Recycled plastic granules are the basic products from which plastic products are manufactured. Any material made from recycled plastic granules consists of at least one thermoplastic products. There are several players in the market (such as Vanshika Plastic Industry, Mittal Polymer, etc.), which are environment-conscious and aim to re-use the plastic waste which is often released in the environment. The plastic waste is utilized to make recycled plastic granules of different sizes and shapes, which are further used in the manufacturing of several items.
The global recycled plastic granules market is expected to reach US$ 3.96 Billion by the end of 2030, in terms of revenue, exhibiting a CAGR of 3.3% during the forecast period (2022 to 2030).
One of the major growth drivers of the global recycled plastic granules market is the rising prices of crude oil in the international market and vast availability of recycled plastic waste. As crude oil is a vital component of plastic, the variation in oil prices also has direct impact on the price of plastic. Increasing COVID-19 vaccination rates, lower pandemic-related restrictions, and burgeoning economy added impetus to the price of crude oil. For instance, according to the U.S. Energy Administration, spot price of Brent crude oil initiated the 2021 year with price of USD 50 /barrel and went to USD 86 /barrel in late October of 2021. Brent crude oil annual average for 2021 was around USD 71/barrel which was the highest in past three years (2018-2020).
In addition, the prices of crude oil were impacted as the Organization of Petroleum Exporting Countries (OPEC) lowered down their production and restricted supply during the pandemic. Further as the demand for petroleum reached back to its pre-pandemic level, the OPEC countries didn’t increased their production. Thus, increasing the price of crude oil over the last two years (2020-2021).
Furthermore, crude oil prices had witnessed a rise during the Russia-Ukraine war. Countries such as the U.S. and the U.K. banned Russian oil and gas imports; however, few countries went into panic buying of crude oil. Brent oil topped US$ 111 /barrel in 2022, which was up by around 14%. Thus, a slow production of crude oil compared to demand combined with Russia-Ukraine conflict has motivated plastic granules manufacturers to shift towards recycle plastic waste as a raw material.
A huge amount of plastic waste from milk sachets, liquor covers, tobacco covers, packaging covers, broken buckets, etc. are available in large quantities. Although the recycling rate of plastic is around 10-12%, environmental concerns and government initiatives to reduce the plastic pollution is expected to fuel the rate of recycling. This is expected to propel the demand for recycled plastic granules.
Among regions, Asia Pacific held a dominant position in the global recycled plastic granules market in 2021, accounting for 44.87% market share, in terms of revenue, followed by Europe and North America.
This is due to China’s plastic products output which has grown rapidly in the past decade (2011-2021). According to the International Pollutants Elimination Network, in 2019, the output of plastic products reached approximately 81.842 million tons and the consumption reached around 70 million tons. Such high consumption of plastic had also created a large amount of plastic waste in 2019. China produced 63 million tonnes of waste plastic in 2019, of which around one-third were buried, one-third were recycled, and one-third were disposed of in the environment. Thus, a high amount of plastic waste is attributed to the high rate of recycled plastic granules.
Figure 1. Global Recycled Plastic Granules Market Revenue Share (%), By Region, 2021
The demand for recycled plastic granule is likely to lower down owing to the challenges faced during plastic recycling. Plastic recycling is considered harmful to environment as it releases VOCs (Volatile Organic Compounds). According to the American Lung Association, breathing VOCs could affect the eyes, nose, and throat. It creates problem in breathing and can damage the central nervous system as well as other organs.
Another major challenge for producing resins from plastic wastes is that different plastic types are not compatible with each other. Different types of plastic are combined in manufacturing processes, which further makes recycling more difficult. For instance, when a little quantity of Polyvinyl Chloride (PVC) is contaminated in a Polyethylene Terephthalate recycling stream, it can degrade the quality of recycled PET resin by releasing hydrochloric acid gas at a higher temperature.
|Base Year:||2021||Market Size in 2021:||US$ 2.96 Bn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||3.3%||2030 Value Projection:||US$ 3.96 Bn|
Polyclean Technologies Inc., Goverdhan Polygran Pvt. Ltd., Nidhi Enterprises, S.S.B Polymers & S.S.B Enterprises, The Shakti Plastic Industries, Dar AI Khaleej Plastics, GRM Polymer, Jai Shree Balaji Plastic, Kamal Polyplast, Mittal Polymers, Nahata Plastics, Navkar Industries, Amruta Plastic, Raza Traders, Vanshika Plastic Industry, Wiwat Plastic, and Xiamen Keyuan Plastic Co., Ltd.
|Restraints & Challenges:||
Several regulations imposed by governments and regulatory bodies in North America and Europe are encouraging the adoption of recycled products. For instance, the European Union has set a target of recycling 50% of plastic packaging by 2025 and 55% by 2030. Additionally, the Design-for-Recycling Work Plan intends to guarantee that a substantial amount of plastic waste is indeed recyclable and can be incorporated as recyclates into goods for the EU market. Design-for-Recycling is a key aspect in ensuring the circular transition for plastic and plastic packaging.
Further, countries including the U.S., Canada, India, Brazil, Germany, etc. are promoting the recycling of plastic. For instance, the Extended Producer Responsibility (EPR) regulations draught notification was provided by the Ministry of Environment, Forest and Climate Change (MoEFCC) on October 6, 2021, in accordance with the Plastic Waste Management Rules, 2016. Producer, Importer, and Brand Owners or PIBOs are required by this draught to report the government via a centralized website of the amount of plastic they create or recycle yearly. Such initiatives from governments and regulatory bodies are driving the trend of recyclable plastic product, which in turn is propelling the demand for recycled plastic granules.
Figure 2. Global Recycled Plastic Granules Market Revenue Share (%), By Type, 2021
Global Recycled Plastic Granules Market – Impact of Coronavirus (Covid-19) Pandemic
The coronavirus pandemic has had an influence on the economy because governments all around the world implemented lockdown measures to restrict human movement. Industrial operations and international travel were suspended as a consequence of these lockdowns. Most industrial sectors were negatively affected by these actions. Labor shortages and supply chain problems also affected factories and manufacturing facilities.
During the COVID-19 pandemic, plastic goods were crucial in keeping people safe. The supply chain and waste disposal system were significantly disrupted by the widespread usage of personal protective equipment. Millions of single-use plastic items (such as masks, gloves, aprons, and sanitizer bottles) that have been abandoned into the environment on land have led to an increase in plastic debris washing up on ocean shorelines and covering the seafloor.
In addition, lower demand from end-use industries such as automotive, construction, electronics, etc. affected the supply cycle of recycled plastic granules. For instance, the automotive industry witnessed drop in sales of vehicles, shutdown of production facilities, and shortage of vehicle parts.
Key players operating in the global recycled plastic granules market include Polyclean Technologies Inc., Goverdhan Polygran Pvt. Ltd., Nidhi Enterprises, S.S.B Polymers & S.S.B Enterprises, The Shakti Plastic Industries, Dar AI Khaleej Plastics, GRM Polymer, Jai Shree Balaji Plastic, Kamal Polyplast, Mittal Polymers, Nahata Plastics, Navkar Industries, Amruta Plastic, Raza Traders, Vanshika Plastic Industry, Wiwat Plastic, and Xiamen Keyuan Plastic Co., Ltd.
Recycled plastic granules are granules produced through the recycling of plastic waste generated during the production of various goods. These are the most typical thermoplastic material distribution forms that producers of raw plastic materials use. They are used as the replacement of fine aggregate and thus reduces the dead load of the structure. Recycled plastic granules come in a variety of colors including white, blue, black, sea green, and others.
The quickly growing plastic waste processing market has shown that processing waste plastic can be started with less investment and provide benefits quickly. The recent expansion of the reprocessed plastic granules industry has been aided by the wide availability of raw materials, the high demand for finished products (reprocessed plastic granules), the stable price of the product, the high return on investment, and government incentives for business establishment.
Governments around the world are helping plastic recycling manufacturers by offering incentives to influence recycling. Waste management activities can be managed with the help of financial incentives which are designed to persuade household and waste producers to reuse & recycle more. Such financial incentives are expected to increase the rate of recycling in Europe from 22.5% to 55% by 2025.
On November 16, 2020, the EPD (Environmental Protection Department) of Hong Kong established the GREEN$ (Greeny Coins) smart card. The aim behind this initiative was to encourage people to utilize community recycling facilities, earn GREEN$, and trade them for gift items. Thus, such initiatives are expected to foster the growth of plastic recycling, which in turn is expected to propel the demand for recycled plastic granules.
Further, fluctuating prices of crude oil owing to supply and demand variations are likely to foster the demand for recycled plastic granules. Elevation in oil prices might mean higher prices on products derived from petroleum. This is likely to hamper the virgin plastic granules prices and its demand, which in turn is expected to increase the demand for recycled plastic granules.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.