PVC Recycling Market

PVC Recycling Market

PVC Recycling Market is valued at USD 3.3 billion in 2023 and is projected to reach USD 4.9 billion by 2028, growing at a cagr 8.0% from 2023 to 2028. PVC recycling is the process of recovering PVC-based products into new, useful products. This process helps save energy and eliminates the need to extract more carbon from the ground. The market is growing, and the trend is expected to continue in the long term due to high demand from the building, construction, infrastructure, electrical, automotive, consumer goods, and agriculture industries.

ATTRACTIVE OPPORTUNITIES IN THE PVC RECYCLING MARKET

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PVC Recycling Market Dynamics

Driver: Growing awareness of energy savings and government responses

The use of PVC recycling eliminates the need to create materials from scratch, which saves a lot of energy. Producing virgin plastics is a highly labor-intensive and energy-expensive process that involves extracting, transporting, and refining natural resources. Thus, using PVC recycling instead of new resources allows manufacturers to make the same products with much less energy. For instance, recycling PVC plastics from waste requires 71 trillion units of energy, which is less than the energy needed to produce the same amount of virgin PVC plastics. Therefore, the energy saved from recycling PVC products and containers is equivalent to the annual energy use of 750,000 US homes. The corresponding savings in GHG emissions would be 2.1 million tons of CO2 equivalents, which is comparable to taking 360,000 cars off the road. Thus, awareness about saving energy is likely to play a positive role in increasing demand for PVC recycling during the forecast period.

Government regulations have played a significant role in driving the PVC recycling industry. Many countries and regions, including the European Union and the US, have implemented laws and regulations that require companies to recycle a certain percentage of their PVC waste. Countries such as France, Germany, and the UK are implementing even more aggressive targets, fees for introducing non-recyclable packaging, and additional legislation such as using only recyclable packaging and setting higher recycling targets. These regulations provide an incentive for companies to invest in PVC recycling facilities and technologies. Thailand recently announced a nationwide ban on PVC plastic disposal, effective from January 2020, aiming for a complete ban to reduce non-biodegradable plastic leakage into the environment. China has banned imports of plastic waste and approved legislation to restrict and reduce plastics, increase recycling, recovery, and recirculation of used PVC plastics. In the past few years, there has been a considerable rise in awareness regarding PVC plastic recycling.

Restraint: Technical limitations of the PVC recycling process

PVC recycling processes face technical limitations that make it difficult to recycle PVC effectively. One of the main challenges is the difficulty of separating PVC from other plastics in mixed waste streams. PVC is often used with other plastics, such as PET or PE, making it difficult to isolate and recycle. Traditional mechanical recycling methods are ineffective in separating PVC from other plastics because they are based on physical properties such as density or melting point. Chemical recycling processes can help to overcome this challenge by breaking down PVC into its constituent monomers, which can then be purified and reused to make new PVC products. However, these processes require specialized equipment to process PVC waste. They are still in the early stages of development, making it expensive and less accessible to small and medium-sized recyclers. PVC is a highly durable material that can be difficult to break down and recycle using traditional mechanical methods. This requires specialized equipment, such as shredders or grinders, that can handle the rigid properties of PVC waste.

One major limitation is the presence of PVC additives in the PVC plastics, such as plasticizers, stabilizers, and pigments, which affects the quality and purity of the recycled material. The European Union has set strict regulations on the use of these additives in PVC products, which can make it difficult to recycle certain types of PVC. Also, there is a lack of consistent standards for PVC recycling across different countries in the world. This makes it difficult to ensure that recycled PVC products meet the necessary quality and safety requirements. Furthermore, the availability and accessibility of PVC recycling facilities can vary greatly across the region, limiting the amount of PVC waste that can be recycled. Thus, the technical limitations of PVC recycling processes act as a restraining factor to effectively recycling this widely used material PVC in the plastic recycling industry. However, efforts are being made to improve the recycling process and increase the sustainability of recycled PVC products.

Opportunity: Favorable initiatives to promote the use of recycled PVC in developed countries.

In the developed economies of North America and Europe, several regulations have been introduced to promote plastic recycling. For instance, the UK provides public sector funding of over USD 143 million per year (GBP 100 million/year) for recycling programs and has also imposed an increase in landfill tax. The European Union has implemented a tax on plastic bags and packaging to curb ocean pollution and has set a goal for all packaging products to be recyclable by 2030, with a requirement to recycle 55% of plastic packaging. In the US, the Internal Revenue Service (IRS) offers a depreciation credit for recycling to manufacturers of recycled products. Additionally, some US states provide tax incentives or credits to encourage plastic recycling. For example, Delaware offers set amounts or percentages to reduce the costs of purchasing recycling equipment, Texas offers a rebate program for manufacturers that use recycling equipment, and Maryland provides a personal property tax exemption for recycling. Furthermore, some states provide a tax exemption on the construction or renovation of recycling plants. Such initiatives are expected to create growth opportunities for recycled PVC.

Challenge: Quality issues of recycled PVC plastics

The quality of recycled PVC presents a significant challenge to the PVC recycling market. PVC waste comes from different sources, including construction, packaging, automotive, and electrical and electronic equipment, each with varying levels of contamination that can affect the quality of the recycled PVC. The recycling process itself can also affect the quality of PVC plastic. For example, mechanical recycling, which involves shredding and grinding PVC waste, can lead to a loss of material properties and a reduction in the molecular weight of PVC plastic, making it less suitable for certain applications. Chemical recycling, however, preserves the molecular weight of PVC and results in higher-quality recycled PVC. Nevertheless, chemical recycling is more expensive than mechanical recycling and not yet widely available.

PVC plastic contains several additives, such as plasticizers and stabilizers, that affect the material's performance, making it challenging to recycle PVC. Improved PVC waste collection and sorting systems and more advanced recycling technologies are necessary to address these challenges. There is also a need for greater collaboration between stakeholders in the PVC value chain, including waste generators, recyclers, and manufacturers, to ensure consistent quality in recycled PVC products. Regulations, such as the European Union's Waste Framework Directive & Packaging and Packaging Waste Directive, have set targets for the recycling of PVC and other materials and require member states to implement measures to enhance the quality of recycled materials. These regulations are driving innovation and investment in the PVC recycling industry and expected to improve the quality of recycled PVC over time. Hence, the quality of recycled PVC plastic is a significant challenge for the growth of the PVC recycling indsutry.

PVC RECYCLING MARKET ECOSYSTEM

"Rigid PVC was the largest type for PVC recycling market in 2022, in terms of value."

Rigid PVC is generally used for different products, including pipes, window frames, and siding. It has high demand in the PVC recycling market because it is well-suited for recycling as it can be easily melted down and reformed into new products without losing its structural integrity.

"Building, construction, & infrastructure processing was the largest end-use industry for PVC recycling market in 2022, in terms of value."

Recycled PVC products offer several benefits for the construction industry. It is cost-effective, durable, and easily integrated into existing systems. It has a lower carbon footprint than traditional construction materials, making it a more sustainable option. Recycled PVC products help improve buildings' energy efficiency, thereby reducing energy costs for consumers.

"Asia Pacific was the largest market for PVC recycling in 2022, in terms of value."

Asia Pacific was the largest market for global PVC recycling market, in terms of value, in 2022. China is the largest market in Asia Pacific. It is projected to grow at a CAGR of 8.3% during the forecast period considering of high usage of PVC in the region for building, construction, infrastructure, and consumer goods application.

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PVC Recycling Market Players

The key global players in the PVC recycling market include DS Smith (UK), Adams Plastics (US), Reclaim Plastics (Canada), Suez (France), Veolia (France), Veka Recycling (UK), Simplas PVC Recycling (UK), WRC Recycling (Scotland), Morris Recycling (UK), and Dekura (Germany) are the key players in the PVC recycling market. Continuous developments in the market—including new product launches, mergers & acquisitions, agreements, and expansions—are expected to help the market grow. Leading manufacturers of PVC recycling have opted for new product launches to sustain their market position.

PVC Recycling Market Report Scope

This report categorizes the global PVC recycling market based on type, source, process, application, end-use industry, and region.

Based on process, the PVC recycling market has been segmented as follows:

• Mechanical
• Chemicals
• Other Processes

Based on type, the PVC recycling market industry has been segmented as follows:

• Rigid
• Flexible
• Chlorinated

Based on application, the PVC recycling market has been segmented as follows:

• Pipe & Fittings
• Window Profile & Doors
• Flooring
• Wires & cables
• Façade
• Automotive Interior
• Traffic Cone
• Exterior Garden
• PVC Awning
• Rainwater Gutter
• Electric Gutter
• Roofing Membranes
• Automotive Underbody Protection
• Other Applications

Based on end-use industry, the PVC recycling market has been segmented as follows:

• Building, construction, & Infrastructure
• Electrical
• Automotive
• Consumer Goods
• Agriculture
• Other End-use Industries

Based on region, the PVC recycling market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Recent Developments

• In Feburary2020, LyondellBasell and SUEZ, a world leader in environmental services, announced the acquisition of TIVACO, a plastics recycling company located in Blandain, Belgium. The company will become part of Quality Circular Polymers (QCP). This will increase the production capacity for recycled materials to approximately 55,000 tons per year.
• In November 2020, SUEZ announced the sale of its recycling & recovery operations in Sweden to PreZero, the environmental division of Schwarz Group. The transaction enabled a solid future for the business and its employees within PreZero, a fast-growing division of the largest European retailer and a pioneer in the area of recyclables.
• In December 2020, SUEZ announced the opening of the SUEZ Circular Polymer Plant in Bang Phli, Thailand – the Group’s first plastic recycling plant in Asia. The project highlights SUEZ's commitment to preserving the natural capital and building a more sustainable future while contributing to Thailand’s ambitious 2030 target to achieve 100% plastic recycling.

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