Aluminum Recycling Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The aluminum recycling market is segmented by type (casting alloys, extrusion, sheet, and other types), end-user industry (automotive, aerospace and defense, building and construction, electrical and electronics, packaging, and other end-user industries), and geography (Asia-Pacific, North America, Europe, South America, and the Middle East and Africa). The report offers the market size and forecast for the aluminum recycling market in volume (million tons) for all the above segments.

Aluminum Recycling Market Size

Aluminum Recycling Market Summary
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Study Period 2018-2028
Base Year For Estimation 2022
CAGR > 5.00 %
Fastest Growing Market Asia-Pacific
Largest Market North America
Market Concentration Medium

Major Players

Aluminum Recycling Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Aluminum Recycling Market Analysis

The aluminum recycling market is expected to register a CAGR of a little over 5% during the forecast period.

Because of the global constraints affecting the automotive, building, and construction industries, the COVID-19 pandemic had a substantial impact on the aluminum recycling market. However, the sector has been recovering well since restrictions were lifted. The aluminum market recovered significantly in the 2021-22 period, owing to rising consumption from various end-user industries.

  • The growing use of recycled aluminum in the automotive industry is expected to drive demand for the market forward.
  • On the contrary, the depreciation in quality caused by frequent aluminum recycling is likely to hamper the market's growth.
  • Growth in the electric vehicle market will likely provide new growth opportunities for the market due to the increased need in the battery segments.
  • The Asia-Pacific region is expected to dominate the aluminum recycling market in the forecast period.

Aluminum Recycling Market Trends

Increasing Demand from the Automotive Industry

  • Recycled aluminum serves its purpose in various industries, such as building and construction, packaging, automotive, and many more, owing to its low energy consumption and reduced carbon emissions.
  • Recycling aluminum consumes roughly 90% less energy than producing virgin aluminum from raw ore and reduces CO2 emissions by up to 26%. Because it is widely available from crushed vehicles, old beverage containers, and other goods, scrap aluminum is usually 20-30% cheaper.
  • Due to significant cost savings over the production of new aluminum, recycled aluminum is heavily used in the growing automotive industry at a very large scale. According to the Organization Internationale des Constructeurs d'Automobiles (OICA), the total number of new automobile sales or registrations in the OICA member countries was close to 69 million units in 2022.
  • Aside from that, OICA stated in its annual statistics that 85 million automobiles were expected to be produced in 2022, a 6% increase over the previous year's total production. Cars accounted for the lion's share of total production (71%), with commercial vehicles accounting for the remaining 29%.
  • Furthermore, the Society of Motor Manufacturers and Traders predicted that over 775,000 cars were manufactured in the United Kingdom in 2022. Aside from that, in January 2023, approximately 68,600 automobiles were manufactured in the United Kingdom.
  • As per the World Economic Forum (WEF), nearly 4.3 million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold globally in the first half of 2022. Additionally, BEV sales grew by around 75% on the year and PHEVs by 37%. Moreover, global electric car sales crossed the 5.7 million unit mark in the first eight months of 2022, and the market share of plug-in electric cars also increased by nearly 15%.
  • These rising numbers of vehicle production and the increasing usage of recycled aluminum in electric vehicles due to their numerous advantages are driving the demand for recycled aluminum forward.
Aluminum Recycling Market - Automotive Production, in Million Units, Global, 2018-2022

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region is expected to be the largest growing market for recycled aluminum during the forecast period. Industries such as automotive, electronics, building and construction, aerospace and defense, etc., are growing in countries such as China, India, and Japan, among others.
  • According to the International Aluminum Institute, China was the leading market for recycled aluminum production in 2021, recycling approximately 12,771 metric kilotons of aluminum in that year. 
  • China has been the largest and most dominant nation in terms of vehicle production and sales of all types. In 2022, automotive production in the country reached 27.02 million units, which increased by approximately 3.4%, compared to 26.08 million vehicles produced in 2021, as stated by the China Association of Automobile Manufacturers.
  • Furthermore, the overall production of new energy vehicles in China in 2022 was estimated to be around 7 million units. When compared to vehicle manufacturing in 2021, this represented a whopping 97% increase (3.54 million units). In the first two months of 2023, the country produced about one million new energy vehicles, representing an 18% increase over the same time during the previous year.
  • For a few years, India has been working on the country's electric vehicle sector. According to a Centre for Energy Finance (CEEW) report, India has a USD 206 billion opportunity for electric vehicles by 2030, which will demand a USD 180 billion investment in vehicle manufacturing and charging infrastructure.
  • Furthermore, the Packaging Industry Association of India (PIAI) predicts that the Indian packaging sector will develop at a rate of 22% throughout the forecast period. Furthermore, the Indian packaging industry is predicted to reach USD 204.81 billion by 2025, growing at a CAGR of 26.7% between now and then.
  • Moreover, the Indian electronics market is expected to reach USD 400 billion by 2025. Additionally, India is expected to become the fifth-largest consumer electronics and appliances industry in the world by 2025, as stated by the India Brand Equity Foundation (IBEF).
  • Hence, with the rapidly growing end-user industries in countries of the Asia-Pacific region, the region is expected to dominate the global market during the forecast period.
Aluminum Recycling Market - Growth Rate by Region

Aluminum Recycling Industry Overview

The aluminum recycling market is partially consolidated by nature. Some major players include (not in any particular order) Novelis Inc., Real Alloy, Norsk Hydro ASA, Matalco Inc., and Constellium SE, among others.

Aluminum Recycling Market Leaders

  1. Real Alloy

  2. Matalco Inc.

  3. Constellium SE

  4. Norsk Hydro ASA

  5. Novelis Inc.

*Disclaimer: Major Players sorted in no particular order

Aluminum Recycling Market Concentration

Aluminum Recycling Market News

  • February 2023: Kuusakoski Oy announced an investment of EUR 25 million (USD 27.2 million) in a major new production line that is being built at the company's recycling plant in Heinola, Finland, which aims to increase the recycling efficiency and the processing capacity for non-ferrous metals, including aluminum. The overall investment in non-ferrous metals processing is scheduled for completion in 2025.
  • January 2023: Emirates Global Aluminium announced the launch of the Aluminium Recycling Coalition, which aims to drive a step-change in aluminum recycling in the United Arab Emirates. The coalition aims to promote aluminum recycling by UAE consumers, particularly beverage cans. It also aims to provide support to the government on aluminum recycling regulations and policies and to work together to further the development of aluminum recycling infrastructure.
  • September 2022: Norsk Hydro ASA announced the launch of a new aluminum recycling plant in Hungary with an annual capacity of 90,000 tons which is expected to start production in the first quarter of 2024. The total investment in the plant is expected to be around EUR 88 million (USD 86 million) and will create about 80 new jobs.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Use of Recycled Aluminum in the Automotive Industry

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Depreciation in Quality due to Aluminum Recycling

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Price Analysis

  5. 5. MARKET SEGMENTATION (Market Size in Volume)

    1. 5.1 Type

      1. 5.1.1 Casting Alloys

      2. 5.1.2 Extrusion

      3. 5.1.3 Sheets

      4. 5.1.4 Other Types

    2. 5.2 End-user Industry

      1. 5.2.1 Automotive

      2. 5.2.2 Aerospace and Defense

      3. 5.2.3 Building and Construction

      4. 5.2.4 Electrical and Electronics

      5. 5.2.5 Packaging

      6. 5.2.6 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share (%) Analysis**/ Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Alcoa Corporation

      2. 6.4.2 Constellium SE

      3. 6.4.3 Delta Aluminium

      4. 6.4.4 Emirates Global Aluminium PJSC

      5. 6.4.5 Kaiser Aluminum

      6. 6.4.6 Kobe Steel, Ltd.

      7. 6.4.7 Kuusakoski Oy

      8. 6.4.8 Logan Aluminum (Novelis and Tri-arrows Aluminum)

      9. 6.4.9 Matalco Inc.

      10. 6.4.10 Norsk Hydro ASA

      11. 6.4.11 Novelis

      12. 6.4.12 Raffmetal S.p.a.

      13. 6.4.13 Real Alloy

      14. 6.4.14 Shandong Nanshan Aluminium Co., Ltd.

      15. 6.4.15 Sigma Brothers Inc.

      16. 6.4.16 Stena Metall AB

      17. 6.4.17 UACJ Corporation

      18. 6.4.18 Ye Chiu Group

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Growth in the Electric Vehicles Segment

**Subject to Availability

Aluminum Recycling Industry Segmentation

Aluminum recycling is the process by which scrap aluminum can be reused in products after its initial production. Recycling scrap aluminum requires only 5% of the energy used to make new aluminum from the raw ore. The aluminum recycling market is segmented by type, end-user industry, and geography. By type, the market is segmented into casting alloys, extrusion, sheets, and other types. By end-user, the market is segmented into automotive, aerospace and defense, building and construction, electrical and electronics, packaging, and other end-user industries. The report also covers market sizes and forecasts in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million tons).

Type
Casting Alloys
Extrusion
Sheets
Other Types
End-user Industry
Automotive
Aerospace and Defense
Building and Construction
Electrical and Electronics
Packaging
Other End-user Industries
Geography
Asia Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Frequently Asked Questions

The Aluminum Recycling Market is projected to register a CAGR of greater than 5% during the forecast period (2023-2028).

Real Alloy, Matalco Inc., Constellium SE, Norsk Hydro ASA and Novelis Inc. are the major companies operating in the Aluminum Recycling Market.

Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the North America accounts for the largest market share in the Aluminum Recycling Market.

Aluminum Recycling Industry Report

Statistics for the 2023 Aluminum Recycling market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Aluminum Recycling analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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