| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| North and South American Degraded Plastics Market Size 2023 |
USD 12,738.49 Million |
| North and South American Degraded Plastics Market, CAGR |
9.41% |
| North and South American Degraded Plastics Market Size 2032 |
USD 28,617.46 Million |
Market Overview
The North and South American Degraded Plastics Market is projected to grow from USD 12,738.49 million in 2023 to USD 28,617.46 million by 2032, reflecting a compound annual growth rate (CAGR) of 9.41%.
The North and South American degraded (or recycled) plastics market is driven by increasing environmental awareness and stricter government regulations aimed at reducing plastic waste. As sustainability becomes a key focus across industries, demand for recycled plastics is growing in sectors such as packaging, automotive, and construction. Advancements in recycling technologies, such as chemical recycling and improved sorting processes, are also contributing to the market’s expansion. Additionally, rising consumer preference for eco-friendly products and the shift towards circular economies are fueling the adoption of recycled plastics. With a growing emphasis on reducing landfill waste and carbon footprints, companies are investing in innovative recycling methods and infrastructure. This trend is further supported by the implementation of extended producer responsibility (EPR) programs and the increasing availability of recycled plastic feedstock, which is making recycled plastics more cost-competitive with virgin materials. These factors are expected to drive continued growth in the market.
The geographical analysis of the North and South America degraded (or recycled) plastics market highlights significant growth opportunities across diverse regions. North America, led by the U.S. and Canada, demonstrates robust adoption of recycling practices driven by stringent regulations and rising consumer awareness about sustainability. In South America, countries like Brazil and Argentina are increasingly focusing on expanding recycling infrastructure to address plastic waste challenges. Key players in this market include BASF SE, Novamont S.p.A., Mitsubishi Chemical Corporation, Kingfa Science & Technology (USA) Inc., and Veolia. Companies such as Republic Services, Inc., Alpek S.A.B. de C.V., and CarbonLite Holdings LLC are pivotal in developing innovative recycling technologies and establishing circular economy models. These players focus on enhancing product portfolios, forming strategic partnerships, and investing in advanced recycling solutions to meet the growing demand for sustainable materials across packaging, automotive, and textile industries.
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Market Insights
- The North and South America degraded (or recycled) plastics market is projected to grow from USD 12,738.49 million in 2023 to USD 28,617.46 million by 2032, at a CAGR of 9.41%.
- Increasing environmental awareness and regulatory pressures are driving the demand for sustainable plastic solutions.
- Advancements in recycling technologies, such as chemical and mechanical recycling, are enhancing the quality of recycled plastics.
- Leading players like BASF SE, Veolia, and Republic Services, Inc. are focusing on innovation and partnerships to strengthen their market presence.
- Challenges such as limited recycling infrastructure and quality inconsistencies in recycled plastics may hinder market growth.
- North America, particularly the U.S. and Canada, leads the market due to stringent regulations and consumer awareness, while South America is expanding recycling initiatives in countries like Brazil.
- The adoption of circular economy principles is fostering collaborations among governments, businesses, and NGOs to address plastic waste challenges effectively.
Market Drivers
Environmental Concerns
Plastic pollution has become a pressing global issue, with alarming levels of waste accumulating in oceans and landfills. This has significantly raised public awareness about the environmental impact of plastics, driving the demand for sustainable alternatives. For instance, the world produces around 350 million tonnes of plastic waste each year, with a significant portion ending up in the oceans. As awareness grows, consumers are seeking eco-friendly products, and businesses are increasingly pressured to adopt practices that reduce plastic waste. Furthermore, the plastic industry’s substantial carbon footprint has led to a heightened focus on mitigating climate change. The need to reduce greenhouse gas emissions from plastic production is pushing industries to explore circular economy models that prioritize recycling and waste reduction. Additionally, the threat of biodiversity loss, particularly in marine ecosystems, is further fueling the demand for recycled plastics. Plastic waste poses a significant risk to wildlife, further underscoring the urgency of adopting sustainable solutions.
Regulatory Pressures
In response to the growing environmental concerns, many North and South American countries have implemented Extended Producer Responsibility (EPR) laws. These regulations require producers to take responsibility for the lifecycle of their products, including managing plastic packaging waste. This has led to increased investment in recycling infrastructure and a shift towards more sustainable packaging solutions. For instance, the OECD highlights that EPR policies make producers responsible for their products along the entire lifecycle, including at the post-consumer stage. Moreover, several regions have imposed plastic bans and restrictions, particularly on single-use plastics such as bags and straws. These restrictions are driving demand for recycled plastic alternatives as businesses seek to comply with regulations. Governments are also setting ambitious recycling targets to improve plastic waste management, creating incentives for companies to adopt recycling practices and processes.
Economic Incentives
Recycled plastics offer several economic advantages over virgin plastics. The production of recycled plastics is often more cost-effective, especially when considering the environmental and social costs associated with traditional plastic production. By adopting recycled materials, companies can reduce their overall production costs while contributing to sustainability. Additionally, the recycling industry itself stimulates innovation and job creation. Advances in recycling technologies and materials science are enabling more efficient processes and the development of new applications for recycled plastics. This creates opportunities for new business ventures and employment in the green economy.
Brand Reputation
In an era where consumers are increasingly conscious of sustainability, adopting recycled plastics can significantly enhance a company’s brand reputation. Businesses that integrate sustainable practices into their operations, including using recycled materials, appeal to environmentally-conscious consumers. This not only helps companies align with consumer values but also strengthens their competitive advantage in a market that is placing greater emphasis on corporate responsibility. By prioritizing recycled plastics, companies can build trust and loyalty among their customer base while contributing to a more sustainable future.
Market Trends
Advancements in Recycling Technologies and Circular Economy Initiatives
Advancements in recycling technologies are fueling the growth of the recycled plastics market, with innovations in both chemical and mechanical recycling processes. Chemical recycling, a breakthrough technology, allows plastic waste to be broken down into its molecular components, enabling the production of high-quality recycled plastics that were previously difficult to achieve. For instance, chemical recycling can convert plastic waste into valuable raw materials, making it possible to produce high-quality recycled plastics. Additionally, improvements in mechanical recycling processes are enhancing the quality and quantity of recycled plastics, making them more viable for use in a wide range of applications. The focus on recycling is closely tied to the growing emphasis on circular economy initiatives. Companies, governments, and NGOs are collaborating to develop circular economy models that prioritize the reuse, repair, and recycling of materials. This collaborative effort is driving innovation in the development of new sustainable materials and packaging solutions, further promoting the adoption of recycled plastics. Moreover, the increasing focus on circular economy principles is attracting significant investment opportunities in the recycled plastics market. Both public and private sectors are investing in the technologies and infrastructure necessary to support the growth of a circular economy, ensuring the continued expansion of the recycled plastics industry while fostering sustainability.
Increased Demand for Recycled Plastics and Stricter Regulations
The growing consumer awareness of plastic pollution is significantly driving the demand for recycled plastics. As more consumers become aware of the detrimental environmental impact of plastic waste, there is a shift towards products made from recycled materials. This trend is further amplified by companies seeking to enhance their brand reputation by adopting sustainable practices, including the use of recycled plastics. By aligning their operations with consumer values, companies attract environmentally-conscious consumers and gain a competitive edge in the market. At the same time, stricter regulations and policies are playing a pivotal role in accelerating the adoption of recycled plastics. Governments are increasingly implementing Extended Producer Responsibility (EPR) laws, which hold manufacturers accountable for the entire lifecycle of their products, including recycling and disposal. In addition, the rise of plastic bans and restrictions, particularly on single-use plastics such as bags and straws, is intensifying the demand for recycled plastic alternatives, pushing businesses to adopt more sustainable solutions to meet regulatory requirements.
Market Challenges Analysis
Quality and Consistency Issues in Recycled Plastics
One of the significant challenges facing the recycled plastics market is the variability in input materials, which often come from diverse sources. This leads to inconsistencies in the quality and properties of the recycled plastic, making it difficult to maintain a uniform standard across products. For instance, a study by the Hamburg University of Technology highlights that the quality of recycled plastic is generally determined by the homogeneity of the recovered plastic feed. Contamination is another critical issue, as food residues, labels, and other foreign materials can degrade the quality of the recycled plastic, affecting its performance and appearance. Moreover, current recycling technologies may not fully remove these impurities, resulting in lower-quality end products that may not meet industry standards. The inability to consistently deliver high-quality recycled plastics limits their adoption across various sectors and adds complexity to the recycling process. These challenges in quality and consistency hinder the scalability of recycled plastics and make it harder for businesses to integrate them into their operations.
Infrastructure, Logistics, and Regulatory Challenges
The lack of sufficient recycling infrastructure in many regions, particularly in rural areas of North and South America, presents a significant barrier to the effective collection and processing of plastic waste. Limited access to recycling facilities results in lower recycling rates and reduced availability of recycled materials. For instance, a report by Smart Cities Dive notes that many cities in Latin America face challenges in waste management due to limited infrastructure. Transportation costs also pose a challenge, as moving recycled plastic waste over long distances can increase costs, making the recycling process less economically viable. Additionally, inefficiencies in supply chains can lead to delays, increased costs, and reduced material quality, further impacting the overall economics of recycled plastics. Regulatory and policy hurdles also play a role in shaping the market for recycled plastics. The complexity and variability of regulations across different jurisdictions can create uncertainty for manufacturers and recyclers. Moreover, the lack of standardized testing methods for assessing the quality and compliance of recycled plastics with regulations adds to the complexity. Lastly, policy uncertainty can disrupt market stability, making it difficult for businesses to plan long-term investments in recycling infrastructure and technologies. These challenges require concerted efforts from governments, industry players, and other stakeholders to address infrastructure gaps, streamline regulations, and improve the efficiency of recycling processes.
Market Opportunities
The North and South American recycled plastics market presents significant growth opportunities driven by the increasing demand for sustainable materials across various industries. One of the most promising opportunities lies in the rising consumer and business preference for eco-friendly products. As environmental concerns about plastic waste intensify, there is a growing market for recycled plastics, particularly in sectors such as packaging, automotive, and construction. Companies are increasingly adopting recycled materials to enhance their brand reputation and align with consumer values. Additionally, government initiatives, including Extended Producer Responsibility (EPR) laws and plastic bans, are driving demand for recycled plastics. This regulatory push is creating a fertile environment for businesses to innovate and adopt more sustainable practices, further boosting the market for recycled plastics.
Technological advancements in recycling processes also present significant opportunities for the market. Innovations such as chemical recycling, which allows the production of high-quality recycled plastics from mixed waste, and improvements in mechanical recycling are making recycled plastics more viable for a broader range of applications. These advancements are enabling the recycling industry to process more plastic waste efficiently and reduce contamination, thereby improving the quality of recycled plastics. Furthermore, the growing emphasis on circular economy models is creating new avenues for collaboration between governments, businesses, and NGOs, driving investment in recycling infrastructure and sustainable material solutions. As companies increasingly invest in sustainable practices, the North and South American recycled plastics market is poised for continued growth, offering opportunities for innovation, investment, and market expansion.
Market Segmentation Analysis:
By Type:
The North and South America degraded or recycled plastics market is segmented by type, including Polyethylene Terephthalate (PET), Polypropylene (PP), Polyethylene (PE), Polystyrene (PS), and Polyvinyl Chloride (PVC). Among these, PET holds the largest market share due to its widespread use in packaging applications such as bottles and containers. Its recyclability and high demand in the food and beverage industry position PET as a leading segment in the recycled plastics market. PP and PE also contribute significantly, given their extensive use in various industries, including automotive and consumer goods. Polystyrene (PS) and PVC hold niche positions due to the challenges in recycling these materials; however, advancements in chemical recycling technologies are gradually increasing their market potential. The ongoing innovation in recycling methods and the growing focus on sustainability are driving the demand for all types of recycled plastics, diversifying their applications across multiple sectors.
By Application:
Based on application, the market is categorized into Packaging, Textile, Automotive, Building and Construction, Electrical and Electronics, and Others. The Packaging segment dominates the market, driven by the strong demand for sustainable and eco-friendly packaging solutions across industries. Consumer awareness and regulatory mandates on single-use plastics further propel the adoption of recycled plastics in this segment. The Textile sector is also emerging as a significant application area, with manufacturers increasingly incorporating recycled plastics in fabrics and apparel production. The Automotive and Building and Construction segments leverage recycled plastics for lightweight and durable components, enhancing sustainability. Additionally, the Electrical and Electronics sector utilizes recycled plastics for manufacturing insulating and durable parts. The diversity in applications demonstrates the growing acceptance of recycled plastics as a viable alternative to virgin plastics, contributing to environmental conservation while meeting industrial demands.
Segments:
Based on Type:
- Polyethylene Terephthalate (PET)
- Polypropylene (PP)
- Polyethylene (PE)
- Polystyrene (PS)
- Polyvinyl Chloride (PVC)
Based on Application:
- Packaging
- Textile
- Automotive
- Building and Construction
- Electrical and Electronics
- Others
Based on End-user:
- Food and Beverages
- Consumer Goods
- Healthcare
- Industrial
- Others
Based on the Geography:
- U.S.
- Canada
- Mexico
- Brazil
- Argentina
- Chile
- Colombia
- Peru
- Others
Regional Analysis
United States
The United States holds a significant share of the degraded or recycled plastics market in North America, accounting for approximately 45% of the regional market in 2023. The country’s leadership in the market is driven by its advanced recycling infrastructure, strong regulatory framework, and increasing adoption of sustainable practices by industries and consumers alike. The implementation of Extended Producer Responsibility (EPR) programs and strict regulations on single-use plastics have played a pivotal role in boosting the demand for recycled plastics. Additionally, leading companies in the U.S. are investing heavily in advanced recycling technologies, such as chemical recycling, to meet the rising demand for high-quality recycled plastics. For instance, the Association of Plastic Recyclers reported that more than five billion pounds of post-consumer plastic were recovered for recycling in the U.S. in 2021. The packaging industry, a major contributor to plastic waste, has seen substantial progress in incorporating recycled materials, further propelling market growth. The U.S. government’s initiatives to promote circular economy models and public-private collaborations also contribute to the market’s expansion, creating opportunities for innovation and investment in sustainable solutions.
Brazil
In South America, Brazil emerges as a key market, contributing to approximately 35% of the regional share in 2023. Brazil’s growing focus on sustainability and waste management reforms has spurred the demand for recycled plastics. The country has implemented several policies to increase plastic waste collection and recycling rates, such as the National Solid Waste Policy, which encourages businesses to adopt sustainable practices. The industrial and consumer goods sectors in Brazil are increasingly incorporating recycled plastics into their production processes, responding to both regulatory pressures and consumer demand for eco-friendly products. Despite challenges like limited recycling infrastructure in rural areas, significant advancements in mechanical recycling and growing public awareness about environmental conservation are driving market growth. Brazil’s participation in global sustainability initiatives and partnerships with international organizations further enhance its capacity to manage plastic waste effectively and expand its recycled plastics market. These efforts position Brazil as a leader in South America’s transition toward sustainable waste management solutions.
Key Player Analysis
- BASF SE
- Novamont S.p.A.
- Mitsubishi Chemical Corporation
- Kingfa Science & Technology (USA) Inc.
- Tianjin Green Bio Materials Co., Ltd.
- Danimer Scientific
- Lotte Chemical Corporation
- SK Chemicals Co., Ltd.
- Corbion NV
- Veolia
- Republic Services, Inc.
- Alpek S.A.B. de C.V.
- Remondis SE & Co. KG
- Stericycle Inc.
- Clear Path Recycling
- B & B Plastics Inc.
- Waste Management, Inc.
- CarbonLite Holdings LLC
- Placon Corporation
- KW Plastics
- Phoenix Technologies International, LLC
- Custom Polymers, Inc.
- Evergreen Plastics, Inc.
- Envision Plastics Industries LLC
Competitive Analysis
The competitive landscape of the North and South America degraded (or recycled) plastics market is shaped by a mix of global and regional players striving to capitalize on the growing demand for sustainable solutions. Key companies such as BASF SE, Novamont S.p.A., Mitsubishi Chemical Corporation, Kingfa Science & Technology (USA) Inc., Veolia, Republic Services, Inc., and Alpek S.A.B. de C.V. are actively enhancing their product portfolios and investing in innovative recycling technologies. These players focus on partnerships, mergers, and acquisitions to expand their geographical footprint and improve operational efficiencies. Innovations in chemical and mechanical recycling processes are central to their strategies, addressing quality challenges and meeting increasing consumer demand for sustainable materials. Moreover, their efforts align with regulatory requirements, such as Extended Producer Responsibility (EPR) laws and plastic bans, to strengthen their market position. Collaborative efforts with government agencies and non-governmental organizations to implement circular economy models are further propelling these companies. The competitive emphasis lies on reducing costs, improving the quality of recycled plastics, and leveraging branding opportunities to appeal to environmentally conscious consumers. This dynamic environment fosters continuous advancements, ensuring sustained market growth and leadership in the region.
Recent Developments
- In October 2023, Coca-Cola India revealed the introduction of Coca-Cola in smaller pack sizes, such as 250 ml and 750 ml bottles, made entirely from recycled plastic (rPET). These new bottles, crafted by Coca-Cola’s bottling partners Moon Beverages Ltd. and SLMG Beverages Ltd., utilize 100% food-grade rPET, with the exception of caps and labels. Additionally, the bottles feature a “Recycle Me Again” prompt and a “100% recycled PET bottle” label, designed to enhance consumer consciousness regarding recycling.
- In October 2023, During the K 2022 trade show in Dusseldorf, Germany, Veolia unveiled “PlastiLoop,” a new brand of recycled plastics and related services. Veolia’s vast network of professionals and its 37 plastic recycling facilities worldwide enable this innovative product. Customers can choose from a wide range of ready-to-use recycled resins, including PET, PP, HDPE, PS, ABS, LDPE, and PC, with this new offering.
- In October 2022, Veolia introduced ‘PlastiLoop,’ a new brand of recycled plastics and services, at the K 2022 fair in Dusseldorf, Germany. This new product is made possible by Veolia’s extensive network of experts and its 37 plastic recycling plants globally. This new product offers a large variety of ready-to-use recycled resins such as PET, PP, HDPE, PS, ABS, LDPE, and PC to its customers.
- In April 2022, Faurecia, a company of the Group FORVIA, and Veolia signed a Cooperation and Research Agreement to jointly develop innovative compounds for automotive interior modules, aiming to achieve an average of 30% recycled content by 2026. Through this partnership, the two companies will accelerate the deployment of sustainable solutions implemented in instrument panels, door panels, and center consoles in Europe.
Market Concentration & Characteristics
The market concentration of degraded (or recycled) plastics in North and South America is characterized by a mix of established multinational corporations and regional players. Key global companies, such as BASF SE, Veolia, and Mitsubishi Chemical Corporation, dominate the market through their extensive resources, technological advancements, and established supply chains. These companies are focused on expanding their market share by investing in innovative recycling technologies and forming strategic partnerships to address growing consumer demand for sustainable materials. However, the market also includes regional players who cater to local recycling needs and are gradually gaining traction through specialized solutions and localized efforts to meet regulatory requirements. The market is highly competitive, with companies continuously striving to enhance product quality, reduce costs, and meet evolving sustainability standards. Additionally, government regulations, such as plastic bans and extended producer responsibility (EPR) laws, are shaping the competitive dynamics, pushing businesses to adopt more efficient recycling practices and circular economy principles. As the demand for recycled plastics continues to rise, companies are expected to focus on improving operational efficiency, investing in infrastructure, and increasing recycling capacities to meet the growing demand across packaging, automotive, and textiles industries. Overall, the market is transitioning towards more sustainable and technologically advanced solutions, driving further consolidation and collaboration.
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Report Coverage
The research report offers an in-depth analysis based on Type, Application, End-User and Geography. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
- The North and South America recycled plastics market is expected to see continued growth due to increased environmental awareness and stricter regulations.
- Advancements in recycling technologies, such as chemical recycling, will significantly improve the quality of recycled plastics.
- Circular economy models will become more prevalent, with increased collaboration between businesses, governments, and NGOs to improve waste management.
- The demand for recycled plastics will rise across industries like packaging, automotive, and textiles, driven by sustainability initiatives.
- Consumer preference for eco-friendly products will push companies to adopt sustainable practices, including the use of recycled materials.
- Regulatory frameworks, such as Extended Producer Responsibility (EPR) and plastic bans, will further promote recycling efforts across the region.
- Investment in recycling infrastructure will be critical to improving the efficiency of collection and processing systems, especially in rural areas.
- Market players will focus on innovation and the development of new materials to address the limitations of current recycled plastics.
- The increasing cost-effectiveness of recycled plastics will encourage wider adoption, especially in cost-sensitive industries.
- Competitive pressure will intensify as companies strive to meet both environmental and market demands, fostering ongoing technological advancements.
