Recycled plastic granules are small plastic particles that are manufactured by recycling post-consumer and post-industrial plastic waste. They find major applications in the production of plastic products like plastic bags, containers, packaging materials, bottles, and others. Recycled plastic granules help reduce the usage of virgin plastics and promote circular plastic recycling. They provide an eco-friendly and sustainable solution for plastic production. Some key advantages of using recycled plastic granules include reduced carbon footprint, cost-effectiveness, and compliance with stringent environmental regulations.

The global recycled plastic granules market is estimated to be valued at US$ 3.16 Bn in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics
Rising environmental concerns over increasing plastic waste and stringent government regulations regarding plastic disposal are driving the growth of the recycled plastic granules market. According to UN Environment Program, only 9% of 9 billion tons of plastic produced has been recycled with majority ending up in landfills or oceans causing severe environmental damage. This has further increased the focus on sustainable plastic recycling. Recycled plastic granules provide a viable solution by reprocessing used plastic materials into valuable feedstock granules for new plastic products. Their growing demand from plastic manufacturing companies is a key factor accelerating the market growth. Additionally, availability of advanced technologies for thorough sorting and processing of mixed plastic waste to obtain high-quality recycled plastic granules suitable for various applications acts as another key driver.

However, challenges like collection of mixed plastic waste, its efficient sorting, and maintenance of quality standards continue to restrict the market to some extent. Presence of other alternative materials like bioplastics further poses competition to recycled plastic granules.

SWOT Analysis

Strength: Recycled plastic granules are cost effective for manufacturers as it reduces raw material costs significantly. Recycled plastic is easy to process and requires minimal modifications to manufacturing equipment. There is huge availability of post-consumer plastic waste that can be recycled.

Weakness: Quality and properties of recycled plastic granules vary significantly based on type and quality of post-consumer plastic collected. Additional sorting and cleaning steps are required to remove contamination. Presence of unknown chemicals in plastic waste introduces health and safety concerns.

Opportunity: Stringent government regulations banning single-use plastic and mandating minimum recycled content are driving up demand. Rising environmental consciousness among consumers and brand owners favor use of recycled materials. New technologies to improve sorting and quality of recycled plastic granules are increasing applications.

Threats: Collection infrastructure and sorting capabilities for post-consumer plastic waste is still inadequate in many regions. Crude oil price fluctuations impact virgin plastic prices and competitive landscape. Brand owners may hesitate using recycled plastic due to inferior properties and “used” perception.

Key Takeaways

The global Recycled Plastic Granules Market Growth is expected to witness high growth. The market size is projected to reach US$ 3.16 Billion by 2024, growing at a CAGR of 3.1% during the forecast period. Stringent regulations on plastic waste management and recycling are major drivers for increased adoption of recycled plastic granules.

Regional analysis comprises Asia Pacific dominates the market currently owing to large population, fast economic growth and growing consumption of plastics in China, India and other developing countries. However, Europe is the fastest growing market for recycled plastic granules led by well-established waste collection systems and progressive legislation favoring secondary plastic usage.

Key players operating in the recycled plastic granules market are Roche, Teva Pharmaceutical Industries Ltd., Sun Pharmaceutical Industries Ltd., Hikma Pharmaceuticals PLC, Dr. Reddy's Laboratories Ltd., Aurobindo Pharma Ltd., Mylan N.V., Apotex Inc., Sandoz AG, Accord Healthcare Ltd. These companies own integrated capabilities across pharmaceutical manufacturing, marketing and distribution focusing on generics and biosimilars.

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