H1 2023: The largest players in the APAC Recycled Polypropylene market in H1 2023 were Envision Plastics, Veolia Huafei Group, and Graham Recycling Company. In March 2023, a HOA was signed by the US-based chemical manufacturer PureCycle Technologies and the international trade and investment company Mitsui. The parties agreed to build and run a polypropylene (PP) recycling facility in Japan as part of the HOA. The facility will make use of unique technology to turn PP waste into an ultra-pure recycled resin by almost eliminating all impurities, scents, and colors. The two parties intend for a facility to be finished in 2026. The initial plant's yearly capacity is predicted to be 59 thousand tonnes (130 million pounds). During the first three months of 2023, the recycled polypropylene market in the APAC was optimistic. The revival in market activity in China after the end of the festive season led to market competitiveness among the market players. Demand was healthy on an overall scale. Major Indian market players asserted that after the Chinese lunar new year vacations ended, East Asian players' participation had surged. Beginning from April, the price of recycled polypropylene (R-PP) began to decline. This downward trend was due to poor demand from industries like the textile and packaging sectors. Additionally, R-PP market was affected by a drop in the price of PP material in the month of May. Additionally, a rise in the rate at which post-consumer products were collected also made base material were readily available, but sluggish consumption from downstream sectors led to bearish market sentiment. Market transactions remained difficult because purchasing activities dwindled in the Asian market.
The Asia Pacific (APAC) recycled polypropylene market has experienced steady growth over the past few years. The market size is influenced by various factors, such as the region's population, industrialization, urbanization, and increasing environmental regulations. As of 2022, the market size was estimated to be around 1500 thousand tons and is projected to witness robust growth at a CAGR of 5.62% from 2023 to 2032.
Recycled polypropylene is a post-consumer or post-industrial plastic material that is reclaimed, processed, and reprocessed to produce new polypropylene products. It is obtained from various sources, such as packaging materials, automotive components, consumer goods, and industrial applications, after the end of their lifecycle. Asia Pacific is witnessing a transformative shift toward sustainable practices and circular economy principles. Amid increasing environmental concerns and growing awareness about plastic pollution, the demand for recycled polypropylene has gained momentum. Recycled polypropylene offers a greener alternative to traditional virgin polypropylene, reducing dependency on fossil fuels and mitigating the impact of plastic waste.
Market Drivers
Increasing Uptake of Recycled Polypropylene in APAC Packaging and Automotive Industries
APAC is witnessing a significant surge in the uptake of recycled polypropylene, with notable growth observed in the packaging and automotive industries. The packaging industry in APAC is experiencing robust expansion, fueled by the increasing prominence of e-commerce, growing consumerism, and evolving lifestyle trends. As sustainability takes center stage for both consumers and businesses, there is a heightened demand for eco-friendly packaging solutions. Recycled polypropylene emerges as an eco-conscious alternative to traditional packaging materials, such as single-use plastics and virgin polypropylene. Companies in this region are responding to this demand by integrating recycled polypropylene into their packaging products, such as bags, containers, and films, to meet the growing preference for sustainable packaging choices.
Meanwhile, APAC serves as a significant hub for the automotive industry, with several countries being prominent manufacturing and export centers. In line with the increasing focus on sustainability, there is a notable shift toward the use of recycled materials to reduce the environmental impact of automotive production. Recycled polypropylene is gaining extensive application in the automotive sector, particularly in the manufacturing of interior and exterior components. By adopting recycled polypropylene for items, such as dashboard trims and bumpers, automotive companies are striving to enhance the sustainability profile of their vehicles while simultaneously adhering to regulatory requirements and meeting the expectations of environmentally conscious consumers. This shift toward recycled materials enables companies in both the automotive and packaging sectors to not only demonstrate compliance with regulations but also contribute to the advancement of the circular economy in this region.
Environmental Concerns and Sustainability Goals
The pressing issue of plastic pollution and its adverse impact on the environment has led to increased public awareness and demand for sustainable alternatives. Governments, industries, and consumers are actively seeking solutions to reduce plastic waste and promote recycling. The use of recycled polypropylene aligns with sustainability goals and demonstrates a commitment to environmental stewardship.
Plastic pollution has emerged as a global crisis, with vast amounts of plastic waste ending up in landfills, oceans, and natural habitats. This pollution not only damages ecosystems and harms wildlife but also poses significant risks to human health. As environmental concerns escalate, the focus on finding sustainable solutions has intensified. Recycled polypropylene plays a pivotal role in addressing these environmental concerns. By diverting post-consumer and post-industrial plastic waste from landfills, recycling reduces the environmental burden of plastic waste. Choosing recycled polypropylene over virgin polypropylene helps conserve fossil fuel resources and lowers greenhouse gas emissions associated with raw material extraction and production.
Consumers are increasingly demanding eco-friendly products, and companies that adopt recycled polypropylene demonstrate their commitment to environmental stewardship. This can lead to enhanced brand reputation and customer loyalty, positioning businesses favorably in an environmentally conscious market.
Regulatory Initiatives and Incentives
APAC countries are taking regulatory action to boost the use of recycled materials. Policies, such as extended producer responsibility (EPR) and plastic waste reduction targets encourage manufacturers to incorporate recycled content, including recycled polypropylene, in their products. EPR programs hold manufacturers accountable for managing end-of-life products, emphasizing recycling and proper disposal. Recycled polypropylene adoption helps companies comply with EPR regulations. Governments have also set plastic waste reduction targets, driving demand for recycled polypropylene as a sustainable alternative. To further incentivize recycling, governments offer tax benefits, subsidies, and grants for companies using recycled polypropylene, making it a financially viable choice. These initiatives reflect APAC's commitment to environmental responsibility and propel the growth of the recycled polypropylene market.
Market Restraints
Limited Collection and Recycling Infrastructure
One of the major challenges faced by the APAC recycled polypropylene market is the limited collection and recycling infrastructure in certain regions. Inadequate waste management systems can hinder the effective recovery of polypropylene waste, leading to low quantities of high-quality recycled material. This lack of infrastructure can result in plastic leakage into the environment, contributing to plastic pollution rather than its reduction. To promote the use of recycled polypropylene, there is a pressing need for increased investment in recycling facilities and improved waste collection systems across the APAC region. Government support and collaboration between stakeholders, including industries and local communities, are vital to overcoming this challenge and fostering a more sustainable recycling ecosystem for polypropylene waste.
Quality and Consistency of Recycled Feedstock
Another significant challenge in the APAC recycled polypropylene market is ensuring the consistent quality of the recycled feedstock. The composition and properties of post-consumer or post-industrial polypropylene can vary significantly, depending on factors like the source and recycling process. This inconsistency can affect the performance and characteristics of the final recycled polypropylene product. Manufacturers and end users demand reliable and consistent quality to meet their specific application requirements. To address this challenge, there is a need for investment in advanced sorting and processing technologies to enhance the purity and uniformity of recycled feedstock.
Trends & Opportunities
Increasing Uptake of Advanced Recycling Technologies
The most prominent trend in the APAC recycled polypropylene market is the increasing adoption of advanced recycling technologies and processes. This trend arises as environmental concerns and sustainability objectives gain significant attention in the region, prompting a rising demand for high-quality and consistent recycled polypropylene. To meet this demand, businesses and recyclers are making substantial investments in advanced recycling technologies that enable more efficient and effective processing of plastic waste. These technologies encompass advanced sorting methods, innovative cleaning and purification processes, and enhanced melt filtration techniques.
The use of advanced recycling technologies improves quality, scalability, and cost-effectiveness. By optimizing processing, more usable material is obtained from plastic waste, waste reduction, and maximizing resource utilization. These technologies also enable the recycling of a wider range of plastics, including mixed and contaminated ones, reducing reliance on limited clean sources. Embracing these advancements positions the market to address feedstock challenges and aligns with the region's commitment to a sustainable circular economy. As these technologies continue to evolve and gain prominence, they will play a vital role in shaping the future of the APAC recycled polypropylene market.
Rising Demand for Sustainable Products
The APAC recycled polypropylene market is well-positioned to capitalize on a major opportunity driven by the increasing demand for sustainable products and a growing awareness of environmental issues. Consumers and businesses in various industries are increasingly seeking eco-friendly options, driving the market for recycled polypropylene as a greener alternative to traditional plastics. Government policies, such as extended producer responsibility (EPR) programs and plastic waste reduction targets, incentivize the use of recycled materials, while tax benefits and subsidies further fuel demand. The emphasis on the circular economy concept further supports the adoption of recycled materials, promoting resource efficiency and reducing plastic waste. Overall, these factors create a significant growth opportunity for the APAC recycled polypropylene market, allowing companies to align with sustainability goals and gain a competitive edge in the evolving marketplace.
End-Use Analysis
In terms of end-use, the recycled polypropylene market in APAC is classified on five fronts: Packaging, automotive, textiles, construction, and others. The packaging segment has been leading the market and is expected to continue to do so over the forecast period. A significant shift toward sustainability, driven by increased environmental awareness and consumer demand for eco-friendly products in the packaging industry is the main factor behind this growth.
The automotive industry is the second leading contributor to the overall demand for recycled polypropylene in the APAC region. The automotive industry in APAC has taken up recycled polypropylene as an essential component in the quest for sustainable manufacturing practices. From interior components, such as dashboard trims and door panels, to exterior parts, such as bumpers, recycled polypropylene finds extensive application in this industry. Its lightweight nature, cost-effectiveness, and positive impact on reducing greenhouse gas emissions make it an attractive choice for automotive manufacturers aiming to improve their environmental performance.
In the textile sector, recycled polypropylene is blended with other fibers to create eco-friendly fabrics and non-woven materials, particularly benefiting industries like outdoor apparel, geotextiles, and home furnishings where sustainability is a key differentiator for brands. The construction industry in APAC is also adopting recycled polypropylene, incorporating it into building materials, such as pipes, fittings, insulation materials, and roofing membranes, to significantly reduce environmental impact. Additionally, its use aligns with green building standards, contributing to achieving sustainability certifications. Moreover, recycled polypropylene's versatility and eco-friendly attributes make it a valuable material choice in the electronics, furniture, and consumer goods industries, further supporting the region's commitment to sustainable practices.
Regional Analysis
The APAC recycled polypropylene market reports its presence across China, India, Thailand, Indonesia, and the Rest of APAC. With a demand value of US$ 615 mn in 2022, China led the APAC market for recycled polypropylene. As a major manufacturing hub, China holds a prominent position in the APAC recycled polypropylene market. The country's efforts to curb plastic waste and promote recycling have led to the establishment of advanced recycling technologies and infrastructure. With a vast consumer base and an expanding packaging and automotive sector, China presents substantial growth opportunities for recycled polypropylene applications.
The second prominent share in the APAC recycled polypropylene market has been held by India. Government is implementing policies to promote recycling and encourage sustainable practices, further supporting market growth in India.
Competitive Landscape
With the presence of a large pool of companies, the competitive landscape in the APAC recycled polypropylene market is highly fragmented. The key companies in this market are Suzhou Jinhui Technology, Langgeng Jaya Group, and LOTTE Chemicals. These companies are aggressively taking up market strategies, such as mergers, acquisitions, and partnerships, to cut down the competition and strengthen their foothold in the market.
Veolia Huafei Group, Advanced Circular Polymer, CKY Recycle Plastic Sdn Bhd, Jin Quan Recycle Sdn Bhd, Maruti Sangyo Co. Ltd., PlastiLoop Hwaseong, and Teamplas Chemical Co., Ltd. are some other leading players in this market.
Years considered for this report:
Historical Period: 2015-2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
This report will be delivered on an online digital platform with one-year subscription and quarterly update.
The objective of the Study:
• To assess the demand-supply scenario of recycled polypropylene which covers the production, demand, and supply of the APAC recycled polypropylene market.
• To analyze and forecast the size of the APAC recycled polypropylene market.
• To classify and forecast the APAC recycled polypropylene market based on end-use and regional distribution.
• To examine competitive developments, such as expansions, mergers & acquisitions, and partnerships, of the APAC recycled polypropylene market.
To extract data for the APAC recycled polypropylene market, primary research surveys were conducted with recycled polypropylene manufacturers, suppliers, distributors, wholesalers, and traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for the APAC recycled polypropylene market over the coming years.
ChemAnalyst calculated the demand for recycled polypropylene in the world by analyzing the historical data and demand forecast which was carried out considering the demand for recycled polypropylene by end-use industries across the world. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Recycled polypropylene manufacturers and other stakeholders
• Organizations, forums, and alliances related to recycled polypropylene distribution
• Government bodies, such as regulating authorities and policymakers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders, such as recycled polypropylene manufacturers, customers, and policymakers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, the APAC recycled polypropylene market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:
Attribute
Details
Market Size Volume in 2022
1500 thousand Tonnes
Market Size Volume by 2032
2586 thousand Tonnes
Growth Rate
5.62%
Base Year for Estimation
2023
Historical Data
2015 - 2022
Forecast Period
2024 - 2032
Quantitative Units
Demand in Thousand Tons and CAGR from 2023 to 2032
Report Coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End-Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Manufacturing Process, Policy and Regulatory Landscape.
Segments Covered
By End-Use: Packaging, Automotive, Textiles, Construction, and Others.
By Sales Channel: Direct Sales and Indirect Sales
Regional Scope
North America, Europe, Asia Pacific, the Middle East and Africa, and South America.
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Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What are the main drivers behind the growth of the APAC recycled polypropylene market?
Ans:
Rapid industrialization and increasing demand for recycled polypropylene in the packaging and automotive industries are driving the APAC recycled polypropylene market significantly.
Q2.
Which is the dominant end-use segment in the APAC recycled polypropylene market?
Ans:
The packaging sector has emerged as the dominant end-use segment in the APAC recycled polypropylene market.
Q3.
Which country is likely to lead the APAC recycled polypropylene market during the forecast period?
Ans:
China is likely to lead the APAC recycled polypropylene market over the forecast period. This dominance can be attributed to the presence of a humongous manufacturing sector and the continued expansion in the packaging and automotive industries in the country.
Q4.
Who are the key companies in the APAC recycled polypropylene market?
Ans:
Suzhou Jinhui Technology, Langgeng Jaya Group, LOTTE Chemicals, Veolia Huafei Group, Advanced Circular Polymer, CKY Recycle Plastic Sdn Bhd, Jin Quan Recycle Sdn Bhd, Maruti Sangyo Co. Ltd., PlastiLoop Hwaseong, and Teamplas Chemical Co., Ltd. are the key companies in the APAC recycled polypropylene market.
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