Wide-spread environmental concerns about plastic waste are leading to increased demand for the plastic recycling market that has various uses for plastic waste. At the same time, and in line with this growing need, an increased number of industries that produce plastic products have committed to reducing their use of virgin plastic and ensuring that the plastic they do produce is recyclable, reusable, or compostable.
Growth of the Plastic Recycling Market
Valued at around $43.73 billion in 2018, research indicates that the plastic recycling market will grow at a compound annual growth rate (CAGR) of 6.6% in revenue and 8.8% in volume by 2027. Findings are that rising environmental concerns will be the primary driving force along with the concerted global effort towards effective waste management and sustainability. Another is the growing awareness of the need for recycling plastic and the anticipated market growth of the PR market.
A new report released by Research and Markets in February 2020 gives a market snapshot in its executive summary and discusses the plastic recycling market by material type, source, application, and geography. Titled Global Plastic Recycling Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts, 2019 to 2027, it explores the roles of the many global and regional participants in the plastic recycling market and analyses anticipated acquisitions, partnerships, and collaborations. These, the report states, are likely to be the major strategies market players will follow in an endeavor to expand their geographic presence and market share.
An older report published mid-2018 gave a slightly lower CAGR for the period 2018 to 2023 of 4.3%. This report, Global Plastic Waste Management Market 2018 by Manufacturers, Regions, Type and Application, Forecast to 2023 stated that it would grow from an estimated $27,1000 in 2017 to $34,900 in 2023.
When research for the new report was carried out during 2018, the Asia-Pacific region including China, Indonesia, Malaysia, and India, had the highest market share in plastic recycling. This was attributed to the fact that the region has the largest share in the generation of plastic waste and is also the biggest plastic waste importer.
However, Europe was pinpointed as a region poised to become the fastest-growing in the plastic recycling market due to increasing government initiatives and the improvement of recycling facilities in this part of the world.
While the report covers at least 16 companies involved in plastic recycling globally, the Hungarian MOL Group has been highlighted as a result of its acquisition of Aurora, a German recycled plastic compounder company. MOL is a well-established supplier of virgin polymers and was motivated by its Enter Tomorrow 2030 strategy that aims to move its business from a traditional fuel-based model to a higher value-added petrochemical product portfolio. More specifically, MOL intends to strengthen its position as a supplier in the sustainable plastic compounding segment of the automotive industry.
The older report focused on plastic waste management not only in the Asia-Pacific region but also in North and South America, Europe, the Middle East, and Africa.
Use of Recycled Plastic
In terms of plastic materials, high-density polyethylene (HDPE) and polyethylene terephthalate (PET) had the biggest market share in 2018. The reason given for this was a rapid surge in demand for PET and HDPE for the manufacturing of packaging. Hopefully, this won’t increase the production of PET and HDPE, but will rather help to get rid of waste.
As the CEO of Unilever, Alan Jope, said in a press statement late 2019: “Plastic has its place, but that place is not in the environment.” He was announcing Unilever’s commitment to halve its use of virgin plastic, reduce its use of plastic packaging, and dramatically step up its use of recycled plastic by 2025. They would also help to collect and process more plastic packaging than it sells – which will amount to about 600,000 tonnes per year, he said.
Additionally, technological advances in the plastic recycling industry have led to other less expected uses including the manufacture of denim clothing.
Realizing the environmental impact production of denim clothing has, Levi Strauss & Co. has taken bold steps to reduce its use of water and chemicals in cotton and cotton-clothing production, and about a decade ago, the company launched its much more sustainable Water<Less range of jeans. In 2013, Levi’s used dumped plastic bottles and food trays to make 300,000 jeans and trucker jackets for its spring collection. Of course, not the entire product was made from plastic, but it was guaranteed that at least 20% came from recycled plastic content.
Many other items are also made from recycled plastic, some with more plastic content than others. They include bags, rugs and mats, blankets, bottles, planters, dog collars, shoes, decking, fencing, and outdoor furniture.
The Future of Plastic
While many people talk about plastic as a material that should be eradicated, it does have remarkable uses as Alan Jope implies. But there is a dire need to change our thinking. The irony is that when recycled plastic was invented it was used to try and solve environmental problems like reducing the hunting of elephants for ivory and to provide protective sheaths for electrical wiring.
There is undoubtedly too much virgin plastic being produced worldwide and during the process, there are too many other natural resources being depleted. Added to this, too many consumers have no knowledge or concern about the use and disposal of plastic products. They simply don’t care!
We, as a global nation, need to focus more on the reuse, recycling, and remanufacture of plastic, which is exactly what plastic recycling companies can do so successfully.
Ultimately, we need to eradicate plastic waste by making it useful, and there is no doubt that the mechanical engineering sector is well positioned to find solutions.
Recommended Reading: How to Recycle Plastics