Reshaping the recycling plastics market

The rapid growth of the global plastics recycling market hides a sector undergoing dramatic change. Recent innovations all along the plastics recycling value chain are transforming the very foundations of the industry while unlocking new found value in used plastic.

Driven by the pressing need to expand recycling capacity and performance for greater circularity, these advancements promise to reshape the market landscape in the years ahead. From cutting-edge chemical processes to artificial intelligence systems optimising sorting accuracy, new technologies are evolving rapidly to handle more waste plastic, produce higher-quality recycled resin, open new end markets and strengthen value recovery economics.

The success of these innovations will determine if recycled polymers can expand their footprint substantially across global manufacturing one day. As technology barriers fall, the conditions strengthen for recycled resins to capture 20-50% share across major plastic segments as projected over the next 10-20 years by leading industry groups like the Alliance to End Plastic Waste.

Recycled plastics refer to plastics that undergo processes such as sorting, cleaning, and reprocessing to be reused in various applications. Recycling plastics helps mitigate environmental pollution, reduce dependence on virgin plastic production, and conserve natural resources. According to Persistence Market Research, the global recycled plastics market is currently valued at $30 billion. With a compound annual growth rate (CAGR) of 6.5%, the market is projected to reach $50 billion by 2023–2030. Factors such as increasing plastic waste generation, advancements in recycling technologies, and rising adoption of circular economy principles are driving market expansion.

Yet market growth depends on continued technology innovation to drive efficiency, quality and scale. Here we explore some of the most disruptive advances poised to transform plastics recycling globally:

Chemical recycling - the game changer

Also referred to as advanced recycling, chemical recycling technology employs chemical processes including pyrolysis and other techniques to break down post-consumer plastic waste into individual polymers or other feedstocks. These building blocks then reconstitute into new virgin-quality resins free of contamination.

For recyclers, brand owners and manufacturers, this next-generation recycling promises to be the ultimate game changer by enabling robust scaling of high-purity PCR supply. Unlocking far greater value in hard-to-recycle plastic waste streams, chemical recycling systems can handle the vast majority of plastic packaging materials.

With processing flexibility plus extreme traceability, the resulting PCR resins can readily meet strict technical specifications for sensitive food contact, medical technology and other advanced applications too. This immense potential across the plastics value chain is driving massive investment in chemical recycling infrastructure worldwide. Over $7 billion has funded advanced recycling projects since 2019, with capacity expected to reach over 6 million metric tons by 2030.

AI to optimise efficiency & quality

The integration of artificial intelligence (AI) and machine learning has opened new doors for optimising waste plastic sorting, identification, separation and processing at materials recovery facilities (MRFs). AI-powered robotic systems can now identify different polymer types, colours and formats at very high speeds to support precise automated sorting. This boosts efficiency, yield rates and output quality.

Sophisticated AI tools can also detect labels, glue, inks, paper and other contaminants in the sorting process for cleaner bales of recycled polymers. Additional pilot projects show promise in utilising AI and hyperspectral imaging to trace exact types and properties of waste plastic for smarter recycling. As the technology develops, machine learning promises to minimise manual labour needs while preventing human sorting errors that diminish quality.

Blockchain delivers reliable traceability

The rise of blockchain platforms specifically designed for plastics tracking now enables reliable traceability and transparency across the recycling chain. This emerging application reassures manufacturers that resin output matches input specifications while preventing falsified sustainability claims.

Blockchain documentation traces material flows “from pellet to pallet to product” by collecting key data points along the recovery, sorting, reprocessing and resin production process. This builds essential market trust in recycled content while supporting reliable analysis of environmental savings. In fact, leading global brands across packaging, fashion and consumer electronics industries have already adopted blockchain-verified PCR content to confirm true circularity.

Flexible packaging recycling breakthrough

Flexible plastic packaging like pouches and films represent the fastest-growing packaging segment today with over $230 billion in annual sales. Yet until recently, multi-layer and flexible packaging suffered notoriously low recycling rates near 15% or less due to tricky polymer combinations and small format challenges traditional MRFs couldn’t handle.

Now breakthrough preprocessing and extrusion technologies specifically designed to capture post-consumer flexible packaging are coming online to alleviate a major plastic waste bottleneck. Flexible packaging recycling plants can filter, wash and separate layers before outputting recycled polymer flakes or pellets suitable for reuse across films, packaging and more.

Industry leaders expect capacities for recyclable flexible PE and PP packaging alone to reach nearly 350,000 tons annually in the next few years, expanding end markets for these previously unrecyclable formats.

The future of plastics recycling

While plastics recycling activity has gained momentum, current mechanical recycling infrastructure still only captures a sliver of post-consumer plastic waste globally. Persistent limitations hinder quality, economics and scalability. This untenable equation demands ongoing technology innovation that redefines recycling processes, economics and end markets.

The latest advancements reviewed here promise to exponentially increase global recycling capacity while drastically improving repeatability, traceability and reliability in producing recycled plastic suitable for nearly any application.

As these technologies proliferate across markets worldwide, they bring the industry closer to the principles of a circular economy by extracting maximum value from used plastic. In turn, recycled resins can displace larger shares of virgin plastic annually across packaging, building supplies, textiles, automotive components and other manufacturing verticals.

The widespread adoption of these recycling innovations will reshape the future plastics value chain toward one thriving on its own plastic waste. In the end, technology breakthroughs that heighten plastic circularity today create the foundation for a vibrant and viable recycled plastics market tomorrow and beyond. Those leading the charge understand that persistent technology innovation is imperative to fully transform recycling economics, supply dynamics and end markets at meaningful scale.