The Recycled Plastic Granules Market Is Expected To Flourished By Growing Demand For Eco-Friendly Products
Recycled plastic granules are made from used plastic products that are collected, sorted, cleaned and melted to produce uniform plastic pellets known as recycled plastic granules. These granules are widely used to manufacture various plastic products such as bottles, packaging materials, construction materials and many more. The recycled plastic granules help reduce the plastic waste and manufacturing costs for the producers. Increasing environmental concerns and government regulations against plastic waste has boosted the demand for recycled plastic products.
The global recycled plastic granules market is estimated to be valued at US$ 3.16 Bn in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The demand for recycled plastic granules is expected to be driven by growing preference for eco-friendly products from consumers and stringent regulations against plastic waste disposal. Government policies promoting plastic waste recycling and use of recycled plastics in production has led plastic manufacturing industries to increasingly utilize recycled plastic granules. Various awareness campaigns encouraging public participation for waste segregation and recycling has raised collection of used plastic bottles and packaging for recycling. Plastic recycling industries are focusing on expanding their production capacity and geographical reach to cater growing market demand.
Segment Analysis
The global recycled plastic granules market is segmented into two major segments namely polyethylene terephthalate (PET) and high-density polyethylene (HDPE). PET segment dominates the market and is expected to continue its dominance over the forecast period. PET segment accounts for over 35% share of the overall market. PET plastic granules find wide application in bottles manufacturing. Bottles manufacturing is the largest application sector for recycled plastic granules consuming more than 50% of the total recycled plastic supply.
PEST Analysis
Political: Governments across the world are promoting use of recycled plastics by offering subsidies and tax benefits to manufacturers using recycled plastic materials. Many countries have also imposed ban on usage of virgin plastics which is promoting growth of recycled plastic granules market.
Economic: Demand for recycled plastic granules is directly linked to growth of end-use industries such as packaging, construction and automotive. Growth in these industries especially in developing countries is fueling consumption of recycled plastic granules.
Social: Rising awareness about environmental hazards of plastic waste is driving demand for sustainable solutions like recycled plastics. Growing consumer preference for green products is also positively impacting the recycled plastic granules market.
Technological: Advanced sorting and cleaning technologies helps in producing high-quality recycled plastic granules. Investments in automation is helping recycling plants to improve production capacity and yields.
Key Takeaways
The Global Recycled Plastic Granules Market Growth is expected to witness high over the forecast period. The global recycled plastic granules market is estimated to be valued at US$ 3.16 Bn in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030.
Asia Pacific region dominates the market and is expected to maintain its leading position during the forecast period owing to robust growth of end-use industries in countries like China and India. Asia Pacific accounts for over 40% value share of the global market led by China. The market in China is growing at a CAGR of over 5% due to large production and consumption of recycled plastic granules for manufacturing of bottles, containers and automotive components.
Key players operating in the recycled plastic granules market are Roche, Teva Pharmaceutical Industries Ltd., Sun Pharmaceutical Industries Ltd., Hikma Pharmaceuticals PLC, Dr. Reddy’s Laboratories Ltd., Aurobindo Pharma Ltd., Mylan N.V., Apotex Inc., Sandoz AG, Accord Healthcare Ltd. These players are focusing on capacity expansion and new product launches to strengthen their market position and cater to growing demand for recycled plastic granules across the globe. Roche for instance has doubled its recycled plastic granules production capacity in China and plans to commission two new production facilities in India and Brazil by 2025.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it