Chemical Recycling Of Plastics Market Size, Share & Trends Analysis Report By Product (PE, PET, PVC, PP, PS), By Type (Dissolution, Conversion), By End-use (Packaging, Automotive), By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global chemical recycling of plastics market size was estimated at USD 13.15 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.08% from 2024 to 2030. Owing to the growing global plastic waste crisis and the demand for more sustainable waste management solutions, the market is predicted to grow. Chemical recycling is a process of converting plastic waste into chemical feedstocks and other valuable goods using various chemical processes. The market in the U.S. is predicted to witness significant growth in recent years, with several factors driving this expansion. Various government initiatives concerning plastic recycling coupled with high investments are likely to propel demand for chemical recycling of process, thus boosting the regional market growth. Moreover, changing consumer behavior toward sustainability is driving the U.S. market.

Increasing use of chemically recycled plastics in various industries, such as automotive, electrical & electronics, packaging, textiles, and building & construction, is anticipated to boost demand for chemical recycling of plastics in the U.S. In addition, increasing government investment in advanced plastics recycling technologies is anticipated to create lucrative opportunities for local market players. For instance, in September 2023, the U.S. Environmental Protection Agency announced plans for over USD 100 million in grants to increase recycling and trash management, marking the agency's first big effort in these areas in 30 years. This aims for a 50% recycling rate by 2030. The recycling rate for plastic garbage is only about 5%. These factors are creating opportunities for market growth across the country.

Type Insights

The depolymerization type segment accounted for the maximum revenue share of over 45% in 2023. Depolymerization offers numerous advantages, including the ability to recycle a wide range of plastics, a reduction in greenhouse gas (GHG) emissions compared to manufacturing of plastics from fossil fuels, and a contribution to a circular economy by encouraging reuse of plastic waste. Plastic waste is depolymerized into oligomers or monomers using procedures, such as hydrolysis, glycolysis, methanolysis, and heat pyrolysis. Monomers obtained are purified and depolymerized into a product.

Demand for recycled materials is increasing in application industries, including food & beverage and consumer goods. Consumption of recyclable polymers is increasing in many sectors due to the need for packaging materials that are safe for use in food and drinks. Furthermore, growing concerns about plastic waste, as well as the crucial need for more environmentally friendly waste management solutions, are projected to fuel the demand for chemical recycling of plastic. The depolymerization needs for plastic chemical recycling is likely to boost market growth.

Market Dynamics

The increased manufacturing and consumption of plastics have resulted in a huge increase in global plastic waste. Stringent environmental restrictions, increased consumer awareness about plastic pollution, and demand for recycled plastic items are driving the market growth. Chemically recycled plastics are mainly used as raw materials in the production of new polymers, fuels, and other important items. Chemical recycling can process a larger range of plastic waste streams and generate high-quality feedstock for the production of new polymers. Furthermore, ongoing R&D efforts are aimed at enhancing the efficiency and scalability of chemical recycling processes. Advanced technologies, such as pyrolysis, de-polymerization, and solvent-based recycling, are gaining popularity in the market.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 34% in 2023. Countries, such as China, Vietnam, Indonesia, India, Thailand, and Japan, are expected to emerge as primary markets for chemical recycling of plastics. Rising demand from various industries, such as building & construction, packaging, and automotive, which are more inclined toward adoption of recycled plastics, is expected to drive regional market growth. Europe accounted for a revenue share of more than 26.0% in 2023 and is expected to grow at a significant rate. The rising adoption of a sustainable economy by the European Commission for reducing plastic waste is propelling market growth in this region.

According to the European Commission, the region recycles and manufactures recycled plastics for about 45% of its plastic waste. These recovered plastics are employed in many industries, including building & construction, automotive, packaging, and electrical & electronics. Moreover, rising investments in waste management strategies in Europe, aiming towards a carbon-neutral and circular economy, are expected to propel regional market growth. According to Plastics Recyclers Europe (PRE), as of March 2023, Europe has more than 730 recycling sites with a total capacity of 11.3 million tons in EU27 countries.

Product Insights

The polyethylene (PE) segment led the industry in 2023 and accounted for the largest revenue share of more than 32%. Polyethylene compounds are widely used in various industries, such as automotive, construction, electrical & electronics, and packaging. Construction is one of the major consumer markets for polyethylene compounds with a significant share in the global market.

Chemically recycled polyethylene provides a high moisture barrier, and cost-effectiveness to the products, which make it suitable for use in prototype development in Computer Numerical Control (CNC) machines and 3D printers. Polyethylene offers high stiffness, making it suitable for industrial applications, primarily packing automotive and electrical replacement parts.

End-use Insights

The packaging end-use segment accounted for the largest revenue share of over 34% in 2023. Rapid growth of key application industries including medicines, personal & household care, and food & beverages, is driving the demand for plastic packaging. Plastics are widely used due to their high performance, low cost, and durability.

Plastics are used in a variety of packaging materials, including food, beverage, and oil. Furthermore, designed plastic is resistant to extreme environmental conditions and does not degrade under high temperatures, keeping the integrity of products, such as cosmetics and food & beverages. Furthermore, low cost and high printability of plastic make it a profitable packaging material.

Key Companies & Market Share Insights

Global players face intense competition from each other as well as from regional players who have strong distribution networks and good knowledge about suppliers and regulations. Major players, in particular, compete on the basis of application development capability and new technologies used for product formulation. In April 2023, NextChem completed the acquisition of Biorenova's proprietary continuous chemical recycling technology, known as CATC. Biorenova transferred CatC patents, assets, including a demonstration plant, and contracts to MyRemono S.r.l., a newly formed business in which NextChem owns a controlling stake of 51%.

Chemical Recycling of Plastics Market Report Scope

Global Chemical Recycling Of Plastics Market Report Segmentation

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the chemical recycling of plastics market report based on type, product, end-use, and region:

• Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Depolymerization

  • Dissolution

  • Conversion

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • PE

  • PET

  • PP

  • PVC

  • PS

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Automotive

  • Construction

  • Industrial

  • Healthcare

  • Consumer goods

  • Packaging

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Malaysia

    • Singapore

    • Thailand

    • Vietnam

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa