Global Plastic Recycling Market : Due to the continuous increase in global warming caused by human-caused emissions, it is evident that burning oil and fossil fuels increases climate change, poses a major threat to the environment, and to living things.
Plastics contribute greatly to dispersing greenhouse gases into the atmosphere thereby changing the ozone layer, which results in overheating, loss of cloud forests, melting glaciers, and rising sea levels. So, what steps can be taken to reduce plastic pollution?
For years, the planet’s global temperature remained intact until new technologies came along, resulting in major changes in the environment. It is time for plastic recycling on a large scale to be considered. Since plastic is not biodegradable, it provides many business opportunities as it is cost effective and environmentally friendly.
The global plastic recycling market is expected to witness healthy growth at a CAGR of 5.04% over the forecast years due to the increasing demand for recycled plastics. Recovering plastics from scrap and waste and then turning them into useful products has been a key driver for many commercial industries because it is environmentally and economically effective.
Recycled plastic can be turned into a wide variety of products such as tote bags, watering cans, wheel arch linings, car bumpers, moisture-proof membranes, construction materials, reusable crates, trash cans, composite pits, food trays, water bottles and various fabrics. . clothing that provides a large scope for the plastics industry to make a lot of money.
The global plastic recycling market is driven by an increasing trend towards recycled plastic over pure plastic due to the pollution caused by plastic when it is dumped into oceans or other bodies of water. In addition, energy savings during the production of recycled plastics have a positive impact on market growth.
Furthermore, ongoing research activities to find effective plastic waste recycling methods worldwide are expected to drive market growth over the next few years. In the end-use industry, the plastic recycling industry is categorized into packaging, building & construction, textile, automotive, electrical & electronics and others.
Of these, the packaging industry holds the largest market share among all end-user industries in the global market for plastic recycling. Asia Pacific and North America have emerged as the largest producers and recyclers of plastic waste. The dominance of the Asia Pacific region can be attributed to the chemical and mechanical industries.
Initiatives to limit plastic use through financial disincentives have shown results and brought about drastic changes in consumer behavior. China, Japan and India accounted for more than a quarter of the total plastic waste recycled worldwide in previous years.
Some of the most widely used types of plastic are:
1. Polyethylene Terephthalate (PET)
PET is a colorless, light and strong plastic. It is a widely used plastic and is easily available in the market in the form of bottles, polyester clothing, medicines and jars. According to the Food and Drug Administration, PET is safe and can be easily recycled. The Asia Pacific region holds the maximum share in worldwide PET production which is anticipated to increase the market globally in the coming years.
2. High Density Polyethylene (HDPE)
Of all Polyethylenes, HDPE is classified as the most versatile plastic available with a wide range of applications. Because of its strength, HDPE is qualified to be compatible with building materials, bulk containers, and piping. The increasing demand for recycled plastic in the construction sector is the main driver of the plastic recycling market in China.
3. Polyvinyl Chloride (PVC or Vinyl)
PVC is below the third most diverse plastic due to its hardness and inflexibility. It is widely used in the medical, construction and electrical industries and its germicidal properties make it very useful for the medical industry. The demand for PVC in the pipe industry is also driving the worldwide plastic recycling market.
4. Polypropylene (PP)
PP is a heavy duty and durable plastic. It can withstand high temperatures, which makes it ideal for many applications, especially in the food and beverage industry. It is a hard and less flexible plastic and thus, retains its shape over time. DVD, hot food containers, storage boxes are made of Polypropylene (PP). The plastic recycling market in Spain is expected to grow at an impressive rate due to the increasing awareness among the population regarding the disposal of plastic waste.
5. Polystyrene (PS)
PS, also known as Styrofoam, is an environmentally friendly plastic that is transparent and brittle in nature. Usually PS is used for a short term and is potentially harmful to humans because it can release neurotoxins that can almost damage the nervous system. PS is cost effective and made safe for market use and is used to make tableware, food containers, building insulation, etc. Canada is expected to witness an increase in the PS industry in the coming years.
What is the potential of the global plastic recycling market today?
The plastic recycling market is highly fragmented with more than 25000 players operating globally in the market. The Asia Pacific market is expected to grow at a strong rate during the forecast period as the region has become a manufacturing hub for chemicals & petrochemicals, pharmaceuticals, food processing, medical devices and electronics.
Asia-Pacific’s dominance in the global plastic recycling market can be attributed to the growing awareness of the recovery of key polymers through mechanical and chemical recycling.
What caused the big push in the global plastic recycling market?
The global plastic recycling market is driven by an increasing trend towards recycled plastic over pure plastic due to the water pollution caused by plastic when it is dumped into oceans or other bodies of water. Ongoing research activities to find effective plastic waste recycling methods worldwide are expected to drive market growth over the next few years.
The government is increasingly mandating that plastic bottles must be made from at least 25% recycled plastic by 2025 and 30% by 2030. The ever-increasing demand for recycled plastic products due to the expansion of the packaging industry worldwide is driving the demand for recycled plastics. The increasing number of construction and infrastructure projects worldwide is also increasing the demand for polymers in various applications such as window glass, etc.
Which region holds the highest share in the global plastic recycling market?
The APAC region holds the maximum share of the global plastic recycling market. In 2019, China’s plastics industry accounted for a 26% share in global plastic production. Over the years, China has received most of the used plastic from countries such as the United States, Germany, Japan, Australia, etc., processing most of it into higher quality materials that manufacturers can use.
In 2018, China imposed a ban on imports of plastic waste and closed its doors to almost all foreign plastic waste, as well as many other recyclables, to protect the local environment and air quality and to further enhance its domestic plastic recycling market.
What is the current market landscape for global plastic recycling?
The key players consider the increasing demand for plastic recycling by various industries as the main driving factor of the market in the forecast period. Big companies focus on innovation and research & development (R&D) to create durable and better products and achieve competitive advantage over other big players.
What challenges does the global plastic recycling market face?
Due to the onset of COVID-19, disruptions in the business cycle will inevitably have an impact on demand across all core industries, globally. The severity of the pandemic is compounded by the fact that many industries are operating at reduced capacities, thereby reducing the number of employees as well. Reducing the number of workers will be a challenge for the plastic product manufacturing industry to meet the demands of the end-user industry.
The ban on imports of plastic waste for processing and reprocessing in China has caused a major crisis among major exporting countries. Moreover, with the export market for plastic waste decreasing and shrinking, the governments of various countries in Europe and Asia are focusing on recycling plastics and producing plastic products that can be reused.
Some of the major companies in the global plastic recycling market include Covanta Energy Asia Pacific Holdings Ltd., SUEZ NWS limited, The Shakti Plastic Industries, Eco Wise Waste Management Pvt Ltd, Cleanaway Melbourne, Sapporo Plastic Recycle KK, DH Recycling Ltd, Veolia Indonesia, IAV Global, Poly Pipe Recycler, Polystar Machinery Co Ltd.
The Global Plastic Recycling Market is expected to witness healthy growth during the forecast years due to the rising demand for recycled plastics for various applications and manufacturing of recycled products such as carrying bags, watering cans, moisture-proof membranes, construction materials, reusable crates, trash cans, composite pits, food trays, water bottles.
The disruption to the overall import and export of plastic waste due to COVID-19 in several countries is expected to lead to a decrease in total recycled plastic waste by 2020. Over the past few years, it has been observed that more and more companies are taking pledges towards reducing plastic waste and switching to 100% recyclable packaging. This surge of enthusiasm and awareness increased demand for plastic recycling, globally, and prompted companies to set up plastic recycling facilities.