How to Secure a Leading Position in the Waste Plastic Recycling Market... Samjeong KPMG Publishes Report

Diversifying Recycling Businesses and Expanding Portfolios

As the use of plastic increases, the waste plastic recycling market is rapidly growing, and market preemption strategies such as expanding waste plastic recycling portfolios and advancing technology have been proposed.

According to the report titled "The Resurgence of the Waste Boom, Focusing on Waste Plastic Recycling," published by Samjong KPMG on the 18th, the global waste plastic recycling market, which was valued at $69.4 billion in 2023, is expected to grow at an average annual rate of 8.1% and reach $120 billion by 2030. The domestic market is also projected to grow from KRW 1.6703 trillion in 2019 at an average annual rate of 6.9%, reaching KRW 2.8486 trillion by 2027. The report explained, "In line with the growth of the waste plastic recycling market, domestic large corporations, startups, and private equity (PE) firms are actively responding."

It further suggested, "To preempt the waste plastic recycling market, domestic companies should first strengthen their competitiveness through business diversification that covers everything from plastic collection and sorting to product manufacturing." In particular, PE firms are expected to enhance corporate value and improve investment performance based on vertically integrated waste plastic recycling portfolios.

It added, "Currently, it is difficult to significantly improve plastic recycling rates with domestic production facilities alone," emphasizing the need to prepare by advancing technology across the entire value chain, such as integrating artificial intelligence (AI), big data, and automation technologies to strengthen collection and sorting capabilities as well as chemical recycling technologies. Additionally, strategies such as technology partnerships with global companies, strategic technology investments, and enhancing export competitiveness through reviewing plastic regulations in various countries were proposed.

Lee Dong-geun, partner of the Financial Advisory Division at Samjong KPMG, said, "To preempt the waste plastic recycling market, investments to secure the entire plastic recycling value chain should be considered," adding, "If a regional value chain portfolio is formed by acquiring collection and sorting companies along with recycled raw material manufacturers, it will become a new growth foundation that enhances corporate value and improves investment performance."

This content was produced with the assistance of AI translation services.