Recycled Plastics Market Size to Surge USD 183.80 Billion by 2034

According to Towards Chemical and Materials, the global recycled plastics market size was reached at USD 90.05 billion in 2025 and is expected to surge around USD 183.80 billion by 2034, growing at a CAGR of 8.25% from 2025 to 2034.

Ottawa, Sept. 15, 2025 (GLOBE NEWSWIRE) -- The global recycled plastics market size was valued at USD 83.19 billion in 2024 and is expected to hit around USD 183.80 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.25% over the forecast period from 2025 to 2034. A study published by Towards Chemical and Materials a sister firm of Precedence Research.

The growth of the market is driven by the rising demand for sustainable packaging solutions is driving the growth of the market.

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Recycled plastics market Overview

The recycled plastics market is witnessing robust growth, driven by rising global emphasis on sustainability, stringent government regulations on plastic waste management, and growing adoption if circular economy practices.

The Increasing demand for eco-friendly packaging in food and beverages, consumer goods, and e-commerce is significantly boosting the use of recycled plastics, while industries such as automotive, construction, and textiles are also integrating recycled resins to reduce carbon footprint and production costs. Advancements in recycling technologies particularly chemical recycling are enhancing the quality and usability of recycled materials, making them suitable for a wider range of applications. Moreover, consumer awareness around plastic pollution, coupled with corporate commitments to sustainable sourcing, is accelerating market expansion. Despite challenges like contamination issues and cost fluctuations compared to collaboration between governments and private players are expected to fuel steady market growth in the coming years.

Recycled Plastics Market Report Highlights

The Asia Pacific recycled plastics market size was estimated at USD 39.93 billion in 2024 and is anticipated to reach USD 89.33 billion by 2034, growing at a CAGR of 8.39% from 2025 to 2034. Asia Pacific dominated the market in 2024.
By region, Asia Pacific held approximately a 48% share in the recycled plastics market in 2024 due to the growing industrialization.
By source, the bottles segment held approximately a 74% share in the market in 2024 due to the growing consumption of various drinks.
By polymer type, the PET segment held approximately a 25–34% share in the market in 2024 due to the increasing production of consumer goods.
By process, the mechanical recycling segment held approximately a 70% share in the market in 2024 due to the focus on enhancing energy efficiency.
By product form, the flakes segment held approximately a 75.8% share in the market in 2024 due to the growth in large-scale recycling processes.
By application, the packaging segment held approximately a 38% share in the recycled plastics market in 2024 due to the rise in e-commerce.

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Recycled Plastics Market Report Scope

Report Attribute	Details
Market size value in 2025	USD 90.05 Billion
Revenue forecast in 2034	USD 183.80 Billion
Growth rate	CAGR of 8.25% from 2025 to 2034
Historical data	2021 - 2024
Forecast period	2025 - 2034
Quantitative Units	Volume in kilotons, revenue in USD million, and CAGR from 2024 to 2035
Report coverage	Volume forecast, revenue forecast, competitive landscape, growth factors, and trends
Segments covered	By Source, By Polymer Type, By Recycling Process, By Product Form, By End-Use Industry, By Application, By Region
Regional scope	North America; Europe; Asia Pacific; Central & South America; Middle East & Africa
Key companies profiled	SABIC, Dow Chemical, Veolia, BASF, Indorama Ventures, LyondellBasell, Mitsui Chemicals, TotalEnergies, Envision Plastics, Green Dot Bioplastics, Braskem, PolyOne Corporation, Covestro AG, Eastman Chemical Company, ExxonMobil Chemical (Exxon Mobil Corporation), Loop Industries, Inc., MBA Polymers Inc., Plastipak Holdings, Inc., Alpek, Cabka

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Recycled plastics market Trends

Shift toward circular economy- companies are increasing adopting circular economy models to reuse plastic waste, reduce landfill dependency, and promote sustainability.
Advancements in recycling technologies- Mechanical and chemical recycling methods are evolving to improve efficiency, purity, and the quality of recycled plastics for diverse applications.
Rising demand for sustainable packaging- consumer preference for eco-friendly packaging is pushing brands to incorporate higher percentages of recycled plastics in products.
Integration across industries- Beyond packaging, sectors like automotive, construction, and textiles are increasingly using recycled plastics to reduce environmental impact.
Government regulations and incentives- policies promoting plastic waste reduction and recycling along with extended producer responsibility (EPR) schemes, are encouraging market growth.

Recycled Plastics Market Dynamics

Growth Factors

Can AI Robots Out-Sort Humans To Reduce Contamination And Boost Recycled Quality?

Modern recycling facilities are increasingly deploying AI powered robots equipped with optical sensors, hyperspectral imagining and machine learning to sort plastics far faster and more accurately than humans. While a human sorter manages around 50-80 items per hour, an AI guided robot can process up to 1,000 items per hours, operating 24/7 with greater consistency dramatically reducing contamination and enhancing the supply of high quality recycled material.

Are Smart Sensor Systems Turing Mixed Plastic Waste Into High Grade Recyclables?

Innovations in sensing technologies such as advanced polymer sensors integrated into waste sorting lines are improving the precision of plastic identification. This allows more accurate separation of polymer types (like PET, HDPE, etc.) which increases recycling rates and ensures cleaner, more homogenies feedstock for recycled plastics, ultimately fostering wider adoption and stronger confidence in recycled materials.

Market Opportunity

Could Plant Based Packaging Start-Ups Redefine Single Use Plastic Alternatives?

A notable opportunity lies in the rise of companies like Xampla, which is developing biodegradable alternatives to single use plastics using plant proteins derived from peas, rapeseed, sunflower, and agricultural waste. With a recent $14 million investment secured to accelerate licencing and expand operations across Europe and Asia and in response to increasing regulatory pressure, such as the EU’s single use plastic directive this marks a significant commercial opening for alternative packaging materials that are both sustainable and process compatible.

Could India’s Orange Peel Packaging Pave The Way For Agri -Waste Valorisation?

A promising opportunity is emerging through the collaboration between ICAR CCRI and VNIT, which are developing biodegradable packaging using citrus (orange) peel waste incorporated into chitosan t circular economy principles by turning bio waste into functional food grade packaging. It offers a sustainable, low cost alternative to synthetic plastics, particularly relevant in regions rich in citrus by products.

Recycled plastics market Limitations

The recycled plastics supply chain frequently struggles with contamination from elements like food residue, adhesives, and mixed polymer types, which compromises both the purity and performance of recycled materials. These inconsistencies greatly limit the usability of recycles, specially in applications requiring high standards such as food grade packaging or durable industrial components.
Recycled plastics often remain pricier and less economically viable than their virgin counterparts. High processing and infrastructure costs combined with volatile oil and virgin plastics prices erode profitability and deter both investment and adoption by manufacturers.

Recycled Plastics Market Segmentation Insights

By Source Insights

Why Do Bottles Segment Dominate The Recycled Plastics Market In 2024?

Bottles segment dominated the recycled plastics market in 2024, largely due to their widespread use and established collection systems. Beverage, household, and personal care industries are major contributors, as they generate high volumes of plastic bottles that can be efficiently collected and recycled. Bottles are relatively easier to sort compared to other plastic waste, and the recycled material derived from them is in high demand, particularly for packaging and textile applications. Their consistent supply and strong end user demand cement bottles as the dominant source segment in the market.

Films and sheets segment are expected to grow at the fastest pace in the market during the forecast period, in the recycled plastics market as industries and consumers shift away from single use packaging. This category includes shopping bags, stretch films, and agricultural sheets, all of which are increasingly collected and reprocessed into new products. With advancements in recycling technologies, these materials are becoming more usable for high value applications, including packaging and industrial goods. Growing environmental regulations targeting flexible packaging waste are also pushing producers to incorporate recycled films and sheets, driving accelerated adoption in the years ahead.

By Polymer Type Insights

Why Does PET Segment Dominate The Recycled Plastics Market in 2024?

PET Segment dominated the recycled plastics market in 2024, primarily due to its widespread use in beverage bottles, food packaging, and textiles. Its excellent recyclability, clarity, and strength make it a preferred choice across industries seeking sustainable alternatives to virgin plastics. PET recycling is also strongly supported by established collection systems and regulatory initiatives, making it one of the most available and valuable recycled polymers. Its versatility and computability with multiple applications ensures PET continues to dominate in the polymer type segment.

HDPE segment is expected to grow at the fastest rate during the forecast period, fuelled by its rising demand across packaging, construction materials, and automotive components, known for its durability, chemical resistance, and versatility, recycled HDPE is increasing replacing virgin HDPE in industrial and consumer goods. The polymer’s recyclability and wide scope of applications, from bottles and containers to pipes and crates, make it a key driver of future growth. Ongoing improvements in recycling technologies are also enhancing the quality of recycled HDPE, expanding its usability in high value applications.

By Recycling Process Insights

Why Did Mechanical Recycling Segment Dominated The Recycled Plastics Market In 2024?

Mechanical recycling segment dominated the recycled plastics market in 2024because it is the most widely used and cost effective method f recycling plastics. It involves sorting, cleaning, and reprocessing plastics into granules or flakes, which are then used in new products. Its relatively simple technology. Lower cost, and ability to process large volumes of plastic waste make it the go to method across industries. Mechanical recycling is supported by well-established infrastructure worldwide, giving it a clear advantage in market dominance.

Chemical recycling segment is anticipated to grow at the fastest rate during the forecast period, as it offers a solution to limitations faced by mechanical recycling. Unlike traditional methods, chemical recycling breaks plastics down to their molecular level, producing materials nearly equivalent to virgin plastics. This enables the recycling of mixed or contaminated plastics that are otherwise hard to process. With increasing investments and technological advancements, chemical recycling is opening new opportunities for industries to adopt recycled plastics in high value and sensitive applications like food grade packaging and medical supplies.

By Product form insights

Why are Flakes Segment Dominating the Recycled Plastics Market in 2024?

Flakes segment dominating the recycled plastics market in 2024, as they are the most common product form generated through mechanical recycling. Their ease of production, wide availability, and compatibility with multiple end use industries make flakes a popular choice for manufacturers. They serve as a key input material in producing fibres, sheets, bottles, and other plastic based products. Heir versatility and straightforward processing requirements make flakes a dominant form in the market.

Pallets segment expects the fastest growth in the market during the forecast period, they offer enhanced uniformity, quality, and ease of use compared flakes. Recycled pallets are increasingly preferred by manufacturers in packaging, automotive, and consumer goods, as they can be directly integrated into existing production lines. Their consistent form and improved material properties make pallets suitable for high performance application, driving their rapid adoption across industries that require higher quality standards for recycled inputs.

By Application Insights

Why Does Packaging Segment Dominate The Recycled Plastics Market In 2024?

Packaging segment held a leading position in the recycled plastics market in 2024, driven by surging demand for sustainable solutions in food and beverage, e-commerce, and consumer goods industries. Companies are under pressure from regulations and consumer preferences to adopt recyclable and eco-friendly materials in packaging. Recycled plastics are widely used in bottles, containers, films, and flexible packaging, making packaging the largest application segment. The sheer scale of demand and increasing pressure to reduce plastic waste ensures packaging continues to dominate.

The automotive sector segment expects the fastest growth in the market during the forecast period. The automotive sector is expected to grow the fastest rate us manufacturers seek lighter, cost efficient, and more sustainable materials. Recycled plastics are being used dashboards, panels, upholstery, and under the hood components, reducing vehicle weight while maintaining durability. This contributes to fuel efficiency, emission reduction, and compliance with strict environmental regulations. The shift toward electric vehicles further boost the demand for recycled plastics, as automakers integrate sustainable materials into their designs to meet consumer expectations and global sustainability goals.

More Insights in Towards Chemical and Materials:

Biodegradable Plastics Market : The global biodegradable plastics market size was reached at USD 13.19 billion in 2024 and is expected to be worth around USD 91.26 billion by 2034, growing at a compound annual growth rate (CAGR) of 21.34% over the forecast period 2025 to 2034.
Plastics Market : The global plastics market size was reached at USD 651.55 billion in 2024 and is expected to be worth around USD 984.11 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.21% over the forecast period 2025 to 2034.
Sustainable Plastics Market : The global sustainable plastics market size was reached at USD 410.73 billion in 2024 and is expected to be worth around USD 1,448.23 billion by 2034, growing at a compound annual growth rate (CAGR) of 13.43% over the forecast period 2025 to 2034.
U.S. Plastics Market : The U.S. plastics market size was reached at USD 92.66 billion in 2024 and is expected to be worth around USD 131.34 billion by 2034, growing at a compound annual growth rate (CAGR) of 3.55% over the forecast period 2025 to 2034.
Circular Plastics Market : The global circular plastics market size was reached at USD 73.19 billion in 2024 and is expected to be worth around USD 182.21 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.55% over the forecast period 2025 to 2034.
Transparent Plastics Market : The global transparent plastics market size was reached at USD 151.53 billion in 2024 and is expected to be worth around USD 245.19 billion by 2034, growing at a compound annual growth rate (CAGR) of 4.93% over the forecast period 2025 to 2034.
U.S. Recycled Plastics Market : The U.S. recycled plastics market size was reached at USD 52.85 billion in 2024 and is expected to be worth around USD 131.33 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.53% over the forecast period 2025 to 2034.
Recycled Plastics In Green Building Materials Market : The global recycled plastics in green building materials market size was reached at USD 5.31 billion in 2024 and is expected to be worth around USD 12.24 billion by 2034, growing at a compound annual growth rate (CAGR) of 8.71% over the forecast period 2025 to 2034.
Plastics Extruded Market : The global plastics extruded market size was reached at USD 175.96 billion in 2024 and is expected to be worth around USD 259.21 billion by 2034, growing at a compound annual growth rate (CAGR) of 3.95% over the forecast period 2025 to 2034.
Asia Pacific Bioplastics Market ; The Asia Pacific bioplastics market volume was reached at 2.51 million tons in 2024 and is expected to be worth around 11.13 million tons by 2034, growing at a compound annual growth rate (CAGR) of 16.07% over the forecast period 2025 to 2034.
Engineering Plastics Market ; The global engineering plastics market size was reached at USD 146.95 billion in 2024 and is expected to be worth around USD 312.88 billion by 2034, growing at a compound annual growth rate (CAGR) of 7.85% over the forecast period 2025 to 2034.
Recycled Thermoplastics Market : The global recycled thermoplastics market size was estimated at USD 57.85 billion in 2024 and is expected to hit around USD 145.34 billion by 2034, growing at a compound annual growth rate (CAGR) of 9.65% over the forecast period from 2025 to 2034.

Recycled Plastics Market Top Key Companies:

SABIC
Dow Chemical
Veolia
BASF
Indorama Ventures
LyondellBasell
Mitsui Chemicals
TotalEnergies
Envision Plastics
Green Dot Bioplastics
Braskem
PolyOne Corporation
Covestro AG
Eastman Chemical Company
ExxonMobil Chemical (Exxon Mobil Corporation)
Loop Industries, Inc.
MBA Polymers Inc.
Plastipak Holdings, Inc.
Alpek
Cabka

Recent Developments

In January 2025, Cadbury launched 80% recycled plastic packaging. The company uses chemical recycling technology, and the material is safe for food contact.(Source:packagingdigest.com)
In June 2025, Ineos Olefins & Polymers Europe launched recycled plastic production in Europe. The facility uses pyrolysis oil, and the process used for the production is advanced recycling. The plastic is useful in high-performance applications and uses post-consumer plastic packaging waste.(Source: chemanager-online.com)
In April 2025, Saint-Gobain collaborated with DOW and Prepack Thailand to launch grout recycled plastic packaging. The packaging is made up of Dow’s REVOLOOP 10% post-consumer recycled plastics and offers properties like moisture protection, strength, & impact resistance. The partnership focuses on lowering carbon emissions and minimizing plastic waste.(Source: www.nationthailand.com)
In June 2025, Dow has launched INNATE™ TF 220 Precision Packaging Resin, a flexible film material that enhances recyclability and performance. It’s being used in conjunction with post-consumer recycled plastic in detergent packaging making one of Chain’s first fully recyclable laundry detergent packages.
In March 2025, Eni’s chemical arm, Versalis, has launched a new facility in Porto Marghera that produces plastics using mechanically recycled inputs. This move is part of Versalis’s broader strategy to revamp its operations, shifting focus from traditional petrochemicals towards more sustainable activities like plastic recycling and bio refining.

Recycled Plastics Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2034. For this study, Towards Chemical and Materials has segmented the global Recycled Plastics Market

By Source

Bottles
Films & sheets
Foams
Fibres
Non-bottle rigid
Others (e.g., multi-layer packaging scraps, etc.)

By Polymer Type

Polyethylene Terephthalate (PET)
High-Density Polyethylene (HDPE)
Low-Density Polyethylene (LDPE)
Polypropylene (PP)
Polyvinyl Chloride (PVC)
Polystyrene (PS)
Acrylonitrile Butadiene Styrene (ABS)
Others (e.g., Polycarbonate, PU, mixed polymers)

By Recycling Process

Mechanical Recycling
Chemical Recycling
Thermal Recycling
Novel/Advanced

By Product Form

Flakes
Pellets/granules
Films/sheets (re-extruded)
Resin powders/paste
Specialty additive products (e.g., waxes, compatibilizers)

By End-Use Industry / Application

Packaging
Building & Construction
Automotive & Transportation
Textiles & Fibres
Electrical & Electronics
Consumer Goods
Healthcare & Pharmaceuticals
Agriculture & Gardening
Other (e.g., stationery, miscellaneous)

By Regional

North America
Europe
Asia Pacific
Latin America
Middle East & Africa

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