United States Aluminum Recycling Market to Hit $27.39 Billion by 2032, Driven by Sustainable Materials & Circular Economy

Leander, Texas and Tokyo, Japan - Dec.03.2025
As per DataM intelligence research report" Aluminum Recycling Market Size reached US$ 57.2 billion in 2024 and is expected to reach US$91.3 billion by 2032, growing with a CAGR of 6.2% during the forecast period 2025-2032." Sustainability targets and rising demand for low-carbon materials are accelerating investments in aluminum recycling.

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United States: Recent Industry Developments

✅ In November 2025, the Aluminum Association urged the U.S. government to restrict exports of high-quality aluminum scr@p This initiative aims to retain more used beverage cans (UBCs) domestically to strengthen national manufacturing supply chains It supports the U.S. industry's push toward circularity and reduced reliance on primary metal imports

✅ In October 2025, Toyota Tsusho America completed the full acquisition of Radius Recycling to bolster its U.S. operations The move integrates s€rap processing capabilities directly into Toyota's North American supply chain It secures a stable source of recycled non-ferrous metals for domestic vehicle production

✅ In September 2025, Glencore strategically adjusted its stake in Century Aluminum to optimize its U.S. asset portfolio The decision reflects a shift toward supporting low-carbon aluminum production facilities in the region It aligns with the broader U.S. market trend of capitalizing on green manufacturing subsidies

✅ In August 2025, major U.S. recycling stakeholders partnered with sorting technology firms to install AI-driven separation systems The upgrade allows for better separation of alloy grades to expand remelting capacity for high-performance applications It addresses the growing demand for low-carbon aluminum in the U.S. automotive sector

Japan: Recent Industry Developments

✅ In November 2025, LIXIL announced the full adoption of its low-carbon "PremiAL" recycled aluminum across all extrusion products The switch achieves a 50% reduction in CO2 emissions compared to traditional primary aluminum processing It sets a new sustainability standard for Japan's construction materials industry

✅ In September 2025, JX Advanced Metals committed a ¥7 billion investment to expand its recycled material pre-treatment capacity The project aims to increase the processing of aluminum s€rap by 50% by fiscal year 2027 It reinforces Japan's "Green Hybrid Smelting" strategy to maximize resource efficiency

✅ In March 2025, Yamaichi Metal and UACJ formed a joint venture to recycle used beverage cans into high-purity chips The partnership focuses on de-coating technology to produce premium recycled aluminum for new can sheets It accelerates the realization of a closed-loop aluminum ecosystem in Japan

✅ In January 2025, The Japan Aluminum Association reported a record high in the utilization rate of recycled aluminum in the automotive sector The milestone reflects the successful collaboration between automakers and recyclers to reduce vehicle weight It highlights Japan's progress in decarbonizing its heavy manufacturing industries

Aluminum Recycling Market: Drivers
The aluminum recycling market is expanding as industries prioritize circular economy practices, energy savings, and sustainable material sourcing. Recycled aluminum requires significantly less energy to produce compared to primary aluminum, making it an essential material for automotive, construction, packaging, and electronics sectors. Rising demand for lightweight materials, lower carbon footprints, and cost-efficient production is driving adoption across global manufacturing ecosystems. Technological advancements in sorting, shredding, and smelting processes are improving recovery rates and material purity. Additionally, regulatory pressure to reduce waste and promote recycling infrastructure is strengthening market growth.

Collaboration among recyclers, manufacturers, and policymakers is accelerating development of high-quality recycled aluminum products. Growth in beverage can recycling, automotive lightweighting, and green building initiatives is expanding application areas. Integration of smart sorting technologies, AI-driven material identification, and automated processing lines is enhancing operational efficiency. With rising sustainability commitments, industrial innovation, and global recycling targets, the aluminum recycling market is positioned for strong long-term expansion.

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Aluminum Recycling Market: Major Players
Norsk Hydro ASA, Novelis Inc., Rio Tinto, Constellium, Speira, Kobe Steel Ltd, Kaiser Aluminum, Hanwa Co., Ltd, Matalco, Raffmetal and others.

Segment Covered in the Aluminum Recycling Market:
By Source
Post-consumer s€rap leads with 56% share, driven by rising beverage can recycling, construction waste recovery, and strong circular economy regulations. Pre-consumer s€rap accounts for 44%, supported by manufacturing leftovers from automotive, packaging, and extrusion industries that offer high-quality, clean aluminum recovery.

By Aluminum Type
Cast aluminum dominates with 48% share, largely from automotive components, engine blocks, and machinery parts entering recycling streams. Wrought aluminum holds 52%, driven by demand for recycled sheets, foils, and extrusions used in packaging, aerospace, and building materials.

By End-User
The automotive sector leads with 34% share, using recycled aluminum for lightweighting and fuel-efficiency improvements. Packaging accounts for 29%, driven by high-volume can-to-can recycling. Building & construction holds 22%, benefiting from strong sustainability mandates. Other sectors-including electronics and machinery contribute 15%.

Regional Analysis
Asia Pacific - 38%
Asia Pacific leads with 38% share, supported by large manufacturing bases, strong s€rap availability, and aggressive recycling expansion in China, India, and Japan.

Europe - 28%
Europe holds 28%, driven by strict circular economy laws, high beverage can recycling rates, and strong demand from automotive and aerospace industries.
North America - 24%
North America accounts for 24%, backed by mature recycling infrastructure, high consumer s€rap collection, and strong demand in packaging and automotive sectors.

Latin America - 5%
Latin America contributes 5%, led by Brazil and Mexico's growing recycling capacity and rising adoption of recycled aluminum in packaging.
Middle East & Africa - 5%
Middle East & Africa hold 5%, with growth supported by new smelter-integrated recycling plants and increasing urban s€rap generation.

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