Recycled Polyethylene Terephthalate Global Market Report 2022: Growing Consumer Awareness of Sustainability Boosts Sector

DUBLIN, April 6, 2023 /PRNewswire/ -- The "Recycled Polyethylene Terephthalate Market By Type, By Source, By Processing Methods, By Application, and By Region Forecast to 2030" report has been added to  ResearchAndMarkets.com's offering.

The market size for Recycled Polyethylene Terephthalate (rPET) was USD 9.32 billion in 2021 and is projected to experience a revenue compound annual growth rate (CAGR) of 7.2% during the forecast period.

Factors such as an increase in the number of recycling programs, a shift in consumer behavior towards sustainability, a rise in demand for recycled polyethylene terephthalate from the food & beverage industry, and strict regulations on landfills are the main drivers of market growth.

Companies are becoming more conscious of the significance of recycling PET into food-grade products like new beverage containers. By 2030, Coca-Cola plans to incorporate 50% recycled PET in its containers. While the food-grade processing has been established, there is an effort to improve processing technology efficiency.

In February 2020, SIPA, a specialist in PET bottle processing technologies collaborated with EREMA, an Austrian recycling technology specialist to develop the world's first technology to produce preforms from 100% r-PET washed flakes in a single energy cycle called "Xtreme Renew." The energy consumption of XTREME Renew is nearly 30% lower than that of a traditional PET preform production system, and it emits nearly 80% less CO2. In comparison to traditional systems producing rPET containers, emissions reduction is approximately 18%. Additionally, XTREME Renew requires less warehouse space, up to 20%.

Growing Consumer Awareness of Sustainability

The increasing concern among consumers about plastic waste and sustainability is driving the demand for recycled packaging materials, and it is expected to have a significant impact on the growth of the global rPET market during the forecast period. This shift in consumer attitudes is leading to a rise in recycling rates, and consumers are now more proactive in their efforts to reduce plastic waste. Recycling products from PET reduces energy consumption and CO2 emissions, and is an environment-friendly process. The use of recycled PET is also considered to be 75% more environment-friendly than PET, as per the Swiss Climate report. Major corporations, such as Evian and PepsiCo, are taking initiatives to incorporate sustainable packaging materials, which is expected to boost revenue growth of the global rPET market.

Inadequate Framework for Plastic Waste Management

The lack of proper implementation of waste policies and alternatives for waste management is a major challenge for governments to create a sustainable solid waste management framework. Municipal Solid Waste (MSW) has increased significantly due to rapid industrialization and economic expansion, and the absence of a proper framework for plastic waste management is a restraint for the market. Due to the lack of recycling facilities, recyclable materials worth about USD 11.4 billion are discarded every year in the U.S.

As per the UN Environment Programme, only 9% of plastic waste is recycled out of the 330 million tonnes generated annually. Additionally, mechanical recycling weakens used plastic over time, and may cause discoloration, which is a challenge for maintaining color consistency between batches. This results in the need to add virgin PET to compensate for the lower mechanical strength of rPET. These factors could potentially restrain revenue growth of the market.

Key Takeaways
Type Outlook

The global recycled polyethylene terephthalate market is segmented into flakes, chips, and others. The flakes segment is expected to hold the largest revenue share during the forecast period due to the increasing use of recycled PET flakes in various industries such as food-grade packaging, textile, and dental. Recycled polyester flakes are a cost-effective and eco-friendly alternative to virgin chips.

Source Outlook

The global recycled polyethylene terephthalate market is segmented into bottles & containers, films & sheets, and others. The bottles & containers segment is expected to hold the largest revenue share during the forecast period due to the rising demand for recycled PET by food and beverage companies. Many companies are switching to recycled plastic from post-consumer RPET to meet their sustainability goals.

Processing Methods Outlook

The global recycled polyethylene terephthalate market is segmented into curbside recycling, recycling drives, and recycling banks. The curbside segment is expected to hold the largest revenue share during the forecast period due to the growing adoption of this method for recycling process. This method collects post-consumer PET through curbside recycling programs that use single-stream or dual-stream methods.

Application Outlook

The market is segmented into bottles, sheet, fiber, strapping, and others. The fiber segment is expected to register a fast revenue growth rate during the forecast period due to the increasing adoption of rPET fiber in emerging economies. Recycled PET fiber has a wide range of applications in products such as nets, hoses, insulations, curtains, sheets, and carpets. The bottles segment is expected to register steady revenue growth due to the continuous expansion of the food and beverages industry and rising demand for rPET in the industry.

Regional Outlook

Regional analysis reveals that the Asia Pacific market has the largest revenue share due to sustainable packaging targets set by major F&B companies, resulting in increased investments in recycling infrastructure in countries such as China, Japan, South Korea, and India. China has experienced significant growth in PET sheet production lines in the past two years. As PET fiber chip and PET bottle chip prices rise, feedstock costs for sheet plants also increase, prompting sheet plants to seek cost-cutting alternatives such as recycled PET flakes. In March 2020, South Korea's Ministry of Food and Drug Safety approved the use of rPET in food contact materials. The Indian government announced on August 13, 2021, that it would phase out the manufacture, sale, and use of single-use plastic by 2022, making India the first Asian country to implement a national plastics pact, considering the negative effects of plastic waste on terrestrial and aquatic ecosystems.

Key Topics Covered:

Chapter 1. Market Synopsis

Chapter 2. Executive Summary

Chapter 3. Indicative Metrics

Chapter 4. Recycled Polyethylene Terephthalate Market Segmentation & Impact Analysis
4.1. Recycled Polyethylene Terephthalate Market Segmentation Analysis
4.2. Industrial Outlook
4.2.1. Market indicators analysis
4.2.2. Market drivers' analysis
4.2.2.1. Increasing number of recycling programs
4.2.2.2. Consumer behavior shifting towards sustainability
4.2.2.3. Rising demand for recycled polyethylene terephthalate from the food & beverage industry
4.2.2.4. Stringent regulations on landfills
4.2.3. Market restraints analysis
4.2.3.1. Lack of proper framework for plastic waste management
4.2.3.2. Emission of carcinogenic compound

Chapter 5. Recycled Polyethylene Terephthalate Market By Type Insights & Trends

Chapter 6. Recycled Polyethylene Terephthalate Market By Source Insights & Trends

Chapter 7. Recycled Polyethylene Terephthalate Market By Processing Methods Insights & Trends

Chapter 8. Recycled Polyethylene Terephthalate Market By Application Insights & Trends

Chapter 9. Recycled Polyethylene Terephthalate Market Regional Outlook

Chapter 10. Competitive Landscape

Chapter 11. Company Profiles

Companies Mentioned

• Verdeco Recycling
• Evergreen - A Greenbridge Company
• PolyQuest Inc.
• Phoenix Technologies International LLC
• Placon
• Indorama Ventures Public Company Limited
• Loop Industries Inc.
• Biffa
• LIBOLON
• Plastipak Holdings Inc.

For more information about this report visit https://www.researchandmarkets.com/r/8xfk4o

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