June 23, 2024
Recycled Plastic Granules

The Growing Plastic Waste and Awareness about sustainability is driving the Recycled Plastic Granules Market demand

The Recycled Plastic Granules are nothing but processed plastic waste obtained from post-consumer or post-industrial plastic that has been recycled. They are small plastic pellets that are produced when plastic waste is shredded and melted into a uniform shape. These granules find major usage in plastic injection molding, blow molding machines and extruders to manufacture new plastic products. As raw materials in plastic manufacturing, Recycled Plastic Granules offer the advantage of lower cost as compared to virgin plastic and help reduce plastic waste being dumped in landfills or oceans. With increasing plastic pollution worldwide and rising awareness about sustainability, there is a growing need to reduce reliance on virgin plastics and promote recycling of used plastics. The Recycled Plastic Granules act as an efficient alternative for replacing virgin plastics in plastic production.

The global Recycled Plastic Granules Market is estimated to be valued at US$ 3.65 Mn in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
One of the major trends driving the growth of Recycled Plastic Granules market is stringent regulations imposed by various governments around the world to curb plastic pollution and encourage recycling. For example, the European Union has set minimum recycled content targets for plastic packaging to be achieved by member countries by 2025 and 2030 under the EU Circular Economy Package. Similarly, countries like China, India and others have also implemented bans on certain single-use plastics and extended producer responsibility laws, forcing manufacturers to use recycled plastics. Another key trend is the increasing adoption of Recycled Plastic Granules by major corporations as part of their commitments towards sustainability and circular economy goals. Major brands are collaborating with recycled plastic suppliers to source Recycled Plastic Granules for their packaging and products. This is expected to significantly boost the demand for Recycled Plastic Granules over the forecast period.

Porter’s Analysis
Threat of new entrants: The threat of new entrants into the Recycled Plastic Granules market is low as it requires large capital investments to establish manufacturing facilities and distribution networks.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are many established players in the market providing Recycled Plastic Granules. However, buyers can negotiate on price and quality standards.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the availability of substitutes and less differentiation in products. Suppliers have less influence on pricing and supply.

Threat of new substitutes: The threat of new substitutes is moderate as there are alternatives like virgin plastics and bio-based plastics. However, Recycled Plastic Granules offer sustainability and cost benefits.

Competitive rivalry: The competitive rivalry is high among key players to increase their market share through product innovations, partnerships, and expansion to new regions.

Key Takeaways
Global Recycled Plastic Granules Market Size is expected to witness high growth over the forecast period owing to increasing environmental awareness.

Asia Pacific region dominates the market and is expected to maintain its lead position during the forecast period. Rapid industrialization and growth of the packaging industry are driving the demand for Recycled Plastic Granules in the region.

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. Players are focusing on expanding their product portfolio and geographical presence through mergers & acquisitions and partnerships.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it