by Recycled plastic granules are processed plastic materials produced from post-consumer plastic waste such as packaging, bottles, and other plastic products. These granules serve as raw materials for the manufacturing of a variety of plastic goods and packaging including food packaging films, containers, bottles, automotive components, construction materials and others due to properties like cost-effectiveness, durability and versatility. The growing awareness about sustainability and environmental protection has increased the demand for recycled plastic over virgin plastic in various end-use industries.
The global Recycled Plastic Granules Market is estimated to be valued at US$ 3.16 Bn in 2023 and is expected to exhibit a CAGR of 3.1% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the recycled plastic granules market is the increasing adoption in packaging industry. Recycled plastic granules find major application in manufacturing flexible and rigid packaging products like carrier bags, garbage bags, trash bins and other products. This is attributed to properties of recycled plastic granules like versatility in application and affordability. The packaging industry accounts for over 26% of global plastic consumption. Stringent regulations aimed at reducing single-use plastic along with initiatives promoting circular economy by governments worldwide is expected to further spur demand for recycled plastic granules from packaging manufacturers in coming years.
Porter’s Analysis
Threat of new entrants: Low. High capital requirements and economies of scale create significant barriers to entry in this market.
Bargaining power of buyers: Moderate. A few large buyers have some bargaining power due to the volume of recycled plastic granules purchased. However, switching costs are relatively low.
Bargaining power of suppliers: Low. The recycled plastic granules market has a large number of suppliers due to low differentiation between suppliers.
Threat of new substitutes: Moderate. Alternative products such as virgin plastics pose a moderate threat. However, recycled plastics provide sustainability advantages.
Competitive rivalry: High. The market has numerous competitors of varied sizes offering similar products. Price competition is intense.
Key Takeaways
The Global Recycled Plastic Granules Market Demand is expected to witness high growth. The market size for 2023 is projected to reach US$ 3.16 Billion, representing a CAGR of 3.1% during the forecast period from 2023 to 2030.
Regional analysis: Europe dominates the recycled plastic granules market currently, accounting for over 30% of the global market share in 2023. Stringent environmental regulations regarding plastic waste recycling and bans on single-use plastics in countries like Germany and UK are driving the European market. Asia Pacific is expected to be the fastest growing market, led by China and India.
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 extensive production facilities and global distribution networks to cater to the large and growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
