Recycled Plastic Market Regional Analysis

Why is Demand for Recycled Plastic Fueling Growth in North America?

North America dominates the recycled plastic market share due to well-established recycling systems, strict regulatory frameworks, and growing corporate sustainability initiatives. Increasing demand for eco-friendly packaging in the food, beverage, and retail sectors fuels consumption. Major players are investing in modern recycling technologies and post-consumer resin production. Government policies at both federal and state levels support plastic bans, recycled content mandates, and circular economy targets. Public awareness around plastic pollution continues to rise, encouraging recycling participation and the development of domestic recycled plastic infrastructure.

U.S. Recycled Plastic Market

The U.S. is the region's leader in the recycled plastics market share, in part because of sufficient policy support and guidance through initiatives such as the U.S. Plastics Pact, which has an ambitious target of 100 percent reusable, recyclable, or compostable plastic packaging by 2025. Coca-Cola, in 2024, announced that it would be using 100 percent recycled PET bottles for many products sold in a variety of states. Subsequently, this announcement will increase demand for rPET. Additionally, some states, such as California and Oregon, have requirements for recycled content for plastic beverage containers that will spur industry growth.

Canada Recycled Plastic Market

The Canadian federal and provincial governments are playing a role in expanding the recycled plastics market demand through nationally recognized policies such as the Zero Plastic Waste Agenda. In 2023, the government funded up to $10 million in upgrades for recycling infrastructure in Ontario and British Columbia. Major retailers like Loblaws, have made commitments to reduce virgin plastic in their packaging. When Canada introduced the ban of six single-use plastics in the summer of 2022, it contributed to on-going incremental innovation across multiple sectors, aiding innovations to use recycled plastic.

What Factors are Supporting Growth in Europe Recycled Plastic Market?

The recycled plastic market growth in Europe is the fastest growing in the world given strict environmental regulation, consumer awareness of recycling, and EU circular economy targets, among other things. Regulations like the European Plastics Pact and plastic taxes have forced the industry to utilize recycled content. Europe already has a well-established recycling infrastructure, high levels of waste collection, and ongoing investment in mechanical and chemical recycling processes. The growth of public-private partnership funding has increased opportunities for innovation, especially while various industries in packaging, automotive, and construction already relied on recycled plastics to meet sustainability goals and support environmental regulations.

Germany Recycled Plastic Market

Germany continues to be the leading country for recycled plastics with over 65% of plastic packaging recycled in 2023. Germany's commitment to Extended Producer Responsibility (EPR) schemes, innovative sorting technologies and the support of Saperatec by Henkel in innovative recycling solutions of flexible packaging has led to increased capabilities of recycled use in Germany.

France Recycled Plastic Market

France is continuing its efforts to increase recycled plastics by putting mandates in place to have all plastic packaging recyclable by 2025. In 2024, Veolia increased the capacity of its plastic recycling facility in Vernon by 50%. French government subsidies have also encouraged European corporations to use recycled materials in their production. Corporations like Danone have reported increased rPET use in PET water bottles of over 50%, and industry alignment is evident.

Spain Recycled Plastic Market

Spain has implemented a tax for non-recycled plastic packaging (€0.45/kg) that began in 2023, which has encouraged businesses to move towards recycled products. Ecoembes, the national recycling organization, reported a 9% increase in their year-on-year collection of plastic packaging for 2023. Companies like Repsol have also made investments of over €26 million in new mechanical recycling plants, setting the stage for larger scale and more efficient operations in this recycled plastics market.

Why is Asia Pacific the Fastest-Growing Recycled Plastic Market?

The Asia Pacific region is becoming a new giant in the recycled plastic market size due to rising urbanization, an increase in plastic waste, and government-led sustainability advancement and initiatives. Countries like Japan, South Korea, and India are implementing some aggressive policies, including EPR and waste segregation, as well as harnessing investments through technology to set their recyclers up for success. The COVID-19 pandemic has also sped up the growth of e-commerce and takeaway food deliveries that drives demand for sustainable packaging. In many cases multinational corporations have collaborated with local recyclers to meet their internal goals to help the environment. And in Asia, we are also seeing a growing number of small emerging enterprises driven to be sustainable by innovating around low-cost, scalable recycling methods to meet demand.

Japan Recycled Plastic Market

Japan has been one of the world's leading recyclers for many years with a recycling rate for plastic bottles above 85%. In 2023, Suntory Beverage & Food worked with Kyoei Industry to open a new PET recycling plant in Saitama, Japan, with a closed loop recycling process. Current laws and policies in Japan are generally supportive of chemical recycling developments as well as innovators of hard-to-recycle plastics to enable ongoing expansion of the recycled plastic market.

South Korea Recycled Plastic Market

South Korea's Roadmap for Carbon Neutrality and Green Growth has been supportive of developing recycled plastic market through monetary incentives and technology grants. In 2024, LG Chem announced a new plant in Seosan for recycling post-consumer plastics into products for electronics and plastic packaging production. South Korea recycled 56% of its plastic waste in 2023, which is really high compared to other countries.

India Recycled Plastic Market

India is building momentum around extended producer responsibility (EPR) policies and new regulations governing plastic waste management. The Plastic Waste Management Amendment in 2023 required recycled content in packaging. Major FMCG organizations including Hindustan Unilever and ITC Limited have committed to obtain more than 25 percent of the total plastic packaging content from recycled materials in their journeys towards packaging sustainability by 2025. These commitments have motivated domestic recycling initiatives and start-ups.