Post-Consumer Recycled Plastics Market Forecast 2024 - 2031

Introduction

The Post-Consumer Recycled Plastics (PCR Plastics) market has been gaining significant traction over the past decade due to growing environmental concerns and the increasing demand for sustainable materials. As the global plastic waste crisis intensifies, industries across the globe are turning to post-consumer recycled plastics as a solution to reduce their environmental footprint while meeting regulatory demands for recycling. The global market for PCR plastics was valued at USD 13.25 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 7.3% from 2024 to 2031, reaching an estimated value of USD 24.78 billion by 2031, according to IMR.

This significant growth is driven by a combination of factors such as regulatory pressure, increasing consumer demand for sustainable products, and advancements in recycling technologies. Post-consumer recycled plastics are used in a wide range of applications, including packaging, automotive, construction, and consumer goods. The increasing trend toward a circular economy, where materials are reused and recycled, has created new opportunities for the PCR plastics market, further pushing its growth.

Market Drivers

1. Environmental Regulations and Sustainability Initiatives Governments around the world are introducing stricter regulations to curb plastic pollution and reduce the amount of plastic waste ending up in landfills and oceans. Many regions, especially Europe and North America, have mandated recycling rates, which directly affect the growth of the PCR plastics market. For example, the European Union has set a goal to recycle 55% of plastic packaging by 2030, which is expected to drive significant demand for recycled plastics in the coming years.
2. Growing Consumer Awareness Consumers are becoming more environmentally conscious and prefer brands that use sustainable packaging and materials. The rise in eco-friendly consumerism is encouraging businesses to adopt post-consumer recycled plastics in their packaging and product lines. This shift in consumer preference is expected to drive the demand for PCR plastics in industries such as retail, food and beverage, and personal care.
3. Technological Advancements in Recycling The adoption of new recycling technologies has made the process of reclaiming plastics more efficient and economically viable. Innovations in mechanical and chemical recycling methods, such as advanced sorting techniques and chemical depolymerization, have led to higher-quality recycled plastics that can replace virgin plastics in a wide range of applications. This has enhanced the attractiveness of PCR plastics to manufacturers who previously avoided using recycled content due to quality concerns.
4. Circular Economy and Corporate Sustainability Goals As companies and industries increasingly commit to sustainability goals, the adoption of PCR plastics is seen as a key strategy in achieving circular economy principles. Leading brands, particularly in packaging and consumer goods, are working toward increasing their use of recycled content to reduce the environmental impact of their products. The goal of reducing dependence on virgin plastic and supporting recycling initiatives will continue to push demand for PCR plastics.
5. Investment in Recycling Infrastructure Governments and private organizations are investing in improving recycling infrastructure to boost recycling rates and the quality of recycled materials. These investments include expanding recycling facilities, upgrading sorting technology, and enhancing consumer participation in recycling programs. These improvements are expected to make recycled plastics more widely available, thus expanding the market.

Market Segmentation

1. By Type of Plastic
   • Polyethylene Terephthalate (PET) PET is one of the most commonly recycled plastics due to its widespread use in packaging, particularly in bottles and containers. IMR estimates that PET accounted for 35% of the total post-consumer recycled plastics market in 2023 and is expected to maintain its leading position throughout the forecast period. The PET segment is projected to grow at a 7.9% CAGR over the next seven years.
   • High-Density Polyethylene (HDPE) HDPE is another key material in the PCR plastics market, particularly in the manufacturing of containers, bottles, and packaging products. The demand for HDPE is driven by its durability, ease of processing, and recyclability. The segment is expected to experience moderate growth, with a projected CAGR of 6.5% during the forecast period.
   • Polypropylene (PP) Polypropylene is used in a variety of applications, from automotive parts to packaging. The use of recycled PP is expanding in industries like automotive and construction, driven by the increasing demand for lightweight and cost-effective materials. The PP segment is expected to grow at a 6.8% CAGR, reaching a significant market share by 2031.
   • Other Plastics Other types of plastics, including low-density polyethylene (LDPE) and polystyrene (PS), make up a smaller portion of the market but are expected to experience gradual growth as recycling methods for these materials improve.
2. By Application
   • Packaging The packaging industry is the largest consumer of post-consumer recycled plastics, particularly in food and beverage packaging, bottles, and containers. IMR estimates that the packaging segment accounted for 40% of the total PCR plastics market in 2023, and this share is expected to grow due to increasing demand for sustainable packaging. This segment is projected to expand at a CAGR of 7.4% during the forecast period.
   • Automotive The use of PCR plastics in automotive manufacturing is increasing as automakers look for sustainable alternatives to traditional plastic components. Recycled plastics are used in interior parts, exterior components, and even in the development of lightweight vehicle structures. This segment is expected to grow at a 6.8% CAGR.
   • Construction In the construction industry, recycled plastics are used for applications such as insulation, flooring, and pipe materials. The use of PCR plastics in construction is expected to increase as the industry shifts toward greener building materials. The construction segment is expected to grow at a 7.2% CAGR.
   • Consumer Goods The demand for PCR plastics in consumer goods, particularly in the manufacturing of items like household appliances, electronics, and furniture, is increasing as brands adopt more sustainable manufacturing practices. This segment is projected to grow at a 6.9% CAGR.
3. By Region
   • North America North America holds a significant share of the post-consumer recycled plastics market, primarily due to stringent regulations and increased consumer demand for sustainable products. IMR estimates that North America accounted for 30% of the global market in 2023. The market in this region is expected to grow at a CAGR of 6.7% during the forecast period.
   • Europe Europe is a leader in the adoption of PCR plastics, driven by regulatory requirements, particularly in the EU, where laws mandate increasing recycling rates and recycled content in packaging. The European market is projected to grow at a CAGR of 7.5% during the forecast period.
   • Asia-Pacific The Asia-Pacific region is expected to experience the fastest growth in the PCR plastics market, driven by the increasing adoption of recycling practices, improving infrastructure, and rapid industrialization in countries like China and India. This region is projected to grow at a CAGR of 8.4% from 2024 to 2031.
   • Latin America The Latin American market is growing steadily, with increased demand from industries like packaging and construction. The market in this region is expected to grow at a CAGR of 6.3%.
   • Middle East & Africa The Middle East & Africa region is expected to see moderate growth in the PCR plastics market, driven by expanding industrial and consumer goods sectors. The market is projected to grow at a CAGR of 6.2%.

Competitive Landscape

Leading players in the post-consumer recycled plastics market include:

• Veolia Environnement S.A.
• SUEZ Recycling & Recovery
• Indorama Ventures Public Company Limited
• Plastic Energy Ltd.
• BASF SE
• Dow Inc.
• Tomra Systems ASA
• Coca-Cola Company
• Nestlé S.A.
• Unilever PLC
• Recycling Technologies Ltd.
• Unifi, Inc.
• Clear Path Recycling LLC
• Ramky Enviro Engineers Ltd.
• P&G (Procter & Gamble)
• Alpek S.A.B. de C.V.
• Graham Packaging Company
• Plastipak Packaging, Inc.
• ExxonMobil Corporation
• Tetra Pak International S.A.
• Amcor plc
• Polymer Logistics
• Pact Group Holdings Ltd.
• Cereplast Inc.
• SABIC (Saudi Basic Industries Corporation)
• Rehrig Pacific Company
• Earth Friendly Products
• LyondellBasell Industries N.V.
• Lush Cosmetics
• Green Dot Bioplastics

These companies are involved in the collection, sorting, and processing of post-consumer plastic waste to create high-quality recycled plastics that meet industry standards.

Conclusion

The Post-Consumer Recycled Plastics Market is set to experience significant growth from 2024 to 2031, driven by regulatory pressures, increasing consumer demand for sustainable products, and advances in recycling technologies. With an expected CAGR of 7.3%, the market will reach an estimated USD 24.78 billion by 2031. Companies across industries, including packaging, automotive, and construction, are increasingly adopting recycled plastics as part of their sustainability strategies. As the market continues to evolve, further investments in recycling infrastructure and technology will play a crucial role in enabling a circular economy and reducing plastic waste globally.