DUBLIN--(BUSINESS WIRE)--Sep 9, 2022--
The "Recycled Plastics Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type, Source, and Application" report has been added to ResearchAndMarkets.com's offering.
The recycled plastics market is projected to reach US$ 4001.37 million by 2028 from US$ 2682.21 million in 2022; it is expected to grow at a CAGR of 6.9% from 2022 to 2028.
The demand for recycled plastics from the automotive sector is boosting the growth of the recycled plastics market. Increasing plastic waste in the environment developed the focus of manufacturers to shift in the production of recycled plastics, which are highly used in various industries. An increase in automotive production will create lucrative opportunities for recycled plastics.
The primary reason for using recycled plastic in the automotive industry is to reduce vehicle mass, which is directly linked to reducing carbon emissions. In addition, these plastic parts are not prone to corrosion, offer flexibility and resilience for added safety, and provide thermal insulation. All these factors support the demand for recycled plastics in the automotive industry.
As per the data of Organisation Internationale des Constructeurs d'Automobiles (OICA), the American countries recorded over ~16.2 million commercial & passenger car production in 2010, and this production rate grew by more than 23% and registered over ~20 million commercial & passenger production in 2019.
The automotive industry in China has been growing rapidly, and the country is playing an increasingly important role in the global vehicles market. Further, as per the report of OICA, the automotive industry witnessed growth of over ~5% in 2021 compared to 2020. Moreover, numerous companies operating in the automotive market are investing heavily in the automobile manufacturing sector to increase production and sales.
For instance, in July 2021, Maruti Suzuki India Ltd. announced an investment worth US$ 2.42 billion in a new manufacturing facility in Haryana, India. The facility is expected to manufacture ~1 million units annually. The surge in automobile manufacturing is boosting the demand for recycled plastics, thereby driving the recycled plastics market.
In 2020, Asia Pacific held the largest revenue share of the recycled plastics market. The major factor driving the recycled plastics market growth in this region is the high demand for recycled plastics from manufacturing, automotive, packaging, textile, building and construction, and consumer goods.
Strong automotive and food & beverages industries in Japan, South Korea, China, and India create a huge demand for recycled plastics. These recycled plastics are widely used to manufacture sustainable food packaging's such as bottles, containers, and films.
Further, increasing purchasing power, especially in developing economies, propels the consumption of packaged food. Moreover, the massive demand for recycled plastic in the automotive industry will create lucrative opportunities for the market in Asia Pacific.
Key companies in this market are focusing on strategies such as R&D investments and new product launches. They develop high-quality and innovative products to fulfill the customers' requirements.
Key Market Dynamics
Market Drivers
- Increasing Adoption of Recycled Plastics in Packaging, Automotive, and Electrical & Electronic Industries
- Rising Expansion Of Construction Industry
Market Restraints
- Inadequate Supply of Recycled Plastics Leads to Preference for Virgin Plastic
Market Opportunities
- Rising Stringent Government Regulations to Upsurge the Recycling Rate of Plastics
Future Trends
- Rising Innovation in Plastic Recycling
Companies Mentioned
- REMONDIS SE & Co.KG
- Biffa
- Stericycle, Inc.
- Veolia
- Jayplas
- Alpek S.A.B. De C.V.
- Republic Services, Inc.
- B & B Plastics Inc.
- Clear Path Recycling
- PLASTIPAK HOLDINGS, INC.
For more information about this report visit https://www.researchandmarkets.com/r/bfd7wm
View source version on businesswire.com:https://www.businesswire.com/news/home/20220909005198/en/
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