Chemical Recycling of Plastics Market

The global Chemical Recycling of Plastics Market is valued at USD 11.21 Billion in 2023 and is projected to reach a value of USD 18.3 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 5.02 % between 2024 and 2032.

Key highlights of Chemical Recycling of Plastics Market

• Increasing demand for sustainable waste management solutions will bolster market growth.
• Asia Pacific is expected to dominate the market during the forecast period, with a revenue share of 43.7% in 2023
• By Process, the Pyrolysis segment dominated the largest market share globally from 2024 to 2032.
• By Product, Polyethylene (PE) will hold the largest share of 32.4% globally in 2023 due to the growing demand for recycled polyethylene in various industries.
• The packaging segment will continue to assert its dominance by end-use, capturing the largest market share, 29.1% globally, throughout the forecast period from 2024 to 2032.
• Europe is poised for remarkable growth, displaying a noteworthy Compound Annual Growth Rate (CAGR) between 2024 and 2032.

Chemical Recycling of Plastics Market: Regional Overview

Asia-Pacific stands out as the largest and most dynamic region in the Chemical Recycling of Plastics Market, contributing significantly to the global growth of sustainable waste management solutions. In 2023, the region accounted for over 43% of the market's revenue, with countries like China, Vietnam, Indonesia, India, Thailand, and Japan emerging as primary markets for Chemical Recycling of Plastics. The demand is propelled by the rising awareness of the global plastic waste crisis and a shift in consumer behavior towards sustainability. Industries such as automotive, electrical and electronics, packaging, textiles, and building and construction in Asia-Pacific are increasingly adopting chemically recycled plastics, driving the market further. Government initiatives are pivotal, with various countries implementing measures to promote plastic recycling. For instance, China's commitment to chemical recycling aligns with its efforts to address the plastic waste issue, contributing significantly to the regional market's growth. The market is poised to expand further due to the region's increasing investment in advanced plastics recycling technologies. Furthermore, the influence of the circular economy strategy is evident in Asia-Pacific, with a focus on reducing plastic waste and promoting sustainable practices in building and construction, automotive, packaging, and electrical and electronics industries.

U.S. Chemical Recycling of Plastics Market: Overview

The U.S. Chemical Recycling of Plastics Market is valued at USD 1.45 Billion in 2023 and is projected to reach a value of USD 2.31 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 4.77 % between 2024 and 2032. The U.S. chemical recycling market is poised for remarkable growth, fueled by a confluence of factors. Government initiatives, substantial investments, and changing consumer behavior are pivotal drivers, with the U.S. Environmental Protection Agency's commitment to invest over USD 100 million standing out as a significant catalyst. The adoption of chemically recycled plastics across diverse industries, coupled with the nation's push for a 50% recycling rate by 2030, presents lucrative opportunities for local market players. The U.S. market's competitiveness is further intensified by strong distribution networks and regulatory knowledge possessed by regional players. As the demand for sustainable waste management solutions continues to surge, the U.S. chemical recycling market is positioned to play a pivotal role in reshaping the nation's approach to plastic waste.

The global Chemical Recycling of Plastics market can be categorized as Process, Product, End-use, and Region.

Chemical Recycling of Plastics Market: Process Overview

In 2023, Pyrolysis segment dominated the market. Chemical Recycling of Plastics involves transforming plastic waste into valuable chemical products, which can be used as feedstock in various industries. Based on the Process, the market can be categorized into Pyrolysis, Gasification, Depolymerization, and Dissolution. The process pyrolysis, known for its ability to efficiently convert plastic waste into liquid or gaseous products, has gained significant attention in recent years. This method involves heating the plastics at high temperatures in the absence of oxygen, which breaks down the long polymer chains into smaller molecules. These molecules can then be further processed to produce valuable chemicals and fuels. The process pyrolysis offers several advantages, including high conversion rates, minimal waste generation, and the ability to handle different types of plastic waste. These factors are driving the market growth for the process pyrolysis segment in the Chemical Recycling of Plastics market.

Chemical Recycling of Plastics Market: Product Overview

Polyethylene (PE) segment is expected to experience the greatest market growth during the forecast period. Based on the Product, the market can be categorized into PE, PET, PP, PVC, PS, and Other Products. Polyethylene is widely used in various applications due to its excellent properties such as flexibility, durability, and resistance to chemicals. With increasing concerns about plastic waste and the need for sustainable solutions, the demand for Chemical Recycling of Plastics is on the rise. Chemical recycling of polyethylene involves the breaking down of the polymer into its original monomers, which can then be used to produce new plastic products. This process not only helps in reducing plastic waste but also reduces the carbon footprint associated with the production of virgin plastic. Furthermore, the growing demand for recycled polyethylene in various industries such as packaging, automotive, and construction is expected to drive the market growth for the PE segment in Chemical Recycling of Plastics.

Chemical Recycling of Plastics Market: End-use Overview

The packaging segment is expected to hold the largest market share in the Chemical Recycling of Plastics market. Based on the End-use, the market can be categorized into Automotive, Construction, Industrial, Healthcare, Consumer goods, Packaging, and Other End-users. This can be attributed to the increasing demand for sustainable packaging solutions across various industries, such as food and beverages, pharmaceuticals, consumer goods, and others. End-use packaging is constantly evolving to meet the demands of the changing consumer preferences towards eco-friendly and recyclable packaging materials. Chemical Recycling of Plastics provides a viable solution to address the mounting plastic waste problem and offers an opportunity to produce high-quality recycled plastics that can be used in the manufacturing of packaging products. Additionally, government regulations and initiatives promoting sustainable packaging also contribute to the growth of the end-use packaging segment in the chemical recycling market.

Key Trends

1. With growing concerns over plastic pollution and environmental impact, there is a rising emphasis on sustainable waste management solutions. Chemical Recycling of Plastics offers an eco-friendly approach by converting plastic waste into valuable raw materials, reducing the reliance on traditional methods like landfilling or incineration.
2. The Chemical Recycling of Plastics market is witnessing significant technological advancements, enabling more efficient and cost-effective processes. Innovations in pyrolysis, depolymerization, and solvolysis techniques are enhancing the conversion of plastic waste into valuable chemical feedstocks or fuels.
3. Governments worldwide are implementing stringent regulations to combat plastic waste and promote recycling initiatives. Various countries are introducing extended producer responsibility (EPR) schemes, waste management policies, and plastic recycling targets, driving the demand for chemical recycling technologies. Additionally, financial incentives and tax benefits provided by governments are further propelling the market growth.
4. Chemical recycling offers the advantage of efficiently recycling a wide range of plastic materials that are traditionally difficult to recycle using mechanical methods. This includes multilayer or mixed plastics, flexible packaging, and polystyrene foam, among others. This trend is driving the adoption of chemical recycling technologies in various industries, including packaging, automotive, electronics, and construction.
5. To accelerate the development and adoption of chemical recycling technologies, industry players are increasingly forming collaborations and partnerships. Companies from the plastic waste value chain, including waste management companies, plastic manufacturers, and chemical companies, are joining forces to invest in research and development, pilot projects, and commercial-scale facilities for chemical recycling. This trend is expected to drive innovation, improve supply chains, and create a more integrated approach to plastic waste management.

Premium Insights

The global Chemical Recycling of Plastics market is poised for significant growth, driven by the escalating global plastic waste crisis and the increasing demand for sustainable waste management solutions. The market, particularly in the U.S., is expected to witness substantial expansion in the coming years. Government initiatives, substantial investments, and a shift in consumer behavior towards sustainability are key factors propelling the growth of chemical recycling in the U.S. Additionally, the adoption of chemically recycled plastics across diverse industries, including automotive, electrical & electronics, packaging, textiles, and building & construction, is contributing to the rising demand. The U.S. Environmental Protection Agency's commitment to invest over USD 100 million in recycling and waste management further underscores the momentum towards achieving a 50% recycling rate by 2030. This creates promising opportunities for both global and local players in the chemical recycling sector.

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Economic Insights

Chemical recycling emerges as a transformative solution in addressing the challenges posed by plastic waste management. With the global plastic production projected to almost double by 2030, chemical recycling offers a crucial avenue to achieve recycling rates of up to 50%. The coexistence of mechanical and chemical recycling becomes pivotal, with chemical recycling filling the void for plastics that are traditionally non-recyclable through mechanical means. The required infrastructure investment to achieve the 50% recycling rate by 2030 is forecasted at USD 15 billion to USD 20 billion annually, presenting a significant economic opportunity. The potential shift towards one-third of plastic production consisting of recycled material by 2030 could reshape the dynamics of the petrochemical and plastics industry, fostering a more sustainable and circular economy.

Competitive Landscape

Major players, both global and regional, are engaging in strategic collaborations and investments to advance chemical recycling technologies. Initiatives such as Plastics Europe's call for a harmonized policy framework and significant investments underscore the industry's commitment to fostering a circular economy. Continuous technological advancements, exemplified by innovative catalytic depolymerization technologies and partnerships for advanced plastics recycling, demonstrate the industry's commitment to innovation. Companies like Maire Tecnimont S.p.A. and NextChem are leading the way with acquisitions and technology adoption to drive chemical recycling.

The key players in the global Chemical Recycling of Plastics market include - Agilyx, BASF SE, MaireTecnimont S.p.A. INEOS AG, Veolia Environnement SA, JEPLAN, INC., Eastman Chemical Company SABIC, LyondellBasell Industries Holdings among others.

Recent Market Developments

• In April 2023, Maire Tecnimont's subsidiary, NextChem, acquired 51% of MyRemono S.r.l., advancing catalytic depolymerization technology for plastics. This strategic move positions Maire Tecnimont as a key player in chemical recycling, particularly in recovering pure monomers from plastic waste.
• In August 2023, Shell and Lamor Recycling have agreed to a supply arrangement in Europe for pyrolysis oil sourced from their recently established recycling facility in Porvoo, Finland. Shell will be responsible for the processing of the pyrolysis oil within its chemical's parks.