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The recycling industry may grow exponentially to reach USD 20 billion by 2030 from about USD 4 billion at present, driven by rising investments to develop better solutions to address difficulties faced by the sector, as per a report.
According to Avendus Capital, the largest home-grown investment banking franchise, the benefits of the circular economy are huge, such as saving costs and reducing dependence on virgin materials.
The report pegs the current size of the plastic recycling industry at around USD 2.3 billion now, while that of the e-waste sector is around USD 1.4 billion and battery recycling at USD 100 million, and these three segments may touch USD 20 billion by the turn of FY30.
The report offers a detailed analysis of the recycling industry with a specific focus on three major segments - plastics, e-waste and batteries.
A circular economy refers to a system that is restorative and regenerative by design and ensures that there is no or limited depletion of natural resources. It involves eradicating the 'end-of-life' of any material and redesigning the consumption and manufacturing system to create a regenerative ecosystem.
Traditional 'linear consumption' system, based on a 'take-make-waste' approach, has resulted in huge waste generation and dumping of natural resources.
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According to Ashish Ahuja, vice president at the agency, the domestic plastic waste recycling industry is expected to grow at a CAGR of 24 per cent and reach USD 10.2 billion by FY30 from around USD 2.3 billion now. This will be driven by the rising use of recyclable plastics, exponential demand in e-commerce, quick commerce packaging and use in light-weighting of products.
E-waste recycling is most likely to grow at a 23 per cent CAGR to touch USD 7.5 billion during this period from around USD 1.4 billion now.
The largest boost, however, will be to the battery recycling and reuse market, which is expected to touch USD 2 billion by the end of this decade from just about USD 100 million now. This will be driven by rising EV penetration and the need to conserve and recover rare materials like lithium, nickel and cobalt.
According to Koushik Bhattacharyya, managing director at the agency, the recycling sector is at an inflection point owing to the rising focus on sustainability and the regulatory push. The sector will soon see a shift towards being organised and new companies will join the fray to solve bottlenecks at various legs of the value chain to enable a circular ecosystem.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
