Global Post-Consumer Recycled (PCR) Plastic Market - 2024-2031

Overview

Global Post-Consumer Recycled (PCR) Plastic Market reached US$ 62.1 billion in 2023 and is expected to reach US$ 123.2 billion by 2031, growing with a CAGR of 8.9% during the forecast period 2024-2031.

The growing focus on sustainability and social responsibility across sectors and consumer groups is driving a substantial increase in the globally post-consumer recycled (PCR) plastic market. There is a greater need for sustainable plastics than virgin ones as people become more conscious of plastic waste and its adverse ecological effects. PCR plastics, made from recycled post-consumer plastic waste, provide an alternative to scarce resources by keeping plastic trash out of the seas and landfills.

The global PCR plastic market is expanding faster still because of rules and regulations that are meant to lessen plastic waste and encourage recycling efforts. To encourage the use of recycled materials and advance a circular economy, governments over the world are putting in place rules such as extended producer responsibility (EPR) programs, plastic bans and requirements for recycled content in products.

Asia-Pacific is among the growing regions in the global post-consumer recycled (PCR) plastic market covering more than 1/3rd of the market. The Asia-Pacific has noticed a rise in the use of PCR plastics due to strict laws and policies designed to reduce plastic pollution. To promote PCR plastics, governments in nations like China, India, Japan and South Korea are implementing policies that include plastic bans, extended producer responsibility (EPR) programs and requirements for goods to contain recycled content.

Dynamics

Circular Economy Initiatives and Resource Efficiency

Post-consumer recycled (PCR) plastics are becoming more and more popular due to the circular economy's emphasis on waste reduction and resource efficiency. The circular economy idea seeks to keep things in use for as long as possible by recycling, reusing and remanufacturing to decrease waste and maximize the value of resources. By keeping plastic trash out of landfills and incinerators and restoring it to the manufacturing cycle, PCR plastics are essential to this transformation.

Circular economy efforts and closed-loop systems that prioritize the utilization of recycled materials including PCR plastics are being embraced by a wide range of businesses. The concentration on resource efficiency promotes creativity and teamwork throughout the value chain to create more circular and sustainable solutions, in addition to assisting in the reduction of climate change effects.

Sustainability and Development

Artificial intelligence (AI) and robots are helping the corporate sector deal with sustainability and recycling. No additional research into this technology, but the coronavirus pandemic is to blame for this. As of right now, there isn't a proper reverse logistics robot to address the issue of old plastic bottles. To enhance the separation of recyclable or usable plastics from non-recyclable plastics in assembly lines, robotics and artificial intelligence technologies are being developed. Robots are also taking the role of human laborers in the lifting, sorting and package delivery duties.

For Instance, in 2023, Mobil, a leader in the world of innovative lubricating technologies, has introduced 50% Post-Consumer Recycled (PCR) plastic pails as part of an effort to promote environmentally friendly packaging. Incentives such as the PCR pails encourage the use of recycled plastic, which lowers plastic waste and promotes sustainable development. The company aims to assist clients in reducing waste, converting waste into value and advancing sustainability goals with its 50% PCR pails, which are the first in India for lubricating oil pails packing.

Restricted Infrastructure and Supply

The scarcity of post-consumer plastic trash for recycling and the inadequate recycling infrastructure in many areas are other obstacles. The infrastructure and collection methods for sorting and processing post-consumer plastics are still lacking in certain places, despite increased awareness of the issue and initiatives to encourage recycling.

Additionally, the lack of feedstock restricts the PCR plastic production process's scalability and impedes the market's growth. Further exacerbating supply limits are logistical issues related to the transportation and processing of recycled materials. Governments, businesses and communities must work together to enhance collection and recycling systems and make large investments in waste management infrastructure to overcome these constraints.

Concerns about Quality and Contamination

Managing contamination levels in recovered materials and upholding uniform quality standards are major challenges facing the globally post-consumer recycled (PCR) plastic business. Multiple sorting and processing steps are frequently used for PCR plastics, which may lead to variations in the material's qualities and attributes.

The use and performance of PCR plastics may also be impacted by leftover impurities from the original goods or contamination from non-recyclable components. Strict quality control procedures throughout the recycling process, together with investments in cutting-edge sorting and cleaning technology, are needed to address these contamination and quality challenges.

Segment Analysis

The global post-consumer recycled (PCR) plastic market is segmented based on service, source, polymer, processing, end-user and region.

Rising Demand for Polypropylene in the Packaging Industry

The Polypropylene segment is among the growing regions in the global post-consumer recycled (PCR) plastic market covering more than 1/3rd of the market. Growing demand for sustainable packaging solutions across a variety of sectors is driving a notable expansion in the global post-consumer recycled (PCR) polypropylene (PP) market.

For Instance, in 2023, Repsol S.A. and Signode Industrial Group LLC introduced a pre-made polypropylene (PP) strap, crafted with 30% recycled content, tailored for high-strength applications. The freshly launched Repsol Reciclex RXP33AAA PP compound incorporates 30% mechanically recycled post-consumer domestic plastic (PCR), leading to a 9% reduction in carbon footprint compared to conventional fossil-based materials. The strap boasts equivalent properties to those fashioned from virgin raw materials.

Geographical Penetration

Growing Demand for Non-Residential Building Projects in the Construction Industry in Asia-Pacific

Asia-Pacific has been a dominant force in the global Post-Consumer Recycled (PCR) Plastic Market. The post-consumer recycled (PCR) plastic market in Asia-Pacific is expanding rapidly due to a growing emphasis on environmental conservation and sustainability. The demand for PCR plastics as an environmentally beneficial substitute for virgin plastics has increased as a result of this increased awareness, particularly in sectors like construction, automotive and packaging.

The Asia-Pacific construction industry is expected to have considerable growth in the next years due to a rise in demand for non-residential building projects, such as hospitals, schools and colleges. The demand is expected to persist throughout the projected period. As a result, this will hasten business development and increase demand for personal protective equipment products, such as belts, helmets, safety vests and other items.

For Instance, in 2020, In Asia-Pacific, Dow developed and introduced a brand-new post-consumer recycled (PCR) plastic resin specifically for collation shrink film applications. With a 40 percent PCR concentration, the new resin produces films that function similarly to those created with virgin resins. The product, XUS 60921.01, is manufactured at Dow's external manufacturing facility in Nanjing, China, using recycled plastics that are collected domestically in China through Dow's key recycling partners.

In another instance, in 2021, Dow and Lucro Plastecycle, an Indian recycling company, partnered to develop and launch polyethylene film solutions using post-consumer recycled plastics in India. The collaboration supports Dow's goal of collecting, reusing or recycling 1 MMT of plastics by 2031, contributing to a circular economy in the region.

COVID-19 Impact Analysis

The post-consumer recycled (PCR) plastic business has been impacted by the COVID-19 epidemic in some ways. When several towns and recycling facilities imposed operating limitations and safety precautions to stop the virus's spread, the pandemic first caused disruptions in waste management systems and recycling operations globally.

Decreased post-consumer plastic waste availability for recycling was caused by lower collection rates and processing capacity, which had an impact on the supply of PCR plastic feedstock. Furthermore, the market for PCR plastic items has been impacted by changes in consumer behavior during the pandemic. Personal protective equipment (PPE), medical supplies and food delivery packaging are among the single-use plastic goods that are in high demand due to the increased focus on cleanliness and safety.

The market for recycled plastics has been impacted since manufacturers have been less inclined to invest in and give priority to the usage of PCR plastics as a result of the surge in demand for virgin plastic products. The pandemic has brought attention to the significance of sustainability and circular economy concepts in the plastics sector, though. Business and government pressure to emphasize sustainable practices and encourage the use of recycled materials is growing as environmental issues and plastic pollution become more widely known.

Russia-Ukraine War Impact Analysis

There have been notable effects on the globally post-consumer recycled (PCR) plastic business from the conflict between Russia and Ukraine. In the global petrochemical sector, Russia and Ukraine are both big actors. Russia is a large supplier of natural gas and crude oil, which are necessary feedstocks for the manufacturing of plastic, while Ukraine is a major producer of chemicals.

Due to supply chain disruptions caused by the conflict, there is uncertainty over the availability of raw materials needed to produce PCR plastics. The globally PCR plastic industry is currently experiencing supply shortages and price volatility as a result of this disturbance. The conflict has also affected logistics and transportation lines, making it more difficult to move completed plastic goods and recovered plastics.

Many companies depend on the region's international trade lines and the fighting has resulted in delays, rerouting and higher transportation costs. The supply chain is under stress as a result of manufacturers' inability to deliver completed goods to consumers and get recycled plastic feedstock due to logistical issues.

By Service

• Collection and Transportation
• Recycling
• Incineration
• Landfills/Disposal

By Source

• Bottles
• Non-Bottles Rigid
• Others

By Polymer

• Polyethylene Terephthalate (PET)
• High-Density Polyethylene (HDPE)
• Low-Density Polyethylene (LDPE)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polyurethane (PU)
• Polystyrene (PS)
• Others

By Processing

• Chemical Process
• Mechanical Process
• Biological Process

By End-User

• Packaging
• Building and Construction
• Automotive
• Furniture
• Recycled Plastics
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On May 28, 2020, Dow developed and introduced a brand-new post-consumer recycled (PCR) plastic resin specifically for collation shrink film applications. With a 40 percent PCR concentration, the new resin produces films that function similarly to those created with virgin resins. The product, XUS 60921.01, is manufactured at Dow's external manufacturing facility in Nanjing, China, using recycled plastics that are collected domestically in China through Dow's key recycling partners.
• On February 11, 2021, Dow and Lucro Plastecycle, an Indian recycling company, partnered to develop and launch polyethylene film solutions using post-consumer recycled plastics in India. The collaboration supports Dow's goal of collecting, reusing or recycling 1 MMT of plastics by 2031, contributing to a circular economy in the region.
• On February 03, 2023, Mobil, a leader in the world of innovative lubricating technologies, introduced 50% Post-Consumer Recycled (PCR) plastic pails as part of an effort to promote environmentally friendly packaging. Incentives such as the PCR pails encourage the use of recycled plastic, which lowers plastic waste and promotes sustainable development. The firm aims to assist clients in reducing waste, converting waste into value and advancing sustainability goals with its 50% PCR pails, which are the first in India for lubricating oil pails packing.

Competitive Landscape

The major global players in the market include BASF SE, SABIC, Arkema, Celanese Corporation, Eastman Chemical Company, Exxon Mobil Corporation, Covestro AG, Ultra-Poly Corporation, Plastipak Holdings, Inc. and Dow.

Why Purchase the Report?

• To visualize the global post-consumer recycled (PCR) plastic market segmentation based on service, source, polymer, processing, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of post-consumer recycled (PCR) plastic market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global post-consumer recycled (PCR) plastic market report would provide approximately 78 tables, 81 figures and 207 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies