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    Chemical Recycling Plastic Market

    ID: MRFR/CnM/23392-HCR
    111 Pages
    Chitranshi Jaiswal
    October 2025

    Chemical Recycling Plastic Market Research Report: By Feedstock (Polyethylene terephthalate (PET), High-density polyethylene (HDPE), Low-density polyethylene (LDPE), Polypropylene (PP)), By Process (Pyrolysis, Gasification, Depolymerization), By Product Type (Monomers, Oligomers, Fuel oils), By Application (Packaging, Automotive, Construction, Textiles), By End-Market (Consumer goods, Industrial products, Transportation) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2035.

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    Chemical Recycling Plastic Market Summary

    The Global Chemical Recycling Plastic Market is projected to experience substantial growth from 37.76 USD Billion in 2024 to 299.67 USD Billion by 2035.

    Key Market Trends & Highlights

    Chemical Recycling Plastic Key Trends and Highlights

    • The market is expected to grow at a compound annual growth rate of 20.72% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 299.7 USD Billion, indicating a robust expansion.
    • in 2024, the market is valued at 37.76 USD Billion, reflecting the increasing focus on sustainable waste management solutions.
    • Growing adoption of chemical recycling technologies due to heightened environmental awareness is a major market driver.

    Market Size & Forecast

    2024 Market Size 37.76 (USD Billion)
    2035 Market Size 299.67 (USD Billion)
    CAGR (2025-2035) 20.72%

    Major Players

    SABIC, Plastic Energy, Dow, Fuenix Ecogy, Chevron Phillips Chemical, LyondellBasell, TotalEnergies, BASF, Mura Technology, UOP, Circa, Shell, ExxonMobil, KBR

    Chemical Recycling Plastic Market Trends

    The Chemical Recycling Plastic Market is undergoing a significant transformation, driven by increasing environmental concerns and the growing demand for sustainable solutions. Key market drivers include stringent government regulations to reduce plastic waste, technological advancements in chemical recycling processes, and the rising adoption of circular economy models.Opportunities to be explored include the development of new chemical recycling technologies, such as pyrolysis and gasification, which can process a wider range of plastic waste.

    Additionally, the integration of chemical recycling into existing waste management systems offers potential for increased waste diversion and resource recovery.Recent trends in the Chemical Recycling Plastic Market include the growing demand for recycled plastics in various applications, such as packaging, automotive, and construction. This demand is driven by consumer awareness of environmental issues and the increasing availability of high-quality recycled plastics. Moreover, the advancement of digital technologies, such as artificial intelligence and machine learning, is enhancing the efficiency and accuracy of plastic waste sorting and recycling processes.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    The ongoing evolution of chemical recycling technologies appears poised to redefine the landscape of plastic waste management, potentially enhancing sustainability efforts and reducing environmental impact.

    U.S. Environmental Protection Agency

    Chemical Recycling Plastic Market Drivers

    Market Growth Projections

    The Global Chemical Recycling Plastic Market Industry is poised for substantial growth, with projections indicating a significant increase in market value over the coming years. By 2024, the market is expected to reach 37.8 USD Billion, with a remarkable CAGR of 20.72% anticipated from 2025 to 2035. This growth trajectory suggests a robust demand for chemical recycling technologies as industries seek sustainable solutions for plastic waste. The market's expansion is likely to be driven by advancements in recycling processes, regulatory support, and increasing consumer awareness of environmental issues.

    Collaboration Across Industries

    Collaboration among various stakeholders is emerging as a vital driver for the Global Chemical Recycling Plastic Market Industry. Partnerships between governments, private companies, and research institutions are fostering innovation and facilitating the development of new recycling technologies. Such collaborations can lead to shared resources, knowledge exchange, and enhanced research capabilities, which are essential for overcoming the challenges associated with plastic waste management. By working together, stakeholders can create a more integrated approach to recycling, potentially leading to increased efficiency and effectiveness in the industry.

    Rising Demand for Sustainable Solutions

    The Global Chemical Recycling Plastic Market Industry is witnessing an increasing demand for sustainable waste management solutions. As environmental concerns escalate, industries are seeking alternatives to traditional recycling methods. Chemical recycling offers a promising approach by converting plastic waste back into its original monomers, thus enabling the production of new plastics. This shift is reflected in the market's projected growth, with an estimated value of 37.8 USD Billion in 2024, indicating a robust interest in sustainable practices. Companies are investing in innovative technologies to enhance recycling efficiency, which could further drive market expansion.

    Increasing Awareness of Circular Economy

    The concept of a circular economy is gaining traction globally, influencing the Global Chemical Recycling Plastic Market Industry. This paradigm shift emphasizes the importance of reusing materials and minimizing waste, aligning with the principles of chemical recycling. As businesses and consumers become more aware of their environmental impact, there is a growing preference for products made from recycled materials. This trend is expected to drive demand for chemical recycling solutions, as companies seek to meet consumer expectations and regulatory requirements. The industry's growth trajectory suggests that it could reach a valuation of 299.7 USD Billion by 2035.

    Regulatory Support and Policy Initiatives

    Government regulations and policies play a crucial role in shaping the Global Chemical Recycling Plastic Market Industry. Many countries are implementing stringent regulations aimed at reducing plastic waste and promoting recycling initiatives. For instance, the European Union has set ambitious targets for recycling and waste management, which encourages investment in chemical recycling technologies. This regulatory support is likely to foster innovation and create a favorable environment for market growth. As a result, the industry may experience accelerated development, contributing to the projected CAGR of 20.72% for the period from 2025 to 2035.

    Technological Advancements in Recycling Processes

    Technological innovation is a key driver of the Global Chemical Recycling Plastic Market Industry. Advances in chemical recycling technologies, such as pyrolysis and depolymerization, are enhancing the efficiency and effectiveness of plastic waste conversion. These technologies enable the recovery of high-quality raw materials from waste plastics, which can be reused in manufacturing. The continuous improvement in these processes is likely to attract investments and partnerships, further propelling market growth. As the industry evolves, the potential for scaling up operations and reducing costs may lead to a more competitive landscape.

    Market Segment Insights

    Chemical Recycling Plastic Market Feedstock Insights

    The chemical recycling plastic market is identified based on feedstock. Itinto polyethylene terephthalate , high-density polyethylene, low-density polyethylene, and polypropylene . PET is currently the most recycled plastic, with the recycling rate estimated at 30%. The PET chemical recycling market is likely to expand significantly in the next few years, driven by the rising demand for recycled PET R-PET from both the packaging and automotive industries.

    The market for PET chemical recycling is expected to grow during the specified period and reach USD 3.5 billion by 2024, with a projected CAGR of 15.2%.HDPE is the second most recycled plastic, and its chemical recycling market will also rapidly develop in the upcoming years. The demand for recycled HDPE is expected to increase in the construction and automotive markets. The HDPE chemical recycling market will reach USD 2.5 billion by 2024, with an estimated CAGR of 14.5%. LDPE is the third most recycled plastic.

    The demand for recycled LDPE will grow in an average manner in the packaging and consumer products markets. The LDPE chemical recycling market will grow during the specified period and reach USD 1.5 billion by 2024, with a projected CAGR of 12.5%.PP is the fourth most recycled plastic, and its recycling rate is lower than 5%. The PP chemical recycling market will slowly develop in the next years, although the demand for recycled PP will grow in the automotive and construction markets.

    The PP chemical recycling market will grow during the specified period and reach USD 1 billion by 2024, with an estimated CAGR of 11%. The market for chemical recycling plastic will develop due to several factors, including the increasing demand for recycled plastics, hike in virgin refineries, and growing interest in the environmental issues.Chemical recycling of plastics is a more sustainable solution in comparison with the traditional mechanical method. The former technique converts plastic into its raw material called monomer, which can be further processed into new plastic.

    Consequently, the demand for virgin products is reduced, and natural resources are conserved.

    Chemical Recycling Plastic Market Process Insights

    The Chemical Recycling Plastic Market is further segmented by the process to Pyrolysis, Gasification, and Depolymerization. Among these, Pyrolysis is anticipated to hold the largest market share during the forecast period. This is so because the process is responsible for yielding valuable petrochemicals and fuels starting from waste plastics. The process involves heating the plastic in the absence of oxygen and causing polymer chains to break down into smaller molecules.

    Overall, gasification is an essential process for chemical recycling as waste plastics get converted to syngas which can be used as a fuel or as a feedstock to other chemical processes.Finally, depolymerization is a process which breaks down the plastic polymers into their original monomers which can be used to create new plastics or other products. Thereby, the market will be valued at USD 141.1 billion by the year 2032. The growth of the market is primarily driven by the growing demand for sustainable waste management and the increasing adoption of chemical recycling technologies.

    Chemical Recycling Plastic Market Product Type Insights

    The Chemical Recycling Plastic Market is segmented by product type into monomers, oligomers, and fuel oils. The monomers segment is expected to hold the largest market share in 2023, accounting for over 50% of the market. This is due to the increasing demand for monomers in the production of new plastics and chemicals. The oligomers segment is expected to grow at the highest CAGR during the forecast period, due to the growing demand for oligomers in the production of specialty chemicals and materials.

    The fuel oils segment is expected to account for a significant share of the market in 2023, due to the growing demand for fuel oils in the transportation and energy sectors.

    Chemical Recycling Plastic Market Application Insights

    The application segment of the Chemical Recycling Plastic Market is diverse, with various industries utilizing chemically recycled plastics. Packaging remains a significant application, driven by the rising demand for sustainable packaging solutions. The automotive sector is also witnessing increased adoption of chemically recycled plastics, particularly in interior components and under-the-hood applications. The construction industry is exploring the use of chemically recycled plastics in building materials, insulation, and pipes.

    The textiles industry is also showing interest in chemically recycled plastics for the production of fibers and fabrics.The growing awareness of environmental concerns and the need for sustainable plastic management are driving the market growth.

    Chemical Recycling Plastic Market End-Market Insights

    The Chemical Recycling Plastic Market is segmented into various end-markets, including consumer goods, industrial products, and transportation. The consumer goods segment is expected to account for the largest share of the market in 2023, driven by the increasing demand for recycled plastics in packaging applications. The industrial products segment is also expected to witness significant growth, owing to the growing adoption of chemical recycling technologies in the automotive and construction industries.

    The transportation segment is projected to expand at a steady pace, as chemical recycling gains traction in the aviation and shipping sectors.According to market data, the Chemical Recycling Plastic Market is expected to reach USD 141.1 billion by 2032, exhibiting a CAGR of 20.72% during the forecast period. This growth is attributed to the increasing awareness about sustainability, stringent government regulations, and technological advancements in chemical recycling processes.

    Get more detailed insights about Chemical Recycling Plastic Market

    Regional Insights

    The Chemical Recycling Plastic Market is segmented into North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share in 2023 due to the presence of major chemical recycling companies and favorable government policies. Europe is expected to be the second-largest market due to the increasing demand for recycled plastics from various industries. APAC is expected to be the fastest-growing market due to the rising demand for recycled plastics from the packaging and automotive industries.

    South America and MEA are expected to have a relatively smaller market share but are expected to grow at a steady pace due to the increasing awareness of the benefits of chemical recycling.

    Chemical Recycling Plastic Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    The development of the Chemical Recycling Plastic Market is defined by the fact that the majority of the players are currently adopting or working on the development of the relevant innovative technologies which would help them to produce better products using the chemical recycling process. Therefore, the leading players in the Chemical Recycling Plastic Market are directing their efforts toward the expansion of the existing product portfolios.

    This step is particularly vital taking into account the current rapid growth of the demand for recycled plastics products in the majority of industries using the given material, whether the automotive, packaging, and consumer goods sector in particular. The Chemical Recycling Plastic Market Competitive Landscape is expected to remain around the same level of competition; therefore, it is expected that more new companies might enter the market, yet more minor players will leave the market due to the mentioned common trend.A leading company offering innovative chemical recycling solutions, in particular, is SABIC.

    The company presents the customers with a wide range of chemical recycling technologies, incorporating several options, such as pyrolysis, gasification, and depolymerisation. Moreover, the company has managed to develop an extensive portfolio of recycled plastics products including polyethylene, polypropylene and PET.

    The main advantages that have ensured the company’s leading position in the market include a very high quality of offers and strong sustainability focus in all spheres, among others.On the other hand, LyondellBasell which is a direct competitor of SABIC also offers the clients an opportunity to make use of a range of available chemical recycling solutions pyrolysis and depolymerisation in the given case. Nevertheless, the main spheres of difference are a product portfolio and the product offers that come with it.

    This company has also developed an extensive portfolio of offers including PE, PP, and PET, and remained focused on the similar critical advantages, mainly the sustainability orientation of the business and long-standing relations with the principal clients.

    Key Companies in the Chemical Recycling Plastic Market market include

    Industry Developments

    • Q2 2025: Ineos Olefins & Polymers Europe launched recycled plastic production at its Lavera site in June 2025 by utilizing pyrolysis oil made from waste plastics Ineos Olefins & Polymers Europe began commercial production of recycled plastics at its Lavera, France facility, using chemical recycling technology (pyrolysis oil) to convert waste plastics into new materials.

    Future Outlook

    Chemical Recycling Plastic Market Future Outlook

    The Chemical Recycling Plastic Market is projected to grow at a 20.72% CAGR from 2025 to 2035, driven by increasing regulatory support, technological advancements, and rising consumer demand for sustainable solutions.

    New opportunities lie in:

    • Invest in advanced chemical recycling technologies to enhance efficiency and reduce costs.
    • Develop partnerships with waste management firms to secure feedstock supply chains.
    • Create innovative products from recycled plastics to capture eco-conscious consumer segments.

    By 2035, the market is expected to achieve substantial growth, positioning itself as a leader in sustainable plastic solutions.

    Market Segmentation

    Chemical Recycling Plastic Market Process Outlook

    • Pyrolysis
    • Gasification
    • Depolymerization
    • Chemical Recycling Plastic Market Product Type Outlook

    Chemical Recycling Plastic Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Chemical Recycling Plastic Market Feedstock Outlook

    • Polyethylene terephthalate (PET)
    • High-density polyethylene (HDPE)
    • Low-density polyethylene (LDPE)
    • Polypropylene (PP)
    • Chemical Recycling Plastic Market Process Outlook

    Chemical Recycling Plastic Market End-Market Outlook

    • Consumer goods
    • Industrial products
    • Transportation
    • Chemical Recycling Plastic Market Regional Outlook

    Chemical Recycling Plastic Market Application Outlook

    • Packaging
    • Automotive
    • Construction
    • Textiles
    • Chemical Recycling Plastic Market End-Market Outlook

    Chemical Recycling Plastic Market Product Type Outlook

    • Monomers
    • Oligomers
    • Fuel oils
    • Chemical Recycling Plastic Market Application Outlook

    Report Scope

    Report Attribute/Metric Details
    Market Size 2024 37.76 (USD Billion)
    Market Size 2025 45.58 (USD Billion)
    Market Size 2035 299.67 (USD Billion)
    Compound Annual Growth Rate (CAGR) 20.72% (2025 - 2035)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2024
    Market Forecast Period 2025 - 2035
    Historical Data 2020 - 2024
    Market Forecast Units USD Billion
    Key Companies Profiled SABIC ,Plastic Energy ,Sabic ,Dow ,Fuenix Ecogy ,Chevron Phillips Chemical ,LyondellBasell ,TotalEnergies ,BASF ,Mura Technology ,UOP ,Circa ,Shell ,ExxonMobil ,KBR
    Segments Covered Feedstock ,Process ,Product Type ,Application ,End-Market ,Regional
    Key Market Opportunities Circular economy initiatives Growing demand for sustainable packaging Technological advancements in depolymerization Government regulations and incentives Collaboration between stakeholders
    Key Market Dynamics Increasing demand for sustainable plastics Rising environmental concerns Technological advancements Government regulations Collaboration between stakeholders
    Countries Covered North America, Europe, APAC, South America, MEA

    FAQs

    What is the market size of the Chemical Recycling Plastic Market?

    Chemical Recycling Plastic Market is expected to grow with a CAGR of 20.72% in the period 2025-2035

    What are the key regions contributing to the growth of the Chemical Recycling Plastic Market?

    The Asia Pacific region is expected to dominate the Chemical Recycling Plastic Market, with China and India being the major contributors. North America and Europe are also significant markets, with the United States and Germany leading the respective regions.

    What are the major applications of Chemical Recycling Plastic?

    Chemical Recycling Plastic finds applications in various industries, including automotive, packaging, construction, and consumer goods. It is used in the production of new plastics, chemicals, and fuels.

    Who are the key competitors in the Chemical Recycling Plastic Market?

    Key players in the Chemical Recycling Plastic Market include BASF SE, SABIC, LyondellBasell Industries Holdings B.V., Chevron Phillips Chemical Company LLC, and Dow Inc. These companies are investing in research and development to improve their technologies and expand their product offerings.

    What are the challenges faced by the Chemical Recycling Plastic Market?

    The Chemical Recycling Plastic Market faces challenges such as the high cost of chemical recycling processes, the limited availability of feedstock, and the lack of a well-established infrastructure for collecting and sorting plastic waste.

    What are the opportunities for growth in the Chemical Recycling Plastic Market?

    Opportunities for growth in the Chemical Recycling Plastic Market include the increasing demand for sustainable materials, government regulations promoting circular economy practices, and technological advancements that improve the efficiency and cost-effectiveness of chemical recycling processes.

    What is the impact of COVID-19 on the Chemical Recycling Plastic Market?

    The COVID-19 pandemic had a significant impact on the Chemical Recycling Plastic Market, disrupting supply chains, reducing demand for plastic products, and delaying investment in new technologies. However, the long-term outlook for the market remains positive, driven by the increasing focus on sustainability and the need for innovative solutions to address plastic waste.v

    What are the key trends shaping the Chemical Recycling Plastic Market?

    Key trends shaping the Chemical Recycling Plastic Market include the development of new chemical recycling technologies, the increasing use of recycled plastics in various applications, and the growing adoption of circular economy models by businesses and governments.

    What are the growth projections for the Chemical Recycling Plastic Market?

    Chemical Recycling Plastic Market is projected to grow at a CAGR of 20.72% during the forecast period, 2025-2035

    What are the key factors driving the growth of the Chemical Recycling Plastic Market?

    Key factors driving the growth of the Chemical Recycling Plastic Market include the increasing awareness of the environmental impact of plastic waste, the growing demand for sustainable materials, and the development of new and innovative chemical recycling technologies. Government regulations and policies promoting circular economy practices are also contributing to the market's growth.

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