Global Recycled Plastics Market to Reach $117.9 Billion by 2031, Wissen Research Says

The global recycled plastics market is projected to grow from $76.6 billion in 2026 to $117.9 billion by 2031, representing a compound annual growth rate (CAGR) of 9%, according to a new study published by Wissen Research on 21 October 2026. The forecast reflects expectations of rising demand for recycled polymers as governments introduce mandatory recycled-content requirements and companies seek alternatives to virgin plastic in packaging, automotive manufacturing and construction.

The research identifies a growing imbalance between regulatory demand and available recycling capacity. While recycled-content mandates are creating new markets for recovered materials, collection limitations, inconsistent feedstock quality and high operating costs continue to constrain production. The study suggests that the industry's growth will depend increasingly on its ability to supply recycled plastics at competitive prices and consistent quality rather than simply expanding collection volumes.

 

Recycled-Content Regulations Drive Global Demand

 

Government regulations are becoming an important source of demand for recycled plastics. The European Union's Packaging and Packaging Waste Regulation (PPWR), which began applying on 12 August 2026, introduces minimum recycled-content requirements from 2030. These include 30% recycled content for single-use plastic beverage bottles and 35% for packaging categories outside specified exemptions and separate requirements. India has also introduced mandatory recycled-content targets for plastic packaging, with requirements increasing over successive compliance periods.

Corporate commitments are contributing to demand alongside regulatory requirements. The report highlights companies such as Coca-Cola, Unilever, and Amcor that have introduced recycled-content targets and increased the use of recovered polymers in packaging. However, the study also notes that some major brands have revised their voluntary commitments as recycled-plastic prices remain significantly higher than those ofvirgin alternatives. This creates a market where mandatory requirements provide a more predictable baseline for demand.

 

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Recycling Capacity and High Prices Threaten Market Growth

 

One of the main challenges identified by Wissen Research is the gap between projected demand and available recycling capacity. The report cites estimates from Republic Services suggesting that US demand for recycled polyethylene terephthalate (rPET) could reach five billion pounds by 2030, compared with approximately 2.5 billion pounds of current supply capacity. In Europe, industry estimates indicate that recycling capacity will need to expand significantly to meet upcoming packaging requirements.

Cost pressures are another concern. Wissen Research reports that virgin PET traded at approximately €1,000 per tonne in mid-2025, compared with prices reaching €1,800 per tonne for recycled PET. European recyclers also face high energy costs, lower-priced imports and uncertainty around demand. The European Commission previously warned that these pressures could contribute to a net reduction of approximately one million tonnes in EU recycling capacity by the end of 2025. Such conditions create a challenge for manufacturers seeking to comply with recycled-content mandates while controlling production costs.

 

Chemical Recycling Investment Expands Alongside Mechanical Recycling

 

Mechanical recycling remains the foundation of the recycled plastics industry, using collection, sorting, washing and reprocessing to convert waste into reusable materials. However, chemical recycling technologies are attracting investment because they can process certain waste streams that are difficult to recover mechanically. These technologies include depolymerisation, which breaks polymers into constituent chemicals, and pyrolysis, which uses heat to convert plastic waste into hydrocarbon products.

The report identifies 65 chemical recycling projects in Europe, representing approximately 2.8 million tonnes of announced or under-construction annual capacity. It also highlights investments from TotalEnergies, Neste, ExxonMobil and Carbios in advanced recycling facilities. TotalEnergies began operating a 15,000-tonne annual capacity advanced recycling plant in France in March 2026, while Neste commissioned a €111 million facility in Finland capable of processing up to 150,000 tonnes of liquefied waste plastic annually. The environmental performance and commercial competitiveness of these processes will depend on their energy requirements, material recovery rates and the eventual use of their outputs.

 

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Asia-Pacific Leads as Recycling Infrastructure Develops

 

Asia-Pacific held the leading regional position in the recycled plastics market in 2025, according to Wissen Research. The region benefits from substantial manufacturing activity, growing plastic consumption and investment in recycling infrastructure. China reportedly recovered approximately 20 million tonnes of waste plastics during 2025 and produced 16.8 million tonnes of recycled materials, supported by demand across packaging, consumer goods and industrial applications.

India is also seeing investment in recycled polymer production and material recovery. The report highlights companies such as Ganesha Ecosphere and Indorama Ventures, which are expanding recycling operations and developing partnerships across beverage packaging supply chains. However, increasing processing capacity will need to be accompanied by improvements in waste collection, sorting and traceability to ensure sufficient supplies of recyclable materials.

 

Recycling Economics Will Determine Long-Term Market Expansion

 

Beyond increasing recycling capacity, the market faces concerns about the quality and authenticity of recycled materials. The European Commission has highlighted instances of virgin plastics being imported and incorrectly labelled as recycled, potentially undermining legitimate recyclers. Greater traceability, standardised verification and improved sorting technologies will therefore be important as recycled-content regulations become more demanding.

Wissen Research's $117.9 billion market projection represents a commercial research forecast rather than a guaranteed outcome. Achieving that level of growth will depend on investment in processing infrastructure, reliable access to waste materials, competitive recycling economics and effective regulatory enforcement. The findings indicate that recycled plastics are becoming an increasingly important industrial supply chain, but the sector must overcome significant operational and financial barriers to meet expected demand.

 

Source: Wissen Research