Recycled plastic granules are small irregularly shaped plastic particles made from post-consumer and post-industrial plastic waste through mechanical and chemical recycling processes. These granules find wide application in construction of roads, buildings, and other infrastructure due to their low cost and environmental benefits. The growing awareness about benefits of recycled plastics such as reduction of carbon footprint and sustainable waste management is driving the demand for recycled plastic granules across the construction industry.
The global recycled plastic granules market is estimated to be valued at US$ 3.16 billion in 2024 and is expected to exhibit a CAGR of 3.1% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The growing construction activities along with government initiatives and regulations pushing for higher plastic waste recycling rates especially in emerging economies offer significant market opportunity for recycled plastic granules. Rapid urbanization and investment in infrastructure projects have stimulated the demand for affordable construction materials like recycled plastic granules across Asia Pacific and Latin American regions. These granules help reduce the need for virgin plastics as well as prevent plastic waste from ending up in landfills or oceans. With rising awareness and incentives around sustainability, the lucrative construction industry market will drive higher consumption of recycled plastic granules in the coming years.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate as setting up a plastic recycling plant requires high capital investment. However, growing environmental regulations favor new sustainable businesses.
Bargaining power of buyers: The bargaining power of buyers is high as recycled plastic granules have many substitutes like virgin plastics. Buyers can negotiate on price and quality standards.
Bargaining power of suppliers: The bargaining power of suppliers is low since raw materials for recycled plastic come from numerous waste collectors and sorters. Suppliers have low differentiation.
Threat of new substitutes: The threat of new substitutes is high as virgin plastics and alternative materials like paper offer performance benefits. Continuous research and development fuels new substitutes.
Competitive rivalry: The competitive rivalry is fierce as players compete on pricing, product quality, and catering to sustainability goals.
SWOT Analysis
Strengths: Recycled plastics reduce carbon footprint and landfill waste. They offer a sustainable alternative to producers targeting green consumers.
Weaknesses: Quality consistency can be an issue due to mixed waste feedstock. Higher costs than virgin plastics restrict commercial applications.
Opportunities: Growing need to tackle plastic pollution boosts demand. Favorable recycling regulations in Europe and developing nations present new markets.
Threats: Stiff competition from virgin plastic producers. Fluctuating recycled plastic prices impact margins.
Key Takeaways
The global Recycled Plastic Granules Market Growth is expected to witness high growth supported by stringent environmental policies and initiatives to curb plastic pollution. The market size for 2024 is projected to reach US$ 3.16 Billion, indicating a CAGR of around 3.1% during the forecast period of 2023 to 2030.
Regionally, Europe dominates recycled plastic granules demand led by recycling targets of the European Union. Key drivers are well-established collection infrastructure and regulations banning plastic waste exports. The Asia Pacific market is poised to grow at the fastest rate led by China, India, and Southeast Asian nations taking active plastic management measures.
Key players operating in the Recycled Plastic Granules market are Roche, Teva Pharmaceutical Industries Ltd., Sun Pharmaceutical Industries Ltd., Hikma Pharmaceuticals PLC, Dr. Reddy's Laboratories Ltd., Aurobindo Pharma Ltd., Mylan N.V., Apotex Inc., Sandoz AG, Accord Healthcare Ltd. These companies focus on expanding recycled plastic sourcing and applications in industries like packaging, construction materials, automotive, and consumer goods.
For more insights, read- https://www.ukwebwire.com/recycled-plastic-granules-market-trends-size-and-share-analysis/