Market Trends of Circular Polymers Industry
The Packaging Segment is Anticipated to Hold a Significant Share
- In the packaging segment, circular polymers involve utilizing and recycling plastic in a closed-loop system rather than making plastic used once and then wasted.
- The eagerness of consumers to buy products made from recyclable plastic boosts the circular polymers market. Significant demand is generated from the plastic and polymer industries as well as the packaging industry in industrialized countries.
- The packaging segment is expected to grow significantly. Recycled polymers provide pure-grade product packaging with no contaminants, making them completely safe for use in food packaging. Plastic is a common packaging material in the food sector.
- According to the Organization for Economic Co-operation and Development (OECD), in 2023, over 153 million metric tons of plastics were used in the manufacturing of packaging worldwide. Plastic packaging consumption is expected to almost triple by 2060, reaching 380 million tons. Packaging is expected to account for 31% of worldwide plastics usage by 2060.
- According to Plastics News (Sustainable Plastics), in August 2022, the price of post-consumer recycled polyethylene terephthalate (rPET) colored flakes in Western Europe reached EUR 1,340 (USD 1,462.21) per metric ton. rPET prices increased by about EUR 100 (USD 109.12) in July 2022 compared to the previous month due to higher mixed and colored bottle scrap costs and lower availability. In August 2022, rPET grades were the only post-consumer recycled polymers to see price rises.
- The growing amount of plastic waste created by the food and beverage industries has increased the requirement for recycling old food packaging, which is expected to drive segmental demand. Circular polymer usage in the packaging sector is expected to more than double during the forecast period.
- As per the Federal Statistical Office (a federal authority of Germany), the revenue of the packaging segment in Germany reached EUR 35.04 billion (USD 37.69 billion) in 2022, an increase compared to EUR 29.59 billion (USD 31.83 billion) in 2021.
- As per the Environment Agency, domestic plastic packaging recycling and exports in the United Kingdom reached a total of 1.15 million metric tons in 2022, an increase compared to 1.11 million metric tons in 2021.
- All the aforementioned factors are expected to drive the packaging segment, enhancing the demand for circular polymers during the forecast period.
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Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is expected to grow at a modest rate over the forecast period. Increasing disposable income in emerging nations is driving the demand for convenience items, boosting the growth of the global circular polymers market.
- Additionally, consumer products have increased in the recent decade, making them the most appealing end-use market for circular polymers. Plastics are manufactured by companies such as Jindal Films, mainly for packaging.
- The production of thin-film recyclable PP packaging is increasing. Even giant corporations are looking at novel recyclable materials that may be utilized for packaging on a broader scale while still being a cost-effective and long-lasting option.
- Several companies in the region are coming up with new facilities to recycle polymers. For instance, in a proposed plastics recycling facility in Jiangsu Province, China Tianying (CTNY) will use Honeywell's UpCycle Process Technology. The plant will transform mixed waste plastics into recycled polymer feedstock (RPF), allowing the creation of a plastics circular economy. It will be China's first commercialized waste plastics recycling facility to leverage Honeywell's UpCycle Process Technology.
- According to the National Bureau of Statistics of China, in December 2023, China's total plastic product output was 6.96 million metric tons. China is the world's largest manufacturer of plastics, accounting for approximately one-third of worldwide output.
- Circular polymers in the construction industry are used to create sustainable building materials by recycling and repurposing plastic, contributing to environmentally friendly practices. They are also used to develop recycled plastic products such as lumber, pipes, and other construction components.
- According to the National Bureau of Statistics of China, the construction output value in China reached CNY 31.2 trillion in 2022 and registered growth compared to CNY 29.31 trillion in the previous year.
- In the electrical and electronics industry, circular polymers play a role in sustainable manufacturing practices by being incorporated into the production of electronic components and devices, contributing to the industry's efforts to reduce environmental impact and promote the use of recycled materials in the manufacturing of electronic products.
- India is expected to have a digital economy of USD 1 trillion by 2025. India's electronics system design and manufacturing (ESDM) sector is expected to generate over USD 100 billion in economic value by 2025. Several policies, such as Make in India, National Policy of Electronics, Net Zero Imports in Electronics, and Zero Defect Zero Effect, offer a commitment to growth in domestic manufacturing, lowering import dependence, and energizing exports and manufacturing.
- All the aforementioned factors are projected to increase the demand for circular polymers in the Asia-Pacific region in the future.
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