Global Recycled PET Market 2025–2034

Reports Description

According to Custom Market Insights (CMI), the Global Recycled PET Market size was estimated at USD 9.02 Billion in 2021 and is expected to reach USD 9.37 billion in 2022 and is expected to hit around USD 12.25 Billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 5.8% from 2022 to 2030.

Polyethylene terephthalate PET is an aliphatic polyester and thermoplastic resin. It is widely available and cost-effective, due to which it can be recycled widely. It is extruded or molded into plastic bottles and containers for packaging foods and beverages, personal care products, and many other consumer products.

The global recycled PET market is evolving, and companies are now focusing more on strengthening and consolidating R&D activities, thereby increasing the production capacity of plastic packaging, thus driving the market growth by catering to the need for plastic packaging in various end-use industries.

Growth Factors.

Government initiatives on growing plastic waste and support for recycled PET-based plastic have enhanced the performance of the recycled PET market. In addition, PET is the most commonly recycled plastic on the earth. According to data revealed by Plastic Ingenuity, almost every recycling program in the US accepts PET materials.

The Life Cycle Inventory Study reported in 2010 that “for every pound of recycled PET flake used, energy use is reduced by 84%; greenhouse gas emissions by 71%. This may act as one of the key drivers responsible for the growth of the market during the forecast period. Factors such as the growing young population across the globe, growing demand for various clothing, and rise in fashion consciousness among people have led them to opt for moisture barriers based on recycled PET mainly because it is used as a fiber for clothing.

The growing population across the globe, the increase in the number of working women, and the rising demand for ready-to-eat packaged food have given way to the recycled PET industry. Recycled PET-based plastics are extensively used in the manufacturing of plastic containers. This is projected to propel the growth of the recycled PET market in the upcoming years. In addition, the growing food and beverages industry across the world is driving the potential sales of recycled PET market.

For instance, according to an article published by IBIS World, in the year August 2022, the industry revenue is expected to fall at a compound annual rate of 0.9% over the five years through 2022-23 to £935.4 million. These factors are enhancing the overall growth of the recycled PET market.

On the contrary, the growing e-commerce sector and well-established organized retail stores in both developed and developing countries have boosted the recycled PET market.

These factors together are projected to create remunerative opportunities for the expansion of the recycled PET market in the future.

Recycled PET Market Segmentation.

Recycled PET Market, segmented by Product Type

Depending upon the product type the recycled PET market is segmented clear and colored.

The clear segment dominated the market in 2021 and accounted for a total major share of 78.0%.

The clear type of rPET-based segment provides extended shelf life due to which it has gained popularity in the food and beverages industry where it is used in the form of bottles, jars, containers, and many others. This is anticipated to increase the demand for plastic packaging in the industrial sector.

Furthermore, the clear rPET is mostly suitable for a wide range of products, including food, medicine, electronics, toys, personal care items, office stuff, and among others. In addition, the ease of processing system, availability of various raw material, and cost-effective material has driven the market growth.

In response to this, several manufacturers are actively engaged in the production of a clear type of rPET products and prefer clear granules or flakes to manufacture containers and bottles, as opposed to opaque or colored PET. Clear rPET products help in the easy detection of variations of the product inside, such as a change in color, fungal growth, and chemical reaction due to inadequate storage conditions.

Moreover, the colored type of recycled PET market will show considerable growth during the forecast period. The colored rPET products are widely used for ice cream wrappers, to seal food trays, laundry capsule pouches, and bottle sleeves, and during transportation. This is anticipated to enhance the demand for rPET in the market; thus, creating remunerative opportunities for the market.

Recycled PET Market, segmented on the basis of End Use

Based on application, the global recycled PET market is studied across fiber, food & beverage containers, bottles, and others. It is expected that the global fiber application segment to hold a dominant position during 2022 – 2031 with a total share of 42.56%.

The factors such as a rapid shift in lifestyle, the busy schedule of people, and growing trends of ready-to-eat packed food have escalated the demand for various types of recycled PET products, which it is extensively used as protecting and covering material while carrying out food during transportation.

In addition, growing consumer goods, textile, automotive textile, clothing, and FMCG sectors have positively impacted market growth. Recycled PET-based products are extensively used in automotive cushioning for making seat belts, seat covers, carpets, and others. Moreover, recycled PET-based products are popularly used in the textile industry for the manufacturing of t-shirts, fiber-based jackets, and many others. These factors are likely to dominate the market in the upcoming years.

Furthermore, the growing food & beverages industry is also contributing to the market growth. An initiative from developed and developing economies and additional efforts and support for recycling PET from popular brands will increase the potential sales of rPET during the forecast period.

Report Scope

Regional Analysis

Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific is the dominant region in the global recycled PET market and accounts for 43.67% of the total market share. This region is also anticipated to maintain its dominance throughout the forecast period. Countries such as China, Japan, India, and others have significant contributions to the growth of the recycled PET market in the region.

The growth of fiber, consumer goods, bottle-to-bottle production, food and beverages, and other end-use industries has surged the demand for rPET. Furthermore, the healthcare sector is one of the booming sectors in India. For instance, according to a report published by NITI Aayog in the year March 2021, India’s healthcare industry has been growing at a Compound Annual Growth Rate (CAGR) of around 22% since 2016.

At this rate, it is expected to reach USD 372 billion in 2022. These factors together increase the usage of rPET in the growing healthcare industry for manufacturing and packaging various healthcare products such as various surgical containers, medical bottles, saline bottles, syringes, and many others.

Moreover, China has a dynamic market for the food & beverages sector owing to the rise in the population, growing recycling PET plants, rise in import & export trade, and increased demand for food have enhanced the market growth. According to data published by the Ministry of Environment, Forest and Climate Change, the government notifies the Plastic Waste Management Amendment Rules, 2021, prohibiting identified single-use plastic items by 2022. This regulation acts as one of the supporting factors for the growth of the recycled PET market during the forecast period.

The Europe region has shown considerable growth due to the strong presence of automotive, textile, and manufacturing plants where recycled PET is used in the manufacturing of bottles, containers, automotive textiles, fiber-based clothing, and others.

Moreover, an increase in the utilization of shipping containers and import and export activities across North America, Europe, Asia-Pacific, and the LAMEA region has fueled the growth of the industrial packaging segment.

Popular brands focusing on recycling PET-based products:

Coca-Cola and PepsiCo have announced decisions to use 50% of recycled content in plastic packaging by 2023 wherein PepsiCo has announced to use of 25% of recycled PET. In addition, Nestlé, L’Oréal, PepsiCo, and many other popular brands have opted for bottles to bottle recycling approach for a sustainable environment.

Key Findings:

• The colored type of segment dominated the market in 2021 and is expected to grow over the forecast period with a total market share of 78%.
• Global fiber application segment to hold a dominant position during 2022 – 2031 and accounted for 45% of the total market share during the forecast period.
• Asia-Pacific is the dominant region in the bio-butanol market with a total market share of 43.67% during the forecast period.

Key market players in the recycled PET market

• Amcor Ltd
• PLACON
• Clear Path Recycling LLC
• Verdeco Recycling, Inc.
• Indorama Ventures Public Ltd.
• Zhejiang Anshun Pettechs Fibre Co. Ltd.
• PolyQuest
• Evergreen Plastics Inc.
• Phoenix Technologies
• Libolon
• Biffa
• Others

Key Developments:

• In September 2021, Biffa acquired the recycling asset of Virdor Waste Management Ltd. This strategic acquisition has widened Biffa’s recycling assets.
• In June 2021, Indorama Ventures acquired CarboonLite Holdings’ facility based out of Texas to increase its PET recycling capability. This strategic acquisition is expected to increase the overall company’s growth in the market.

COVID-19 Analysis

The recycled PET market has had little impact due to the wake of the COVID-19 pandemic, owing to the rise in cases of COVID-19, the implementation of emergency protocols and shutdown of various operations and facilities have been observed during 2020.

However, the recycled PET market faced several difficulties with material supply chain disruptions, and labour shortages, in 2020.

Furthermore, to control the surge of novel coronavirus cases, there is a drastic shift of investments from other sectors toward the packaging sector. Also, several plastic packaging-based product manufacturing companies have either shut down or shrunk their operations due to the risk of infection among the workforce.

This has temporarily hampered the demand and supply chain of the recycled PET market. In addition, the falling income of customers has led contraction in the demand for clothes, bottles, packaged foods, and many others, and others during the COVID-19 period.

In the first quarter of 2021, the market for recycled PET has experienced due to increase in the demand for automotive, apparel, healthcare, household products, and other end-use industry worldwide, compared to that in 2020.

Segments covered in the report

By Color

• Clear
• Colored

By Grade

• Post-consumer Resin
• Post-commercial Resin
• Post-industrial Resin

By Application

• Food & Beverage Bottles
• Non-food Bottles
• Fiber
• Sheets & Films
• Strapping
• Others (including Rope and Automotive Parts)

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America