Market Definition
Plastic recycling is a practice that addresses several environmental concerns like landfills, water pollution, environmental contamination, etc., associated with waste management & plastic pollution by reprocessing plastic into usable materials. This approach also facilitates the conservation of natural resources by producing plastic from scratch & minimizing landfill levels. The availability & active participation of several bottled water manufacturers & their intent to recycle plastic is crucially responsible for the accelerated demand for plastic recycling practices across Asia-Pacific.
Market Insights
The Asia-Pacific Plastic Recycling Market is projected to grow at around 6.4% CAGR during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the burgeoning adoption of plastic recycling activities throughout Asia-Pacific owing to the increasing focus of governments of different countries across the region on sustainable development, coupled with the urgent need to address environmental issues associated with massive plastic pollution.
In addition, the rising awareness among manufacturers about the advantages of using recycled plastics, like cost-effectiveness, environmental perks, flexibility, durability, and beneficial properties of plastics, such as impact resistance, excellent insulation, easy transformation & processing, strength, moisture resistance, etc., is another crucial aspect driving the plastic recycling market across the region.
Since recycled plastics have similar features to virgin plastics, their adoption is swiftly accelerating in automotive, textiles, packaging, construction, and other industries. Besides, the governments of China & India are laying out stringent regulations on plastic recycling in a suitable manner to reduce pollution & plastic waste into landfills or garbage dumps, which, in turn, is driving the market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 6.4% |
| Countries Covered | Asia-Pacific: India, China, Indonesia, Philippines, Vietnam, Thailand, Rest of Asia Pacific |
| Key Companies Profiled | Alpek Polyester, Centriforce Products Limited, Clean Tech UK Ltd, DS Smith, Euresi Plastics SL, EF PLASTICS UK LIMITED, Far Eastern New Century Corporation (Phoenix Technologies), Foss Performance Materials, Indorama Ventures Public Company Limited, JFC Group, Krones AG, Kuusakoski, Lotte Chemical Corporation, MBA Polymers Inc., Mumford Industries, Petco. Co. za, Pistoni Srl, Placon, PolyClean Technologies, PolyQuest, Reliance Industries Limited, REPRO-PET, Teijin Limited, UltrePET LLC, Verdeco Recycling Inc. |
| Unit Denominations | USD Million/Billion |
Impact of Covid-19 on the Asia-Pacific Plastic Recycling Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across Asia-Pacific, and the Plastic Recycling Market was no exception since it witnessed several unprecedented challenges. With the imposition of stringent movement restrictions & lockdowns by governments of different countries across Asia-Pacific to curb the spread of this dreadful disease, the market observed disruptions in gathering plastic waste and processing operations like recycling since most manufacturing got shut.
Moreover, with supply chain disruptions, the distribution of raw materials & goods across several countries got hampered, which led to massive financial losses to the leading market players and reduced demand for plastic across different industries.
However, with the gradually reducing number of Covid-19 cases, governments of different Asia-Pacific countries uplifted restrictions and allowed recommencement of business operations, which enabled the market to recover from losses and regain its usual pace.
Nonetheless, in the coming years, the market is projected to generate remunerative growth opportunities for the leading players, with robust support from both private & public organizations inclining toward plastic recycling and reducing pressure from the overuse of fossil fuels & Green House Gas (GHG) emissions.
Market Segmentation:
Based on the Application:
Of them all, the Packaging sector is anticipated to dominate the market with the largest share during the forecast period. It owes principally to the increasing demand for plastic in food & beverage packaging, coupled with the mounting awareness among manufacturers about the various benefits of using recycled plastic, like conservation of energy in producing plastic from scratch & low cost of recycled plastic. It, in turn, is resulting in an increasing demand for plastic recycling for manufacturing bottles, containers, & milk jugs, among other single-use items.
On the other hand, the automotive sector is another prominent end-user adopting plastic recycling. It owes to reduced emissions generated with recycled plastic & lightweight plastics that make it easier for automotive manufacturers to produce lightweight & robust vehicle components.
Nonetheless, the Building & Construction sector shall also contribute to the market growth in the coming years, owing principally to using plastics in making composites with materials like Polypropylene (PE) & High-Density Polyethylene (HDPE), which are easy to recycle.
Based on the Type:
Of them all, Polyethylene Terephthalate (PET) plastic dominated the market in recent years and shall prevail the same trend during the forecast period. It owes principally to the high recycling capabilities of PET than that of other plastic types. In addition, the demand for PET plastic is rising substantially in the food & beverages sector for manufacturing containers & bottles to deliver efficient packaging. It, in turn, is generating massive plastic waste that needs properly recycling and augmenting the overall market growth.
Besides, the use of recycled plastics in making products like shampoo bottles, tennis balls, & window cleaners, among others, further drives the demand for PET. Moreover, these plastics are also used substantially across other industrial verticals like automotive, electronics, textiles, etc. Advantages like turning waste plastic from single-use into new & renewable items shall also create lucrative growth opportunities for the leading market players in the years to come.
Country Landscape
Geographically, the Asia-Pacific Plastic Recycling Market expands across:
Of them all, China dominates the market with the largest share & shall prevail the same trend during the forecast period. It owes principally to the massive plastic waste generation in the country and collection of scrap plastic from countries like the US, Japan, & Australia, among others, to recycle plastic & transform it into high-quality materials for its reusability across different end-user industries.
Besides, mounting concerns associated with environmental degradation have further instigated the Chinese government to impose stringent regulations for the proper disposal of plastics & encourage plastic recycling to different manufacturers.
Moreover, with the rapidly expanding automotive, building & construction, & textile sectors, China is anticipated to witness an increasing adoption of plastic recycling practices, which, in turn, shall augment the overall market growth in the coming years.
On the other hand, countries like India are also actively taking several initiatives in plastic recycling and have launched a nationwide awareness campaign associated with the Single-Use Plastics on World Environment Day in June 2021. It shall also contribute to the growth of the Asia-Pacific Plastic Recycling Market in the years to come.
Recent Developments by Leading Companies:
Market Dynamics:
Key Driver: Soaring Need to Address Environmental Issues
With the increasing awareness regarding environmental sustainability, different countries in the Asia-Pacific region are actively taking initiatives toward plastic recycling & waste management to encourage suitable disposal practices for plastic & recycling it into new products. This aspect is likely to act as a prominent driver for the Asia-Pacific Plastic Recycling Market during the forecast period.
Possible Restraint: Unavailability of Regulating Body for Plastic Recycling
A lack of regulatory framework in a few countries across Asia-Pacific might hinder the growth of the Plastic Recycling Market during 2021-26. It owes to the possibility of improper disposal & recycling of plastic waste, which might create an imbalance in the use & recycling of plastics and, in turn, negatively influence the environment in the years to come.
Growth Opportunity: Technological Advancements & Innovations in Plastic Recycling Practices
With rapid technological advancements & innovations in plastic recycling practices, the coming years are likely to create profitable opportunities for the leading players in the Plastic Recycling Market and surge the demand for recycled plastics like Polypropylene Terephthalate (PET) & High-Density Polyethylene (HDPE).
Competitive Landscape
According to MarkNtel Advisors, the leading players in the APAC Plastic Recycling Market are Foss Performance Materials, Indorama Ventures Public Company Limited, JFC Group, Krones AG, Kuusakoski, Alpek Polyester, Centriforce Products Limited, Clean Tech UK Ltd, DS Smith, Euresi Plastics SL, EF PLASTICS UK LIMITED, Far Eastern New Century Corporation (Phoenix Technologies), Lotte Chemical Corporation, MBA Polymers Inc., Mumford Industries, Petco. Co. za, Pistoni Srl, Placon, PolyClean Technologies, PolyQuest, Reliance Industries Limited, REPRO-PET, Teijin Limited, UltrePET LLC, Verdeco Recycling Inc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Asia-Pacific Plastic Recycling Market is projected to grow at a CAGR of around 6.4% during 2021-26.
A. The Packaging application of plastic recycling is anticipated to emerge as an area of remunerative opportunities for the leading players in the Asia-Pacific Plastic Recycling Market during 2021-26.
A. Mounting awareness about environmental sustainability, increasing plastic waste generation, and stringent government regulations for proper disposal of plastic are the key factors anticipated to drive the Asia-Pacific Plastic Recycling Market in the coming years.
A. In the coming years, rapid technological advancements in plastic recycling practices and the burgeoning inclination of manufacturers toward recycling plastic are facilitating the recovery of the Asia-Pacific Plastic Recycling Market from financial losses that occurred amidst the Covid-19 crisis in 2020.
