Plastic Recycling Services Market Size to Boost at 8.20% CAGR

Plastic Recycling Services Market Companies and Growth Insights

The global plastic recycling services market size reached US$ 28.55 billion in 2023 and is projected to hit around US$ 67.94 billion by 2034, expanding at a CAGR of 8.20% during the forecast period from 2024 to 2034.

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Growth in the circular economy emphasizes recycling as a way to reduce waste and conserve resources. The key players operating in the market are focused on adopting inorganic growth strategies like acquisition and merger to develop advance technology for plastic recycling which is estimated to drive the global plastic recycling services market over the forecast period.

Major Key Insights of the Plastic Recycling Services Market

• Europe dominated the plastic recycling services market in 2023.
• Asia Pacific is expected to grow at a significant rate in the market during the forecast period.
• By process, the mechanical recycling segment dominated the plastic recycling services market with the largest share in 2023.
• By type, plastic bottles segment is expected to grow at significant rate during the forecast period.

Plastic Recycling Services Market: Reduce Plastic Waste

Plastic recycling is the process of collecting and processing plastic waste to develop new products. This involves breaking down used plastic items, cleaning them, and then reprocessing them into raw materials that can be used to manufacture new plastic goods. The aim is to minimize plastic waste, conserve resources, and reduce environmental impact. The plastic recycling is either done by mechanical process or chemical process. Mechanical process plastic recycling involves physically breaking down plastic waste into smaller pieces without altering the chemical structure of the plastic.

This typically includes steps like sorting, shredding, washing, and melting the plastic. The resulting pellets can then be used to create new products. This method is efficient and widely used, as it helps reduce the amount of plastic waste and conserves resources. Chemical plastic recycling is a process that breaks down plastic materials into their fundamental chemical components. This method differs from mechanical recycling, which reprocesses plastics without changing their chemical structure.

Plastic recycling services encompass a range of activities aimed at collecting, processing, and repurposing plastic waste. Plastic recycling services play a crucial role in reducing landfill waste, conserving resources, and lowering greenhouse gas emissions associated with plastic production. By promoting recycling, these services contribute to a circular economy where materials are reused rather than discarded. In summary, plastic recycling services are vital for managing plastic waste, reducing environmental impact, and promoting sustainable practices in product development and consumption.

7 Key Factors Driving Plastic Recycling Services Market Growth

• Growing consumer preference for products made from recycled materials fuels demand for recycled plastics in various industries, including packaging and fashion and is seen to drive the growth of the plastic recycling services market in the near future.
• The key players operating in the market are focused on geographic expansion and launching their brand in other countries which is expected to drive the growth of the plastic recycling services market in the near future.
• Increasing focus on cost reduction and production efficiency can drive the specialty market growth further.
• Emerging markets and trends for plastic recycling services s is expected to drive the growth of the global plastic recycling services market over the forecast period.
• Increasing regulatory support is estimated to drive the growth of the market over the forecast period.
• Increasing in adoption of the advanced technology for the production of plastic recycling services s is estimated to drive the growth of the global plastic recycling services market in the near future.
• Disruptions in supply chains have highlighted the need for local sourcing of materials, making recycled plastics an attractive option, which is projected to drive the growth of the plastic recycling services market.

How Can AI Improve the Plastic Recycling Services Industry?

• AI-powered systems can improve the sorting of recyclable plastics by using advanced image recognition technology. This allows for more accurate identification of different plastic types and contamination levels, ensuring higher quality input for recycling processes.
• AI can streamline the supply chain by predicting demand for recycled materials and optimizing inventory levels. This helps recycling facilities better align their output with market needs, reducing waste and improving profitability.
• AI algorithms can analyze data from recycling facilities to optimize operations. This includes managing workflows, predicting maintenance needs, and minimizing downtime, ultimately increasing efficiency and reducing costs.
• AI-driven platforms can provide personalized information to consumers about recycling practices and local recycling options. This can increase public awareness and participation in recycling programs, leading to higher collection rates.
• AI systems can monitor the quality of recycled materials in real-time during processing, ensuring that only high-quality materials are produced. This enhances the value of recycled products and builds trust in the market.
• AI can aid in the development of new recycling technologies and materials. Machine learning models can simulate various chemical and mechanical processes, accelerating the discovery of more efficient recycling methods.
• AI can analyze market trends and consumer preferences to forecast demand for recycled plastics, helping companies to adapt their strategies and improve profitability. By integrating AI into plastic recycling services, the industry can enhance efficiency, reduce costs, and ultimately contribute to a more sustainable and circular economy.

Driver

Rising Environmental Awareness and Corporate Sustainability Goals

Increasing public concern about plastic pollution and its impact on ecosystems encourages recycling initiatives and sustainable practices. Many companies are adopting sustainability targets, driving demand for recycled materials to meet their environmental commitments and reduce carbon footprints. Initiatives to lower plastic waste are rising due to growing environmental concerns, such as the impact of plastic pollution on ecosystems and human health. Increased awareness of climate change and sustainability drives both public and governmental demand for change. Additionally, businesses are recognizing the economic benefits of sustainable practices, leading to innovations in materials and recycling technologies. Ultimately, these initiatives aim to create a more sustainable future.

In Europe, packaging production uses about 20 million tons (Mt) of plastic (or 40% of all plastics), and 6 Mt of HDPE (10%) is produced annually. Closing the recycling loop for garbage including sensitive HDPE packaging is the primary problem. It is essential to adhere to EU standards and customer demands for hazardous compounds, organoleptic requirements like color and odor, and contaminant migration. To ensure that the packaging is produced in a way that is both safe for the consumer and consistent with the company's branding, the package producer must adhere to certain mechanical and physical specifications. All packaging must be circular in order to combat plastic pollution in waste management, lower CO2 emissions, and lessen reliance on fossil fuels.

Restraint

Economic Viability and Technological Limitations

The key players operating in the market are facing challenges in getting accurate technology for recycling the plastic waste, which is observed to restrict the growth of the plastic recycling services market. High operational costs for plastic recycling and low market prices for recycled plastics can deter investment. Inefficient recycling processes and lack of advanced technologies hinder effective recycling. Inconsistent regulations and lack of support can impede market development. Low awareness and participation in recycling programs can limit supply. Contaminated plastics complicate the recycling process and reduce quality. These factors combined create significant barriers to expanding the plastic recycling services market.

Opportunity

Rising Research and development Activities

Plastic harms the environment in several ways: it contributes to pollution in oceans and landfills, threatening wildlife through ingestion and entanglement. Microplastics can contaminate soil and water sources, affecting ecosystems and human health. Plastics also take hundreds of years to decompose, leading to long-term environmental degradation. Furthermore, the production and incineration of plastics release greenhouse gases, exacerbating climate change. Research and development activities to improve plastic recycling are growing due to the urgent need to address environmental challenges posed by plastic waste. Innovations aim to enhance recycling technologies, making them more efficient and cost-effective.

Additionally, there's a push for developing biodegradable alternatives and better waste management practices. Increased regulatory pressures and consumer demand for sustainable products further motivate R&D efforts in this area. Ultimately, these activities seek to create more effective solutions for managing plastic waste. Increasing research initiatives Increasing research and development initiatives to reduce plastic waste, is estimated to create lucrative opportunities for the growth of the plastic recycling services.

For instance,

• In September 2024, CSIRO (Commonwealth Scientific and Industrial Research Organisation), government agency, and Murdoch University based in Australia, revealed the introduction of the “The Bioplastics Innovation Hub”. The Bioplastics Innovation Hub, a $8 million partnership between Murdoch University and Australia's national research agency CSIRO, aims to develop a new generation of 100% compostable plastic in partnership with industrial partners.

TOMRA’s Trial on AI Innovations in Recycling

• On March 26, 2024, TOMRA Systems ASA, recycling center in North Carolina, U.S., revealed the introduction of the food-grade plastics sorting solution utilizing AI technology. TOMRA Systems ASA company, uneviled the introduction of the three applications to segregate food-grade from non-food-grade plastics for HDPE (High Density Polyethylene), PET (Polyethylene Terephthalate) and PP (polypropylene). The company's extensive research and development contributed to the breakthrough. a subset of Al in deep learning. By integrating deep learning with its conventional near-infrared, visual spectrometry, or other sensors Using cutting-edge technology, TOMRA has attained 95% purity standards.

TOMRA's GAIN technology, was renamed GAINnext to honour the product's noteworthy advancement, can now overcome all of these difficulties by improving the AUTOSORT units' sorting capabilities even further. This allows the units to recognize objects that are difficult or, in certain situations, even impossible to classify using conventional optical waste sensors.

Mechanical Recycling Led the Market in 2023

The mechanical recycling segment held a dominant presence in the plastic recycling services market in 2023. Mechanically recycling process is widely utilized for plastic waste as it's cost-effective, energy-efficient, and can handle various types of plastics. The process involves shredding plastics, washing them, and re-melting to create new products. It helps conserve natural resources by reusing existing materials, reducing the need for virgin plastic production, which is resource-intensive. The energy required for mechanical recycling is generally lower than that for producing new plastics from raw materials, resulting in a smaller carbon footprint. By diverting plastic waste from landfills, mechanical recycling significantly reduces environmental pollution and promotes a circular economy.

Mechanical recycling can be more cost-effective compared to chemical recycling processes, making it an attractive option for many recycling facilities. It even facilities can create local jobs in collection, sorting, and processing, contributing to the economy. The mechanical recycling process is relatively straightforward and can be easily implemented, which helps in scaling recycling initiatives.

Chemical Recycling is Being Adopted at faster Rate

Chemical recycling segment is expected to grow at the fastest rate in the plastic recycling services market during the forecast period of 2024 to 2034. Chemical recycling involves converting waste plastics into monomers or other useful chemicals, which can then be used to produce new plastics or other products. This process can handle a wider variety of plastics, including those that are often not recyclable through mechanical methods. Chemical recycling can process a wider range of plastics, including multi-layered materials and those contaminated with food or other substances.

The end products can be of higher quality compared to mechanically recycled plastics, as they can be reconstituted into virgin-like materials. It helps create a closed-loop system where waste plastics are transformed back into raw materials. The monomers or chemicals produced through chemical recycling can be used to create new plastics, synthetic fibers, or even fuels, contributing to a more sustainable materials lifecycle. Increasing launch of the chemical recycling technology for plastic waste is estimated to drive the growth of the segment over the forecast period.

For instance,

• BASF SE, chemicals company headquartered in Germany, announced the introduction of the plastic recycling methodology named ChemCycling in the U.S. BASF offers Ccycled goods made in the US with feedstock derived from plastic trash. utilizing its extensive knowledge of copyright ChemCycling worldwide. Customers can purchase advanced recycled building blocks from BASF TotalEnergies Petrochemicals (BTP) at Port Arthur, Texas, which is ISCC+ certified. ChemCycling replaces certain fossil fuels in the traditional production process by using recycled feedstock made from plastic waste. Using a mass balancing technique, the improved recycled building blocks are linked to the recycled feedstock. These building blocks are applicable to a wide range of BASF products that are produced in the United States, such as polyurethanes, engineered plastics, and super absorbent polymers.

Plastic Bottles to Show Significant Share

The plastic bottles segment accounted for a significant share of the plastic recycling services market in 2023. PET bottles are highly recyclable, and there is a rising market for recycled PET. PET is one of the most readily collected and recyclable polymers since it is widely used in beverage and water bottles. In order to encourage consumers to return used bottles for recycling, several regions have implemented curbside collection programs and bottle deposit schemes. Demand is also being driven by the growing use of PET in textiles and packaging as companies look to decrease plastic waste and achieve sustainability targets. As part of their environmental commitments, big businesses, especially in the food and beverage industry, have committed to utilizing a sizable amount of PET in their packaging.

Europe’s Regulatory Measure to Support Dominance

Europe region is held the largest share of 48.50% in the plastic recycling services market in 2023. The rapid growth of the plastic recycling services market in Europe can be attributed to stringent regulations promoting sustainability, increasing consumer awareness about environmental issues, and technological advancements that enhance recycling efficiency. Additionally, initiatives from the European Union aimed at reducing plastic waste and promoting a circular economy further drive demand for recycling services.

For instance,

• In February 2024, the European Union, revealed the introduction of the project STOPP to support sustainable food packaging and minimize plastic waste. The whole food packaging value chain, including the agricultural food business, will be covered under the three-year effort. In compliance with the EU's Packaging and Packaging Waste Directive, it has been established to assist reduce packaging waste by 2030. The establishment of circular strategies for the use and processing of plastic will involve 14 partners from seven different nations. Additionally, they'll also develop awareness campaigns within a multi-actor network.

The key players operating in the Europe are focused on investing in plastic recycling services, which is estimated to drive the growth of the plastic recycling services market in near future. As well as increasing initiative to launch to plastic recycling service center in Europe, is estimated to drive the growth of the market.

For instance,

• In September 2024, LyondellBasell (LYB), chemical industry company headquartered in Netherlands, Europe, revealed that the company took initiative to invest a new closed-loop preparation center in Lich, Germany. With this new recycling center, LYB's committed workforce, a university that supports the process and analytics, and a service provider pool their total experience. The LYB integrated hub approach is supported by the closed-loop preparation center, which combines new and enhanced sorting and recycling capabilities with existing assets to increase operational scale, save costs, and recover value from plastic trash. By converting plastic trash into premium feedstock for high-performance materials, this advanced recycling facility promotes the circular economy and advances industry sustainability objectives.

Asia’s Industrialization and Government Initiatives to Support Growth

Asia Pacific region is anticipated to grow at the fastest rate in the plastic recycling services market during the forecast period. The rapid growth of the plastic recycling services market in the Asia Pacific region is driven by rising industrialization, increased plastic consumption, and growing environmental awareness. Governments are implementing stricter regulations on plastic waste management, while advancements in recycling technology and infrastructure support efficient processing. Additionally, urbanization and a burgeoning middle class are amplifying the demand for sustainable practices. The key players operating in the Asia Pacific region are taking initiative to support plastic recycling which is estimated to drive the growth of the plastic recycling services market in Asia Pacific region.

• In August 2024, PepsiCo India, holding company that manufactures and sells beverages, snacks, fruit products, mineral water, and package bottles, revealed that the company expanded its flagship program on plastic waste management named “Tidy Trails” to Agra, Uttar Pradesh, India.

New Advancements in Plastic Recycling Services Industry

• In March 2024, Clariant AG, chemicals company based in Europe, revealed the launch of the AddWorks PKG 158 and AddWorks PPA, a perfluoralkyl substances (PFAS)-free polymer processing aid product line. Add Works PKG 158, an exceptionally effective antioxidant solution with exceptional color protection, and AddWorks PPA, a line of products free of perfluoralkyl substances (PFAS) that are used in polymer processing aids, are specifically made for polyolefins that contain recycled material. A variety of next-generation products to enhance plastics recycling, lessen environmental effects, and improve surface qualities in building and construction; Licolub® PED 1316, a wax for easier processing and improved surface properties.
• In August 2024, Honeywell International, Inc., multinational conglomerate corporation and Hinergy, solar panel & solar street light manufacturer based in China, signed a collaboration to introduce an advanced plastic recycling program. This project will lessen its negative effects on the environment by turning plastic waste into useful materials through the use of cutting-edge technologies. The collaboration aims to improve the circular economy by making sure plastics can be recycled more efficiently and used again for a variety of purposes.
• In June 2024, Canon Inc., photograph company, announced that the company has entered in the recycling system business. Canon Inc. revealed plans to introduce new plastic sorting machinery with cutting-edge material identification technology. The apparatus uses a tracking mechanism to use Raman spectroscopy technology to moving objects in order to accurately identify the different material types of plastic fragments, even in situations where mixing black and other colors of plastic has proven to be difficult in the past. The company will start taking market orders for the "TR Series," which includes the "TR-S1510," on a broad scale in June 2024.

Plastic Recycling Services Market Companies

• Deluxe Recycling
• Shakti Plastics Industries
• KW Plastics
• Loop Industries
• Birch Plastics
• PureCycle Technologies
• Mura Technology
• Pellenc ST
• Rekart Innovations Private Limited
• Banyan Nation

Plastic Recycling Services Market Segments

By Process

• Mechanical Recycling
• Chemical Recycling

By Type

• Plastic Bottles
• Plastic Films
• Polymer Foam
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Sweden
  • Denmark
  • Norway
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa (MEA)
  • South Africa
  • UAE
  • Saudi Arabia
  • Kuwait