Circular Polymers Market

The global Circular Polymers Market is valued at USD 70.8 Billion in 2023 and is projected to reach a value of USD 184.2 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 11.2% between 2024 and 2032.

Key highlights of Circular Polymers Market

• The Asia Pacific region contributed the largest market growth, with a revenue share of 45.8% in 2023
• The market is projected to be predominantly led by Europe during the forecast period, with highest CAGR of above 11.6%
• In 2023, the Polyethylene (PE) segment accounted for significant market growth and contributed more than 31.6% of the total revenue share
• Based on Form, the pellets segment accounted for the most considerable market with a market share of about 52.4% in 2023
• With a market share of 39.3% in 2023, the food packaging category contributed significantly to the Circular Polymers market expansion
• In 2023, the packaging segment accounted for significant market growth and contributed more than 42.1% of the total revenue share
• LyondellBasell and Veolia Belgium have decided to make a strategic move towards their commitment to sustainability by signing an agreement in April 2023. The deal aims to restructure the ownership of the recycling facilities of Quality Circular Polymers (QCP) BV. These facilities are currently located in Belgium and the Netherlands.

Circular Polymers Market: Regional Overview

In 2023, Asia Pacific held a 45.8% market share in sales, driven by growing demand for sustainable packaging solutions, stricter government restrictions, and heightened environmental consciousness. Packaging materials are being used much more frequently as a result of the explosive rise in online shopping and the growing middle-class populations in nations like China and India. Unfortunately, the current system of producing and disposing plastic waste is causing a huge problem. There is a growing demand for Circular Polymers in the packaging industry to address this issue. By lowering the demand for new plastic and removing raw materials, Circular Polymers, which are derived from recovered plastic waste, offer a sustainable option. Many companies, especially in the packaging sector, are starting to use Circular Polymers for products like bottles, containers, and films. In India, for example, Hindustan Unilever Limited (HUL) is using Circular Polymers packaging for brands like Dove, TRESemmé, and Sunsilk. The bottles are composed of repurposed plastic that comes from landfills and the ocean, demonstrating the manufacturer's dedication to recycling and minimizing environmental damage. China is also experiencing the benefits of Circular Polymers, as the express delivery industry alone creates millions of tons of paper and plastic waste each year. With China generating around 40 million tons of packaging waste annually, adopting Circular Polymers is becoming necessary to manage the growing environmental issues associated with packaging waste.

U.S. Circular Polymers Market Overview

The U.S. Circular Polymers Market is valued at USD 1.5 Billion in 2023 and is projected to reach a value of USD 3.95 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 11.4% between 2023 and 2032. A major significant factor propelling the market expansion for Circular Polymers has been the U.S. government. Several regulations and laws have been implemented recently to promote using recycled content in plastic products. For instance, California has made it mandatory for plastic beverage containers to have at least 15% recycled material by 2022, and by 2030, that percentage will rise to 50%. Manufacturers of Circular Polymers benefit from these laws because they guarantee a steady market for their goods. For instance, PureCycle Technologies is constructing a recycling facility in Ohio that will have the capacity to produce 1.5 billion pounds of recycled polypropylene each year. This indicates a significant commitment to the Circular Polymers market and reflects the growing demand for sustainable solutions.

The global Circular Polymers market can be categorized as Polymer Type, Form, Application, End-Use, and Region.

Circular Polymers Market: Polymer Type Overview

In 2023, the Polyethylene (PE) segment led the market with a 31.6% share. The Polymer Type segment is categorized into Polyethylene (PE), Polypropylene (PP), Polyethylene Terephthalate (PET), Polyvinyl Chloride (PVC), Polyamide (PA), Others. The Polyethylene (PE) segment is leading the way in the Circular Polymers market, transforming industries like packaging, construction, automotive, and textiles. While traditional polyethylene is a versatile but non-biodegradable polymer made from fossil fuels, the Circular Polymers market focuses on recycling and reusing plastic waste, including polyethylene, to address environmental concerns. A prime example is Reliance Industries Ltd (RIL), pioneering chemical recycling by converting plastic waste-based pyrolysis oil into International Sustainability & Carbon Certification (ISCC)-Plus certified Circular Polymers. The cutting-edge CircuRepolTM (polypropylene) and CircuReleneTM (polyethylene) products from RIL showcase their ability to innovate and highlight their dedication to lowering plastic waste and advancing a circular economy in India. Recycling technologies have greatly improved the recycling and remanufacturing process for PE materials. Efficient recycling of various PE varieties, including low-density polyethylene (LDPE) and high-density polyethylene (HDPE), is made possible by improved sorting and separation methods. The PE segment is an important driver in leading the Circular Polymers Market toward a more sustainable and environmentally friendly future as a result of these innovations, which increase the uses and markets for recycled PE materials.

Circular Polymers Market: Form Overview

In 2023, the pellets segment revealed the most significant Circular Polymers market growth, contributing more than 52.4% of the total revenue share. Based on Form segment, the Circular Polymers market is classified into Pellets and Flakes. The Pellets segment in the Circular Polymers Market is growing significantly due to increasing global concern about the environmental impact of plastic waste. The alarming amount of plastic being dumped into oceans, rivers, and lakes every day clearly indicates the seriousness of plastic pollution, a worldwide problem that needs immediate attention. Around 19-23 million tonnes of plastic waste enter aquatic ecosystems annually, highlighting the urgent need for sustainable solutions. Governments and regulatory bodies worldwide are acting by implementing strict regulations and policies to promote plastic recycling and reduce plastic waste generation. For example, the Ministry of Environment, Forest, and Climate Change advocates for thicker plastic carry bags and sheets, which may increase costs but discourage free carry bags and involve waste-pickers in collection efforts. In response to these challenges, the Pellets segment is seeing a rise in advanced recycling technologies that effectively convert plastic waste into high-quality pellets, providing a sustainable alternative to mitigate the environmental impact of plastic pollution. The growth of the Pellets segment is driven by the need to address the plastic waste crisis and comply with changing regulations, leading the Circular Polymers Market towards a more sustainable and environmentally responsible future.

Circular Polymers Market: Application Overview

The food packaging segment accounted for the most significant revenue share of 39.3% in 2023. By Application, the Circular Polymers market is divided into Food packaging, Adhesives & sealants, Interior & exterior components, Wires & cables, and Others. Circular Polymers are being used more and more in the food packaging business as a result of worries about pollution and climate change driving up demand for sustainable packaging solutions. Circular Polymers help reduce the use of fossil fuel-based materials and minimize the carbon footprint of packaging production, making them essential in revolutionizing food packaging. In addition to environmental benefits, Circular Polymers contribute to waste reduction by diverting plastic from landfills and preventing ocean pollution. ExxonMobil's achievement of the first commercial sale of certified Circular Polymers demonstrates plastic waste recycling technology advancements and sets an example for the industry. Berry Global, a leading packaging solutions developer, is incorporating Circular Polymers in producing high-performance food-grade containers to meet the increasing demand for sustainable packaging in the food industry. The adoption of Circular Polymers in Food Packaging is further driven by the implementation of strict regulations and standards worldwide, including the European Union's targets of recycling 50% of plastics by 2025 and 55% by 2030. As Circular Polymers offer a viable solution to meet these targets, the Food Packaging segment is expected to lead the Circular Polymers Market towards a more sustainable and environmentally conscious era in food packaging.

Circular Polymers Market: End-Use Overview

The packaging segment accounted for the most significant revenue share of 42.1% in 2023. Based on End Use, the Circular Polymers market is classified into Packaging, Building & construction, Automotive, Electrical & electronics, and Others. The growing usage of Circular Polymers techniques in the manufacturing of packaging materials is driving the growth of the packaging sector in the Circular Polymers market. A closed-loop system is created by recycling plastic trash using Circular Polymers to make new packaging products. High-density polyethylene (HDPE) is a commonly used plastic in this shift because of its durability and resistance to impact and chemicals. Used HDPE packaging is gathered, cleaned, and processed into recycled HDPE (HDPE) pellets, which can be utilized as an environmentally friendly raw material to make new packaging products. The growing requirement for sustainable packaging materials is highlighted by the rising cost of recycled materials, such as post-consumer recycled polyethylene terephthalate (R-PET) coloured flakes, in Western Europe. Amcor, a major player in the industry, produces and creates packaging solutions based on plastic for a range of industries, which helps to drive this revolutionary movement. As Circular Polymers become more prevalent in packaging, they encourage sustainable practices and drive the Circular Polymers Market toward a future where recycled materials reduce the packaging industry's environmental impact.

Key Trends

1. Circular Polymers, like the technique developed by Loop Industries, are meeting the growing need for environmentally friendly packaging options by producing 100% recycled PET plastic for a variety of packaging uses.
2. Governments around the world are enforcing recycling laws and aiming for 100% plastic packaging to be recyclable or reusable by 2030, which is driving up demand for Circular Polymers.
3. Companies are investing in expanding and upgrading recycling infrastructure to support the production of Circular Polymers. For instance, Indorama Ventures invested $1.5 billion in recycling plants over the next five years.
4. Agilyx Corporation utilizes pyrolysis technology to convert non-recyclable plastics into Circular Polymers, contributing to the growing trend of chemical recycling in the Circular Polymers market.
5. Various stakeholders in the value chain are now joining forces to advocate for Circular Polymers, exemplified by Unilever's collaboration with Veolia and SUEZ to create a 100% recycled PET bottles.

Premium Insights

Plastic carry bags and sheets must now adhere to strict regulations set by the Ministry of Environment, Forests, and Climate, which is projected to result in a 20% rise in expenses. As a result, businesses are likely to stop providing free carry bags, leading to an increased role for waste-pickers in collecting plastic waste. Simultaneously, governments across the globe are enacting more stringent policies to tackle the problem of plastic trash and encourage recycling. Circular Polymers are crucial in meeting these regulations and reducing reliance on new plastic materials. Circular Polymers can reduce the negative environmental effects of plastic consumption by meeting regulatory standards and recycling plastic trash. The combination of economic factors and regulatory pressures positions Circular Polymers as a driving force in the Circular Polymers Market, encouraging sustainable practices and reducing dependence on traditional plastics.

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Market Dynamics

Growing Environmental Awareness Propels Circular Polymers Market Towards Sustainability

The amount of plastic being produced worldwide has increased rapidly, reaching a total of 9 billion tonnes. This has led to significant environmental concerns due to the large carbon emissions and widespread plastic pollution. Europe and NAFTA are responsible for a substantial portion of this production, highlighting the urgent need for sustainable alternatives. The need for environmentally sustainable solutions has led to the development of Circular Polymers, which encourage material reuse and recycling. The focus on using mechanical recycling methods, which produce lower CO2 emissions, fits well with the growing global emphasis on environmental preservation. As a result, the Circular Polymers Market is transforming the world of sustainable materials and becoming a crucial force in this area.

Government Regulations and Initiatives Propel Circular Polymers Market

Governments all over the globe are enacting stringent laws and programs to cut down on plastic waste and enhance recycling procedures, which is driving the market for Circular Polymers. A few of these initiatives are the prohibiting single-use plastics, encouraging extended producer responsibility, and establishing challenging recycling targets. Currently, a large portion of plastic waste is in landfills, while only a small percentage of plastic packaging is recycled. This urgent environmental challenge has created a high demand for Circular Polymers, which offer a sustainable solution to meet these regulatory targets. The market's growth is also driven by concerning statistics revealing that only a small percentage of plastic packaging is recycled into products of similar quality. This highlights the need for a more circular and eco-friendly approach. In addition, the energy-intensive nature of plastic production emphasizes how important it is to transition to Circular Polymers and collaborate with global initiatives in order to lessen plastic's adverse environmental impacts and achieve an ecologically sustainable environment. In the United States, plastic manufacturing accounts for a sizable portion of total energy consumption.

Competitive Landscape

The growth of the Circular Polymers Market is driven by major players such as Veolia, Plastipak, Suez, B&B Plastics, Borealis, LyondellBasell, Indorama Ventures, and Total. These companies play a crucial role in the growth of the market by contributing their extensive expertise, innovative technologies, and vast distribution networks. They are actively involved in recycling and converting post-consumer and post-industrial plastic waste into high-quality Circular Polymers, thereby promoting a more sustainable and environmentally friendly approach to plastic production. For instance, LyondellBasell and Veolia Belgium agreed to change the ownership of Quality Circular Polymers (QCP) BV recycling facilities in Belgium and the Netherlands. Under the agreement, Veolia will sell its 50% share to LyondellBasell, making them the sole owner of QCP.

The key players in the global Circular Polymers market include - LyondellBasell Industries Holdings B.V., SABIC, Berry Global, Ascend Performance Materials Operations LLC, Advanced Circular Polymers, Borealis AG, Veolia, Exxon Mobil Corporation, The Shakti Plastic Industries, Chevron Phillips Chemical Company LLC, Suez Group among others.

Recent Development

• In January 2024, Visy, the largest recycler in Australia, bought the assets of Advanced Circular Polymers (ACP), a plastics recycling business based in Somerton, Melbourne. ACP's main activity was reprocessing plastics from household recycling collections. The facility has the capability to sort and process over 30,000 tonnes of plastics per year, which can then be sold for reuse. Currently, the company is handling more than 1,000 tonnes of unprocessed material at their site.
• In July 2023, the energy companies Aramco and TotalEnergies collaborated with SABIC, a chemical manufacturer, to convert plastic waste into Circular Polymers. This process took place at the SATORP refinery in Jubail, Saudi Arabia, which is a joint venture between Aramco and TotalEnergies. They utilized plastic pyrolysis oil, also referred to as plastic waste-derived oil (PDO), for this conversion.
• In April 2023, LyondellBasell and Veolia Belgium agreed to change the ownership of Quality Circular Polymers (QCP) BV recycling facilities in Belgium and the Netherlands. Under the agreement, Veolia will sell its 50% share to LyondellBasell, making them the sole owner of QCP.
• In March 2023, Circular Polymers by Ascend, a renowned recycler of post-consumer fibers, showcased its range of recycled polymer materials. Ascend Performance Materials, the main shareholder of Circular Polymers by Ascend, will also be present at the event with representatives available to present the ReDefyne™ line of exceptional recycled compounded polymers.