Recycled PET (Polyethylene Terephthalate) Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Recycled PET (Polyethylene Terephthalate) market size was estimated at USD 16.64 billion in 2023 and is projected to reach USD 28.88 billion in 2030 at a CAGR of 8.2% during the forecast period 2024-2030.

The Recycled PET (Polyethylene Terephthalate) encompasses the fluidity of the vehicles, components, The global market for recycled polyethylene terephthalate (rPET) is experiencing robust growth driven by a convergence of factors centered around sustainability, regulatory support, and evolving consumer preferences. One of the primary drivers is the increasing global awareness and concern about environmental sustainability. Consumers, particularly in developed regions like Western Europe and North America, are increasingly mindful of the environmental impact of plastic waste. This heightened awareness has spurred demand for sustainable packaging solutions, including those made from recycled materials like rPET.

Government regulations and initiatives aimed at promoting recycling and the circular economy have also significantly bolstered the rPET market. Many countries and regions have implemented policies that mandate the use of recycled materials in packaging and set targets for minimum recycled content. These regulations create a favorable regulatory environment that encourages businesses to adopt rPET in their packaging and manufacturing processes. For instance, initiatives such as the European Union's Circular Economy Action Plan and various national recycling mandates in countries like Germany and France have been instrumental in driving market growth by incentivizing recycling and penalizing excessive plastic waste.

Despite the growth opportunities, the rPET market faces several challenges. One of the major obstacles is the high cost associated with plastics recycling. The process of recycling polyethylene terephthalate involves multiple stages, including post-consumer waste collection, sorting, cleaning, and processing (either chemical or mechanical). Each of these stages requires significant capital investment and technological expertise, which can hinder the economic viability of rPET production. Moreover, compliance with stringent quality standards and food-grade regulations adds further complexity and cost to the production process.

despite these challenges, the market for rPET remains promising, especially in non-food sectors where demand is escalating. Industries such as textiles, automotive, and construction are increasingly incorporating rPET into their products to meet sustainability goals and reduce their environmental footprint. This diversification of applications provides new avenues for growth in the rPET market beyond traditional packaging.

investments in waste management infrastructure and recycling technologies are expected to play a crucial role in overcoming cost barriers and scaling up rPET production. Advances in recycling technologies, including innovations in sorting and cleaning processes, are anticipated to improve efficiency and reduce costs over time. Additionally, a structured regulatory framework that supports plastic waste management, along with government incentives such as tax breaks and subsidies for recycling infrastructure, could further stimulate market growth by facilitating easier market entry for new players and promoting competitive pricing.

the global rPET market is poised for significant expansion as sustainability concerns drive demand for recycled materials across various industries. With continued regulatory support, technological advancements, and increasing consumer awareness, rPET is positioned to play a pivotal role in the transition towards a more sustainable and circular economy.

Delvens Industry Expert's Standpoint

The global polyethylene terephthalate (PET) market is poised for substantial growth, driven by increasing consumption of packaged food products and beverages worldwide, with notable traction in emerging economies across East Asia and South Asia. These regions are witnessing a consistent adoption of a diverse array of recycled PET packaging solutions, including clamshells, containers, bottles, jars, and other forms. This trend is underpinned by growing awareness and preference among consumers and industries for sustainable and recyclable packaging options.

In particular, the food, beverages, and healthcare sectors are driving significant demand for recycled PET packaging solutions. These industries prioritize packaging that aligns with sustainability goals and regulatory requirements, fostering a robust market for recycled PET in the regions. The rapid penetration of PET packaging in these sectors underscores its versatility, cost-effectiveness, and environmental benefits, contributing to the projected market growth.

This growth trajectory highlights the evolving landscape of packaging materials towards more sustainable practices, driven by consumer preferences, regulatory frameworks, and industry initiatives aimed at reducing environmental impact. As such, the demand for recycled PET packaging solutions is expected to remain robust, supported by ongoing advancements in recycling technologies and increasing emphasis on circular economy principles globally.

Market Portfolio

Key Findings

• On the basis of Source, in 2023, bottles and containers represented the primary source segment for the rPET (recycled polyethylene terephthalate) market. A significant amount of PET recycled into flakes and chips originates from post-consumer bottles and food containers, underscoring the critical role of waste collection processes at household, business, and municipal levels in the rPET supply chain. Various chemical and mechanical processes are currently employed to convert these PET bottles and containers into monomers and BHET (the precursor to PET), highlighting the recycling process's dependency on effective waste collection and sorting practices during the waste generation stage. Films and sheets, on the other hand, constitute a niche segment in rPET sourcing. These materials, which have a longer lifecycle compared to single-use patterns typical of bottles and containers, contribute relatively less to the rPET supply due to their slower turnover in waste streams.

• On the basis of Grade, Grade A rPET maintained its dominant position in 2023, driven by its high collection and recycling rates of beverage bottles, ensuring ample availability in baled form. This grade of recycled polyethylene terephthalate is prized for its suitability in food-grade applications, allowing it to re-enter the food and beverage packaging ecosystem as a substitute for virgin PET resins. The increasing adoption of recycled PET by global bottlers, spurred by sustainability initiatives, is expected to be a significant driver of demand for Grade A rPET in the coming years. This trend underscores the industry's commitment to environmental stewardship and the circular economy, enhancing the market prospects for Grade A rPET across various packaging sectors.

• On the basis of Form, in 2023, recycled polyethylene terephthalate (rPET) flakes held a significant market share and played a pivotal role in the PET circular economy. These flakes are highly valued across diverse applications, including the manufacturing of new PET containers, fibers and fabrics for textiles, production of strapping and packaging materials, and manufacturing films and sheets. Additionally, rPET flakes are utilized in insulation products, carpet backings, geotextiles, and fiberfills, serving various needs in the construction industry. The automotive sector also contributes to demand, using rPET flakes for interior components like seat upholstery, acoustic insulation parts, and floor carpets. From an environmental standpoint, the production of rPET flakes is less energy-intensive compared to virgin PET resin production. Recycling PET into flakes not only reduces reliance on virgin materials but also mitigates the volume of plastic waste destined for landfills, thereby enhancing environmental sustainability within the PET supply and usage ecosystem.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific dominated the Recycled PET market in 2023 due to its large and growing population, driving higher consumption of PET-packaged products. Increasing consumer demand for sustainable packaging solutions further boosts the region's preference for rPET in packaging applications.

Regional Analysis

Asia pacific to Dominate the Market

• Asia Pacific dominated the Recycled PET market with a revenue share exceeding 44% in 2023. The region benefits from abundant skilled labor at low cost and ample land availability, fostering a favorable production landscape. The shift towards emerging economies like China and India is poised to drive market growth, buoyed by expanding industries such as construction, automotive, and electronics, which offer substantial opportunities for rPET manufacturers.

• China's rPET market faces challenges due to the import ban on plastic waste since 2018, redirecting waste flows to Southeast Asia. This shift has prompted Chinese recyclers to relocate operations, impacting market growth negatively. In Europe, high collection rates of beverage bottles and stringent EU regulations on plastic waste disposal drive significant demand for rPET, with initiatives promoting substitution of virgin PET materials. North America's rPET market is expected to grow rapidly, supported by landfill bans and increasing public awareness, particularly in the United States, where it holds the largest market share.

Competitive Landscape

• AL Mehtab Industries
• ALPLA
• Bantam Materials
• Carbonlite Industries LLC
• Clean Tech U.K. Ltd
• Clear Path Recycling LLC
• DuFor
• Evergreen Plastics, Inc.
• Indorama Ventures
• Libolon
• Marglen Industries
• Peninsula Plastics Recycling
• Phoenix Technologies
• PLACON Corporation
• PolyQuest
• Portage Plastics
• UltrePET
• UMA SCHREIBGERÄTE ULLMANN GMBH
• Unifi
• Verdeco Recycling, Inc.

Recent Developments

• In October 2023, Axens, IFPEN, and JEPLAN announced the commissioning and start of their innovative recycling unit, Rewind PET. This unit represents a modified and expanded facility located at JEPLAN's Kitakyushu Hibikinada Pilot demonstration plant in Japan. The facility, capable of processing 1,000 tons per year, was supported by the French Environment and Energy Management Agency (ADEME).

• In March 2023, SK Chemicals signed a USD 98.4 million agreement to acquire a chemical recycling and PET production facility from Shuye Environmental Technology. This acquisition enables SK Chemicals to operate a facility capable of producing chemically recycled PET at a capacity of 50,000 tons per year. The facility utilizes depolymerization technology to chemically break down post-consumer plastic waste into monomers, thereby producing recycled bis-hydroxyethyl terephthalate (rBHET), a precursor to rPET.

Reasons to Acquire

• Increase your understanding of the market for identifying the most suitable strategies and decisions based on sales or revenue fluctuations in terms of volume and value, distribution chain analysis, market trends, and factors.
• Gain authentic and granular data access for the Recycled PET (Polyethylene Terephthalate) Market to understand the trends and the factors involved in changing market situations.
• Qualitative and quantitative data utilization to discover arrays of future growth from the market trends of leaders to market visionaries and then recognize the significant areas to compete in the future.
• In-depth analysis of the changing trends of the market by visualizing the historic and forecast year growth patterns.

Report Scope