Why Is The Potential Of Recycled Plastics Market So Huge?

Increasing global focus on recycling of plastic materials coupled with growing demand for recycled thermoplastics in the agricultural sector, such as thermoplastic materials in mulch, greenhouse cultivation, arches, irrigation systems, and others, will significantly contribute to the market growth.

Thermoplastics are used in various industries for their excellent corrosion resistance, low density, high strength, and flexibility, and are gradually replacing aluminum and other similar metals in various applications.

Since most thermoplastics are not biodegradable, they do not decay, decompose, or are subject to microbial degradation, making recycling of thermoplastic materials an inevitable trend for sustainable development.

At the same time, most thermoplastics are also petroleum-based. Thus, the threat of resource depletion of petroleum products is also driving the industry to focus on developing and increasing recyclable thermoplastic materials. Moreover, the growing demand for thermoplastic materials in various applications in electrical and electronics, automotive, and manufacturing industries is also expected to drive the global recycled thermoplastics market.

PET: The Most Promising Recycled Thermoplastic

Recycled thermoplastics are classified into biodegradable and non-biodegradable. Biodegradable thermoplastics are expected to grow at a CAGR of 12.04% during the reporting period.

The high growth rate is mainly attributed to increased consumer awareness of the environmental benefits of using biodegradable plastics and the implementation of stringent regulations on plastic material recycling.

Recycled thermoplastics are mainly segmented into sheets, flakes, and pellets.In 2018, this segment led the market with 43.49% of the revenue share. The reason for this is that it is widely used in the plastics industry due to its versatility, embossing properties, and various colors.

In the technology segment, recycled thermoplastics are categorized into extrusion, injection molding, blow molding, and film molding. The highest average compounding rate for injection molding is expected to reach 12.10% during the reporting period. The high productivity, minimal waste loss, and repeatable high tolerance characteristics of injection molding technology are the main reasons for this phenomenon.

In terms of plastic types, recycled thermoplastics include polyethylene (PE), polyethylene terephthalate (PET), polycarbonate (PC), polypropylene (PP), and polystyrene (PS). Polyvinyl chloride (PVC), etc.

Among these, polyethylene terephthalate (PET) products accounted for 29.42% of the total market revenue in 2018, making it the largest revenue segment.

PET is widely used in the production of bottles, cans and boards. As a result, PET bottles and other such materials are increasingly being recycled, becoming a major driver of their long-term market share.

Among the end-use industry applications, recycled thermoplastic products are segmented into packaging, automotive & transportation, construction, electrical & electronics, agriculture & horticulture, furniture & household products, and healthcare.

Among these, the construction industry dominated the global recycled thermoplastics market, with the market accounting for 27.86% of the total revenue in 2018. Increasing use of recycled thermoplastics for construction materials (e.g., pipes, insulation, window frames, etc.) is the major driver.

Asia Pacific market revenue accounted for 37.52% of the total revenue in 2018

The market segments analyzed in the report include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The Asia-Pacific recycled thermoplastics market is the largest market, with the market revenue accounting for 37.52% of the total revenue in 2018.

The growing demand for thermoplastics in the consumer goods, automotive, and construction industries in Asia Pacific and the growing awareness of the strong market potential in the thermoplastic recovery and recycling industry has propelled the region to become a leader in the global thermoplastic recycling demand.

Europe also holds a significant share in the global recycled thermoplastics market. The increased use of recycled thermoplastics in the automotive industry, coupled with the implementation of stringent recycling regulations, is expected to drive growth in Europe during the forecast period.