Recycled Plastics Procurement Intelligence Report 2025-2030

Recycled Plastics Supply-Demand Overview

According to the recycled plastics procurement report, the growing use of recycled plastics in the production of automotive components and containers has created heavy demand. Recycled plastic is frequently used in the food and beverage packaging industry. By 2025, the worldwide food and beverage e-commerce market is expected to be valued at USD 857 billion. In 2023, Europe's capacity to recycle plastic reached 13.2 million tons, a 6% annual growth that helped the market for recycled plastics grow.

Recycled Plastics Cost Structure

As per the recycled plastics procurement report, key factors driving the cost modeling of production include raw materials, energy, the catalysts, other operating expenses, and compliance with the regulatory authority. Raw materials constitute the biggest cost component of production. Polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), polycarbonate (PC), and polyethylene terephthalate (PET) are important feedstocks for chemical processes such gasification, meta or conventional pyrolysis, and depolymerization.

Moreover, according to the recycled plastics procurement report analysis, due to the energy-intensive nature of processes like gasification, pyrolysis, and depolymerization, energy costs are one of the primary factors influencing the overall pricing model. Production expenses are typically high in areas with high energy prices, like Europe. Overhead, labor, and equipment maintenance are examples of operational costs. Effective plant management and automation can lower the majority of these expenses. In addition, the cost of transportation and distribution is influenced by the distance to end-use markets and raw material suppliers.

Recycled Plastics Pricing Trends

According to the recycled plastics procurement report, due to changes in global recycling rules, supply chain dynamics, and oil prices, prices have changed recently. However, the procurement market has been steadily growing due to the overall trend toward recycling for sustainability and the sharp increase in the cost of virgin plastics in recent years, particularly as environmental concerns have gained more attention.

However, there have been price fluctuations, closely linked to oil price volatility, impacting virgin plastic prices and the subsequent capacity of global recycling markets. Improved recycling technologies and stringent quality control measures have pushed recycled materials' prices up in some areas, while an overabundance in others has depressed prices. As per the recycled plastics procurement report, market development indicates a steady inclination towards higher quality, clean recycled plastics compared to lower-grade materials, with highly priced material hence available.

Recycled Plastics Procurement Best Practices

According to the recycled plastics procurement report, best practices include sourcing post-consumer and post-industrial plastics for reuse in manufacturing new products. Procuring materials that are sustainable has become a big priority for buyers. They are increasingly working with certified recyclers who adhere to environmental and quality standards. Procurement practices focus on availability, quality, and homogeneity of recycled plastic materials, ensuring that they meet certain industry requirements. As part of their negotiation strategies, companies can prioritize suppliers based on their recycling processes to determine material traceability and the use of uncontaminated, high-quality inputs. In many cases, they work with recycling partners to drive improvements in sorting and processing technologies to improve the quality of the recycled plastics. In addition, within the procurement process, compliance with environmental regulations, circular economy principles, as well as product safety standards for plastics have to be ensured.

Key Players in the Recycled Plastics Industry

Recent Developments in the Recycled Plastics Industry

• In September 2024, PureCycle Technologies Inc. announced that its polypropylene (PP) recycling facility in Ironton, Ohio, achieved a feedstock introduction rate exceeding 10,000 pounds (5 tons) per hour. The facility also processed over 200,000 pounds (100 tons) of feedstock in a single day on two separate occasions.
• In September 2024, synthetic fiber giant Indorama Ventures (IVL) signed a partnership deal to build multiple recycling facilities in India, part of its plan to bolster growth in its PET supply chain. Under the terms of the deal, IVL’s direct subsidiary, IVL Dhunseri Petrochem Industries, formed a joint venture with Varun Beverages, PepsiCo's second-largest bottling company globally outside the United States, to establish several greenfield PET recycling facilities.
• In May 2024, Lummus Technology, a global provider of process technologies and value-driven energy solutions, and Sumitomo Chemical announced two collaboration agreements to license and commercialize Sumitomo Chemical’s proven low-density polyethylene/ethylene vinyl acetate (LDPE/EVA) production technology and highly efficient poly methyl methacrylate recycling (rPMMA) technology.