Recycled Plastic Granules Market Estimated To Witness High Growth...

Recycled Plastic Granules Market Estimated To Witness High Growth

Posted 2024-01-18 13:43:11

Market Dynamics

Increasing environmental concerns is estimated to be the major driver for the growth of recycled plastic granules market over the forecast period. Rising plastic waste and its impact on the environment have raised concerns among regulatory agencies and consumers. Growing initiatives by governments worldwide to reduce plastic waste through strict policies on plastic disposal are propelling the demand for recycled plastic granules. Furthermore, recycled plastic granules help plastic product manufacturers partially replace virgin plastics, thereby reducing production costs. However, lack of advanced recycling technologies and infrastructure in some regions pose challenges to market growth.

SWOT Analysis

Strength: Recycled plastic granules help reduce plastic waste and lower production costs for companies. They are cost-effective compared to virgin plastics and help organizations meet sustainability goals. Many businesses in packaging, construction, and automotive industries are increasingly using recycled plastic granules in their production processes.

Weakness: The quality and consistency of recycled plastic granules vary depending on the source of waste plastic and sorting and cleaning technologies used. Impurities and contamination in recycled feedstock can compromise the quality of final products. There are also limited collection and recycling infrastructure in developing regions.

Opportunity: Rising environmental concerns and stringent regulations around plastic waste are driving up demand for sustainable alternatives. Many governments provide incentives for utilizing recycled materials. Developing advanced sorting and cleaning technologies can help improve quality and consistency of recycled plastic granules. Expanding collection programs globally presents new market opportunities.

Threats: Cheaper virgin plastic prices due to falling crude oil rates can pose price competition. Changing trade policies and barriers affect material flows across borders. Environmental groups campaigns against plastic use threaten demand for all plastic materials. Technology development in bioplastics provides alternative substitutes.

Key Takeaways

The Global Recycled Plastic Granules Market Size is expected to witness high growth. The market size is projected to reach US$ 3.16 Billion by 2023 from US$ 2.58 Billion in 2019, growing at a CAGR of 3.1% during the forecast period. Rapid urbanization and economic development are driving plastic consumption globally. However, lack of proper waste management infrastructure in developing nations leads to plastic pollution. This presents opportunities for companies offering recycling solutions.

Regional analysis: Asia Pacific dominates the recycled plastic granules market currently due to high production and consumption of plastics in countries like China, India, and Japan. However, North America and Europe are the fastest growing markets driven by stringent regulations and ambitious recycling targets in place. Countries like Germany, UK, and Canada have well-developed waste collection and sorting systems.

Key players: Key players operating in the recycled plastic granules market include 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 have leading market presence and are investing in advanced recycling technologies. Partnerships across plastic value chain are helping increase recyclate supply.