Recycled Thermoplastics Market Size To Reach USD 145.34 Bn By 2034

2025-12-05 10:35:41

(MENAFN- GlobeNewsWire - Nasdaq) According to Towards Chemical and Materials Consulting, the global recycled thermoplastics market size was estimated at USD 63.43 billion in 2025 and is projected to reach USD 145.34 billion by 2034, growing at a CAGR of 9.65% from 2025 to 2034.

Ottawa, Dec. 05, 2025 (GLOBE NEWSWIRE) -- The global recycled thermoplastics market size

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What are Recycled Thermoplastics?

The recycled thermoplastics market is growing as industries shift toward sustainable materials, supported by stricter environmental regulations, rising demand for eco-friendly products, and advancements in recycling technologies. Packaging remains the primary use area, while automotive and other sectors are increasingly adopting recycled polymers, with Asia Pacific emerging as a strong regional market driven by expanding recycling initiatives.

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Recycled Thermoplastics Market Report Highlights

The Asia Pacific recycled thermoplastics market size was estimated at USD 25.45 billion in 2024 and is expected to reach USD 64.02 billion by 2034, growing at a CAGR of 9.66% from 2025 to 2034.
By region, the Middle East & Africa is expected to grow at the fastest CAGR over the forecast period. The growth of the region can be credited to the increasing awareness regarding sustainable initiatives.
By material type, the Polyethylene (PE) segment held a 28% market share in 2024. The dominance of the segment can be attributed to the growing utilisation of recycled plastics in flexible packaging alternatives.
By material type, the Polyethylene Terephthalate (PET) segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be credited to its extensive use in packaging and beverage containers.
By source type, the post-consumer recycled (PCR) segment led the market with 45% market share in 2024. The dominance of the segment can be linked to the increasing emphasis on circular economy and sustainability practices across the globe.
By source type, the ocean waste segment is expected to grow at the fastest CAGR over the forecast period. The growth of the segment can be driven by the growing need for sustainable materials and rising environmental awareness.
By processing technology, the mechanical recycling segment dominated the market by holding 68% market share in 2024. The dominance of the segment is owed to the ongoing government regulations, rising environmental awareness.
By processing technology, the chemical recycling segment is expects the fastest growth in the market over the forecast period. The growth of the segment is due to the rapid technological advancements, environmental concerns, and economic advantages.
By end user industry, the packaging segment held a 38% market share in 2024. The dominance of the segment can be credited to the increasing shift towards sustainable packaging solutions.
By end user industry, the automotive segment is expected to grow at a CAGR during the projected period. The growth of the segment can be linked to the growing emphasis on environmental issues by corporations and consumers.
By form, the pellets segment led the market with 52% market share in 2024. The dominance of the segment can be driven by the growing shift towards a circular economy.
By form, the flakes segment is expected to grow at the fastest CAGR over the study period. The growth of the segment can be attributed to the favourable government initiatives supporting recycling.

Types of Thermoplastics

Thermoplastic

Applications

Properties

Variants/ Benefits/Drawbacks

Source

Polyethylene (PE)

Used in plastic bags, bottles, and toys.

Known for its flexibility, durability, and resistance to moisture.

Includes high-density polyethylene (HDPE) and low-density polyethylene (LDPE).

The British Plastics Federation

Polypropylene (PP)

Found in packaging, automotive parts, and textiles.

Recognized for its toughness, chemical resistance, and versatility.

Offers a high melting point, making it suitable for various thermal applications.

Polypropylene Europe

Polyvinyl Chloride (PVC)

Utilized in pipes, cables, and flooring.

Characterized by its ability to be rigid or flexible depending on formulation, and its resistance to environmental degradation.

Available in rigid (uPVC) and flexible (pPVC) forms.

PVC4Pipes

Polyethylene Terephthalate (PET)

Common in beverage bottles and food containers.

Renowned for its strength, thermo-stability, and barrier properties.

Widely recycled due to its value in producing new containers and textiles.

PET Resin Association

Polystyrene (PS)

Used for disposable coffee cups, plastic food boxes, plastic cutlery, and packaging foam.

Known for its rigidity, clarity, and insulating properties.

Difficult to recycle due to its bulky nature and contamination risks.

American Chemistry Council

Acrylonitrile Butadiene Styrene (ABS)

Found in electronics, automotive parts, and toys.

Valued for its impact resistance, toughness, and ease of machining.

Common in 3D printing and household appliance casings.

Plastics Insight
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Mechanical Recycling Processes

Mechanical recycling involves the physical processing of thermoplastics into new products. The typical steps include:

Collection: Waste plastics are collected from municipal, commercial, or industrial sources and brought to a recycling facility.
Sorting: Plastics are sorted by type, color and thickness or other properties.
Washing: Removing contaminants such as labels and residues.
Shredding: Shredding down plastic waste into smaller pieces.
Second Sorting and Quality Control: Filtering out impurities and mixed materials.
Drying: Removing moisture from cleaned plastic flakes.
Melting: Heating the cleaned plastic to form a homogeneous liquid.
Extrusion Pelletizing: Shaping the melted plastic into pellets.
Recycled Thermoplastics Market Report Scope

Report Attribute Details

Market size value in 2026 USD 69.55 billion

Revenue forecast in 2034 USD 145.34 billion

Growth rate CAGR of 9.6% from 2025 to 2034

Actual data 2021 - 2025

Forecast period 2025 - 2034

Quantitative units Volume in kilotons, revenue in USD million/billion, and CAGR from 2025 to 2035

Report coverage Revenue forecast, competitive landscape, growth factors, and trends

Segments covered By Material Type, By Source Type, By Processing Technology, By End-Use Industry, By Form, By Region

Regional scope North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope U.S.; Canada; Mexico; Germany; France; UK; Italy; Spain; China; India; Japan; South Korea; Australia; Brazil; Argentina; Saudi Arabia; South Africa

Key companies profiled APC recycling B. Schoenberg & Co.; Clear Path Recycling; Custom Polymers; Envision Plastics; Fresh Pak Corporation; KW Plastics; Maine Plastics Incorporation; PARC Corporation; Plastipak Holdings; RJM International Inc.; Suez; United plastic recycling; Veolia; B&B Plastics

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Chemical Recycling Processes: An Overview of Chemical Recycling

Chemical recycling (often called advanced recycling) is a set of processes that theoretically break down plastic waste at the molecular level, converting it into raw materials that can be used to create new plastics or other chemicals. This method includes various processes such as pyrolysis, depolymerization, and gasification:

Pyrolysis involves heating plastics in the absence of oxygen to convert them into oil or gas. It works effectively with polyolefins like polyethylene (PE) and polypropylene (PP), but is less suitable for polymers such as PET or PVC. Pyrolysis is often promoted for its ability to recover energy and produce feedstock for new plastics, yet it requires high temperatures and can emit significant greenhouse gases when powered by fossil energy.
Depolymerization breaks plastics down into their original monomers, which can then be repolymerized into virgin-quality plastics. This method is particularly relevant for PET and polyamides. While promising in terms of closed-loop potential, depolymerization is not universally applicable and often depends on highly sorted feedstock.
Gasification converts plastic waste into synthesis gas (syngas), a mix of carbon monoxide and hydrogen, which can be used as a chemical building block or energy source. Like pyrolysis, gasification is energy-intensive and may result in air pollutants if not carefully controlled.
Dissolution uses solvents to selectively dissolve polymers, separating them from additives or contaminants. This allows for the recovery of purified polymers without breaking them down into monomers. While potentially less energy-intensive, dissolution is still an emerging method and often limited by scalability and solvent toxicity.

Private Industry Investments in Recycled Thermoplastics:

Circulate Capital Ocean Fund (CCOF): This investment fund, backed by major corporations like PepsiCo, Procter & Gamble, and Dow, dedicated half of its initial US$106 million to investments in the waste management and recycling industry in India to combat ocean plastic pollution.
Shell (investment in BlueAlp): Shell invested in the plastic waste-to-chemicals technology company BlueAlp to help meet its ambition of recycling one million tonnes of plastic waste a year in its global chemical plants by 2025 using BlueAlp's pyrolysis oil technology.
Indorama Ventures Public Company Limited (IVL): IVL committed to investing $1.5 billion to double its recycling capacity, aiming to recycle 50 billion PET bottles annually by 2025 to produce high-quality recycled PET resin for beverage bottles.
Closed Loop Partners: This New York-based investment firm has invested in over 65 companies working to reduce waste, including using its Closed Loop Circular Plastics Fund to deploy catalytic financing into technologies that advance the recovery and recycling of plastics in the U.S. and Canada.
What Are the Major Trends in the Recycled Thermoplastics Market?

The shift toward sustainability and circular economy practices is a key influence on the adoption of recycled thermoplastics.
Continued advancements in recycling technologies and chemical recycling are improving the quality and usability of recycled thermoplastics.
Increasing use of recycled thermoplastics across a wide range of industries is driving market expansion.
Growth in demand for recycled polyethene terephthalate (PET) reflects a rising interest in recycled materials for bottles and packaging applications.
The rising emphasis on using post-consumer waste and ocean waste-derived plastics underlines a broader global push to reduce plastic pollution and waste.

How Does AI Influence the Growth of the Recycled Thermoplastics Industry in 2025?

AI is boosting recycled plastics adoption by making recycling processes far more efficient, reliable, and scalable. Smart sorting systems using AI and computer vision can accurately identify and separate different plastic types, even those with similar appearances, which reduces contamination in recycling streams and improves the quality of recycled thermoplastics. AI also enables automation and faster throughput in recycling facilities, reducing reliance on manual labour while increasing processing capacity and lowering costs.

Moreover, by continuously analysing data from waste streams and production, AI helps optimise supply chains and recycling workflows, making recycled thermoplastics more competitively viable compared with virgin plastics.

Market Opportunity

What If Every Recycled Plastic Got Used by a Big Brand?

As more major companies commit to sustainable packaging and products using recycled content, demand for recycled thermoplastics will rise sharply. This creates a solid opportunity for recyclers to provide high-quality recycled polymers to consumer goods, packaging, automobile and other sectors.

Can Smarter Recycling Make Recycled Plastic as Good as New?

Advances in AI-driven sorting and processing technologies are improving the purity and consistency of recycled plastics, reducing contamination and making recycled materials more reliable for industrial use. That improves trust in recycled thermoplastics and opens wider applications, helping the market expand .

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Recycled Thermoplastics Market Segmentation Insights

Material Type Insights:

Why polyethylene Segment Dominated the Recycled Thermoplastics Market?

The polyethene (PE) segment dominated the market in 2024, because recycled PE is widely used in flexible packaging such as films, shrink wraps, plastic bags and packaging for retail and e-commerce. The broad demand from packaging and consumer goods industries for flexible, low-cost recycled polymers ensures recycled PE remains the most utilised material type in 2024.

The polyethene terephthalate(PET) segment is projected to experience the fastest growth among material types in the forecast period, as recycled PET becomes more attractive for beverage containers, food packaging and other applications requiring clarity, safety and recyclability. Improved recycling technologies are enhancing the quality of PET, making it increasingly acceptable for packaging and consumer-facing applications, driving its strong growth potential.

Source Type Insights:

Which Source Type Segment Leads the Recycled Thermoplastics Market?

The post-consumer recycled (PCR) segment led the market in 2024, since PCR waste collected from used packaging, containers and consumer goods offers a steady, high-volume feedstock for recycling. The widespread focus on circular economy and sustainability ensures that post-consumer plastics remain the primary source for recycled thermoplastics.

The ocean waste source segment is expected to grow at the fastest over the forecast period, as rising environmental awareness around marine pollution prompts interest in recovering ocean-bound plastics for recycling. This shift towards ocean waste sourcing reflects global efforts to reduce pollution and leverage previously untapped waste streams for recycled thermoplastics.

Processing Technology Insights:

How Mechanical Recycling Technology Segment Held the Largest Share of the Recycled Thermoplastics Market in 2024?

The mechanical recycling technology segment held the largest share of the market because it benefits from established infrastructure, cost-effectiveness, and proven viability for common waste streams like PE and PET. Its simplicity and lower operating costs make it the go-to method for recycling a large share of plastic waste into usable recycled thermoplastics.

The chemical recycling technology segment is projected to expand at the fastest rate during the forecast period, due to its ability to process mixed materials. Contaminated or multilayer plastics that mechanical methods struggle with opening the door or recycling a wider variety of plastic waste. As recycling innovations mature and more complex waste streams emerge, chemical recycling becomes increasingly important for producing high-quality recycled thermoplastics.

End-User Industry Insights:

How Packaging Segment Held the Dominating Share of the Recycled Thermoplastics Market in 2024?

The packaging segment dominates the market, because packaging films, bottles, containers and flexible wraps represent the greatest and most consistent demand for recycled polymers. The global push for sustainable packaging and the replacement of virgin plastics with recycled content ensures that packaging remains the largest consumer of recycled thermoplastics.

The automotive end-use industry segment is anticipated to grow fastest over the forecast period, as automakers increasingly adopt recycled thermoplastics for dashboards, interior trims, panels and components to meet sustainability goals and light-weighting demands. Growth in electric vehicles and stricter environmental regulations is accelerating interest in recycled polymers in automotive applications.

Form Insights:

Why Pellets Form segment dominated the Recycled Thermoplastics Market in 2024?

The pellets form segment leads the market because pellets are easier to handle, transport, and feed into manufacturing processes for packaging, containers, automotive parts and other applications. Their consistent quality, ease of processing and compatibility with existing production systems make pellets the preferred form for recycled thermoplastics in 2024.

The flakes form segment is expected to grow at the fastest rate over the coming period, as improved collection, sorting, washing and shredding processes, especially for PET waste, make flakes an increasingly viable and cost-effective intermediate for food-grade packaging, fibre production, and other applications. Growing environmental awareness and recycling infrastructure expansion support this upward trend for flakes.

Regional Insights

What Makes Asia Pacific the Dominant Region for Recycled Thermoplastics?

The Asia Pacific recycled thermoplastics market size was estimated at USD 25.45 billion in 2024 and is anticipated to reach USD 64.02 billion by 2034, growing at a CAGR of 9.66% from 2025 to 2034. the Asia Pacific has accounted highest revenue share of around 45.11% in 2025.

The Asia Pacific region captured the largest share in the market, because rapid industrialisation, urbanisation, and growing manufacturing demand for countries like China and India drive high consumption of plastics, which results in large volumes of plastic waste available for recycling. Governments in the region are increasingly enforcing waste management policies and investing in recycling infrastructure, encouraging the adoption of recycled thermoplastics across the packaging, automotive, and consumer goods industries.

China Recycled Thermoplastics Market Trends

Within the Asia Pacific, China stands out because of strong regulatory support, environmental awareness, and technological advancements that promote efficient recycling and widespread use of recycled thermoplastics. Domestic policies aimed at reducing plastic waste and fostering a circular economy model encourage manufacturers to source recycled polymers, boosting demand within China and reinforcing its leadership in the regional market.

U.S. Recycled Thermoplastics Market Trends

The U.S. recycled thermoplastics market is fueled by the increasing investment in recycling infrastructure and technology. The U.S. government and private organizations are investing heavily in upgrading recycling systems to handle a broader range of plastics, including advanced sorting and chemical recycling technologies. This improved infrastructure is helping to increase the availability and quality of recycled thermoplastics. Furthermore, public awareness campaigns around plastic waste reduction, driven by environmental organizations, encourage consumers to recycle more, leading to a more robust supply of post-consumer plastic materials for recycling companies.

Europe Recycled Thermoplastics Market Trends

The recycled thermoplastics market in Europe is driven by stringent environmental regulations and the EU's focus on achieving a circular economy. The European Union has implemented several policies to reduce plastic waste, including bans on single-use plastics and requirements for higher recycled content in products and packaging. These regulations are compelling manufacturers to use more recycled thermoplastics in their operations. Additionally, Europe's well-established recycling infrastructure supports collecting and processing high-quality recyclable materials, further driving the demand for recycled thermoplastics in industries such as automotive, construction, and packaging.

What Makes the Middle East & Africa The Fastest Growing Region for Recycled Thermoplastics?

The Middle East &Africa region is seeing the fastest growth in recycled thermoplastics demand as rising environmental awareness, expanding waste-management infrastructure, and a shift toward sustainable materials push more industries to adopt recycled polymers. Local manufacturers increasingly turn to recycled thermoplastics as cost-effective alternatives to virgin plastics, especially as feedstock prices fluctuate, which drives rapid market expansion in the region.

Saudi Arabia Recycled Thermoplastics Market Trends

Saudi Arabia's market is growing steadily as the country accelerates its circular economy initiatives under Vision 2030, driving increased investment in plastic recovery and reprocessing infrastructure. Demand is rising from packaging, construction, and automotive sectors, which are adopting recycled polymers to meet sustainability targets and reduce reliance on virgin materials. Government-led waste management reforms and extended producer responsibility (EPR) frameworks are further pushing manufacturers toward recycled plastic usage.

Top Companies in the Recycled Thermoplastics Market & Their Offerings:

Veolia: Provides end-to-end "PlastiLoop" solutions, producing high-quality recycled HDPE, LDPE, PET, and PP polymers from collected waste.
B&B Plastic: A custom compounder offering a variety of recycled materials including generic prime, wide spec, custom compounds, repelletized, and regrind plastics.
MBA Polymers: Uses proprietary technology to create high-purity, virgin-like recycled plastic pellets from complex waste streams like electronics and automobiles.
Republic Services: Developing Polymer Centers to produce high-quality, bottle-grade post-consumer recycled PET, HDPE, and PP resins in partnership with Ravago.
Sue: Information regarding a company named "Sue" in this specific industry was not found; however, Suez offers integrated waste recovery and sustainable polymer recycling solutions.
Plastipak Holding: A packaging solutions leader focused on producing PET bottles and containers with high percentages of food-grade recycled PET (rPET) content.
KW Plastic: The world's largest recycler of post-consumer HDPE and PP resins, processing scrap into high-quality, spec-controlled pellets for various applications.
Avangard Innovative: Specializes in technology-driven circular economy solutions for films and flexible plastics, creating high-quality post-consumer resin (PCR) pellets via mechanical and advanced recycling.
Indorama Ventures Public Company Ltd: A global chemical producer with large-scale capacity and advanced technologies for the mechanical and chemical recycling of PET.
Far Eastern New Century Corporation (FENC): A major global supplier of recycled polyester products, utilizing both mechanical and a proprietary chemical recycling process to transform PET bottles and textiles into rPET resins and fibers.

More Insights in Towards Chemical and Materials:

Europe Recycled Plastics Market Size to Surpass USD 33.84 Bn by 2035
U.S. Recycled Polyester Market Size to Surpass USD 7.16 Bn by 2034
Asia Pacific Recycled Plastics Market Size to Surpass USD 72.11 Bn by 2034
Recycled Engineering Plastics Market Size to Hit USD 7.89 Billion by 2034
Recycled Plastic Pipes Market Size to Hit USD 20.08 Billion by 2034
U.S. Recycled Polyethylene Terephthalate Market Size to Reach USD 7.53 Bn by 2034
Recycled PET Flakes Market Size to Surge USD 36.06 Billion by 2034
U.S. Recycled Plastics Market Size to Reach USD 131.33 Bn by 2034
Recycled Plastics Market Size to Surpass USD 190.25 Billion by 2035
Recycled PET (rPET) Market Size to Surge USD 29.19 Billion by 2034
Recycled Plastics In Green Building Materials Market Size and Share 2034
Recycled Polyester Market Size to Hit USD 38.53 Bn by 2034
Recycled Polyolefin Market Size to Reach USD 144.2 Billion by 2034
Polyolefin Compounds Market Size to Reach USD 42.84 Billion by 2034
U.S. Polyolefin Compounds Market Volume to Reach 4.69 Million Tons by 2034
Recycled Polyolefin Market Size to Reach USD 144.2 Billion by 2034
Polyolefin Sheets in Industrial Market Size to Hit USD 14.99 Bn by 2034
Polyolefin Market Volume to Reach 371.54 Million Tons by 2034
Recycled Thermoplastics Market Top Key Companies:

APC recycling
B. Schoenberg & Co.
Clear Path Recycling
Custom Polymers
Envision Plastics
Fresh Pak Corporation
KW Plastics.
Maine plastics incorporation
PARC corporation
Plastipak Holdings
RJM International Inc.
Suez
United plastic recycling
Veolia
B&B Plastics

Recent Developments

In June 2024, Dow and RKW Group launched two new grades of REVOLOOP recycled plastics resins suitable for shrink films and packaging, one of the which uses 100% post-consumer recycled content. This move makes recycled content packaging move viable for converters and brands, boosting circular economy adoption.
In October 2023, Coca-Cola India launched new bottles of 100% recycled plastic (rPET) in smaller sizes, specifically 250 ml and 750 ml. These bottles are produced with bottling partners Moon Beverages Ltd. and SLMG Beverages Ltd. The initiative is part of Coca-Cola's broader sustainability efforts, which include using 50% recycled content in its packaging by 2030 and ensuring all packaging is recyclable by 2025.

Recycled Thermoplastics Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2035. For this study, Towards Chemical and Materials has segmented the global Recycled Thermoplastics Market

By Material Type

Polyethylene (PE)

High-Density Polyethylene (HDPE)
Low-Density Polyethylene (LDPE)

Polypropylene (PP)
Polyethylene Terephthalate (PET)
Polystyrene (PS)
Polyvinyl Chloride (PVC)
Polylactic Acid (PLA)
Acrylonitrile Butadiene Styrene (ABS)
Polycarbonate (PC)
Nylon (PA)
Others (Polyoxymethylene (POM), etc.)

By Source Type

Post-Consumer Recycled (PCR) Plastics
Post-Industrial Recycled (PIR) Plastics
Ocean Waste
Electronic Waste (E-Waste)
Agricultural Waste
Industrial Packaging Waste

By Processing Technology

Mechanical Recycling
Chemical Recycling

Pyrolysis
Depolymerization

Energy Recovery / Waste-to-Energy
Advanced Sorting & Separation Technologies

By End-Use Industry

Packaging

Rigid Packaging

Containers
Bottles

Flexible Packaging

Films
Pouches

Automotive

Interior Components
Exterior Parts
Under-the-hood Applications

Building & Construction

Pipes & Fittings
Insulation
Roofing Sheets

Electrical & Electronics

Casings & Components
Wire & Cable Insulation

Textiles

Fibers and Fabrics
Carpet Backing

Consumer Goods

Toys
Furniture
Footwear

Agriculture

Mulch Films
Drip Pipes

Industrial

Pallets
Crates
Bins

By Form

Pellets
Flakes
Granules
Powder

By Regional

North America
Europe
Asia Pacific
Latin America
Middle East & Africa

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