USA Recycled Plastics Market Outlook to 2028

USA Recycled Plastics Market Overview

• USA Recycled Plastics market was valued at USD 3 billion in 2023, driven primarily by growing environmental concerns and government regulations encouraging the use of recycled materials. The market is expected to grow steadily due to the increasing adoption of recycled plastics across various industries, including packaging, automotive, and consumer goods.
• Key players in the USA Recycled plastics market include Waste Management Inc., Republic Services, Inc., Veolia North America, TerraCycle, and KW Plastics. These companies have established themselves as leaders in recycling and waste management, investing heavily in advanced recycling technologies and expanding their processing capabilities.
• In 2023, Coca-Cola UNITED has launched 20-ounce bottles made entirely from recycled plastic (rPET) for its popular beverage lines, including Coca-Cola, Diet Coke, and Coca-Cola Zero Sugar. This initiative is part of the company's broader goal to incorporate 50% recycled content in its packaging by 2030 and to reduce the use of virgin plastics by 3 million metric tons by 2025.
• The market is dominated by cities like Los Angeles, New York, and Chicago, primarily due to their large population, high consumption rates, and robust recycling infrastructure. These cities have implemented comprehensive recycling programs and policies that encourage the use of recycled materials.

USA Recycled Plastics Market Segmentation

By Resin Type: The market is segmented by resin type into Polyethylene Terephthalate (PET), High-Density Polyethylene (HDPE), Polypropylene (PP), and others. In 2023, Polyethylene Terephthalate (PET) held a dominant market share in this segment due to its extensive use in packaging applications, such as bottles and containers. PET is highly recyclable and retains its quality after processing, making it a preferred choice for manufacturers.

By End-User Industry: The market is also segmented by end-user industry into Packaging, Automotive, Construction, and others. In 2023, the packaging industry dominated this segment, driven by the increasing adoption of recycled plastics for packaging materials. The packaging industry is under significant pressure to reduce plastic waste and utilize sustainable materials, making recycled plastics a popular choice.

By Region: The market is segmented by region into Northeast, Midwest, South, and West. In 2023, the West region held the largest market share, primarily due to the stringent recycling mandates and high environmental awareness. The West has a well-established recycling infrastructure and a strong commitment to sustainability, driving higher recycling rates and the use of recycled plastics.

USA Recycled Plastics Market Competitive Landscape

• Waste Management Inc.: In 2024, Waste Management (WM) announced its acquisition of Stericycle, a leading provider of medical waste services, for $7.2 billion. This strategic move aims to enhance WM's service offerings in the healthcare sector, expanding its capabilities in managing medical waste. This acquisition is expected to complement WM's existing services and enhance its commitment to sustainability, including recycling initiatives in the healthcare sector.
• Republic Services Inc.: In 2023, Republic Services inaugurated a Polymer Center in Las Vegas, marking a significant advancement in the recycling of plastics in the U.S. This facility is expected to produce over 100 million pounds of recycled plastics annually, specifically targeting materials like recycled PET, HDPE, and polypropylene. The center aims to enhance the quality of recycled materials and support sustainable packaging initiatives.

USA Recycled Plastics Industry Analysis

Growth Drivers:

• Increasing Plastic Waste Generation and Recycling Initiatives: The US produces tons of plastic waste annually. The global plastic waste generation was approximately 353.3 million metric tons in 2022. In response, there has been a substantial increase in recycling initiatives, both at the corporate and municipal levels. In 2022, Washington implemented a law requiring food waste to be diverted from landfills, aiming for a 75% reduction in organic materials sent to landfills by 2030. These efforts are essential to divert plastic waste from landfills and promote a circular economy, driving the recycled plastics market's growth.
• Corporate Commitments to Sustainability and Circular Economy: Several major corporations have set ambitious targets to use recycled plastics in their products, significantly driving market demand. PepsiCo, INEOS Olefins & Polymers Europe, and Amcor announced in March 2024 that they would be working together to introduce a new snack packaging solution made with recycled content. Such corporate commitments underscore a shift towards sustainable practices, boosting the demand for high-quality recycled plastics as businesses strive to meet their sustainability goals.
• Technological Advancements in Recycling Processes: The development of advanced recycling technologies, such as chemical recycling, has significantly improved the quality and efficiency of plastic recycling. Pyrolysis, a key advanced recycling process, can convert plastic waste back into its original building blocks (monomers) to produce new chemical and plastic products. This innovation enhances the viability of recycling complex plastic waste, thus expanding the market for recycled plastics.

Market Challenges:

• High Contamination Rates and Limited Recycling Infrastructure: High contamination rates of collected plastics, which can render a substantial portion unsuitable for recycling. This issue is exacerbated by the limited capacity of current recycling infrastructure, which struggles to handle the volume of waste produced. Upgrading and expanding recycling facilities to manage diverse plastic types and reduce contamination remains a significant hurdle.
• Lack of Uniform National Policies and Regulations: The absence of a cohesive national recycling policy in the US leads to a patchwork of state and local regulations, creating inconsistencies that challenge the recycled plastics market. Very few states have comprehensive recycling mandates, hindering the development of a robust national market for recycled plastics. The lack of standardized regulations also complicates compliance for companies operating across multiple states.

Government Initiatives:

• Save Our Seas 2.0 Act: It was introduced as Senate Bill 1982 during the 116th Congress and was signed into law in 2020. This legislation aims to enhance efforts to combat marine debris, particularly focusing on plastic pollution in oceans and waterways, and is a continuation of previous initiatives to address marine debris issues in the U.S. It aims to strengthen domestic infrastructure to prevent the creation of new marine debris and enhance the management of post-consumer materials.
• Recycling Enhancement Act: In 2008, P.L. 2007, c.311 was signed into law, imposing a $3 per ton recycling tax on solid waste processed at New Jersey facilities. The tax funds municipal and county recycling grants, education, and research. In 2024, the Murphy Administration awarded $16.2 million in grants to New Jersey communities to support waste reduction and recycling initiatives, including household hazardous waste events, recycling receptacles, and leaf composting operations.

USA Recycled Plastics Future Market Outlook

USA Recycled Plastics market is poised for significant growth over the next five years, driven by increasing environmental awareness, stringent regulations, and technological advancements. By 2028, the market is expected to see a robust expansion, as both businesses and consumers continue to prioritize sustainability.

Future Trends

• Increased Corporate Adoption of Recycled Plastics: As sustainability becomes a core business objective, more companies will adopt recycled plastics in their products and packaging. This trend will be driven by consumer demand for eco-friendly products and regulatory pressures to reduce plastic waste, leading to a steady increase in the use of recycled materials across various industries.
• Development of Uniform National Recycling Standards: In the coming years, there will likely be a push towards the development of uniform national recycling standards in the US. This standardization will simplify compliance for businesses, encourage investment in recycling infrastructure, and create a more cohesive and efficient recycling system, ultimately boosting the recycled plastics market.