Recycled PET (rPET) Market Size, Share, and Growth Forecast for 2024 - 2031

Market Size and Share Analysis

The global recycled PET (rPET) market is expected to grow notably, with a projected CAGR of 8.9% from 2024 to 2031. The market value is forecast to rise from US$ 12.1 Bn in 2024 to US$ 21.9 Bn by 2031. This highlights the increasing demand for sustainable solutions in the plastic industry.

The growing demand for rPET is driven by both environmental concerns and regulatory pressures, as governments worldwide implement bans and restrictions on single-use plastics. For example,

• The European Union's directive requires all plastic packaging to be recyclable by 2030, with clear plastic bottles mandated to contain 25% recycled plastic by 2025. Leading companies, such as Coca-Cola, have also committed to using more recycled content in their packaging, further boosting the rPET market.

Each year, over 300 million KT of plastic waste is generated globally, making up around 12% of all solid waste. Only a small fraction of this plastic waste is recycled. This presents a significant opportunity for rPET to address the global plastic pollution crisis.

Recycling plastic saves valuable resources, such as 16.3 barrels of oil for every ton recycled. It also reduces energy consumption, with 5,774 kWh saved per ton, equivalent to charging an EV over 100 times. These benefits emphasize rPET's role in fostering a sustainable economy.

Key Highlights of the Market

• Based on application, packaging holds the highest market share in the rPET market, projected to expand at 8.6% CAGR. It is estimated to reach US$ 8.5 Bn by 2031 due to rising demand for eco-friendly packaging solutions.
• Textiles are likely witness significant growth, with a CAGR of 9.3%, reaching US$ 7.7 Bn by 2031. This growth is due to the fashion industry increasingly embraces recycled materials for sustainability.
• In terms of product type, flakes dominate the rPET market and projected to reach US$ 11.6 Bn by 2031, with a CAGR of 9.8%. This product type is mainly driven by their wide use in various applications, particularly in packaging.
• Asia Pacific is likely to account for 68.9% of the market share in 2024.
• The U.S. market is projected to showcase a CAGR of 8.7%, reaching US$ 3.9 Bn by 2031. The country growth is chiefly influenced by increasing consumer demand for sustainable packaging and significant investments in recycling technologies.
• Government regulations and corporate commitments to sustainability, such as extended producer responsibility programs and packaging made with recycled content, are significantly driving the recycled PET (rPET) market.

Market Attributes	Key Insights
Recycled PET (rPET) Market Size (2024E)	US$ 12.1 Bn
Projected Market Value (2031F)	US$ 21.9 Bn
Global Market Growth Rate (CAGR 2024 to 2031)	8.9%
Historical Market Growth Rate (CAGR 2019 to 2023)	11.6%

Recycling Capacity Enhancements Accelerate East Asia Recycled PET (rPET) Market

East Asia is poised to drive significant growth in the global market, with a CAGR of 9.4% by 2031. This growth is fueled by various factors, including strong government support for sustainability and circular economy initiatives.

The region’s push for enhanced recycling infrastructure and increasing environmental awareness among consumers and industries further boosts the demand for rPET. Notably, the recent joint venture between LyondellBasell and Genox Recycling in Zhaoqing, Guangdong Province, is a key development. This facility will use mechanical recycling technology to process plastic waste, aligning with sustainability goals and increasing local recycling capacity.

Growing commitment of East Asia to reducing plastic waste and the integration of recycled materials into packaging and textiles are contributing to the expansion of the market in the region. These efforts reflect the region's focus on achieving a sustainable future through innovation and infrastructure development.

North America Recycled PET (rPET) Market to Grow Substantially with Recycling Advancements and Corporate Commitments

North America is anticipated to witness a CAGR of 8.6% by 2031, driven by increasing consumer demand for sustainable products and advancements in recycling systems. Plastic waste remains a significant challenge, with over 100 billion plastic shopping bags used annually in the U.S., requiring substantial resources for production.

Retailers like Target are addressing this issue through initiatives such as incentives for using reusable bags, reflecting a growing focus on sustainability. Government-backed projects further support this growth, such as Eastman’s plan to build a molecular recycling facility in Longview, Texas, capable of processing 110,000 metric tons of plastic waste annually.

Advocacy campaigns like "Recycling Is Real" by the Plastics Industry Association are promoting recycling's importance, encouraging widespread adoption of recycled materials.

Despite challenges like low recycling rates and complex waste streams, efforts such as Bank of America's shift to recycled plastic credit cards and policies promoting Extended Producer Responsibility (EPR) are accelerating rPET adoption in North America. These initiatives highlight the region's commitment to addressing plastic waste and fostering sustainable practices.

Flakes Remain Dominant with Growing Demand for High-Quality Recycled Materials in Different Industries

Flakes are expected to hold the largest market share with a growth rate of 9.8%, reaching a value of US$ 11.6 Bn by 2031. The increasing demand for high-quality recycled materials in various industries, such as packaging and textiles, is driving the growth of rPET flakes. Flakes are projected to account for 50.1% market share in 2024.

Flakes are widely used due to their versatility, ability to maintain high-quality standards, and compatibility with various manufacturing processes. Advancements in recycling technologies, such as molecular and mechanical recycling, are improving the quality of rPET flakes, further boosting their demand.

The rising emphasis on sustainability, regulatory pressures to reduce plastic waste, and a shift toward circular economy practices are also key factors contributing to the growth of the market.

Packaging Industry Proves Its Supremacy with Highest Market Share

The packaging segment of the recycled PET (rPET) market to hold a share of 27.5% in 2024. Packaging industry growth is driven by the increasing demand for sustainable packaging solutions. As businesses and consumers alike become more eco-conscious, there is a significant push toward using recycled materials in packaging to reduce plastic waste. Packaging segment

Advances in recycling technologies, such as molecular recycling and innovative processes like dissolution technology, are improving the quality of recycled plastics, enabling the creation of high-quality packaging materials. Partnerships, such as those between Dow and Procter & Gamble, and advancements in molecular recycling, as demonstrated by Eastman’s new facility, are further accelerating the adoption of rPET in packaging.

Market Introduction and Trend Analysis

Recycled PET (rPET) is an increasingly important material in the global effort to reduce plastic waste and promote sustainability. It is derived from post-consumer plastic bottles and other PET products, which are collected, cleaned, and processed to create new packaging and products.

With the global plastic waste crisis escalating, rPET offers a viable solution to reduce landfill waste and conserve natural resources. As consumer awareness increases and regulations tighten, the recycled PET (rPET) market is set to expand, driving innovation in recycling technologies and creating significant opportunities for growth within industry.

Historical Growth and Course Ahead

The global recycled PET (rPET) market has experienced significant growth with a CAGR of 11.6% during the period from 2019 to 2023. This expansion has been driven by the rising demand for sustainable packaging solutions, regulatory pressures on reducing plastic waste, and growing consumer awareness about environmental issues.

Companies have increasingly adopted recycled PET (rPET) to meet sustainability goals over the past few years, while governments worldwide have implemented strict regulations to limit plastic waste. This has accelerated the shift toward using recycled content in packaging and products, further fostering market growth.

The rPET market is projected to showcase a CAGR of 8.9% from 2024 to 2031. As consumer preferences continue to shift toward sustainability, there is increasing pressure on companies to incorporate recycled content into their products.

Technological advancements, such as Eastman’s new molecular recycling facility, are set to play a crucial role in scaling up the recycling capacity and enhancing the overall efficiency of plastic waste management. These developments, combined with regulatory support and expanding collaborations, will contribute to a robust growth trajectory for the rPET market over the coming years.

Market Growth Drivers

Growing Consumer Awareness and Legislative Support Remains a Key Driver

Consumer concern over plastic pollution and stringent European regulations have accelerated recycled material adoption. In 2022, countries with advanced recycling frameworks achieved up to 100% recycled content in bottled water and beverage packaging portfolios. This was particularly evident in Europe, where recycled polyethylene terephthalate (rPET) accounted for over 30% of PET consumption in several regional markets.

Lacking mandates for recycled food-grade materials face slow adoption, leading to a surge in export demand for bottle-grade rPET. For instance,

• Markets in Europe reported a 15% increase in imports of recycled materials to meet legislative and consumer demands for sustainable products.

Producers are investing in sustainability, with lightweighting initiatives reducing PET and rPET usage by approximately 5% per unit across major packaging applications in 2022. Fast fashion brands are lagging but aim to adopt 100% recycled polyester fibers by 2030, spurred by consumer and regulatory pressures.

Retailers in the clothing and household goods sectors have pledged to recycle 10 times more used products compared to 2021 levels and achieve 100% recyclable packaging by 2030 or 2040. Despite these efforts, challenges persist due to limited scalable recycling technologies, with global recycling rates for PET still hovering around 20%, emphasizing the need for further innovation.

Global Initiatives and Corporate Commitments Fuel the Recycled PET Revolution

The increasing global emphasis on sustainability is driving the widespread adoption of recycled materials, supported by regulatory mandates and ambitious corporate commitments.

Government initiatives like Taiwan's Environmental Protection Administration targets of achieving 25% recycled plastic usage in packaging by 2025, rising to 30% by 2030. These numbers exemplify efforts to align with international standards such as the European Plastics Pact, which mandates 30% recycled content by 2025. These measures aim to reduce carbon emissions significantly by 150,000 metric tons in Taiwan alone and enhance circular material use while decreasing reliance on virgin plastics.

Advocacy campaigns like the Plastics Industry Association’s “Recycling Is Real,” launched in 2023. The main aim of this campaign is to counter skepticism about recycling effectiveness, particularly in countries like the U.S., where recycling rates remain low at under 6%. These initiatives highlight the need for systemic advancements in recycling technologies and infrastructure to achieve large-scale adoption.

Corporations such as Kraft Heinz are also leading by example, pledging to reduce virgin plastic packaging by 20% in 2030, equating to 100 million pounds of plastic. This transition not only aligns with their broader environmental goals, such as net-zero emissions by 2050, but also demonstrates the growing importance of recycled materials in reducing environmental impact.

Market Restraining Factors

Global Economic Viability and Regulatory Challenges

The recycled PET (rPET) market faces significant challenges due to high energy costs and feedstock availability, particularly in chemical recycling. With the escalating cost of energy, driven by geopolitical tensions, and limited access to affordable feedstock, chemical recycling processes have become less economically viable. These issues reduce the scalability of chemical recycling, slowing efforts to meet global recycling targets.

The inability to secure a steady supply of cost-effective feedstock has hindered the rapid expansion needed to address the growing demand for recycled materials across industries. This results in a mismatch between supply and demand, constraining the industry's ability to scale effectively.

In Europe, the shift to non-fossil-based plastic production remains another restraint. Currently, non-fossil-based plastics make up only 12.4% of Europe's plastic production, far from the EU's 2030 target of 20%. This gap, compounded by competition from non-European markets, creates further pressure on the region's ability to meet its sustainability goals. Also, the slow transition toward non-fossil-based plastics, coupled with competitive challenges, complicates the region's efforts to reduce carbon emissions and reliance on fossil fuels.

Key Market Opportunities

Financial Innovations and Global Collaboration to Provide Key Opportunities

Innovative financial models are further supporting the transition to recycled materials, as seen in the World Bank’s $100 million bond issued in 2024 to fund plastic waste reduction projects in Ghana and Indonesia. By linking investor returns to achieved recycling outcomes, this initiative showcases the potential for financial instruments to scale sustainability efforts in regions with underdeveloped recycling systems.

International collaborations like the European Plastics Pact set global benchmarks that encourage nations and industries to adopt higher recycled content targets, fostering global competitiveness and environmental stewardship.

Challenges persist, including inadequate recycling infrastructure, the complexity of processing diverse plastic types, and the need for scalable technologies. These barriers are particularly evident in markets with lower recycling rates and limited legislative support, underscoring the urgency for investments in standardized systems and innovation.

Growing consumer demand for eco-friendly packaging and rising awareness of environmental issues are propelling the adoption of recycled materials despite the hurdles. These are positioning this market as a critical player in achieving global sustainability targets and reducing the carbon footprint of plastic production and consumption.

Cutting-Edge Recycling Technologies Address Challenges in Plastic Waste Management

Recycled PET (rPET) market is advancing rapidly, driven by innovations and collaborations aimed at enhancing recycling efficiency and expanding the use of recycled materials across sectors. For example,

• In April 2024, LyondellBasell partnered with Genox Recycling to establish a state-of-the-art recycling facility in China, employing mechanical recycling technology to process plastic waste. This facility supports China’s sustainability goals and contributes to LyondellBasell's CirculenRecover product range, strengthening regional circular polymer production.
• Honeywell's UpCycle process technology is revolutionizing recycling with advanced molecular conversion methods, enabling the processing of hard-to-recycle plastics like flexible packaging and polystyrene. Honeywell projects an annual recycling potential of up to 15 million tons of plastic waste by 2030, alongside a significant reduction in CO2-equivalent emissions of up to 77% compared to conventional disposal methods.
• Audi's pilot project in collaboration with the Fraunhofer Institute integrates recycled plastic into vehicle production using both mechanical and chemical recycling techniques in the automotive sector. This initiative aligns with Audi’s strategy to reduce reliance on virgin materials and lower its environmental impact.

Competitive Landscape for the Market

The recycled PET (rPET) market is highly competitive, with leading players like Indorama Ventures, Alpek, Plastipak, and Biffa securing substantial market shares. Indorama Ventures, with a 13% to 15% share, maintains its dominance through advanced recycling technologies and a strong global presence.  Alpek follows closely with 9% to 11%, focusing on expanding its capacity and regional presence in key markets like North America, Europe, and Latin America.

Plastipak holds a 4.5% to 6% share by fostering innovation in packaging and strategic partnerships with major consumer goods companies, ensuring continuous demand for its rPET products. Meanwhile, Biffa, with a 3% to 4% share, stands out in the UK market by emphasizing efficient waste collection and aligning its processes with regional recycling regulations. Together, these companies are driving the growth and development of the rPET market through technological advancements and sustainability initiatives.

Recent Industry Developments

• On March 28, 2024, Borealis received two Letters of No Objection (LNOs) from the U.S. Food & Drug Administration (FDA). These approvals permit Borealis' Borcycle™ M post-consumer recycled plastics to be used in food-grade packaging. This advancement supports the company’s EverMinds™ initiative, promoting plastics circularity and enabling the use of high-quality recycled materials in sensitive applications like food and cosmetics packaging.
• On March 13, 2024, INEOS played a key role in launching new snack packaging for PepsiCo's Sunbites brand in the UK and Ireland, which incorporates 50% recycled plastic. The packaging, produced using advanced recycling processes, complies with stringent EU food contact regulations. This initiative underscores the increasing use of recycled plastic in consumer products and highlights the collaborative efforts across the flexible food packaging supply chain.
• On June 17, 2024, Eastman announced plans to build its second molecular recycling facility in Longview, Texas, marking a significant step in its sustainability efforts. The facility, which will process 110,000 metric tons of hard-to-recycle plastic waste annually, is powered by innovative thermal battery technology. Supported by up to US$ 375 million from the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED), this project is a key part of Eastman’s goal to recycle 250 million pounds of plastic annually by 2025, aiming to double that by 2030. The initiative addresses plastic waste and climate change, underscoring Eastman’s commitment to sustainable practices.

Recycled PET (rPET) market Report Scope

Attributes	Details
Forecast Period	2024 to 2031
Historical Data Available for	2019 to 2023
Market Analysis	US$ Bn for Value
Key Regions Covered	North America Europe East Asia South Asia & Oceania Latin America The Middle East and Africa
Key Market Segments Covered	Product Type Application Region
Key Companies Profiled in the Report	Indorama Ventures Phoenix Technologies International, LLC Biffa Alpek Plastipak Packaging Extrupet Group (Pty) Ltd Alpla JP Recycling Ltd Evergreen Plastics, Inc. PolyQuest Iterum (PET Baltija) Ganesha Ecosphere Ltd.
Report Coverage	Market Forecast and Trends Company Share Analysis Competitive Intelligence DROT Analysis Market Dynamics and Challenges Strategic Growth Initiatives
Customization & Pricing	Available upon request

Market Segmentation

By Product Type

• Flakes
• Fibers
• Resins

By Application

• Packaging
  • Food & Beverage
  • Pharma
  • Personal Care
  • Misc. (Agrochemicals, etc.)
• Textiles
• Strapping
• Footwear
• Automotive
• Flooring Materials
• Misc. (Engineered Resins, etc.)

By Region

• North America
• Europe
• East Asia
• South Asia & Pacific
• Latin America
• The Middle East and Africa

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