3 Trends Driving the Growth of Recycled Plastic Products Market

Magazine

Team Industry Outllok

The global market for recycled plastic products predominantly used for packing has been forecasted to grow at a CAGR of 6.1 percent between the years of 2019-2024. It is likely to reach a total valuation of $50.5 Billion which was $35.4 towards the end of 2018-2019 financial year. However, there is steep competition for the players in this particular market.

The giants already in existence are making it difficult for small players to sustain in this industry. Despite this, a lot of small players are trying hard to get into the market and compete with the big companies in terms of competitive and quality of material.

As far as geographical data is concerned, with a growing demand for recycled products and simultaneous growth in production, North America is enjoying the leading position for recycled plastic products in the world. This has also been a result of several policies and initiatives made by the government and local businesses to increase the usage of recycled plastic in this region.

Countries in Europe, Asia Pacific regions, Latin American regions, Middle East and Africa are after North America in terms of overall growth of this industry.

Recycling Programs
For many developed and developing nations across the globe, various recycling programs and the reduction of plastic waste have been termed as priority. It is a known fact that recycling and reuse of plastic can reduce the amount of environmental pollution. Not much time back, almost a million kilograms of plastic waste was extracted from the river Ganges in India. So, many of the ruling authorities in the developed and developing countries have taken various initiatives to inspire the usage of recycled plastics by business establishments.

In order to promote effective waste management, governments are also imposing waste disposal taxes, landfill taxes, deposit refund schemes and recycling credit schemes. These are being said to further facilitate the growth of the recycled plastic market.

Increase in Demand
The global demand for recycled plastic material has been a subject of constant increment across various industries that include food and beverage, automotive, healthcare and packaging. However, the development registered in these sectors can be accredited to the rise in population, inflating disposable income generation and product innovations on a continuous scale.

A well set example in this context can be the higher manufacturing cost for the production of virgin resins has made the usage of recycled plastic products necessary and also facilitated the growth of the global market for recycled plastic products.

Increasing R&D
Several brands across the world are investing considerable amount of capital on the research and development of recycled plastic products. This is only to ensure an enhanced quality of performance for all the products manufactured.