USD 55.48 billion
Report ID:
SQMG15G2010 |
Region:
Global |
Published Date: June, 2025
Pages:
195
|Tables:
125
|Figures:
77
Global Recycled Plastic Market size was valued at USD 55.48 billion in 2023 and is poised to grow from USD 60.14 billion in 2024 to USD 114.66 billion by 2032, growing at a CAGR of 8.4% during the forecast period (2025-2032).
The global recycled plastics market is consistently expanding owing to raised environmental concerns and plastic waste regulations, as well as demand from end-use industries such as packaging, automotive and construction. The growing awareness of circular economy and increasing consumer preferences for sustainable products are influencing manufacturers to incorporate recycled materials into their supply chains. In addition, advancements in sorting and recycling technologies are also improving the quality and consistency of recycled plastics, reinforcing the competitive position of recycled plastics against virgin materials. In terms of new policies and incentives many large economies are also increasing the investment and policy impetus behind growing recycling infrastructure, all supporting the recycled plastics market growth.
Nonetheless, several major constraints exist including the high initial costs of recycling facilities, and technological constraints on recycling certain kinds of plastic. Quality inconsistency and contamination issues still plague recyclers and manufacturers and often limits the applicability of recycled plastics in high-performance products. Even in areas of the world where waste management systems are underdeveloped, the collection of recyclables, and sorting of recyclables continues to lag and impact supply reliability. In spite of the many obstacles, increasing investment and international collaboration in waste management and sustainability initiatives are expected to gradually overcome these constraints and support the market's long-term viability.
How is AI Enhancing Sorting Efficiency in Plastic Recycling?
Artificial Intelligence is changing plastic recycling. It can simplify or automate the sorting process. AI can sort plastics by color, shape, and material quickly and easily, and automation will speed up sorting, improve quality of recycled materials by increasing material purity, and lessen human related mistakes.
One example, AMP Robotics, with their AI platform, has substantially increased sorted quantities. A study completed by the US Plastics Pact revealed that AMP's AI system can sort twice as many items every minute than manual sorters, but also with greater accuracy and consistency. This is key to meet increasing demand for high-quality recycled plastics in various markets.
How is AI Facilitating Advanced Plastic Recycling Technologies?
AI is helping to develop new recycling technology, especially chemical and enzymatic recycling. Given the large datasets available, AI can be used to optimize chemical processes used to break plastics down into their basic components so that new high-quality materials can be created from recycled plastics. This practice promotes a more sustainable circular economy through less reliance on additional virgin plastic.
For example, Samsara Eco's enzymatic recycling is receiving quite a bit of investment and partnerships, and AI is used in their process, and they can now recycle polyester and nylon endlessly. The fancy name for the problem is "depolymerization," and they are addressing this issue of decreased plastic quality in traditional recycling methods but can potentially overcome this limitation of traditional recycling.
Market snapshot - 2025-2032
Global Market Size
USD 55.48 billion
Largest Segment
Polyethylene Terephthalate (PET)
Fastest Growth
Polyethylene Terephthalate (PET)
Growth Rate
8.4% CAGR
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The global recycled plastic market is segmented by Plastic Type, Source, Recycling Process, Application and region. Based on Plastic Type, the market is segmented into Polyethylene Terephthalate (PET), High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC), Low-Density Polyethylene (LDPE), Polypropylene (PP), Polystyrene (PS) and Others. Based on Source, the market is segmented into Post-Consumer Recycled (PCR) and Post-Industrial Recycled. Based on Recycling Process, the market is segmented into Mechanical Recycling, Chemical Recycling and Energy Recycling. Based on Application, the market is segmented into Packaging, Building & Construction, Automotive, Textiles, Electrical & Electronics and Others. Based on region, the recycled plastic market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Polyethylene Terephthalate (PET) holds the largest share of the market for recycled plastics, due to the widespread use of PET in beverage bottles and food packaging. PET is highly recyclable, light-weight, and strong, making it a preferred raw material for specific (but not all) manufacturers. The rising global consumption of bottled drinks, increased environmental awareness, and a robust network of collection, sorting, and recycling programs help to ensure that PET will continue to dominate the recycled plastics market. Increased regulatory controls to promote the use of recycled content in packaging have also helped fuel demand for PET. Corporate commitments from brands with sustainability plans will only expand PET's market position, as PET can be used in closed-loop recycling systems.
Polypropylene (PP) is experiencing the most significant growth in the recycled plastics market demand, due to increased focus on the use of recycled PP in automotive parts and containers and consumer products. Improvements in awareness around plastic sustainability are also enabling increased recovery rates for PP products. As new technologies emerge in PP recycling processes, it is likely that the recovery rate will continue to rise. The versatility and durability of PP products, as well as increasing demand for post-consumer recycled plastics' percentage in industry applications, are likely to continue their growth trajectory.
As the world's greatest application for recycled plastics, the packaging industry has seen considerable growth in recent years due to not only the push from brand owners creating sustainable packaging but also the large number of brands doing business in the packaging industry every year. The major sectors such as, food & beverage, food service, FMCG, and E-Commerce have begun sourcing recycled plastics in their packaging systems to reduce environmental impact and government resistance. In Packaging, innovation in the area of recycled content packaging solutions has encouraged rapid growth with brand commitments in ceasing the use of virgin plastics, costs savings in using recycled plastics, and the ability of recycled plastics to still provide functional packaging (bottles, containers, films, wraps, etc..).
On the other hand, textiles is the fastest growing sub-sector in the recycled plastics market. Sustainable fashion is a major focus for brands who are accelerating their sustainability journey by working to produce recycled polyester (rPET) from plastic bottles and residual recycled fibers. Consumer preference for green products is pushing the demand for recycled plastics while advances in fiber recovery technology and production processing are directly contributing to growth for this sector.
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North America dominates the recycled plastic market share due to well-established recycling systems, strict regulatory frameworks, and growing corporate sustainability initiatives. Increasing demand for eco-friendly packaging in the food, beverage, and retail sectors fuels consumption. Major players are investing in modern recycling technologies and post-consumer resin production. Government policies at both federal and state levels support plastic bans, recycled content mandates, and circular economy targets. Public awareness around plastic pollution continues to rise, encouraging recycling participation and the development of domestic recycled plastic infrastructure.
U.S. Recycled Plastic Market
The U.S. is the region's leader in the recycled plastics market share, in part because of sufficient policy support and guidance through initiatives such as the U.S. Plastics Pact, which has an ambitious target of 100 percent reusable, recyclable, or compostable plastic packaging by 2025. Coca-Cola, in 2024, announced that it would be using 100 percent recycled PET bottles for many products sold in a variety of states. Subsequently, this announcement will increase demand for rPET. Additionally, some states, such as California and Oregon, have requirements for recycled content for plastic beverage containers that will spur industry growth.
Canada Recycled Plastic Market
The Canadian federal and provincial governments are playing a role in expanding the recycled plastics market demand through nationally recognized policies such as the Zero Plastic Waste Agenda. In 2023, the government funded up to $10 million in upgrades for recycling infrastructure in Ontario and British Columbia. Major retailers like Loblaws, have made commitments to reduce virgin plastic in their packaging. When Canada introduced the ban of six single-use plastics in the summer of 2022, it contributed to on-going incremental innovation across multiple sectors, aiding innovations to use recycled plastic.
The recycled plastic market growth in Europe is the fastest growing in the world given strict environmental regulation, consumer awareness of recycling, and EU circular economy targets, among other things. Regulations like the European Plastics Pact and plastic taxes have forced the industry to utilize recycled content. Europe already has a well-established recycling infrastructure, high levels of waste collection, and ongoing investment in mechanical and chemical recycling processes. The growth of public-private partnership funding has increased opportunities for innovation, especially while various industries in packaging, automotive, and construction already relied on recycled plastics to meet sustainability goals and support environmental regulations.
Germany Recycled Plastic Market
Germany continues to be the leading country for recycled plastics with over 65% of plastic packaging recycled in 2023. Germany's commitment to Extended Producer Responsibility (EPR) schemes, innovative sorting technologies and the support of Saperatec by Henkel in innovative recycling solutions of flexible packaging has led to increased capabilities of recycled use in Germany.
France Recycled Plastic Market
France is continuing its efforts to increase recycled plastics by putting mandates in place to have all plastic packaging recyclable by 2025. In 2024, Veolia increased the capacity of its plastic recycling facility in Vernon by 50%. French government subsidies have also encouraged European corporations to use recycled materials in their production. Corporations like Danone have reported increased rPET use in PET water bottles of over 50%, and industry alignment is evident.
Spain Recycled Plastic Market
Spain has implemented a tax for non-recycled plastic packaging (€0.45/kg) that began in 2023, which has encouraged businesses to move towards recycled products. Ecoembes, the national recycling organization, reported a 9% increase in their year-on-year collection of plastic packaging for 2023. Companies like Repsol have also made investments of over €26 million in new mechanical recycling plants, setting the stage for larger scale and more efficient operations in this recycled plastics market.
The Asia Pacific region is becoming a new giant in the recycled plastic market size due to rising urbanization, an increase in plastic waste, and government-led sustainability advancement and initiatives. Countries like Japan, South Korea, and India are implementing some aggressive policies, including EPR and waste segregation, as well as harnessing investments through technology to set their recyclers up for success. The COVID-19 pandemic has also sped up the growth of e-commerce and takeaway food deliveries that drives demand for sustainable packaging. In many cases multinational corporations have collaborated with local recyclers to meet their internal goals to help the environment. And in Asia, we are also seeing a growing number of small emerging enterprises driven to be sustainable by innovating around low-cost, scalable recycling methods to meet demand.
Japan Recycled Plastic Market
Japan has been one of the world's leading recyclers for many years with a recycling rate for plastic bottles above 85%. In 2023, Suntory Beverage & Food worked with Kyoei Industry to open a new PET recycling plant in Saitama, Japan, with a closed loop recycling process. Current laws and policies in Japan are generally supportive of chemical recycling developments as well as innovators of hard-to-recycle plastics to enable ongoing expansion of the recycled plastic market.
South Korea Recycled Plastic Market
South Korea's Roadmap for Carbon Neutrality and Green Growth has been supportive of developing recycled plastic market through monetary incentives and technology grants. In 2024, LG Chem announced a new plant in Seosan for recycling post-consumer plastics into products for electronics and plastic packaging production. South Korea recycled 56% of its plastic waste in 2023, which is really high compared to other countries.
India Recycled Plastic Market
India is building momentum around extended producer responsibility (EPR) policies and new regulations governing plastic waste management. The Plastic Waste Management Amendment in 2023 required recycled content in packaging. Major FMCG organizations including Hindustan Unilever and ITC Limited have committed to obtain more than 25 percent of the total plastic packaging content from recycled materials in their journeys towards packaging sustainability by 2025. These commitments have motivated domestic recycling initiatives and start-ups.
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Rising Environmental Regulations and Government Initiatives
Increasing Consumer Demand for Sustainable Products
Quality and Contamination Challenges in Recycled Plastics
Volatility in Virgin Plastic Prices Affecting Competitiveness
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To stay competitive in the recycled plastic market, companies are focusing on advancing eco-friendly recycling technologies, improving material quality, and expanding applications across industries. Collaborations between manufacturers, waste management firms, and technology providers drive innovation and enhance recycling efficiency. Emphasizing compliance with environmental regulations and adopting circular economy principles ensures sustainability and legal adherence. Additionally, investing in advanced sorting and chemical recycling methods improves the purity of recycled plastics and broadens usage potential. These strategic efforts enable market players to reduce plastic waste, lower environmental impact, and maintain a strong presence in the growing recycled plastic market.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global Recycled Plastic market is set for robust growth, driven by rising environmental concerns, strict regulations on plastic waste, and growing demand across packaging, automotive, and construction sectors. Key drivers include technological advancements in AI-powered sorting, chemical and enzymatic recycling, and strong consumer preference for sustainable products. Regions like North America, Europe, and Asia-Pacific are leading the market with supportive policies, infrastructure development, and corporate sustainability initiatives. PET dominates the market, while polypropylene and textiles show fastest growth. Despite quality, contamination, and cost-related challenges, increased investments and circular economy practices are expected to support long-term market expansion. Leading players focus on innovation, closed-loop systems, and high-quality recycled material production.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 55.48 billion |
Market size value in 2032 | USD 114.66 billion |
Growth Rate | 8.4% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Recycled Plastic Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Recycled Plastic Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Recycled Plastic Market:
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Global Recycled Plastic Market size was valued at USD 55.48 billion in 2023 and is poised to grow from USD 60.14 billion in 2024 to USD 114.66 billion by 2032, growing at a CAGR of 8.4% during the forecast period (2025-2032).
BlueAlp, Mura Technology, ReCircle, Plastics For Change, Oceanworks, Banyan Nation, GreenMantra Technologies, Plastic Energy, Recykal, PureCycle Technologies, Carbios, MBA Polymers, KW Plastics, Suez Recycling, TerraCycle, Indorama Ventures, ALPLA Recycling, Veolia, Avangard Innovative, Jayplas
Global environmental regulations, such as the EU’s 2030 recyclability targets and U.S. EPA incentives, are driving recycled plastic demand and industry commitments like Dow’s pledge to use 1M metric tons of recycled polymers annually by 2030.
Rising short-term recycling efforts, mid-term tech innovations like chemical recycling, and long-term circular economy adoption are driving sustained growth in the recycled plastic market.
North America leads the recycled plastic market driven by strong regulations, corporate sustainability, tech investments, and rising demand for eco-friendly packaging.
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