CO2-based Plastics Market Size To Reach $5.45 Billion By 2030

March 2025 | Report Format: Electronic (PDF)

CO2-based Plastics Market Growth & Trends

The global CO2-based plastics market size is anticipated to reach USD 5.45 billion by 2030 and is projected to grow at a CAGR of 10.2% from 2025 to 2030, according to a new report by Grand View Research, Inc. The market is an emerging and highly strategic segment of the global sustainable materials industry, driven by the increasing focus on carbon utilization and circular economy principles. These plastics, synthesized from captured carbon dioxide through advanced polymerization technologies, are gaining traction across multiple industries, including packaging, automotive, electronics, and construction. CO2-derived plastics address critical environmental concerns while maintaining competitive material properties by offering a sustainable alternative to conventional petroleum-based polymers. The versatility of these plastics, ranging from polycarbonates and polyurethanes to biodegradable alternatives, positions them as a key component in the transition toward low-carbon manufacturing and eco-friendly product innovation.

A major driver of the CO2-based plastics market is the escalating global commitment to reducing carbon emissions and advancing sustainable material solutions. Companies and governments alike are investing in carbon capture and utilization (CCU) technologies to transform industrial CO2 emissions into valuable polymer feedstocks, reducing reliance on fossil fuels. CO2-based plastics offer unique advantages, such as lower carbon footprints, reduced petrochemical dependency, and enhanced material performance in select applications. Additionally, breakthroughs in catalyst efficiency and polymer processing are enabling the development of high-performance CO2-derived plastics with enhanced thermal stability, mechanical strength, and recyclability. These advancements, coupled with increasing regulatory incentives and corporate sustainability mandates, are solidifying the role of CO2-based plastics in the evolving landscape of next-generation materials.

The market players are focusing on various strategic initiatives such as mergers, acquisitions, and collaborations. For instance, in November 2024, Fortum Recycling & Waste launched INGA, a biodegradable plastic made entirely from captured CO2 emissions, positioning it as a fossil- and microplastic-free alternative. INGA, a polyhydroxyalkanoate (PHA) material, is versatile and suitable for various applications, including packaging for food, cosmetics, and electronics.

key Request a free sample copy or view report summary: CO2-based Plastics Market Report

CO2-based Plastics Market Report Highlights

  • Based on type, polycarbonates held the largest share, accumulating USD 1.86 billion market size in 2024.

  • Based on packaging, automotive accounted for the largest share of 35.85% market size in 2024.

  • North America dominated the recycling engineering plastics market. As financial institutions and multinational corporations continue to prioritize sustainability-linked investments, the CO2-based plastics market in North America is set to gain strong traction through increased private funding and market-driven adoption.

  • The U.S. was the leading manufacturer of recycling engineering plastics in the Asia Pacific region and captured around 80% of the revenue market share in 2024 in this region.

CO2-based Plastics Market Report Segmentation

Grand View Research has segmented the global CO2-based Plastics market on the basis of product type, application, and region:

CO2-based Plastics Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Polycarbonates

  • Polyurethanes

  • Polypropylene Carbonate (PPC)

  • Polyethylene Carbonate (PEC)

  • Polyethylene Terephthalate (PET)

  • Others

CO2-based Plastics Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Packaging

    • Films

    • Bottles

    • Containers

    • Trays

    • Others

  • Automotive Components

    • Interior Components

    • Structural Parts

    • Construction Materials

    • Pipes

    • Panels

    • Insulation

    • Others

  • Electronic Components

    • Casings

    • Connectors

    • Circuit Boards

    • Others

  • Textile Processing

    • Fibers

    • Non-Woven Fabrics

  • Others

CO2-based Plastics Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

List of Key Players in the CO2-based Plastics Market

  • LG Chem

  • LanzaTech

  • Newlight Technologies

  • Fortum Recycling & Waste

  • NatureWorks

  • Covestro AG

  • Avantium

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