Global Mechanical Recycling of Plastics Market Size Study, by Product, Application, and Regional Forecasts 2022-2032

Global Mechanical Recycling of Plastics Market Size Study, by Product, Application, and Regional Forecasts 2022-2032

The Global Mechanical Recycling of Plastics Market is valued at approximately USD 35 billion in 2023 and is projected to grow at a CAGR of 9.36% over the forecast period 2024-2032. Mechanical recycling has established itself as an essential solution to combat the environmental challenges posed by plastic waste. By employing advanced processing methods to transform post-consumer and post-industrial plastic materials into high-quality recycled plastics, the process plays a pivotal role in promoting a circular economy. With rising global initiatives toward sustainable practices, mechanical recycling has garnered substantial interest across key industries, including packaging, automotive, building & construction, and textiles.

The market’s growth is primarily driven by the surging demand for recycled plastics in the packaging industry, as manufacturers aim to meet stringent environmental regulations and reduce dependency on virgin materials. Notably, the increase in demand for polyethylene terephthalate (PET) and polypropylene (PP)—two widely recycled polymers—has spurred investments in advanced recycling infrastructure. Simultaneously, technological advancements in sorting, washing, and extrusion systems have improved the efficiency and quality of mechanically recycled plastics, enabling their use in high-value applications such as automotive components and consumer goods.

Despite the promising growth, the market faces significant challenges, including the complexity of recycling mixed plastics, contamination issues, and limited infrastructure in developing economies. Additionally, fluctuating raw material prices for virgin plastics often create market competition, deterring smaller recyclers. However, increasing policy support, such as extended producer responsibility (EPR) frameworks and mandatory recycling targets, is expected to overcome these hurdles and drive adoption.

Key opportunities lie in expanding mechanical recycling capabilities in the building & construction and automotive sectors, where lightweight, durable materials are in high demand. With the push for carbon-neutral initiatives and growing consumer awareness, companies are focusing on producing high-performance recycled plastics with minimized environmental footprints. Moreover, advancements in innovative processing techniques, such as improved sorting technologies and high-purity output methods, are set to reshape the competitive landscape.

Regionally, Europe currently leads the mechanical recycling of plastics market due to stringent environmental regulations, such as the European Union’s Circular Economy Action Plan, which mandates the increased use of recycled materials. Asia-Pacific, led by China and India, is expected to witness the fastest growth during the forecast period, driven by rapid industrialization, government initiatives to reduce plastic waste, and the burgeoning packaging sector. Meanwhile, North America is witnessing increased investments in recycling facilities to meet the growing demand for sustainable plastics in sectors like food & beverage and consumer electronics. Latin America and the Middle East & Africa are emerging as promising regions, with growing public-private partnerships aimed at tackling plastic pollution.

The mechanical recycling of plastics market is poised for transformative growth, supported by industry-wide collaborations, technological breakthroughs, and increasing focus on sustainability goals. Leading players are investing in capacity expansion and innovative processing solutions to secure a competitive edge and meet rising global demand for eco-friendly plastic alternatives.

Major Market Players Included in this Report Are:
• BASF SE
• Veolia Environnement SA
• Suez Environnement Company
• Borealis AG
• Waste Management, Inc.
• Plastipak Holdings, Inc.
• Alpla Group
• Indorama Ventures Public Company Limited
• Berry Global Inc.
• MBA Polymers Inc.
• KW Plastics
• Clean Tech Incorporated
• Republic Services, Inc.
• Remondis SE & Co. KG
• Viridor Ltd

The detailed segments and sub-segment of the market are explained below:

By Product:
• Polyethylene (PE)
• Polyethylene Terephthalate (PET)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polystyrene
• Others

By Application:
• Packaging
• Automotive
• Building & Construction
• Electrical & Electronics
• Textiles
• Others

By Region:

North America:
• U.S.
• Canada

Europe:
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia-Pacific:
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America:
• Brazil
• Mexico

Middle East & Africa:
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Years considered for the study are as follows:
• Historical Year – 2022
• Base Year – 2023
• Forecast Period – 2024 to 2032

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2022 to 2032.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of geographical landscape with country-level insights across major regions.
• Competitive landscape with in-depth information on major players.
• Analysis of key business strategies and recommendations for future market approaches.
• Analysis of competitive structure of the market.
• Demand-side and supply-side analysis of the market.

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