Assessing the market for recycled plastics: a predictive modeling approach

Abstract

In this study, recycled plastics, specifically in the United States (US), has been studied to understand its growth as a market. Factors contributing to this growth include increased plastic consumption for lightweight product manufacturing, government initiatives to reduce plastic waste, and a growing awareness of environmental concerns. To gather data, an analysis of official websites from American companies dealing in various types of recycled plastics was conducted. The analysis was expanded by utilizing published data. The findings, derived from market share statistics, a value chain assessment, and an evaluation of suppliers, indicate an increasing reliance of industry companies on multiple facets of the recycling process. It seems as though vertical integration is emerging as a prevailing trend. Based on resin type, end-use application, source, and region, the recycled plastics market is segmented. The market is led by the packaging sector, securing a dominant 36% share. Up next are the construction and building sector at 20%, the electrical and electronics sector at 15%, the automotive sector at 12%, the textile sector at 10%, and the other sectors wrapping up at 7%. Industries such as construction and automotive experience a rise in plastic consumption for lightweight components, among the many factors that stimulate market growth. Moreover, there is an increasing trend towards environmental sustainability and the implementation of government incentives. Nevertheless, the market must overcome certain obstacles like inconsistent feedstock, price competition from virgin plastic, and the inadequacy of plastic product design. Technological advancements in the recycling sector highlight the significance of superior sorting and decontamination processes, including color sorting, AI-driven robotic sorting, and metal recovery using induction sorting.