Chemical Recycling of Plastics Market: Global Industry Analysis and Forecast (2024-2030), By Type, Product, End-use, and Region

Chemical Recycling of Plastics Market Overview:

Chemical recycling involves transforming polymer waste by altering its chemical structure to regenerate substances that can be utilised as raw materials for producing plastics or other products. Various chemical recycling technologies include pyrolysis, gasification, hydro-cracking, and depolymerisation. Chemical recycling is revolutionizing the circular economy globally. Growing investment highlights the industry's commitment to tackling plastic waste and aligns with the Green Deal’s climate and sustainability goals. The planned investment in chemical recycling has significantly increased, rising from USD 2.87 billion in 2025 to USD 8.83 billion by 2030.

 

Recycled plastic production is projected to grow to 0.9 million tons in 2025 and 2.8 million tons in 2030. This investment underscores Plastics Europe's pivotal role in achieving the European Commission’s Circular Plastics Alliance goal of incorporating 10 million tons of recycled plastics into European products by 2025, driving the growth of the Chemical Recycling Of Plastics Market. 80% of the planned capacities will focus on feedstock technologies such as pyrolysis and gasification.

 

Chemical recycling is a sunshade term for several technologies that use heat or chemical processes, to break apart the polymer chain within the plastic. Efforts to promote sustainable plastics management and circularity are gaining momentum worldwide, with key industry players and research institutions leading the charge. By fostering collaboration, advancing R&D, and integrating solutions across the value chain, these initiatives aim to create lasting environmental and economic impact. On March 14, 2024, NOVA Chemicals launched its Centre of Excellence for Plastics Circularity, a hub for advancing sustainable plastics management through collaboration with industry and Canadian research institutions.

 

The Centre focus on R&D collaboration and value chain-integrated solutions, addressing Chemical Recycling Of Plastics Market trends. NOVA aims to develop scalable, commercially viable technologies, fostering innovation in material science, engineering, and environmental policy. With over five decades of experience, NOVA continues to lead in petrochemical and plastics innovation, reinforcing Canada's role in the circular economy. The initiative also encourages national collaboration to drive environmental protection and economic prosperity in the plastics industry.

 

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Chemical Recycling of Plastics Market Dynamics:

Waste to Resource Role of Chemical Recycling in Promoting a Circular Economy Drives the Chemical Recycling of Plastics Market

The global efforts to reduce plastic waste have intensified, and companies are adopting advanced recycling technologies to promote sustainability and circularity. These innovations allow for the conversion of plastic waste into valuable raw materials, reducing reliance on fossil resources and minimizing environmental impact. On February 21, 2024, BASF launched its ChemCycling initiative in the U.S., offering Cycle products made from plastic waste at its Port Arthur, TX facility.

 

These products, which are ISCC+ certified, are produced using advanced recycled feedstock and have the same properties as conventional fossil-based products. ChemCycling helps reduce plastic waste by utilizing materials that cannot be recycled mechanically, turning waste into a resource. The recycled building blocks are used in various BASF products such as super absorbent polymers, engineered plastics, and polyurethanes, promoting a more circular economy and sustainable solutions for Chemical Recycling of Plastics Market in packaging, automotive, and construction.

 

Chemical recycling complements other plastic recycling options such as mechanical, dissolution and organic recycling. Since it can deal with complex plastic waste streams, such as films or laminates, chemical recycling can be used for plastic waste, which would otherwise result in incineration or landfill. With 67.5% of post-consumer plastic waste going to landfills and energy recovery across Europe, there is a clear potential for improvement. Chemical recycling breaks down polymers into their building blocks, it also allows the production of recycled plastic (recyclate) with virgin plastic properties that can be used in demanding Chemical Recycling of Plastics Market applications.

 

The European Commission has established ambitious goals for plastic circularity. The updated waste directives include regulatory targets of limiting municipal waste landfilling to 10% by 2035, achieving 50% recycling of plastic packaging by 2025, and 55% by 2030. In this framework, chemical recycling is a significant advance in decreasing waste disposal and fostering a circular economy for plastics. Additionally, the sector's growth presents substantial potential for Chemical Recycling of Plastics Market.

 

The companies strive to combat plastic waste and enhance sustainability, innovative projects are emerging to advance the circular economy for Chemical Recycling of Plastics Market. These initiatives focus on transforming waste into valuable resources through cutting-edge technologies, significantly reducing environmental impact. For instance, on November 20, 2023, LyondellBasell decided to build its first industrial-scale chemical recycling plant at its Wesseling site in Germany, with a capacity of 50,000 tonnes.

 

Announced in October, the facility, developed with Source One Plastics, aims to recycle plastic waste equivalent to that produced by 1.2 million Germans annually. Expected to be operational by late 2025, the plant will use LyondellBasell’s MoReTec technology to produce pyrolysis oil and gas with net-zero greenhouse gas emissions. This technology enhances yield and reduces CO2 emissions, with the recycled material used in LyondellBasell’s CirculenRevive product line for diverse applications.

 

Global Plastic Production Trends Insights into the 2023 Industry and Recycling Innovations Boost the Chemical Recycling of Plastics Market

Partnerships between leading companies playing a crucial role in bringing these technologies to scale. These collaborations focus on enhancing recycling processes and improving material quality. On March 15, 2023, Saipem and Italian chemical company Garbo declared a collaboration to develop and commercialize ChemPET, a new technology for plastic recycling. ChemPET, Garbo’s proprietary depolymerization technology, converts polyethylene terephthalate (PET) waste into high-quality PET suitable for chemical and food industries. The partnership includes building Italy's first industrial-scale chemical recycling plant in Cerano, Novara. Unlike mechanical recycling, ChemPET handles various plastics, including colored ones, producing material that retains its properties and simplifies by-product management for Chemical Recycling of Plastics Market.

 

Plastics are present in all sectors, with the packaging sector is the largest, followed by the building &construction sector, and the automotive sector. 400.3 Mt of plastics were produced globally in 2023; almost 16% originated from Europe. According to the European Bioplastics (EUBP) 2023 Report, the bioplastics industry produced 1.79 million tonnes of plastic in 2023, while the production capacity was 2.18 million tonnes. Besides this, Spain has the fifth-highest demand for plastics, accounting for 7.8% of the European total. Plastic application sectors Plastic materials, through their applications, contribute to sustainable development in different sectors.

 

The lightweight parts in the automotive industry reduce the weight of vehicle, minimising fuel consumption and reducing greenhouse gas emissions. Another example is the building and construction industry, where plastic insulating materials are used to improve the energy efficiency of buildings. Meanwhile, greenhouses and irrigation systems, both made of plastics, significantly reduce water consumption which drives the Chemical Recycling of Plastics Market.

 

Table: New Chemical Recycling Plants Planned In Spain

Company	Process Operation	Start Year	Treatment Capacity (tonnes waste/year)
REPSOL	Solvolysis	2022	2,000
SACYR/HONEYWELL	Pyrolysis	2023	30,000
PLASTIC ENERGY/TOTALENERGIES	Pyrolysis	2025	33,000
REPSOL/ENERKEM/AGBAR	Gasification	2025	4,00,000
PLASTIC ENERGY	Pyrolysis	2024	N/A
TOTAL			>465,000

 

Compared to incineration, chemical recycling can change carbon dioxide emissions by 22.3 million tons and conserve 108 million tons of oil. SIBUR exemplifies this approach with its extensive recycling initiatives and commitment to a circular economy. On April 12, 2024, SIBUR, Russia’s largest polymer and rubber producer, plans to recycle up to 100,000 tons of plastic waste annually by 2025 through partnerships and in-house projects. The company’s Vivilen brand produces eco-friendly polymers with recycled content, recycling up to 1.7 billion plastic bottles annually. SIBUR promotes responsible consumption and the separate collection of plastic waste through partnerships at sports events. It also plans to invest in a thermolysis plant for chemical recycling in 2024, aiming to decompose plastic waste into reusable hydrocarbon raw materials, supporting a circular economy and reducing environmental pollution.

SK Chemicals plans to build plastic recycling plants in Shantou, China, in partnership with Chinese eco-friendly supplier. The joint venture, where SK Chemicals hold a majority stake, aims to depolymerize plastic waste, extracting 100,000 tons of recyclable materials annually. These is used to produce 200,000 tons of PET and copolyester per year, widely used in packaging and cosmetics. This project is part of SK's broader efforts to expand its presence in Asia's recycling market. The Chemical Recycling of Plastics Market companies began chemically recycling plastic waste into copolyester in 2021 and aims to replace all raw materials for its copolyesters with recycled plastics by 2030. Commercial operations in China are set to begin by late 2024, with SK Chemicals also exploring similar recycling initiatives in South Korea by 2025.

 

On August 05, 2022, Honeywell declared that China Tianying Inc. uses its UpCycle Process Technology at a planned plastics recycling facility in Jiangsu, China. This is the first commercial use of Honeywell's technology in China, converting mixed plastics into recycled polymer feedstock (RPF). Unlike Honeywell’s joint ventures with Avangard in the U.S. and Sacyr in Spain, this project does not involve a joint venture. Honeywell will provide engineering and technical support for the facility. CNTY plans to build more recycling plants using this technology and explore further collaboration in areas such as plastic pretreatment and pyrolysis equipment.

 

Chemical Recycling Higher Environmental Costs for Fully Circular Products Hampered the Chemical Recycling of Plastics Market

The economic models of chemical recycling differ from those of mechanical recycling for two primary reasons. The yields from chemical recycling processes are typically lower, meaning less recycled material is obtained compared to mechanical recycling. However, the recycled products produced through chemical recycling are of equivalent quality to virgin raw materials. This allows them to be used for any application, even those requiring the highest quality standards, such as food packaging. From an environmental perspective, chemical recycling tends to have a greater impact than mechanical recycling. This is mainly due to the lower conversion rates of plastic waste into either pyrolysis oil or monomers, compared to the conversion rate of plastic waste into recycled plastic through mechanical processes.

 

The results in the entire environmental burden is allocated to a smaller amount of the desired end product. Additionally, the process is lengthy in chemical recycling, as its products undergo polymerization, unlike mechanical recycling. While the emission savings of chemical recycling are lower than mechanical recycling, the outcome is a fully circular product that is equivalent to virgin polymer, with no limitations on market use.

 

However, chemical recycling involves complex chemical processes and requires careful consideration of chemical risks. Integration with the broader chemical industry is essential for its success. Both chemical and mechanical recycling contribute to a circular economy. The choice between these methods depends on the characteristics of the plastic waste and its intended application. Rather than being substitutes, these technologies should be seen as complementary, with each offering distinct advantages depending on the specific context. These aspects hampers the Chemical Recycling of Plastics Market growth.

 

Chemical Recycling of Plastics Market Segment Analysis:

Based on Product: the market is divided into PE (Polyethylene), PET (Polyethylene), PP (Polypropylene), PVC (Polyvinyl chloride), PS (Polystyrene), and Others. Polyethylene witnessed the highest market share in 2023 and continued its dominance during the forecast period. Polyethylene (PE) is the most widely produced plastic globally, accounting for approximately 29% of the total plastic market. It is a versatile material used in a range of applications, categorized into three main subtypes: High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), and Linear Low-Density Polyethylene (LLDPE). 

 

HDPE is known for its strength and rigidity, making it ideal for products such as detergent bottles, milk jugs, and piping. Its high resistance to impact and chemicals makes it valuable in construction and industrial applications. LDPE is more flexible and is widely used for film applications, such as plastic bags, wraps, and squeezable bottles. Its resilience and ability to be produced in thin layers make it a key material in packaging.

 

LLDPE shares many properties with LDPE but has improved tensile strength and puncture resistance, which makes it particularly useful for stretch films, agricultural films, and packaging materials requiring durability. PE’s widespread use in packaging, construction, automotive, and agriculture makes it integral to daily life. It is preferred due to its cost-effectiveness, ease of production, and wide range of applications across various industries. Its dominance in the Chemical Recycling of Plastics Market reflects its adaptability and importance in global manufacturing and consumption.

 

Based on Regional Analysis:

Europe witnessed the highest market share in 2023 and continued its dominance during the forecast period. The chemical recycling of plastics market in Europe is rapidly gaining traction due to increasing environmental regulations, sustainability goals, and the need to reduce plastic waste. Unlike mechanical recycling, which degrades plastic quality, chemical recycling breaks down plastics at the molecular level, enabling production of high-quality recycled polymers suitable for various applications. This method is attractive for hard-to-recycle plastics like multi-layer packaging and mixed plastics, which are difficult to process mechanically.

 

The European Union’s ambitious goals, such as achieving a circular economy by 2050 and reducing carbon emissions, are key drivers for the chemical recycling market. EU directives targeting plastic waste, such as the Single-Use Plastics Directive and the European Green Deal, are pushing industries to adopt more advanced recycling technologies. Countries like Germany, the Netherlands, and France are at the forefront of chemical recycling projects, with numerous pilot plants and investments in advanced technologies such as pyrolysis, gasification, and depolymerization. Major players in the Chemical Recycling of Plastics Marketare collaborating with chemical companies, governments, and environmental agencies to scale up operations.

 

Chemical Recycling of Plastics Market Scope

Chemical Recycling of Plastics Market
Market Size in 2023	USD 14.92 Billion
Market Size in 2030	USD 27.98 Billion
CAGR (2024-2030)	9.4%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
By Chemical Recycling of Plastics Market Segments	By Type Depolymerization Dissolution Conversion Solvolysis Others
	By Product PE (Polyethylene ) PET (Polyethylene) PP (Polypropylene) PVC (Polyvinyl chloride) PS (Polystyrene) Others
	By End-use Packaging Automotive Building & Construction Electrical & electronics Textiles Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Chemical Recycling of Plastics Market Key Players:

1. BASF SE (Ludwigshafen, Germany)
2. LyondellBasell Industries (Houston, Texas, USA)
3. Eastman Chemical Company (Kingsport, Tennessee, USA)
4. Ineos Group (London, United Kingdom)
5. Dow Inc. (Midland, Michigan, USA)
6. SABIC (Saudi Basic Industries Corporation) (Riyadh, Saudi Arabia)
7. Indorama Ventures (Bangkok, Thailand)
8. Chevron Phillips Chemical Company (The Woodlands, Texas, USA)
9. Loop Industries (Terrebonne, Quebec, Canada)
10. Plastic Energy (London, United Kingdom)
11. Mura Technology (London, United Kingdom)
12. Carbios (Clermont-Ferrand, France)
13. Agilyx Corporation (Tigard, Oregon, USA)
14. GreenMantra Technologies (Brantford, Ontario, Canada)
15. Gr3n Recycling (Lugano, Switzerland)
16. Brightmark Energy (San Francisco, California, USA)
17. PureCycle Technologies (Orlando, Florida, USA)
18. SUEZ (Paris, France)
19. Quantafuel (Oslo, Norway)
20. Renescience (Orsted) (Fredericia, Denmark)