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Circular systems market is gaining massive attention with businesses across the globe seeking to solve the plastic conundrum and limit the use of synthetic polymers with serious environmental impacts. The popularity of recycled or circular polymers is further slated to increase, considering the strong global focus on curbing the usage of single-use plastics.
Additionally, there has been increased spending on plastic recycling plants globally. For instance, in October 2021, Trex announced an investment of $400 million in a polyethylene (PE) recycling and production site at the Little Rock Port. Initiatives such as these could bolster the productivity of circular economy polymers developers.
Increasing acceptance for sustainable agriculture and packaging approaches may boost interest in circular polymer solutions
Plastics have become an indispensable part of industries like agriculture to reduce crop loss and enhance production, among other applications. Agricultural plastics are, however, emerging as a threat to environmental sustainability. These factors are stimulating the adoption of eco-friendly alternatives, such as circular polymer materials, in the agricultural sector. Based on data from Global Market Insights Inc., the agriculture segment accounted for above 10% of the circular polymers industry share in 2021.
Apart from agriculture, the packaging industry is one of the major end-users of recycled polymers. For example, The Coca-Cola Company has committed to making all plastic bottles reusable, recyclable, and compostable by 2025. Furthermore, there has been a shifting consumer preference, with sustainable packaging emerging as a vital part of shopping experiences.
Based on a Drapers’ report, 64% of UK consumers are more likely to purchase goods from retailers that offer sustainable packaging. Moreover, 50% of the consumers are willing to pay more for this type of packaging. Factors like these could bolster the use of quality circular polymers for packaging applications.
Circular polymers to gain traction amid a potential increase in polyethylene and auto parts recycling in Europe
Regions like Europe have the potential to expand the recycling capabilities of polymers such as polyethylene. Plastics Recyclers Europe, for example, has observed great potential in recycling PE, which is one of the most processed plastics at over 9 million tons per year in the EU. With the increasing expenditure on packaging solutions due to the booming e-commerce, the recycling rate of polymers could increase, generating a favorable outlook for the circular polymers industry.
Meanwhile, Schumacher Packaging Group has announced plans to invest nearly $736 million between 2021 and 2025, with over $315.4 million earmarked for investment in Germany alone, which could contribute to the rising popularity of circular polymers as a packaging material. Several EU legislations have also emphasized the use of recycled auto parts as a sustainability solution in the region. With over 65 million new cars being sold per year worldwide, reusing and recycling plastic auto parts has become an important element in the fight against pollution, thus bolstering the circular polymers market outlook.
Plastic has long held an indispensable position in industries like automotive, agriculture, and packaging, contributing to serious environmental challenges over the years. To solve this, circular systems are increasingly developed to ensure that the source materials used in plastic production come full circle after recycling, a trend that could prove beneficial for the circular polymers industry over the long run.
Source: https://www.gminsights.com/industry-analysis/conductive-polymers-market