Recycled Polypropylene Market Analysis

Global Recycled Polypropylene Market Overview

Recycled Polypropylene Market Size was valued at USD 8.60 Billion in 2023. The Recycled Polypropylene industry is projected to grow from USD 9.15 Billion in 2024 to USD 14.0 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.47% during the forecast period (2024 - 2032). Increasing demand for environmentally friendly items, as well as government restrictions encouraging the use of recycled materials are the key market drivers enhancing the market growth.                       

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Recycled Polypropylene Market Trends

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  Growing Adoption in the Packaging Industry to Drive Market Growth

  
  

The market CAGR for recycled polypropylene is being driven by the rising adoption in the packaging industry. The need for recycled materials is increasing in a variety of industries, including food and beverage and consumer goods. Because of the rising demand for food-safe packaging material, the use of recyclable polymer is expanding in the food and beverage industry. These materials can efficiently replace traditional plastics as a barrier between food goods and environmental elements, increasing market share. Recycled polyethylene terephthalate is a material that is widely used in the production of bottles for water and beverage packaging. Aside from food and beverage packaging, recycled polymers are utilized in the packaging of products such as sports equipment, fashion accessories, and toys, which helps to increase the product's longevity. Due to their non-reactive nature, these polymers have seen growing demand in the packaging of products such as soaps, surfactants, shampoos, and other personal care products. The increasing use of packaging materials in the production of consumer goods will drive market expansion.

Additionally, the increased awareness of the environmental consequences of plastic garbage. As customers grow increasingly aware of the negative environmental impact of plastic trash, they are looking for alternatives to typical plastic products. This has increased demand for recycled polypropylene, a more sustainable and environmentally benign alternative to virgin plastic. Furthermore, government policies and programs aimed at minimizing plastic waste and increasing the use of recycled materials are propelling the recycled polypropylene market forward. The European Union's Single-Use Plastics Directive is one example of government restrictions promoting the expansion of the recycled polypropylene sector. This directive seeks to minimize the quantity of plastic waste in the environment by prohibiting the use of certain single-use plastic goods and requiring member states to implement steps to reduce plastic waste and promote the use of recycled materials. As a result, there is an increasing demand for recycled polypropylene, which is a more sustainable option to virgin plastic, and this is projected to fuel the recycled polypropylene market growth in the approaching years.

Increased government laws and activities aimed at encouraging sustainability and decreasing waste are also driving the recycled polypropylene industry. Many countries worldwide are enacting rules and regulations to encourage the use of recycled materials, particularly recycled polypropylene, in a variety of industries. As an example, By 2030, the European Union hopes to have recycled 55% of all plastic packaging trash. To meet this goal, the EU has enacted legislation requiring member countries to decrease plastic waste and increase the use of recyclable materials. Similarly, the Indian government has launched the "Swachh Bharat Abhiyan" program to promote cleanliness and sustainability, which includes steps to reduce plastic waste and encourage the use of recycled materials.

CARBIOS, L'OCCITANE en Provence and Pinard Beauty Pack developed a new 100% recycled PET bottle for L'OCCITANE's Amande range shower oil in May 2024. CARBIOS makes use of its enzymatic depolymerization process to transform PET waste into virgin monomers within their French facility, indicating their commitment to a circular economy.

Recycled Polypropylene Market Segment Insights

Recycled Polypropylene Process Insights

The  Recycled Polypropylene Market segmentation, based on Process includes Mechanical and Chemical. The mechanical category is the fastest expanding. This is due to the widespread usage of recycled polypropylene in mechanical applications like automobile parts, appliances, and furniture. Because of the increasing demand for lightweight and durable materials in numerous industries, the mechanical segment is likely to rise further in the future years. Furthermore, the mechanical segment is predicted to gain from the growing trend of the circular economy and the increased use of recycled materials in industrial operations.

Figure1: Recycled Polypropylene Market, by Application, 2022&2032 (USD Billion)                         

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Recycled Polypropylene Application Insights

The  Recycled Polypropylene Market segmentation, based on Application, includes packaging, automotive, building & construction and textiles. In 2022, the packaging application category led the market, accounting for more than 37% of worldwide sales. This high share is due to increased demand for packaged food and beverages, electrical and electronic goods, and textiles. Personal hygiene items such as electronic trimmers and shavers, as well as automobile components and clothes made from recycled plastics, are the key products driving recycled plastics demand.

Recycled Polypropylene Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific dominated the market, accounting for more than 45.80% of worldwide revenue in 2022. Over the forecast period, the Asia Pacific construction industry is expected to grow significantly due to rising demand for non-residential construction projects such as hospitals, schools, and colleges, which will drive demand for roofing tiles, insulation, fences, floor tiles, carpets, and other materials, propelling the market growth. Moreover, China’s Recycled Polypropylene Market held the largest market share, and the Indian Recycled Polypropylene Market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: RECYCLED POLYPROPYLENE MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe Recycled Polypropylene Market accounts for the second-largest market share. The adoption of a circular economy to lower the carbon footprint associated with traditional methods of plastic production by increasing plastic recycling in the region is driving the market. Further, the German Recycled Polypropylene Market held the largest market share, and the UK Recycled Polypropylene Market was the fastest-growing market in the European region

The North America Recycled Polypropylene Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rising demand for packed and processed foods, as well as the growing construction industry in the United States, Mexico, and Canada, which are expected to boost market growth throughout the forecast period.

Recycled Polypropylene Key Market Players& Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Recycled Polypropylene Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Recycled Polypropylene industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Recycled Polypropylene industry to benefit clients and increase the market sector. In recent years, the Recycled Polypropylene industry has offered some of the most significant advantages to medicine. Major players in the Recycled Polypropylene Market, including B&B Plastics Inc. (US), Custom Polymers (US), Joe's Plastic, Inc. (US), Ultra Poly Corporation (US), and PLASgran Ltd. (UK), and others, are attempting to increase market demand by investing in research and development operations.

Plastipak Holdings, based in Michigan, USA, is a privately held manufacturer of rigid plastic containers for the consumer products market. Plastipak Holdings has 47 manufacturing facilities throughout the United States, Europe, South America, Africa, and Asia. It has more than 1,500 US patents for packaging designs and production processes. Plastipak also licenses several packaging technologies all around the world. In May 2021, Plastipak Holdings invested in a new recycling unit at its Toledo, Spain, manufacturing location. This plant, which will open in early 2022, will create food-grade recycled PET (rPET) pellets from PET flake for use in preforms, bottles, and containers. This factory will yearly generate 20 kilotons of food-grade pellets.

Waste Management (WM) spent $125 million in February 2023 to enlarge its film recycling operations, rebranding the latter as Natura PCR, following the acquisition of Avangard Innovative’s US plastics recycling endeavor. These investments were made in order to expand the sector of film recycling with the aim of increasing PCR production capacity to 400 million pounds per year.

Coca-Cola, also known as Coke, is a carbonated soft drink produced by the Coca-Cola Company. Coke products were distributed in over 200 countries around the world in 2013, with consumers drinking more than 1.8 billion corporate beverage servings per day. Coca-Cola was rated No. 87 on the 2018 Fortune 500 ranking of the largest firms in the United States by total revenue. According to Interbrand's 2020 "best brand" study, Coca-Cola was the world's sixth most valuable brand. In May 2020, In the Netherlands and Norway, Coca-Cola began adopting 100% rET packaging in all small plastic bottles. This will help the company's  World Without Waste initiative. In addition, by 2021, the company intended to use 100% PET in its large plastic bottles.

Key Companies in the Recycled Polypropylene market include

• MBA Polymers Inc. (Austria)


• Veolia Polymers NL B.V. (The Netherlands)


• SUEZ (France)


• Custom Polymers (US)


• Joe's Plastic (US)


• KW Plastics (US)


• Jayplas (UK)


• Ultra Poly Corporation (US)


• PLASgran Ltd. (UK)


• B&B Plastics Inc. (US)

Recycled Polypropylene Industry Developments

In October 2023, Coca-Cola India launched 100% r-PET bottles with pack sizes of 250 ml and 750 ml. Its strong PET collection and recycling system, particularly in advanced areas, has contributed to maintaining leadership in the market.

April 2023: LyondellBasell acquired Veolia Belgium’s stake in Quality Circular Polymers (QCP) BV, thereby gaining full control over QCP’s recycling plants located in Belgium and Netherlands, which mechanically mixes QCP’s recycled mixtures into various products as LyondellBasell moves towards improving its circular and low carbon solutions business.

October 2023: Suez Recycling & Recovery Holdings bought Devon Contract Waste (DCW), a UK-based commercial waste collections specialist, to grow its regional recycling and waste management operations. This purchase reflects Suez's trust on the UK market and also demonstrates its strategic goals for expansion, especially within the southwest region of England.

April 2024: KW Plastics plans to release a new wash line that will add another one hundred million pounds per year to its olefin recycling capacity. They anticipate future growth markets by keeping some additional capacity on hand while watching trends in plastic recovery rates and MRF dynamics.

Recycled Polypropylene Market Segmentation

Recycled Polypropylene Market By Process Outlook

• Mechanical


• Chemical

  Recycled Polypropylene Market By Application Outlook

• Packaging


• Automotive


• Building & Construction


• Textiles

Recycled Polypropylene Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America