According to the United Nations Environment Programme and GRID-Arendal in Norway, global plastic manufacturing is anticipated to more than quadruple by 2050. Hence, the emphasis is shifting to reducing plastic usage, which has led to an increase in government regulations on the use of conventional plastic. To reduce plastic waste, most governments in developed and developing economies are promoting the use of recycled plastic items. This is anticipated to fuel market expansion. Advanced recycling technologies are viewed as a crucial tactic for addressing the problem of excessive plastic use worldwide.
Advanced recycling technologies convert recycled plastics into new polymers, fuels, or chemicals through the use of heat or chemical solvents. By enabling the processing of mixed plastics and offering up value-added opportunities for difficult-to-recycle polymers, advanced recycling technologies have the potential to outperform other recycling technologies. Advanced recycling technologies, for instance, can meet the need for food-contact grade recycled polyethylene (PE) and polypropylene (PP) by converting plastic waste into a material similar to virgin plastic. This reduces waste as well as the climatic effect associated with the extraction of virgin material.
In addition, manufacturers have become more conscious of this issue as a result of the implementation of stringent environmental regulations like the restriction of hazardous substances (RoHS) and policies by organizations such as the Environmental Protection Agency (EPA) and registration, evaluation, authorization, and restriction of chemicals (REACH), which are in charge of regulating the use and recycling of plastic.
However, the difficulty in collecting plastic waste and raw materials is expected to impede market expansion. Furthermore, severe limitations on the import of plastic trash from China continue to be a barrier for enterprises seeking to process recycled plastics.
The market holds a prominent share in various regions such as Europe, North America, China, Asia-Pacific and Japan, and others. Europe is currently the largest revenue-generating region in the advanced recycling technologies market. Some of the major drivers that are propelling the growth of the market are supportive government initiatives, strict recycling regulations, a ban on single-use plastic, extensive investments in dedicated R&D facilities, and the presence of major manufacturing companies such as Stena Metall, Gr3n Recycling, Carbios SA, Recycling Avenue BV, BlueAlp Innovations BV, and Quantafuel ASA.
Food and Beverage Packaging Dominates the Advanced Recycling Technologies Market (by End-User)
Among different end-users, food and beverage packaging is expected to be the largest application during the forecast period (2022-2031). In the case of packaging made of recycled plastics, there is a significant possibility that dangerous substances would contaminate food. However, this is not the case with advanced recycled packaging. In addition, in the EU Plastic Strategy, advanced recycling is acknowledged as having "a powerful effect" (EU Plastic Strategy, 2018). Therefore, its demand in the food and beverage packaging sector is increasing.
Pyrolysis/ Cracking Segment Dominates the Advanced Recycling Technologies Market (by Technology)
In 2021, pyrolysis/ cracking technology held the largest share in the global advanced recycling technologies market and is expected to dominate the market during the forecast period (2022-2031). Pyrolysis is the process of dissolving plastic waste at high temperatures with little oxygen to produce pyrolysis oil, which can be used in place of fossil feedstocks in the manufacture of new polymers. Pyrolysis has several advantages, including the fact that it is a reasonably simple and adaptable technique that often targets difficult-to-recycle and extremely heterogeneous plastic waste, such as mixed polyolefin plastic waste or multi-material packaging. Therefore, owning to these factors, it is leading in the global market.
Naphtha/ Distillate Gas Oil Segment Dominates the Advanced Recycling Technologies Market (by Product Type)
In 2021, naphtha/ distillate gas oil held the largest share in the global advanced recycling technologies market and is expected to dominate the market during the forecast period (2022-2031). Advanced recycling technologies transform plastic waste into useful feedstock such as naphtha that is further utilized in making other products such as plastics, fuels, and so on.
Europe Dominates the Advanced Recycling Technologies Market (by Region)
Europe led the advanced recycling technologies market in 2021 and is anticipated to uphold its dominance throughout the forecast period, owing to the numerous government initiatives compelling the packaging industry stakeholders to adopt sustainable and recyclable packaging. In addition, taxes levied by the European Union on packaging and plastic bags to reduce marine pollution are helping to advance the expansion of the nation's advanced recycling technologies market. In addition, Nestlé is stepping up its efforts to reduce its use of virgin plastics by one-third and to make 100% of its packaging recyclable or reusable by 2025. Therefore, the demand for advanced recycling technologies is anticipated to increase.