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US Recycled Plastics Market to Grow at 7.9% CAGR Amid Rising Demand from Packaging Sector

10-13-2025 12:21 PM CET | Chemicals & Materials

Press release from: DataM Intelligence 4Market Research LLP

U.S. Metal Recycling Market

U.S. Metal Recycling Market

The U.S. recycled plastics market, valued at USD 2.15 billion in 2022, is projected to expand at a CAGR of 7.9% during the forecast period, according to DataM Intelligence. Recycled plastics-produced by reprocessing polymer waste-are gaining traction as the government and industry stakeholders respond to rising environmental concerns and regulations on single-use plastics. While the COVID-19 pandemic briefly disrupted collection and processing activities in 2020, the market has since rebounded, reinforced by consumer awareness and corporate sustainability commitments.

Polyethylene terephthalate (PET) dominates the market, driven by its extensive application in food packaging films thanks to its durability, chemical resistance, and long lifespan. Regionally, states with strong sustainability mandates and recycling infrastructure lead the market, supported by proactive legislation and growing adoption across packaging, construction, and automotive sectors.

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Key Highlights from the Report

➤ U.S. recycled plastics market projected to grow at 7.9% CAGR over the forecast period.
➤ PET leads the market, with high usage in food packaging films.
➤ Non-food packaging segment expected to grow fastest due to expanding e-commerce.
➤ Regulatory bans on single-use plastics boosting recycled plastic demand.
➤ Growth in construction and automotive applications driven by cost reduction needs.
➤ Market competition shaped by product innovation, partnerships, and sustainability goals.

Market Segmentation

By type, PET accounts for the largest share, driven by its strong performance characteristics and suitability for food-safe packaging. High-density polyethylene (HDPE), polypropylene (PP), and low-density polyethylene (LDPE) are also witnessing strong demand, owing to their recyclability, durability, and increasing adoption in construction materials, automotive parts, and packaging products.

By application, non-food packaging leads in future growth potential, benefiting from the surge in e-commerce-driven shipping of consumer goods, detergents, and personal care items. The food packaging segment remains a major consumer due to sustainability mandates and retailer packaging commitments. Other notable applications include construction-where recycled plastics are used in wall panels, flooring, and films to lower costs-and automotive manufacturing, where they help reduce component weight and materials expense.

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Regional Insights

States with stringent environmental regulations and advanced recycling infrastructure, such as California, Oregon, and New York, are leading adoption. Growth is being further accelerated in manufacturing hubs across the Midwest and Southeast where recycled plastics are integrated into production lines for packaging, construction materials, and automotive components. Coastal states benefit from broader access to recycling facilities and initiatives targeting marine plastic reduction.

Market Dynamics

Market Drivers

Bans on single-use plastics, rising consumer awareness, and advances in processing technology are fueling demand. Recycled plastics' similarity to virgin plastics in durability and versatility makes them attractive to the packaging, consumer goods, and manufacturing industries.

Market Restraints

Virgin plastics still hold an edge in quality performance, particularly in industries where strength and elasticity are critical, like construction and automotive, which may limit recycled plastics' penetration.

Market Opportunities

R&D investments in improving recycled plastic quality and expanding applications in high-value sectors present growth opportunities. The shift toward a circular economy and corporate sustainability commitments also open avenues for market expansion.

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Reasons to Buy the Report

✔ Detailed CAGR forecasts and market value projections for the U.S. recycled plastics sector.
✔ Granular segmentation analysis by type and application.
✔ Insights into regional market leaders and legislative impacts.
✔ Competitive profiling of established and emerging players.
✔ Coverage of macro environmental trends affecting demand dynamics.

Frequently Asked Questions (FAQs)
◆ How big is the U.S. recycled plastics market and what is its projected growth by 2030?
◆ Which type of recycled plastic accounts for the largest share in the market?
◆ What is the expected growth rate of the packaging segment in the market?
◆ Who are the key players shaping the U.S. recycled plastics industry?
◆ How do regulations on single-use plastics impact this market's growth?

Company Insights
KW Plastics

Custom Polymers

Plastipak Holdings

The Coca-Cola Company Incorporated

B. Schoenberg & Co.

Fresh Pak Corporation

Recent Developments:

Several U.S. plastics recyclers have invested in scaling up operations to meet demand from the packaging industry following state-level bans on single-use plastics.

Companies such as Plastipak Holdings are advancing food-grade recycled PET capabilities to meet food safety regulations while addressing sustainability goals.

Conclusion
The U.S. recycled plastics market is positioned for solid growth, underpinned by packaging sector demand, regulatory initiatives, and consumer-driven sustainability trends. PET remains the leading type, but growth in HDPE, PP, and LDPE segments-combined with broader applications in non-food packaging, construction, and automotive-will accelerate market expansion. With a supportive legislative framework and increasing corporate sustainability commitments, recycled plastics will play a vital role in shaping a more circular and resource-efficient economy in the U.S.

Contact Us

Mr. Sai Kiran
DataM Intelligence 4market Research LLP Ground floor
DSL Abacus IT Park, Industrial Development Area
Uppal, Hyderabad, Telangana 500039
USA: +1 877-441-4866
Email: Sai.k@datamintelligence.com
Visit Our Website: https://www.datamintelligence.com

About Us

DataM Intelligence 4Market Research is a comprehensive market intelligence platform offering syndicated and customized reports along with expert consulting across multiple industries, including chemicals, healthcare, agriculture, food & beverages, and more. With extensive experience and a strategy-focused approach, DataM provides businesses and individuals with reliable market insights, statistical forecasts, and personalized research solutions to help them make informed decisions and successfully bring innovations to market.

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