Plastic Recycling Market
Report ID: SQMIG15G2119
Report ID: SQMIG15G2119
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Report ID:
SQMIG15G2119 |
Region:
Global |
Published Date: May, 2025
Pages:
199
|Tables:
119
|Figures:
71
Global Plastic Recycling Market size was valued at USD 60.33 Billion in 2024 and is poised to grow from USD 65.34 Billion in 2025 to USD 123.66 Billion by 2033, growing at a CAGR of 8.3% in the forecast period (2026–2033).
The plastic recycling market is experiencing robust growth, propelled by the rising demand for recycled plastic across various industries. Chemical recycling is gaining momentum in the global plastic recycling market trends. It would enable the recycling of materials that were yet unrecyclable by breaking plastics up into their components. The emerging chemical recycling process is supposed to boost efficacy and even types of plastics available for recycling.Key market trend is the integration of AI and automation in sorting and processing, which improves efficiency and reduces contamination. Additionally, growing corporate commitments to sustainability and government policies promoting circular economies are reinforcing the growth trajectory of the plastic recycling market globally. The demand for recycled material as a packaging material is increasing in various industries, including consumer goods and food & beverage, as it is considered safe for consumption in food & beverages. These recycled polymers have the ability to replace traditional plastics, which act as an obstruction between environmental variables and food. The market is experiencing continuous growth on account of the increasing use of recycled plastic in the food and beverage (F&B) packaging industry. The rising working population is resulting in the escalating demand for convenience and ready-to-eat (RTE) food. Moreover, due to rising environmental concerns leading market players and packaging companies are focusing on introducing recyclable packaging. Apart from this, individuals are adopting eco-friendly packaging prepared with non-toxic, durable, and recycled materials.Around the world, governments have empowered regulations to curb plastic waste and facilitate increased recycling. Consumers are a lot more inclined towards brands showing eco-friendly practices which are pushing many industries towards using recycled materials in their products. In fact, this change in consumer behavior has contributed greatly to the expansion of the global market in plastic recycling.
Can AI Enhance Operational Efficiency in Recycling Facilities?
Artificial Intelligence (AI) is playing a transformative role in the plastic recycling market by revolutionizing the sorting and waste management processes.
For instance, in 2024, a notable development came from AMP Robotics, a U.S.-based company, which partnered with global recycling facilities to deploy AI-powered robots that use computer vision and machine learning to identify, sort, and separate different types of plastics with high precision. These AI systems significantly improve the efficiency and accuracy of recycling operations, reduce contamination rates, and enable better material recovery from complex waste streams. This not only enhances the quality of recycled plastics but also reduces operational costs, supporting scalability in recycling infrastructure. As AI technologies become more accessible, their integration is expected to become a standard in modern recycling facilities worldwide.
Market snapshot - 2026-2033
Global Market Size
USD 55.71 Billion
Largest Segment
Mechanical Recycling
Fastest Growth
Chemical Recycling
Growth Rate
8.3% CAGR
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The plastic recycling market is segmented by type, source, process, application and region. Based on type, the market is segmented into polyethylene terephthalate (PET), polyethylene (PE), polystyrene (PS), polyvinyl chloride (PVC), polypropylene (PP) and others. Based on source, the market is segmented into plastic bottles, plastic films, polymer foam and others. Based on process, the market is segmented into mechanical recycling and chemical recycling. Based on application, the market is segmented into packaging, automotive, building and construction, electrical and electronics and others. Based on region, the market is segmented into North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
As per the global plastic recycling market forecast, plastic bottles segment dominates the market due to their widespread use in packaging beverages, personal care, and household products. Their uniform material composition makes recycling more efficient and produces high-quality recycled materials. Additionally, bottles have high collection rates since they are easy to sort and process. The strong demand for recycled PET in manufacturing new bottles, textiles, and packaging further drives this segment’s dominance. Government regulations promoting bottle recycling also contribute significantly to their leading market position.
The plastic films segment is the fastest-growing segment in the market. Advances in recycling technologies, including better sorting and chemical recycling methods, help overcome challenges related to contamination and multi-layer structures. Growing consumer awareness and regulatory pressure to reduce single-use plastics have increased demand for recycled plastic films, especially in food and retail packaging. Enhanced collection programs and expanding end-use applications are also driving the growth of this segment.
As per the global plastic recycling market analysis, mechanical recycling currently dominates the market. This method involves physically processing plastic waste such as sorting, cleaning, shredding, and melting to produce recycled pellets that can be reused in manufacturing. Mechanical recycling is widely adopted due to its cost-effectiveness, well-established infrastructure, and compatibility with a broad range of common plastics like PET and HDPE. It is particularly efficient for recycling plastic bottles and films with minimal chemical alteration, making it the primary choice for many recycling facilities worldwide.
As per the global plastic recycling market outlook, chemical recycling is the fastest-growing segment in the market. This advanced process breaks down plastics into their original monomers or other useful chemicals, enabling recycling of complex or contaminated plastics that are difficult to process mechanically. Innovations in chemical recycling technologies, such as pyrolysis and depolymerization, are gaining traction because they offer higher-quality recycled materials and can handle multi-layered or mixed plastic waste. Growing environmental regulations, increasing demand for circular economy solutions, and investments in new facilities are accelerating the growth of chemical recycling globally.
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As per industry analysis, Asia Pacific is the dominant region in the global plastic recycling market. This dominance is driven by a combination of large-scale plastic consumption, government mandates, and growing recycling infrastructure, especially in countries like China, India, and Japan. The market is marked by diverse conditions, with developed countries like Japan and South Korea leading in technology adoption and policy frameworks, while emerging economies focus on improving collection and sorting infrastructure. The growth in industrial activities and packaging sectors further stimulates demand for recycled plastics.
Japan is recognized for its advanced recycling technologies and stringent regulations that promote plastic waste reduction and resource efficiency. The country emphasizes high recycling rates through sophisticated sorting systems and strong government mandates. Japan also invests heavily in chemical recycling and mechanical recycling processes, supporting a circular economy approach. Consumer participation and corporate responsibility further strengthen market dynamics.
South Korea has implemented robust policies targeting plastic waste reduction, including strict bans on single-use plastics and mandatory recycling targets. The government encourages technological innovation in recycling processes and supports public-private partnerships to expand recycling capacity. South Korea’s efficient waste management systems and active public engagement make it a key market in Asia for plastic recycling.
As per regional forecast, North America remains a significant region in the plastic recycling market, driven by strong environmental regulations, advanced recycling infrastructure, and growing consumer demand for sustainable products. The region benefits from government initiatives promoting recycling and extended producer responsibility (EPR) policies. The presence of major recycling companies and innovations in recycling technologies further bolster market growth. However, challenges like contamination and collection inefficiencies still exist, prompting ongoing investments to enhance the recycling value chain.
The United States is a key player in the North America plastic recycling market, with widespread adoption of recycling programs across states and growing investments in advanced recycling technologies. Federal and state-level regulations, combined with increased corporate sustainability commitments, are accelerating the use of recycled plastics. The U.S. is also witnessing growth in chemical recycling facilities, which aim to tackle hard-to-recycle plastics, further driving the market.
As per regional outlook, Canada is actively enhancing its plastic recycling capabilities through supportive policies and investments in recycling infrastructure. The government’s focus on waste reduction and circular economy initiatives encourages both public and private sector participation. Growing consumer awareness and initiatives to reduce single-use plastics also contribute to expanding the plastic recycling market. However, geographic and logistical challenges in remote areas require tailored strategies for effective waste collection.
Europe remains a global leader in plastic recycling due to stringent environmental regulations, ambitious sustainability goals, and extensive recycling infrastructure. The European Union’s policies, such as the Circular Economy Action Plan and mandatory recycled content requirements, drive innovation and market growth. The region also benefits from high consumer awareness and active collaboration among stakeholders to improve recycling rates and develop new recycling technologies.
The UK has made significant strides in improving its plastic recycling capabilities through government policies targeting waste reduction and recycling targets. Initiatives promoting plastic packaging redesign and increased recycled content usage are key market drivers. The UK’s recycling industry is increasingly adopting advanced sorting and chemical recycling methods, enhancing the quality and scope of recycled plastics.
Germany is a pioneer in recycling, supported by a well-established waste management system and comprehensive regulatory framework. The country emphasizes producer responsibility, incentivizing manufacturers to use recycled materials. Germany’s strong industrial base and research institutions also contribute to continuous advancements in recycling technologies, making it a hub for plastic recycling innovation.
Italy is expanding its plastic recycling infrastructure amid growing regulatory support and consumer demand for sustainable products. The government’s focus on circular economy strategies and waste management reforms is facilitating market growth. Italy’s recycling sector is evolving with investments in modern technologies and enhanced waste collection systems, particularly in urban areas, helping to improve overall recycling efficiency.
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Rising Environmental Awareness and Regulatory Support
Technological Advancements in Recycling Processes
High Operational and Infrastructure Costs
Contamination and Quality Issues of Recycled Plastics
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The competitive landscape of the global plastic recycling industry in 2024 is marked by strategic collaborations, infrastructure expansion, and increased adoption of advanced recycling technologies. Leading companies are focusing on integrating chemical recycling with mechanical processes to enhance efficiency and meet circular economy targets.
As per market strategies, in March 2024, LyondellBasell announced the conversion of its Houston refinery into a large-scale plastic recycling facility, signaling a strategic shift from fossil fuel operations to sustainable recycling initiatives.
The agricultural drones industry is witnessing a surge in innovation, driven by agile startups that are redefining how technology meets farming. Among these, Volatus Aerospace AgTech and XAG India, both founded after 2020, have emerged as key players offering advanced drone-based solutions tailored to modern agriculture. These companies are not only addressing critical issues like labor shortages, inefficient resource usage, and climate challenges but are also empowering farmers through accessible and intelligent drone technologies.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, key drivers of market growth include increasing environmental awareness and regulations. Nowadays, the demand for virgin plastics is growing rapidly, ranging from food packaging to manufacturing automotive components. Asia is rapidly growing, driven by increasing plastic consumption and improving waste management practices. The growth can be attributed to their distinct quality benefit over recycled alternatives. The production of recycled plastics eliminates the various processing steps that are essential in conventional plastics production, thereby saving energy. The production of virgin plastics involves labor input and processes such as extraction, refining of raw materials, storage, and transportation, which are expensive in terms of energy and cost. The plastic recycling market is currently led by regions like Europe and North America, which together hold the largest market share due to their stringent regulations, advanced recycling infrastructure, and high consumer awareness.
| Report Metric | Details |
|---|---|
| Market size value in 2024 | USD 60.33 Billion |
| Market size value in 2033 | USD 123.66 Billion |
| Growth Rate | 8.3% |
| Base year | 2024 |
| Forecast period | 2026-2033 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Plastic Recycling Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Plastic Recycling Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Plastic Recycling Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Plastic Recycling Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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