The rising commercialization and industrialization rate, increasing government initiatives and policies to promote the usage of recycled products, and growing focus on reducing plastic waste volumes are expected to fuel the plastic recycling market at a CAGR of 8.6% during the forecast period (2019–2024). According to P&S Intelligence, the market revenue stood at $41,238.8 million in 2018, and it is projected to surpass $64,139.7 million by 2024. Moreover, the burgeoning demand for reprocessed materials among end-use industries and escalating number of plastic recycling facilities in Europe and North America will also contribute to the market growth.
A rapid surge in industrialization and commercialization activities has led to the high-volume production of plastic waste, owing to the large-scale consumption of plastics by end-use industries. As plastic waste is one of the prominent contributors to land, marine, and air pollution, its surging production is fueling the development of a large number of plastic recycling units across the world. Manufacturers and governments across the globe are constantly working toward recycling and reprocessing plastic waste, due to growing environmental concerns.
Moreover, the booming number of plastic recycling facilities in Europe and North America will also contribute to the plastic recycling market growth during the forecast period. In recent years, the market players and governments of these regions have focused heavily on the development of advanced recycling methods to streamline the plastic recycling value chain. Besides, the growing investments being made in research and development (R&D) activities for developing new technologies will also fuel the market growth in the coming years.
The source segment of the plastic recycling market is categorized into sheets, packaging, wires and cables, pipes, molded products, and others. Under this segment, the packaging category generated the highest revenue in 2018, and it is expected to register significant growth during the forecast period, owing to the short use lifecycle of packaging plastics. Moreover, the implementation of government laws and sustainability targets aimed at integrating recycling processes into the packaging industry will also facilitate the growth of this category in the immediate future.
Geographically, Asia-Pacific (APAC) held the largest share in the plastic recycling market in 2018, due to the high-volume imports of plastic waste and availability of cheap labor, which allow for smooth labor-intensive allied operations, including collection, sorting, and cleaning, in the region. These factors have subsequently resulted in the establishment of low-to-high volume reprocessing facilities in Vietnam, China, Indonesia, Thailand, Malaysia, and India. As a result, the plastic processing capacities in these South Asian nations, apart from China, have increased considerably over the last few years.
Thus, the accelerating industrialization and commercialization activities and mushrooming number of plastic recycling facilities in North America and Europe will boost the market growth in the forthcoming years.