Recycled Aluminium Market Size, Share, Growth, Trends, and Global Industry Analysis: By Scrap Type (Wire Scrap, Extrusion Scrap, Sheet Scrap, Used Beverage Can (UBC) Scrap, Turnings & Borings), By Category (New Scrap, Old Scrap), By End-Users (Building & Construction, Automotive, Electronics, Machinery & Equipment Packaging, Others) and Region 2020-2031

Recycled Aluminium Market size was valued at US$ 56.2 billion in 2024 and is projected to reach US$ 95.1 billion by 2031 at a CAGR of 7.8%. The market refers to the segment of the aluminium industry involved in the recovery, processing, and reuse of aluminium scrap to produce secondary aluminium products. This includes post-consumer scrap (such as used beverage cans, automotive parts, and construction materials) and post-industrial scrap generated during manufacturing processes. Recycled aluminium is chemically identical to primary aluminium and can be reused repeatedly without any degradation in quality, making it a sustainable and energy-efficient alternative. The market encompasses a wide range of end-use sectors including automotive, aerospace, construction, packaging, and consumer electronics, all of which increasingly rely on recycled materials to meet environmental and cost objectives.

The market is experienced strong growth due to increasing environmental awareness, stringent regulations on carbon emissions, and a rising emphasis on circular economy practices. Recycling aluminium consumes up to 95% less energy compared to primary production, significantly reducing greenhouse gas emissions, which makes it highly attractive to industries aiming to meet sustainability targets. Major aluminium producers and governments are investing in advanced sorting and smelting technologies to enhance scrap collection and processing efficiency. In parallel, growing demand from the electric vehicle and green building sectors is further driving the adoption of recycled aluminium. As global supply chains seek to decarbonize, recycled aluminium is positioned as a critical material for sustainable manufacturing and low-carbon industrial strategies.

Facts & Figures

• The International Aluminium Institute (IAI) estimates that over 30 million tonnes of aluminium scrap are recycled annually worldwide, with a global Recycling Efficiency Rate (RER) of around 76%, meaning roughly three?quarters of available aluminium scrap is effectively recovered.
• Recycling one tonne of aluminium prevents over 16 tonnes of CO? emissions, which equates to driving approximately 40,000 miles in an average U.S. vehicle—highlighting recycled aluminium’s environmental significance.
• In North America, secondary (recycled) aluminium constitutes a remarkable 57% of all aluminium produced, giving it the world’s highest Recycling Input Rate (RIR) and emphasising the region's leadership in input sourcing from scrap.
• Novelis, the world’s largest aluminium recycler, processes over 2.3 million metric tonnes of scrap aluminium per year and recycles upwards of 82?billion used beverage cans annually, accounting for approximately 61% recycled content across its product lines as of FY 2023.

Key Developments

• In June 2025, the Council of the European Union agreed on new extended producer responsibility (EPR) rules that require vehicles to be designed for recycling and reuse at end of life. While initially targeting recycled plastics, the framework explicitly opens the door for mandatory use of recycled aluminium in future regulations. Automotive manufacturers and industry groups have welcomed this shift, which could significantly boost demand for recycled aluminium in vehicle production and support circularity in the automotive sector.
• In September 2024, Norsk Hydro inaugurated a state?of?the?art aluminium recycling plant in Hungary, with an annual capacity of 90,000 tonnes of post?consumer scrap. The facility is fully integrated into Hydro’s extrusion operations for automotive parts and forms part of the company’s network of 34 global recycling facilities, boasting over 2.3 million tonnes annual capacity. This expansion reflects the surging demand for low-carbon recycled aluminium in Europe’s automotive and industrial sectors.
• In May 2025, India’s Ministry of Mines unveiled a new national stakeholders’ portal dedicated to the recycling of non?ferrous metals including aluminium. The portal enhances real-time visibility across the recycling ecosystem, supports policy enforcement under the National Non?Ferrous Metal Scrap Recycling Framework, and aims to build infrastructure capacity and stakeholder collaboration. The initiative is expected to accelerate systematic scrap collection and processing across India.

Recycled Aluminium Market Segmentation:

Based on the scrap type

• Wire Scrap
• Extrusion Scrap
• Used Beverage Can (UBC) Scrap
• Turnings and Borings

The Used Beverage Can (UBC) Scrap is anticipated to be the leading scrap type driving growth in the recycled aluminium market, largely due to its abundant availability, high recycling efficiency, and strong demand from the packaging industry. UBC scrap is widely collected through municipal recycling programs and commercial recovery channels, making it one of the most consistently sourced aluminium scrap categories globally. It is favored by recyclers because it offers a high metal yield with minimal contamination, enabling cost-effective processing and faster remelting cycles. Major aluminium producers such as Novelis and Constellium have established dedicated UBC recycling facilities capable of processing billions of cans annually, with some facilities achieving closed-loop systems where used cans are recycled back into new ones in as little as 60 days. With growing consumer awareness, legislative mandates on single-use packaging, and the push toward circular packaging models, UBC scrap is expected to dominate scrap feedstock, reinforcing its leading role in the recycled aluminium market.

Based on the category

• New Scrap
• Old Scrap

The Old Scrap is anticipated to lead the recycled aluminium market based on category, driven by its growing availability from end-of-life products and increasing emphasis on full lifecycle material recovery. Old scrap refers to aluminium collected from used products such as automobiles, construction materials, consumer electronics, and packaging. As global consumption of aluminium-containing goods continues to rise, the volume of old scrap entering the recycling stream is expanding significantly. This surge is particularly evident in sectors like automotive and construction, where ageing infrastructure and vehicle retirement cycles are producing large amounts of recoverable aluminium. Governments and industry players are enhancing collection networks and implementing extended producer responsibility (EPR) policies to ensure systematic recovery of these materials. Unlike new scrap, which originates from industrial processes and is typically recycled internally, old scrap requires more advanced sorting and treatment prompting innovation in recycling technologies. With sustainability goals driving end-of-life resource efficiency, old scrap is becoming a cornerstone of long-term aluminium circularity.

Based on the end-user

• Building & Construction
• Automotive
• Electronics
• Machinery & Equipment Packaging
• Others

The Automotive segment is anticipated to be the leading end-use segment in the recycled aluminium market, driven by the global shift toward lightweight, fuel-efficient, and low-emission vehicles. Recycled aluminium offers an ideal solution for automakers seeking to reduce vehicle weight without compromising strength or safety. Its application in car frames, body panels, engine components, and battery housings for electric vehicles (EVs) is expanding rapidly. As governments implement stringent emission regulations and fuel economy standards, automotive manufacturers are increasingly integrating recycled aluminium into their production lines to meet both environmental and cost-efficiency goals. Leading automakers such as BMW, Tesla, and Ford have adopted closed-loop recycling systems, allowing scrap generated during manufacturing to be remelted and reused within the same facility. This enhances sustainability while reducing raw material dependency. The rise of EVs further accelerates demand for recycled aluminium, positioning the automotive industry as the dominant end-use sector in the recycled aluminium market’s future growth trajectory.