A study conducted at Global Market Insights Inc. suggests that the global recycled thermoplastic market may surpass USD 95 billion by 2025.
The increasing disposal of plastic into the environment is alarming and led to a serious climate, economic, health, and social burden. To that end however, the global recycled thermoplastic market has been experiencing substantial growth, on account of the product’s increasing penetration subject to its sustainable functional properties and reduced cost.
The research conducted at a credible institute estimates that after the first use cycle, approx. 95% of plastic packaging material value, or USD 80-120 billion yearly is lost to the economy. Around 32% of waste packaging escapes collection systems, which ultimately leads to considerable economic loss due to reduced productivity of natural resources like the ocean.
The significant economic cost of such post plastic use externalities along with the cost related to the carbon emission from plastic production has prompted several end-user sectors to incline toward the recycled thermoplastic market.
A gist of drivers accelerating recycled thermoplastic market business outlook
The expanding construction sector in emerging nations
On the regional front, Asia is expected to offer lucrative growth opportunities to the recycled thermoplastic market. This growth can be attributed to an increase in regional construction activities due to a strong population and surging demand for housing facilities.
In fact, as per estimates, construction sector output in the Asia region may reach USD 4.5 trillion over the forecast period. This is expected to invariably increase the demand for recycled thermoplastic products for insulation, window panels, fixtures, window railings, fixtures, doors, and building design, leaving a significant impact on recycled thermoplastic products business outlook.
Increasing demand for recycled polyvinyl chloride (PVC)
The recycled thermoplastic market, in terms of the product spectrum, is divided into polypropylene, polystyrene, polyvinyl chloride, and polyethylene terephthalate segment. Out of these, recycled polyvinyl chloride products have been used across several end-user verticals such as packaging, construction, and healthcare, electrical/electronic, agriculture, etc.
These products have been witnessing prominent demand owing to their features such as cost-effectiveness and light-weight nature. The product also displays commendable physical properties like good resistance to heat, durability, flexibility, and rigidity, which attract many end-user sectors for usage in their products.
PVC is highly durable, but it is not easy to recycle. Nonetheless, it is still a part of the recycling chain – it is recycled with the help of 2 methods currently, called mechanical and feedstock recycling. In the former, the waste PVC is ground into granules, melted, and remolded into different products. In case of the latter, chemical processes such as pyrolysis and hydrolysis are used to turn PVC waste into its chemical components that are used in various manufacturing processes.
With widespread applications across several end-user sectors, studies suggest that the polyvinyl chloride product segment may record 9% CAGR over the forecast period.
Top two trends driving Recycled thermoplastic market growth
Accentuating PPE kits wastage amid COVID-19 pandemic
The ongoing COVID-19 pandemic has significantly impacted the economic situation across the globe. As PPE (Personal Protection Equipment) production has significantly surged in recent months to reduce the COVID-19 pandemic, the need for effective management or recycling of these products is of paramount importance.
To address the issue, researchers from a minimum of four renowned Indian institutions have come together to recycle the deluge of single-use plastics products discarded by the public and keep them away from polluting the environment.
They have been working to convert waste PPE kits and other plastic waste into pellets that can be molded into automobile parts and use for road construction. Such a streamlined approach towards PPE kits waste management may accelerate recycled thermoplastic product share over the forecast period.
Burgeoning demand in APAC automobile industry
APAC is proclaimed to emerge as one of the most lucrative growth grounds for the recycled thermoplastic industry. This growth can be attributed to the steady growth in the regional automotive industry. Driven by nations like China, Japan, and India, the region accounted for around 40% of the global commercial and private automotive sales. This would considerably surge the demand for recycled thermoplastics products for the manufacturing of indispensable parts of the automobile, thereby driving the regional recycled thermoplastic market outlook.
Possible contamination of product to restrain the market growth
Despite many opportunities, contamination, and modification of the plastics used in the manufacture of electronic and food products may impact on the recyclability of the plastics, which is one of the main factors restraining the recycled thermoplastic market growth. The contamination of these materials can be chemical or microbiological. Thus, the usage of such contaminated products raised concerns over their use in food applications, as impurities might even present in the final products.
However, leading industry players such as Plastipak Holdings, Replas, KW Plastics, Merlin Plastics Alberta, JP Industrial, Suez, Clear Path recycling, etc. have been leaving no stone unturned to overcome these challenges by bringing cutting-edge solutions.
Increasing construction activities to boost APAC acrylonitrile butadiene styrene market growth
On that account, a recent research by Global Market Insights, Inc., anticipates the acrylonitrile butadiene styrene market size to exceed a valuation of USD 39.27 billion through 2027.
Demand for passenger safety systems to foster automotive plastics applications
Asia Pacific automotive plastics market is slated to witness notable growth, owing to the significant demand for modern automobiles in countries like India, China, South Korea, and Japan. As per the OICA, nearly 25.72 million automobiles, including cars and passenger vehicles were produced in China in 2019. Increasing consumer preference towards automobiles lashed with advanced automotive electronics and passenger safety systems are encouraging industry players to expand their businesses to APAC.
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