Market for Mechanical Plastic Recycling to Hit USD 41 Billion by 2031 with Steady Growth

The global mechanical recycling of plastics market was valued at USD 15,730.8 million in 2023 and is projected to hit approximately USD 41,028.2 million by 2031, growing at a CAGR of 11.7% from 2024 to 2031. Rising environmental awareness, policy push towards sustainability, and technological innovations are shaping the market's fast-paced expansion.

Industry Overview

Mechanical recycling of plastics is gaining significant traction as the world moves towards a circular economy. This process involves sorting, cleaning, shredding, melting, and reprocessing plastic waste into new products without changing the basic chemical structure of the polymer. Unlike chemical recycling, mechanical recycling is cost-effective and more widely adopted, especially for packaging, consumer goods, and automotive sectors.

The surge in plastic consumption over the past decade has led to a corresponding increase in plastic waste. Mechanical recycling offers an efficient solution to address this challenge by reducing landfill dependency and cutting down on the demand for virgin plastic production.

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Key Market Drivers Trends

Government Regulations and Environmental Mandates:

Regulatory bodies across the globe are enforcing bans and restrictions on single-use plastics and mandating recycling quotas for producers. Policies like the European Union’s Circular Economy Action Plan and Extended Producer Responsibility (EPR) schemes in countries like India and Canada are driving demand for mechanical recycling infrastructure.

Corporate Sustainability Goals:

Brands are increasingly adopting recycled plastics in product packaging to meet sustainability commitments. Leading companies in food beverage, cosmetics, and retail sectors are integrating recycled content to reduce their environmental footprint.

Technological Advancements:

Innovations in sorting, cleaning, and extrusion technologies have significantly improved the efficiency and quality of mechanically recycled plastics. Enhanced polymer separation and contaminant removal are making it possible to recycle more complex and multi-layered plastics.

Cost-Effectiveness Compared to Chemical Recycling:

Mechanical recycling is more economically viable for many applications, especially in regions with high waste volumes and established collection systems. This continues to make it the preferred choice over energy-intensive alternatives.

Rising Consumer Awareness:

Eco-conscious consumers are influencing demand for recycled products, especially in the packaging and apparel industries, putting pressure on manufacturers to integrate recycled materials into their supply chains.

Regional Analysis

North America:

The region is witnessing a steady rise in recycling initiatives supported by strong public-private partnerships. The U.S. is investing in local recycling infrastructure and technologies, which is expected to boost the mechanical recycling market further.

Europe:

Europe remains a leader in the mechanical recycling of plastics, thanks to strict regulations, public support, and widespread consumer awareness. Countries like Germany, the Netherlands, and France are setting benchmarks with high recycling rates and advanced technologies.

Asia Pacific:

This region is expected to witness the highest growth during the forecast period, driven by increasing urbanization, industrialization, and government reforms in countries like China, India, and Indonesia. The region’s large population and growing plastic consumption also create substantial recycling opportunities.

Latin America and Middle East Africa:

These regions are gradually scaling up their recycling initiatives. Investments in infrastructure, supported by international organizations and NGOs, are expected to contribute to modest growth in the coming years.

Leading Players: