US Recycled PET Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the US Recycled PET Market size is expected to record a CAGR of 3.3% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 1.43 billion. By 2032, the valuation is anticipated to reach USD 1.98 billion.

The growth of the US Recycled PET market is driven by changing consumer behaviour regarding sustainability. Additionally, a ban on landfills introduced in the US is likely to increase the demand during the forecast period. The major factor boosting the demand for Recycled Polyethylene Terephthalate (rPET) in the US region is its broad application scope in various crucial industries, such as FMCG, apparel & cloth, consumer goods, and automotive.

US Recycled PET Market – Significant Growth Factors

Increasing Environmental Awareness: Growing awareness regarding environmental sustainability and the continuous efforts to minimize plastic waste has resulted in a surge in the demand for recycled PET. This increased demand is driven by the search for eco-friendly solutions by consumers, businesses, and governments, hence increasing the growth of the market.

Government Initiatives and Regulations: Favourable government regulations and initiatives for promoting recycling and reducing plastic waste are playing a crucial role in the growth of the recycled PET market. Nations policies such as recycling targets, extended producer responsibility (EPR) programs, and plastic bottle deposit schemes have resulted in the increased use of recycled PET and encouraged investment in recycling infrastructure.

Technological Advancements: Recent advancements in recycling technologies have improved the quality and efficiency of PET recycling procedures. Innovations in cleaning, sorting, and processing techniques have made it possible to convert post-consumer PET to high-quality recycled PET at very ease, hence expanding its range of applications and boosting market growth.

Supply Chain Collaboration: Collaboration among different stakeholders in the PET value chain, including recycling companies, manufacturers, and brand owners, has been crucial in driving the growth of the recycled PET market. Close cooperation and partnerships have facilitated the development of efficient collection and recycling systems, ensuring a consistent supply of post-consumer PET for recycling.

Overall, these growth opportunities are expected to fuel the expansion of the US Recycled PET Market in the coming years.

US Recycled PET Market – Mergers and Acquisitions

The US Recycled PET Market has seen several mergers and acquisitions in recent years. Some notable examples include:

DAK Americas Acquisition of Perpetual Recycling Solutions: In 2019, DAK Americas, a subsidiary of Alpek S.A.B. de C.V., completed the acquisition of Perpetual Recycling Solutions, a PET recycling company based in Indiana, United States. This acquisition aimed to expand DAK Americas’ recycling capabilities and enhance its position in the recycled PET market.

Plastipak Packaging Acquisition of Clean Tech Incorporated: In 2018, Plastipak Packaging, a global packaging company, acquired Clean Tech Incorporated, a PET recycling company based in California, United States. This acquisition allowed Plastipak Packaging to strengthen its recycling capabilities and expand its presence in the recycled PET market.

Indorama Ventures Acquisition of Custom Polymers PET: Indorama Ventures, a global chemical company, acquired Custom Polymers PET, a PET recycling and processing company based in Alabama, United States, in 2018. This acquisition supported Indorama Ventures’ strategy to become a leading player in the recycling industry and increase its recycled PET production capacity.

Loop Industries Partnering with Indorama Ventures: Loop Industries, a technology company focused on sustainable plastics, entered into a strategic partnership with Indorama Ventures in 2018. The partnership aimed to commercialize Loop Industries’ depolymerization technology for the production of high-purity PET resin from waste PET plastic. This collaboration demonstrated the interest of major industry players in innovative recycling technologies.

These mergers and acquisitions have allowed companies to expand their product offerings, reach new markets, and strengthen their positions in the US Recycled PET Market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Recycled PET Market – Significant Threats

The US Recycled PET Market faces several significant threats that could impact its growth and profitability. Some of these threats include:

• Competition from Alternative Materials: The availability of alternative materials, such as biodegradable plastics or other types of sustainable packaging solutions in the US region, can pose a threat to the growth of the recycled PET market. If these alternatives gain wider adoption and offer comparable or superior environmental benefits, it may reduce the demand for recycled PET.
• Limited End-Market Demand: The recycled PET market relies on strong demand from various industries, including packaging, textiles, and consumer goods. If the end-market demand for recycled PET does not increase at a sufficient pace, it can create a challenge for market expansion and the utilization of recycled PET resin.
• Lack of Adequate Collection Infrastructure: Limited infrastructure for PET collection and recycling in the US region can hamper the growth of the recycled PET market. Insufficient collection systems, especially in certain regions or industries, may result in lower availability of post-consumer PET feedstock, restricting the supply of recycled PET.
• Complex Sorting and Recycling Processes: PET recycling involves complex sorting and processing procedures. The challenges associated with sorting different types of PET bottles and the need for advanced technologies can increase costs and pose operational hurdles for recycling facilities, potentially impacting the competitiveness of recycled PET.

Overall, these threats pose significant challenges for the US Recycled PET Market and require companies to be vigilant in addressing them to ensure sustainable growth and profitability.

Report Scope

Category-Wise Insights

By Product Type:

Recycled PET Flakes: Recycled PET flakes are small pieces of PET obtained by shredding and grinding post-consumer PET bottles. These flakes undergo a cleaning process to remove impurities and contaminants, resulting in a material suitable for further processing or applications.

Recycled PET Pellets: Recycled PET pellets are produced by melting and extruding recycled PET flakes. The flakes are melted, filtered, and then pelletized into small granules. These pellets can be used in various manufacturing processes, such as injection molding, blow molding, and extrusion, to produce a wide range of products.

Recycled PET Fibers: Recycled PET fibers are produced by melting and spinning recycled PET pellets into fine filaments. These fibers can be used in the textile industry to manufacture fabrics, carpets, apparel, and other textile products. Recycled PET fibers are known for their durability and sustainability.

Recycled PET Sheets: Recycled PET sheets are made by processing recycled PET flakes or pellets into flat sheets of varying thicknesses. These sheets are commonly used in applications like packaging, signage, and construction. Recycled PET sheets offer good strength, transparency, and recyclability.

By Service Type:

Packaging: The packaging industry is a significant consumer of recycled PET. rPET is commonly used in the production of food and beverage containers, such as bottles, jars, trays, and clamshells. Recycled PET offers cost savings and environmental benefits, making it an attractive option for sustainable packaging solutions.

Textiles: The textile industry is another major sector that utilizes recycled PET. rPET can be processed into polyester fibers and yarns, which are used in the production of fabrics for apparel, home furnishings, upholstery, and carpets. Recycled PET textiles help reduce the dependence on petroleum-based materials and minimize waste.

Automotive: The automotive industry incorporates recycled PET in various applications, including interior fabrics, carpets, sound insulation materials, and non-woven components. The use of rPET in automotive manufacturing helps reduce the environmental impact and contributes to sustainable practices within the industry.

Construction: Recycled PET finds application in the construction industry as well. It is used in the production of insulation materials, geotextiles, roofing membranes, and composite materials. rPET offers advantages such as thermal insulation, moisture resistance, and improved sustainability in construction projects.

Consumer Goods: Recycled PET is utilized in the production of various consumer goods, including household items, electronics, toys, and sports equipment. Manufacturers are increasingly incorporating rPET into their products to meet sustainability goals and cater to environmentally conscious consumers.

US Recycled PET Market – Regional Analysis

The US Recycled PET Market can be analyzed regionally based on the geographical distribution and the market presence of key players.

West Coast: The West Coast, which includes states such as California, Oregon, and Washington, has well-established recycling infrastructure and a strong focus on promoting recycled PET products. California, in particular, has implemented stringent recycling regulations and targets, driving the demand for recycled PET.

Northeast: The Northeast region, including states like New York, New Jersey, and Massachusetts, has a high population density and emphasises more on sustainability. The region has implemented recycling programs and initiatives to reduce plastic waste. Several recycling facilities and companies specializing in recycled PET are located in this region, catering to the demand from industries and consumers.

Midwest: The Midwest region, including states like Illinois, Ohio, and Michigan, has a diverse manufacturing base, including packaging, automotive, and consumer goods industries. The demand for recycled PET in these sectors drives the growth of the recycled PET market in the region. Recycling infrastructure varies across states, with some having well-established systems while others are still developing their recycling capabilities.

Southeast: The Southeast region, including states such as Florida, Georgia, and North Carolina, has seen growing interest in recycling and sustainability practices. There has been an increase in investment and efforts to improve recycling rates and reduce plastic waste. The region has a significant presence of recycling facilities and manufacturers utilizing recycled PET in various industries.

Southwest: The Southwest region, including states like Texas, Arizona, and New Mexico, has a mix of recycling initiatives and challenges. Some states have robust recycling programs and infrastructure, while others are working towards strengthening their recycling capabilities. The demand for recycled PET is driven by a combination of consumer awareness, corporate sustainability initiatives, and government support for recycling efforts.

Competitive Landscape – US Recycled PET Market

The US Recycled PET Market is highly competitive and is dominated by several major players, including:

• Indorama Ventures
• Plastipak Holdings Inc.
• Mohawk Industries
• CarbonLITE Industries
• Clear Path Recycling
• Phoenix Technologies International
• Verdeco Recycling Inc.
• Evergreen Plastics
• Custom Polymers PET
• Envision Plastics Industries
• Far Eastern New Century Corporation (FENC)
• Schoenberg & Co. Inc.
• National Fiber Supply
• Perpetual Recycling Solutions
• PolyQuest Inc.
• Others

These companies compete on the basis of service quality, pricing, target market, and marketing strategies to maintain their market share and gain a competitive advantage.

The US Recycled PET Market is segmented as follows:

By Product Type:

• Recycled PET Flakes
• Recycled PET Pellets
• Recycled PET Fibers
• Recycled PET Sheets

By Service Type:

• Packaging
• Textiles
• Automotive
• Construction
• Consumer Goods

On the basis of US Geography

• Northeast Region
• Southeast Region
• Midwest Region
• West Coast Region
• Southwest Region
• Mountain States