Recycled Aluminum Market Expected to Reach $10.3 Billion by 2031

by | May 1, 2023

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Recycled Aluminum

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With a rise in demand from several industries, including the automotive and construction sectors, and driven by improved scrap treatment technologies the global recycled aluminum market is expected to grow to $10.3 billion by 2031, according to Transparency Market Research.

The market was valued at $4.8 billion in 2022 and will grow by nearly 9% over the next eight years. The recycling of beverage cans remains a primary driver of the market, as nearly 75% of aluminum cans are recycled, but renewed metal is increasingly being used in the transportation and construction industries in the building of roads and bridges and producing vehicles.

Improved technology is also helping grow the market, according to Transparency Market Research. Advances in technology have increased the efficiency and cost-effectiveness of aluminum recycling. Investments in sensor-based technologies such as optical sorting machines can help improve the sorting of materials, which allows for increased recovery of rates of reusable aluminum.

The report also finds that enhanced technologies are helping to produce a higher quality recycled aluminum. New recycling techniques can remove impurities from the material and produce a more consistent product, according to Transparency Market Research.

Aluminum Cans Play a Big Recycling Role

Beverage cans are the primary driver of the market. The ease of recycling cans aided by established infrastructure along with increased demand to lower emissions and improve energy efficiency are key factors in recycling aluminum cans.

Cans also continue to grow as a preferred means of packaging, and they also are among the most valuable aluminum scrap. The market for aluminum cans is expected to be valued at nearly $51 billion by 2031, according to the report.

Additionally, the automotive sector is helping increase the recycled aluminum market. The sector used 4.8 million tons of aluminum in 2022, and that is expected to grow to 10.5 million tons by 2031, the report finds. The industry uses aluminum to help make more lightweight and fuel-efficient vehicles, which helps reduce emissions.

Asia will Lead the Market

Asia Pacific is expected to hold the largest share of the market through the forecast period, driven by increased aluminum recycling in China, Japan, and India. In Europe, Germany, France, and Spain will continue to spur market growth in the region as 95% of aluminum is recycled in those countries, according to Transparency Market Research.

Key players in the recycled aluminum market include Sims Metal Management, Kuusakoski Recycling, Dowa Holdings, Real Alloy, Commercial Metals, Aurubis, Trimet Aluminum, Arfin India, Fervent Global, Chalco Aluminum, Matalco, Amag Austria Metall, Rusal, Rio Tinto, and Alcoa.

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