Huge Demand For Recycled Plastics Market

- Jun 16, 2020-

Huge demand for recycled plastics market

1. Environmental protection China practices the development concept of "green water and green mountains are golden mountains and silver mountains", and adheres to the basic national policy of saving resources and protecting the environment. Compared with traditional plastics, recycled plastics have great environmental protection advantages. Taking polyester as an example, the energy demand of regenerated polyester is less than 2 / 3 of the original, and 2 / 3 of sulfur dioxide and 1 / 2 of nitrogen dioxide are reduced, and the water consumption is also reduced by 10 times. At the same time, there is no need to landfill the original plastic. 2. Plastic performance excellent plastic has excellent chemical stability, corrosion resistance, electrical insulation, heat insulation, excellent shock absorption, sound absorption and insulation, and has good elasticity, can be well bonded with metal, glass, wood and other materials, easy to process and shape. For example, hips is an excellent recycled plastic on the market. Its impact strength is very high, more than 4 times higher than ABS. Its electrical insulation is also very good. Hips is easy to color and print. Moreover, the special brittle and impact resistant defects can be solved by rubber modification. 3. There is a huge demand for recycled plastics. The annual production of plastics in the world has reached 350 million tons. China is the world's largest plastic production and consumption country, producing more than 100 million tons of plastic raw materials and 60 million tons of plastic consumer products.

According to the report of fiormarkets, a consulting and research company, the global market value of recycled thermoplastic is expected to reach US $104.76 billion by 2026, with a compound annual growth rate of 9.98% from 2019 to 2026. A medium-sized plastic woven bag factory consumes more than 2000 tons of recycled PP particles every year, and even a small individual factory needs millions of tons of recycled PP particles every year. A medium-sized shoe factory needs PVC particles every year 2000 tons, the huge demand of plastic products enterprises for recycled particles, provides a broad market space for enterprises and individuals to establish renewable plastic recycled particles factory.

 

1. Domestic policies boost recycled plastics industry

At present, China has issued many programs and plans, such as the implementation plan of the extended producer responsibility system issued by the State Council in 2016; the State Council proposed to establish and improve the extended producer responsibility system in 2017 in the implementation plan of the reform of the management system for the import of solid waste to promote the entry of foreign garbage; when the State Council issued the pilot work plan for the construction of "waste free city" in 2019 It is proposed to restrict the production, sale and use of disposable non degradable plastic bags and plastic tableware, and expand the application scope of degradable plastic products. In 2019, the opinions on Further Strengthening the treatment of plastic pollution issued by the central comprehensive Deepening Reform Commission

However, the supporting policies of EPR have not been fully established. In China, the whole plastic recycling system is still the mode of "waste picker + municipal treatment + end recycling industry".

 

2. Global attention, multinational action

In 2018, the policies of Southeast Asian countries continue to send tightening signals. At present, the market is on the road of prohibition. In 2020, Indonesia began to inspect 100% of waste paper and plastic imports in early April. Malaysia suspended the application of waste plastic access permit at the end of May. Vietnam suspended the import of waste plastics in June. Thailand has banned the import of recycled plastics since August 1. Only raw material particles can be imported.  Under the background of accelerating the transition to circular economy in Europe, the European Commission established the closed-loop plastic alliance at the end of 2018, aiming to cover the entire plastic value industry chain of member countries, from waste plastic collectors, recycling enterprises, primary producers, traders, brand makers to retailers, involving the packaging industry, construction industry and automobile industry, forming a closed-loop industrial chain. The alliance requires at least 10 million tons of recycled plastic in new products on the EU market by 2025. In the European plastic strategy announced at the beginning of this year, it is also clear that by 2030, all plastic packages in the EU market will be reusable or recyclable, reducing the consumption of disposable plastic and limiting plastic particles more.  Japan will also introduce a "Japanese version" of the plastic strategy, aimed at reducing the pollution of marine plastic waste. At present, more than 65% of the recycled materials in Japan are recycled through heat recovery, 27% through mechanical processing and 5% through chemical recovery. With the increase of waste supply, incineration over capacity treatment has seriously affected the climate warming. Therefore, Japan hopes to follow the EU and increase the proportion of recycling.  

 

3. Brand enterprise action

The recycling economy of plastics has become the general trend, and brands and polymer enterprises have begun to pay attention to recycling. At present, chemical giants such as Dow, Nordic chemical, Ineos, SABIC, Eastman, and Crestron are all making great strides in the renewable plastic industry. For example, Dow has set a target of supplying 100000 tons of recycled plastic products to European customers in 2025, Ineos plans to use at least 325000 tons of recycled materials every year, Eastman provides innovative polyester recycling technology, etc. The global response to the growing voice of plastic pollution has put Coca Cola, Pepsi Cola, Nestle and other brands using a large number of plastic packaging on the wave. Coca Cola said that by 2025, all packaging will be recyclable, reusable or compostable.  Pepsi also plans to make all its products recyclable, compostable or biodegradable by 2025. Nestle has promised to increase the bottled recycled PET content of its two drinking water brands to 50% by 2025.