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Summary and extracts

1 Market overview

1.1 Definition and presentation

Recycling is a key process in the ecological transition, enabling waste to be processed and certain materials to be reintroduced into the production of new products. Among these, plastic, a ubiquitous material but a major source of pollution, is attracting growing interest. In 2024, the global plastic recycling market will be worth USD 49.98 billion, with promising growth prospects, at an expected compound annual growth rate (CAGR) of 4.5% until 2033. This trend reflects a global awareness of the challenges of sustainability and resource management.

In France, plastic recycling began in 1992 with the introduction of selective sorting. Today, it is driven by ecological ambitions and regulatory commitments such as the AGEC law, aimed at reducing the environmental impact of plastics. However, despite these advances, challenges persist: in 2022, only 29% of plastic waste was recycled, while 43% was incinerated to produce energy and 28% landfilled. The packaging industry alone, which generates 2.5 megatons of plastic waste out of the 4.5 megatons produced each year, illustrates the under-exploited potential of recycling. The average French person consumes 15 kilos of recyclable plastic waste per year, a figure still too low to offset the impact of non-recycled plastics.

The ORMAT project, launched in 2023 by ADEME and supported by the Circular Economy Fund, bears witness to our determination to structure a high-performance circular economy. By supporting feasibility studies and industrial investments, this program aims to improve national plastic sorting and regeneration capacities. With 179 projects selected in its first year, and 36.87 million euros in aid granted, ORMAT is positioned as a strategic lever for boosting the incorporation of recycled raw materials (RRM) into production chains. This project responds to a growing demand for recycled materials, while reducing dependence on virgin plastics and imports.

At the same time, ambitious targets have been set at European level: to achieve a 90% collection and recycling rate for plastic bottles by 2029, compared with 60% by 2022 in France. However, the sector still faces major economic challenges, not least the competitiveness of recycled plastic versus its virgin equivalent. Falling oil prices have reduced the price of virgin PET to €600 per tonne by 2023, compared with €700 for its recycled equivalent, slowing down the adoption of recycled plastics by manufacturers.

Finally, plastic recycling also faces technical challenges, such as "decycling", where recycled plastics become lower-value products, limiting their re-entry into a closed loop.

1.2 Global market

The global recycled plastics market, valued at **.** billion USD in ****, is expected to reach **.** billion USD by ****, with a compound annual growth rate (***) of *.*% over the period ****-****. This market is characterized by strong regulation and a wide diversity of players worldwide, reflecting the importance of technological advances and new applications for recycled plastics. Growing demand for plastics in sectors as diverse as construction, automotive, medical devices and electronics is driving the market, notably through their use in durable and resistant packaging solutions.

evolution of plastic recycling sales World, ****-****, US$ billion Source: ****

The COVID-** pandemic has accelerated the shift towards e-commerce and food-to-go, increasing demand for recycled packaging in materials such as PET, polyethylene and polystyrene. Growing concerns about plastic pollution, harmful emissions and the depletion of crude oil reserves are driving industries to favor recycled plastics, helping to reduce their carbon footprint. Companies, especially small and medium-sized ones, are committing themselves to using recycled or sustainable materials, responding to the expectations of consumers who are increasingly concerned about the environmental impact of the products they buy.

In addition, stringent government regulations, such as taxes on non-recycled packaging in Europe and circular economy initiatives, are reinforcing this trend. Despite this ...

1.3 Domestic market

The production of PRM (***) in France was *** kilotonnes in ****, with sales of *** million euros generated by the collection and preparation of plastic waste. These data, presented in the ADEME **** recycling dossier, are the most recent available on the subject. The quantities recycled and their recovery should increase as French legislation increasingly takes up these issues.

PRM production in France France, ****-****, kilotonnes Source: ****

In ****, this production is estimated at *** kt, marking a slight drop compared to previous years, particularly the *** kt reached in ****, due to the economic slowdown linked to the pandemic. However, a strong recovery is observed in ****, with production reaching *** kt, a significant **% increase on ****. Over the ten-year period, PRM production has generally followed an upward trend, with average growth estimated at **% per year.

This figure should be seen in the context of the virgin plastics production sector:

The dynamics of the virgin plastics production sector France, ****-****, in kilotonnes Source: ****

In ****, the production of recycled raw materials (***), while the production of virgin plastics will reach *,*** kt. This means that RPMs will account for around **% of total plastics production in France this year.

Where will plastic waste come from in ****, according to the latest ADEME data?

Breakdown by sector ...

1.4 Global plastics flows

Plastic waste flows can be analyzed using data provided by UN Comtrade under HS code ****: "Plastic waste, trimmings and scrap". Data on recycled plastic flows is not available, but data on scrap gives an idea of the destination of the plastics used, which constitute the resource from which recycled plastic is made. These data also illustrate the urgency of finding ways to recycle plastic and find alternative outlets to landfill or incineration.

Net exporters

In ****, the world's biggest emitter of plastic waste was Japan, with nearly *** thousand tonnes exported, representing a value of around US$*** million.

Net exporters of plastic waste World, ****, tonnes Source: ****

Net importers

For countries that import plastic waste, recycling can become a lucrative business. However, given the often degraded conditions under which recycling is managed, this often results in environmental damage. This is why China has banned the import of plastic waste into its territory in ****. Malaysia and Vietnam have replaced it, becoming Asia's biggest importers. The world's biggest importer is Turkey, which recovers the volumes emitted by its European partners.

Net importers of plastic waste World, ****, tonnes Source: ****

2 Demand analysis

2.1 Increased plastic production

Plastic recycling has emerged as a solution to the exponential growth in plastic production since the ****s. An OECD report forecasts primary plastic production at *,*** million tonnes by ****. This scenario would be effective if the *% per annum growth in tonnage produced between **** and **** were not to decline. In ****, ***.* million tonnes of primary plastic were produced, * times more than in ****.

evolution of primary plastic production World, ****-****, million tonnes Source: ****

This rapid growth can be explained by various factors, outlined below:

High strength-to-weight ratio; The fact that it enables an infinite number of shapes to be produced with great ease; Low production costs; Impervious to liquids; High resistance to physical and chemical degradation.

This explains why it is so widely used, as in food preservation, the automotive industry and infrastructure.

2.2 Who's driving the sector?

In ****, total plastics production in France amounted to *,*** kilotonnes (***) in ****, packaging also dominates with **%, although the construction and automotive industries take a proportionally larger share. This data highlights the key role of packaging as the main driver of the plastics sector, while underlining the growing importance of construction and automotive in market dynamics.

Breakdown of plastics use by sector in France France, ****, as % of total Source: ****

2.3 A major determinant: Construction

The plastic market, and therefore the market for recycled plastic, is linked to the construction industry, which accounts for **% of total plastic use. So when the construction and demolition markets are doing well, the plastics market follows this positive trend.

For some years now, the demolition market has been following an upward curve, although the last two years have seen a slowdown.

Number of property demolition permits France, ****-****, in units Source: ****

An interesting indicator to look at to learn more about the health of the construction sector is that of sales of older homes:

Trend in sales of older homes France, ****-*****, by units sold **** : (***) Source: ****

Trends in the number of real estate transactions in the older housing segment have a direct influence on construction activity. This is because, on a fairly regular basis, renovation work is undertaken following these sales.

Between **** and ****, we observed continuous growth in the volume of sales of older homes, with an average increase of *.**%. However, from **** onwards, various factors such as rising interest rates and declining household purchasing power, linked to inflation, caused a steady decline in the sale of older homes. In July ****, transaction volumes even reached a level similar to that recorded ...

2.4 An essential determinant: the automotive sector

The automotive sector drives demand for plastics, accounting for *% of total plastics use. One way of gaining an overview of this sector is to study the total number of passenger cars in France. In ****, there were **.** million, while in ****, there will be **.** million. A growing automotive sector means higher plastics production.

All passenger cars France, ****-****, in millions Source: ****

2.5 Countering plastic pollution

Ocean pollution

Global plastic production has exploded since the ****s, rising from a few tonnes to *** million tonnes a year today(***), and this figure could exceed *** million tonnes by ****. Unfortunately, only a small proportion - around **%- is recycled, leaving * billion tonnes of waste to accumulate in nature, where much of it ends up in the oceans.

An Astronomical Quantity of Plastic in the Oceans

It is estimated that the oceans currently contain between ** and *** million tonnes of plastic, **% of which comes from rivers and coasts, and **% from marine activities such as fishing. This waste is distributed as follows: only *.*% floats on the surface, while **% lies on the seabed. These plastics degrade into microplastics, which are invisible but devastating for marine ecosystems.

Alarming annual spills

Every year, between ** and ** million tonnes of plastic are dumped into the oceans - the equivalent of **,*** Boeing ***s. The Mediterranean alone receives ***,*** tonnes a year. If no drastic measures are taken, this volume could triple by ****, reaching ** million tonnes a year.

The *th Continent: A Tangible Threat

The North Pacific Waste Vortex, nicknamed the "*th Continent", covers *.* million km² (***) and contains *.* trillion pieces of plastic, mainly fishing debris. These ghost nets account for **% of marine ...

3 Market structure

3.1 Plastic recycling stages

at present, not all plastics can be recycled. The three families that are widely recycled today are :

Polyethylene terephthalate (***): water, soda and edible oil bottles; High-density polyethylene (***): bottles for shower gel, shampoo, sauce or washing-up liquid; Polypropylene (***): reusable hard plastic tableware, for example.

They can be recycled in the yellow bin, and have a choice of two logos on their packaging: the Moëbius ribbon or the Triman. On the other hand, plastics that are too thin, such as plastic packaging, films and bags, are difficult to recycle, although scientific research is seeking to remedy this problem.

As a result, the first stage in the recycling process is sorting, to collect recyclable plastics before processing them in a plant. The various stages are summarized in the table below.

Source: ****

3.2 Origin of plastics used

The breakdown of plastic waste collected in France in **** totals *,*** kilotonnes. The majority of this waste, around **%, comes from post-consumer waste, such as packaging or used plastic products, while the remaining **% comes from manufacturing waste, linked to industrial processes. This breakdown highlights the importance of post-consumer waste in the overall flow, although both types of collection contribute to the national recycling effort.

Origin of plastic waste for recycling France, ****, in Source: ****

The table shows the evolution of post-consumer plastic waste collection rates in France between **** and **** for different sectors. These percentages indicate the proportion of waste collected for recycling in relation to the total waste generated in each sector, making it possible to assess the specific efforts made according to sector.

In ****, the agricultural plastics (***), with just **% of waste collected in ****. These variations illustrate the contrasting dynamics between sectors, reflecting both specific constraints and the improvements made to collection in certain sectors.

Trends in French collection rates for post-consumer plastic waste by sector France, ****, as % of total Source: ****

3.3 Destination of used and recycled plastics

The French throw away between *.* and *.* million tonnes of plastic waste a year. The gap between these figures is that between the estimates of the French Ministry of Ecological Transition and those of the NGO WWF. Only **% of this waste was recycled in ****. To remedy this situation, France has set a target of ***% recycled plastic by ****.

Destination of used plastics France, ****, % Source: ****

In ****, the total volume of plastic waste directed to regenerators in France is estimated at *** kilotonnes (***), with losses estimated at *** kt. Excluding losses, this volume reflects a notable *% increase on **** and represents a doubling on ****. This growth illustrates the growing effort to direct collected plastics towards regeneration channels, although waste continues to be exported or lost.

Volumes of plastic waste directed to regenerators in France France, ****-****, in Kilotonnes Source: ****

The graph shows that waste collected and sent to regenerators increased significantly between **** and ****, from *** kt in **** to *** kt in ****. This trend illustrates progress in plastics management in France, but also persistent limitations linked to losses of *** kt and sorting infrastructures. These figures highlight the growing importance of regeneration as a response to environmental challenges, while underlining the need for ongoing improvements to reduce losses.

To go into more ...

3.4 Sector players

On the primary plastics market, there are *** producers of virgin resins, including ** sites with plastic regeneration activities, and *** plastic packaging manufacturers. Finally, there are *** plastic waste collection and processing sites. This represents sales of €*** million and requires the contribution of *,*** employees.

According to Jean-Luc Petithuguenin, founder of Paprec, the sector is a major job creator: "The debate on the synergies of this merger is ill-considered. Recycling requires eight times as many jobs as landfilling. The sector's problem isn't job losses, it's recruitment!"[***]

case studies: the new Eastman and Loop Industries sites

3.5 Recent price rises in the virgin plastic sector: Opportunity for recycled plastic?

The rise in the price of imported plastic is due to a tangle of geopolitical, logistical and economic factors that have upset the balance of the European market. The Red Sea crisis, triggered by military tensions, has had a major impact on sea freight. Repeated attacks by Houthi rebels forced many shipping lines to bypass the area, opting for a longer route via the Cape of Good Hope, thereby increasing transport costs and times. This led to a surge in freight rates, which was quickly passed on to the prices of imported raw materials, including polymers from Asia. The IMF estimates that trade flows across the Red Sea have fallen by almost **% since the beginning of****, exacerbating supply tensions.

At the same time,Europe finds itself in a particularly fragile situation. Imports of Asian polymers, which used to play a key role in balancing the market, have become less competitive as a result of these cost increases. Prices for materials such as polypropylene (***) climbed rapidly, with increases sometimes reaching three figures. This surge is taking place against a backdrop of reduced European supply, the result of strategic choices made by local producers in the face of weakening demand. Since the end ...

4 Offer analysis

4.1 Recycled plastic award

PET, polyethylene terephthalate, used in particular for packaging in the form of bottles, is one of the most widely recycled plastics, thanks to a technology that has been in use for over ** years. While the price of recycled PET, or rPET, used to benefit from a discount, this trend has been reversed since ****: the price of virgin PET averaged *,*** euros/tonne in ****, while that of rPET reached *,*** euros/tonne. [***]

This increase can be explained by the tightening of regulatory requirements, which are gradually forcing European manufacturers to increase their use of recycled plastic[***]. At present, global rPET production is only *% of that of PET, or ** million tonnes.

Europe's mandatory rPET incorporation rate in bottle production Europe, ****-****, %, %, %, %, %, %, %, %, %, %, %, %, % Source: ****

as an indication, the prices of plastics in **** were as follows:

following sanitary restrictions, which led to numerous production stoppages, the rebound in demand caused a shortage of polymers, which in turn drove up their price.

4.2 Composite recycling

Until now, composite materials have been impossible to recycle, due to their composition: at least two different phases, joined by a bonding material, and structured by a fibrous material. Recycling them is therefore a real headache, because of the need to separate the different materials. There are, however, opportunities for recycling:

Source: ****

4.3 The ORMAT Project

The ORMAT (***), particularly in sectors such as plastics, metals, textiles, wood and mineral materials. With *** projects selected in its first edition, for a total of **.** million euros in grants awarded, ORMAT reflects the commitment of French manufacturers to the transition towards a more sustainable and resilient supply. The relaunch of the program in ****, with a projected budget of ** million euros, testifies to its strategic importance in the French industrial and environmental landscape.

The ORMAT project has two main focuses: support for feasibility studies and technical diagnostics, and investment in industrial infrastructure. These initiatives target all stages of the recycling value chain, from the sorting and preparation of waste, through its incorporation into production lines, to its regeneration into PRM. For example, companies wishing to incorporate PRM into their products often have to modify their production lines to meet quality and performance constraints, a complex issue that the ORMAT project is helping to resolve.

By focusing on the plastics industry, ORMAT is playing a key role in meeting the growing demand for recycled materials. By ****, plastics collection in France will have reached *.* million tonnes, with a significant increase in regenerated plastics. However, the industry remains under pressure, with collection rates still limited ...

5 Regulations

5.1 Gradual tightening of regulations

EU Directive ****/*** on packaging and packaging waste sets clear targets for all ** European countries and ** companies that have signed the "European Plastics Pact", of which France is one:

**% of plastic packaging recycled by **** and **% by ****; **% of plastic bottles collected by ****; **% recycled plastic incorporated into plastic bottles marketed in the European Union by ****, and at least **% by ****.

on a national scale, the movement towards a circular economy within which recycling would have to play a central role was given impetus by the law of February **, ****.

Source: ****

*R Decree: April **, ****:

Aims to eliminate unnecessary single-use plastic packaging by **** and reduce single-use plastic packaging by **% by ****. Encourages eco-design and the use of recycled materials.

Decree no. ****-****: October *, ****:

Gradual ban on plastic packaging around unprocessed fresh fruit and vegetables from January *, ****. Promotes transition to recycled or alternative materials.

Decree no. ****-****: December **, ****:

Ban on certain single-use plastic products, including cutlery, spoons and boxes made of expanded polystyrene from January ****. Encourages manufacturers to adopt recycled or biodegradable alternatives. [***]

Decree: April **, ****:

This decree amends article R***-** of the French Consumer Code to incorporate the provisions of European regulation (***). It imposes requirements on documentation, labeling, new recycling technologies, and contamination monitoring. Failure to comply ...

5.2 AGEC law changes for 2025

***% recyclability of single-use plastic packaging:By ****, all single-use plastic packaging must be fully recyclable. This measure aims to strengthen the recycling industry by eliminating substances that limit the circularity of plastics. **% reduction in single-use plastic packaging:The aim is to reduce single-use plastic packaging by **% compared with ****, with at least **% of this reduction achieved through reuse. Mandatory plastic microfiber filters on washing machines:From January *, ****, all new washing machines will have to be fitted with microfiber filters to limit ocean pollution. In fact, * kg of laundry releases around ***,*** microfibers of polyester and ***,*** microfibers of acrylic each time it is washed. Environmental bonuses and penalties:Products subject to Extended Producer Responsibility (***), such as packaging, batteries and electronic products, will be assessed according to environmental criteria. Premiums will encourage eco-designed products, while penalties will be applied to those with a negative impact. equipping public spaces with sorting garbage cans:By ****, sorting garbage cans will be deployed in parks, streets and public spaces to improve waste management outside the home. Five-year action plans:Producers belonging to an EPR channel will be required to draw up an action plan every five years for waste prevention and eco-design.

In conclusion, the AGEC law's changes for **** mark ...

6 Positioning the players

6.1 Segmentation

6.2 The analyst's eye

Introduction:

The plastic recycling market has become an essential component of the global ecological transition. In ****, it will represent an industry worth USD **.** billion worldwide, with sustained growth prospects (***) and increased demand from manufacturers seeking to reduce their carbon footprint. However, despite these advances, the plastics recycling rate in France remains low, with only **% of plastic waste recovered by ****.

Key trends:

*st trend: The sector is driven by packaging, construction and automotive, which (***).

*nd trend: The pool of plastic to be recycled is enormous. By ****, no less than ** to ** million tonnes of plastic will be discharged into the oceans every year - an opportunity for recycling.

*rd trend: **% of plastic waste for recycling comes from post-consumer waste, while the remaining **% comes from manufacturing waste linked to the industrial process in **** (***).

*th trend: The highest collection rates are in the agricultural plastics (***)

*th trend: By ****, only **% of plastics collected will be recycled. **% is used for energy recovery (***) and the remaining **% is landfilled.

*th trend: Plastics in general will experience inflation of *.*% in **** compared to ****. Other raw materials such as sugar and chocolate record a *% drop in prices over the year.

Challenges:

Recycled plastic in France faces ...

  • Paprec Groupe
  • Véolia Groupe
  • Suez Groupe
  • Eastman
  • Loop Industries
  • Earthwake Entreprise
  • Skytech
  • &Repeat
  • Galloo Recycling
  • Plasticlean
  • Recyclex
  • Plastus
  • Infineo
  • CARBIOS
  • Aloxe
  • Green Dot Bioplastics
  • Südpack
  • Buitex (Semin groupe)
  • Léko
  • plast'if

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