Recycled Aluminum Market Set for Strong Growth to USD 100.8 Billion by 2031

SEATTLE (Scrap Monster): The Global Recycled Aluminum Market reached USD 48.7 billion in 2022 and is expected to reach USD 100.8 billion by 2031, growing at a strong CAGR of 7.7% during 2024-2031.

Market growth is driven by rising emphasis on sustainability and circular economy practices, increasing demand for low-carbon aluminum from automotive and packaging industries, and significant energy savings achieved through aluminum recycling. Additionally, stringent environmental regulations, expanding use of recycled aluminum in construction and transportation, and growing investments in recycling infrastructure are further supporting market expansion.

Growth Drivers:

-Environmental Regulations
Stringent global policies promote recycling and reduce waste, mandating higher use of recycled materials over primary aluminum. These regulations lower environmental impact and make recycled aluminum economically viable. Governments incentivize through EPR schemes and recycling targets.

-Cost and Energy Savings
Recycling aluminum uses 95% less energy than primary production, slashing costs for manufacturers. Rising prices of virgin aluminum amplify this advantage, boosting adoption. Lower production expenses enhance competitiveness across sectors.

-Automotive Demand
Lightweighting for fuel efficiency and electric vehicles drives recycled aluminum use in components. EV growth accelerates this trend as automakers prioritize sustainable materials. The sector accounts for a significant share of demand.

-Construction Expansion
Urbanization and green building initiatives fuel demand for sustainable materials in infrastructure. Recycled aluminum supports eco-friendly projects with reduced carbon footprints. Revival of stalled projects further propels growth.

-Technological Advances
Improvements in sorting, purification, and closed-loop systems enhance recycled aluminum quality. These innovations expand applications in packaging and beyond. Investments in R&D ensure reliable supply and higher usability.

Courtesy: www.reuters.com