India Plastic Recycling Market 2024–2033

Reports Description

India Plastic Recycling Market was valued at USD 4,090.8 Million in 2024 and is expected to reach USD 6,933.2 Million by 2033, at a CAGR of 5.22% during the forecast period 2024 – 2033.

Plastic recycling is the process of giving new life to used plastic items by turning them into usable materials again. It helps reduce our reliance on landfills and combats plastic pollution harming the environment. There are two main methods: mechanical and chemical recycling.

Mechanical recycling, the most common method, sorts, shreds, washes, and melts down plastic into pellets which can be molded into new products like fleece jackets or plastic lumber. Chemical recycling breaks down plastic on a molecular level and rebuilds it into usable materials or even new plastic.

While plastic recycling offers environmental benefits, it’s important to remember that not all plastics are created equal. Some plastics are easier to recycle than others, and some may only be recycled a few times before they degrade too much. So, while recycling is important, it’s part of a bigger solution that also involves reducing our overall plastic consumption.

India Plastic Recycling Market: Growth Factors

Government Initiatives and Regulations

One significant driver for the plastic recycling market in India is the support and enforcement of government policies and regulations promoting recycling. The Indian government has been actively involved in promoting sustainable waste management practices, including plastic recycling, through initiatives such as the Plastic Waste Management Rules (2016).

These regulations impose responsibilities on manufacturers, retailers, and consumers to minimize plastic waste generation and promote recycling. For instance, under these rules, plastic waste management has become mandatory for all municipal authorities. As a result, there has been a notable increase in the adoption of plastic recycling practices across various industries and regions in India.

According to the Ministry of Environment, Forest and Climate Change, India recycled approximately 60% of plastic waste generated in 2019-2020, showcasing the impact of regulatory interventions on driving recycling efforts.

Growing Environmental Awareness

Increasing awareness among consumers and businesses regarding the environmental impacts of plastic pollution is another significant driver for the plastic recycling market in India. With rising concerns about environmental degradation and the harmful effects of plastic waste on ecosystems, there has been a growing emphasis on sustainable waste management practices, including recycling.

Consumers are becoming more conscious of their plastic consumption patterns and are actively seeking products and packaging made from recycled materials. Moreover, businesses are recognizing the importance of incorporating sustainable practices into their operations to meet consumer demands and enhance brand image.

This heightened environmental consciousness has led to a surge in demand for recycled plastic materials across various industries, including packaging, construction, and automotive. The Central Pollution Control Board reported that India generated approximately 9.46 million metric tons of plastic waste in 2019-2020, highlighting the urgent need for recycling initiatives to mitigate environmental pollution.

India Plastic Recycling Market: Restraints

Lack of Infrastructure and Technology

One of the primary challenges hindering the growth of the plastic recycling market in India is the inadequate infrastructure and technology for efficient collection, segregation, and processing of plastic waste. Despite the implementation of regulations promoting recycling, there is a significant gap in the infrastructure required to support large-scale recycling operations.

Many regions lack proper waste collection systems and existing facilities often suffer from outdated technology and insufficient capacity. This lack of infrastructure leads to inefficient recycling processes, lower-quality recycled materials, and increased operational costs for recycling businesses.

According to the Central Pollution Control Board, only about 60% of plastic waste is collected for recycling in India, highlighting the need for substantial investments in infrastructure development to improve waste management practices.

Challenges in Plastic Waste Segregation

Another key restraint facing the plastic recycling market in India is the complexity and inefficiency of plastic waste segregation processes. Effective segregation of plastic waste is crucial for ensuring high-quality recycled materials and maximizing resource recovery.

However, the current waste management infrastructure in India often lacks proper segregation mechanisms, leading to contamination of recyclable materials and reduced recycling efficiency. Manual segregation processes are labor-intensive, time-consuming, and prone to errors, resulting in lower recycling rates and increased processing costs.

Additionally, the lack of awareness and participation among consumers further exacerbates the challenges associated with plastic waste segregation. The Indian government estimates that only about 14% of plastic waste is segregated at source, indicating the urgent need for education and awareness campaigns to promote proper waste segregation practices among the population.

India Plastic Recycling Market: Opportunities

Government Initiatives and Policies Driving Growth

India’s plastic recycling market presents significant opportunities fueled by government initiatives and policies aimed at promoting sustainability and reducing environmental pollution. The Indian government has implemented several schemes and policies to boost plastic recycling and curb plastic waste generation.

One key initiative is the Plastic Waste Management Rules, 2016, which mandate the segregation, collection, and recycling of plastic waste across the country. Under these rules, Extended Producer Responsibility (EPR) is enforced, holding producers responsible for the collection and recycling of post-consumer plastic waste. This has encouraged manufacturers to adopt environmentally friendly practices and invest in recycling infrastructure.

Furthermore, the Swachh Bharat Mission, launched in 2014, aims to achieve a clean and open-defecation-free India by 2022. Part of this mission involves promoting waste management practices, including plastic recycling, at the community level.

The mission’s emphasis on cleanliness and waste management has led to increased awareness about the importance of recycling and has created opportunities for businesses in the recycling sector. According to the Central Pollution Control Board (CPCB), India generates approximately 26,000 tons of plastic waste daily, with around 40% remaining uncollected.

However, with the implementation of these policies and initiatives, there has been a noticeable increase in plastic recycling rates. For instance, India’s plastic recycling capacity has grown from 60,000 tons per year in 2005 to over 500,000 tons per year in recent years, indicating a growing market for recycled plastics.

Rising Demand for Recycled Plastics in Various Industries

Another significant market opportunity in India’s plastic recycling sector is the increasing demand for recycled plastics across various industries. With growing environmental concerns and a shift towards sustainable practices, businesses are increasingly seeking alternatives to virgin plastics.

Recycled plastics offer a cost-effective and environmentally friendly solution, driving their adoption in diverse sectors. Industries such as packaging, construction, automotive, textiles, and electronics are actively incorporating recycled plastics into their manufacturing processes.

For instance, recycled PET (rPET) is extensively used in the packaging industry for bottles, containers, and packaging films. Similarly, recycled HDPE (rHDPE) finds applications in pipes, crates, and packaging materials.

The Indian government’s push for a circular economy and sustainable development has further propelled the demand for recycled plastics. As a result, the market for recycled plastics in India is expected to witness robust growth in the coming years.

Estimates suggest that the demand for recycled plastics in India is driven by factors such as increasing environmental awareness, stringent regulations, and the cost-effectiveness of recycled materials. This presents lucrative opportunities for entrepreneurs and investors in the plastic recycling sector to meet the rising demand for sustainable packaging and products across various industries.

India Plastic Recycling Market: Segmentation Analysis

India Plastic Recycling market is segmented by Type of plastic. Technologies, recycling process and end use application.

Based on Type of Plastic, India plastic recycling market is segmented into PET (Polyethylene Terephthalate), HDPE (High-Density Polyethylene), LDPE (Low-Density Polyethylene), PP (Polypropylene), PS (Polystyrene), PVC (Polyvinyl Chloride) and Others. Among all these segments, PET (Polyethylene Terephthalate) held the highest market share in 2023.

PET is widely used in packaging, especially for beverages, food, and personal care products. Due to its extensive usage and recyclability, PET recycling is often prioritized. Additionally, there’s a growing awareness of environmental concerns related to PET waste, driving the demand for PET recycling.

HDPE is commonly used in various applications such as packaging, pipes, and construction materials. The demand for HDPE recycling is increasing rapidly due to its versatile applications and the rising emphasis on sustainable practices in industries like packaging and construction.

Based on Recycling process, India plastic recycling market is segmented into Mechanical Recycling, Chemical Recycling, and Energy Recovery. Among all these segments, Mechanical Recycling held the highest market share in 2023.

Mechanical recycling involves the physical reprocessing of plastic waste into new products. It is the most established and widely practised method of plastic recycling due to its simplicity and cost-effectiveness.

Chemical recycling, although relatively newer and more complex, is gaining momentum due to its ability to convert plastic waste into raw materials or feedstock for new plastics or other products. It offers potential solutions for recycling plastics that are traditionally difficult to recycle through mechanical means.

Based on Technological, India plastic recycling market is segmented into Conventional Recycling Technologies and advanced Recycling Technologies. Among all these segments, Conventional Recycling Technologies held the highest market share in 2023. Conventional recycling technologies, such as mechanical recycling, have been in use for a long time and are well-established in the industry.

They form the backbone of plastic recycling infrastructure in many regions, including India. Advanced recycling technologies, including chemical and energy recovery methods, are gaining traction due to their ability to handle a broader range of plastics, including those that are difficult to recycle through conventional means. As technology advances and economies of scale improve, these methods are expected to grow rapidly, addressing challenges in plastic recycling.

Based on End-Use Applications, India plastic recycling market is segmented into Packaging, Construction, Automotive, Textiles, Electronics, and Consumer Goods. Among all these segments, Packaging held the highest market share in 2023. Packaging is one of the largest sectors utilizing plastics, hence generating a significant amount of plastic waste.

Therefore, recycling initiatives in the packaging sector are often prioritized due to the sheer volume of plastic packaging materials. While automotive plastics may not be the largest segment in terms of volume, it’s witnessing rapid growth in terms of recycling due to increasing regulations, manufacturer initiatives, and consumer demand for sustainable automotive solutions.

Report Scope

India Plastic Recycling Market: Regional Analysis

The Indian plastic recycling market exhibits a diverse landscape influenced by regional nuances. In the northern region, encompassing states like Delhi, Uttar Pradesh, and Haryana, plastic recycling is predominantly driven by urban centers due to high population density and industrial activity. However, the sector faces challenges due to inadequate waste segregation infrastructure and informal recycling practices.

Moving to the western region, Maharashtra emerges as a key player with Mumbai as a major hub for plastic recycling. The state’s proactive policies and initiatives have fostered a relatively robust recycling ecosystem, supported by a network of formal recycling units and partnerships with industries. Gujarat also plays a significant role, leveraging its industrial base for recycling efforts.

In the southern region, states like Karnataka and Tamil Nadu have made notable strides in plastic recycling, spurred by growing environmental consciousness and government interventions. Bengaluru stands out with initiatives promoting source segregation and community engagement in recycling initiatives. The eastern region, comprising states like West Bengal and Odisha, faces challenges related to infrastructure and awareness but shows potential for growth with an increasing focus on sustainability and circular economy principles.

Overall, while each region presents unique challenges and opportunities, concerted efforts towards infrastructure development, policy interventions, and public awareness are crucial for advancing plastic recycling across India.

India Plastic Recycling Market: Recent Developments

• In 2021, Reliance signed a memorandum of understanding (MOU) with Srichakra Ecotex, a plastic recycling and waste management company. This collaboration aimed to build and operate a new facility dedicated to producing Reliance’s recycled polyester staple fiber (PSF) called Recron GreenGold and PET flakes in Andhra Pradesh. The project aimed to double Reliance’s PET recycling capacity for PSF manufacturing. This signifies big players entering the recycling space and boosting capacity.

• In 2023, Pharmaceutical giant Lupin announced the launch of their medicines in bottles made from 100% recycled PET plastic. This move reflected a growing trend of companies incorporating sustainable practices into their packaging. This highlights the brand adoption of recycled plastic.

• In 2022, Nepra, a Bengaluru-based startup, inaugurated a PET recycling plant in collaboration with Coca-Cola India. This plant aimed to process 2,700 metric tonnes of PET waste annually, converting it into high-quality food-grade recycled PET pellets. This showcases the rise of innovative startups in the recycling sector.

• In 2023, The Indian Railway Catering and Tourism Corporation (IRCTC) announced plans to introduce various products made from recycled plastic on trains and railway stations. This included water bottles, trays, and other amenities. This indicates government initiatives promoting recycled plastic use.

List of the prominent players in the India Plastic Recycling Market:

• Suez India Private Limited
• The Shakti Plastic Industries
• Gravita India Limited
• Pashupati Group
• Jagriti Polymers
• Mittal Polygrains LLP
• Parkash Plastic
• Shakti Corporation
• UFlex Limited
• Reliance Industries Limited
• Jindal Poly Films Limited
• LyondellBasell Industries Holdings B.V.
• Avery Dennison Corporation
• Borealis AG
• Dow Inc.
• Chevron Phillips Chemical Company LLC
• Formosa Plastics Corporation
• Samsung SDI Co. Ltd.
• BASF SE
• Others

These key players are adopting various organic and inorganic growth strategies such as mergers & acquisitions, joint ventures, expansion, strategic alliances, new product launches, etc. to enhance their business operations and revenues.

The India Plastic Recycling Market is segmented as follows:

By Type of Plastic

• PET (Polyethylene Terephthalate)
• HDPE (High-Density Polyethylene)
• LDPE (Low-Density Polyethylene)
• PP (Polypropylene)
• PS (Polystyrene)
• PVC (Polyvinyl Chloride)
• Others

By Technological

• Conventional Recycling Technologies
• Advanced Recycling Technologies

By Recycling Process

• Mechanical Recycling
• Chemical Recycling
• Energy Recovery

By End-Use Applications

• Packaging
• Construction
• Automotive
• Textiles
• Electronics
• Consumer Goods