region.
REPLAS, Reprocessed Plastic, Inc., Clear Path Recycling, PLASgran Ltd, Luxus Ltd, CarbonLITE Industries, KW Plastic, Inc., B.SCHOENBERG & CO., INC., Envision Plastic Industries LLC, Advanced Environmental Recycling Technologies, Inc., Custom Polymers, Wellman Advanced Materials, wTe Corporation, Kuusakoski are some of key plastic recycling market players. These participants are implementing organic growth strategies to increase product output, speed of production and efficiency to gain competitive edge in the global plastic recycling industry.
Porter’s Five Forces Analysis for Plastic Recycling Market:
Bargaining Powerof Suppliers: The plastic recycling market contains large number of large and small & medium dealers and rising demand for recycled plastics, and hence the bargaining power of suppliers is HIGH.
Bargaining Power of Consumers: Plastic recycling markethas high number of consumers coupled with stringent government rules related to the use of traditional plastic materials; the bargaining power of consumersis HIGH.
Threat of New Entrants: Plastic recycling market has key players and difficulty in gathering raw plastic materials or plastic waste is impacting the manufacturing expenditure, whichi is resulting in HIGH risk of new entrantsin the market.
Threat of Alternative: This market contains medium number of alternative systems. Moreover, affordability of traditional plastics is limiting the usage of recycled plastic products, and thereby there is MEDIUM risk of alternative.
Competitiveness in the Industry: Plastic recycling market has huge number of key manufacturers. These manufacturers are focused on joint ventures, mergers, new product introductions and R&D activities to increase company position in the global industry. This aspect is delivering HIGH competitiveness in the market.