Chemical Recycling Plastic Market Overview
As per MRFR analysis, the Chemical Recycling Plastic Market Size was estimated at 21.46 (USD Billion) in 2022. The Chemical Recycling Plastic Market Industry is expected to grow from 25.91(USD Billion) in 2023 to 141.1 (USD Billion) by 2032. The Chemical Recycling Plastic Market CAGR (growth rate) is expected to be around 20.72% during the forecast period (2024 - 2032).
Key Chemical Recycling Plastic Market Trends Highlighted
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, MRFR Database and Analyst Review
Chemical Recycling Plastic Market Drivers
Growing Demand for Sustainable Packaging
The current rise in demand for sustainable packaging solutions results from the increasing consumer awareness of the adverse environmental effects of plastic waste. An appropriate solution in this field comes in the form of chemical recycling. Compared to more conventional forms of plastic recycling, this approach leads to the reprocessing of plastic waste to the point when it can be returned to its monomeric state. As a result, the polymers extracted through the technique can be used for producing new plastic packages, which makes the approach a closed-loop one and drastically decreases the need for non-recycled plastic.In other words, chemical recycling promotes resource management and sustainability in the industry. The target customer for this product includes food and beverage companies that are currently seeking to decrease their environmental impact level. Among the most recent trends in the legislative system of countries worldwide is the adoption of bills that require companies to use recycled content. To avoid the necessity for paying fines, companies have to adopt chemical recycling as one of the tools allowing for the control of said recycled content.In conclusion, as the number of companies willing to attain high environmental sustainability standards increases at present, it can be expected that the demand for sustainable packaging options will increase. As a result, the respective market will grow in response.
Technological Advancements in Chemical Recycling
One of the factors which may support the growth of the Chemical Recycling Plastic Market Industry is the most significant technological advancements taking place right now. The first to be noted technological advancement is the development of new catalysts which allow to obtain higher efficiency in performing chemical recycling processes. These new catalysts are effective in breaking the plastic waste into lower components at lower temperatures and for a shorter reaction time which, in turn, will also reduce the cost of performing the recycling process.Moreover, there are other new technological approaches to be developed which will increase the selectivity of performing chemical recycling. This will result in the widening range of products which can be obtained through chemical recycling, including high-value chemicals and materials. In conclusion, the advances in technology create the conditions for the increasing effectiveness of chemical recycling and gaining competitive advantage through the broader application of this technology.
Government Support for Chemical Recycling
Government support is another major driver of growth for the Chemical Recycling Plastic Market Industry. Governments around the world are increasingly recognizing the importance of chemical recycling as a way to reduce plastic waste and promote sustainability. This support is taking a variety of forms, including: - Financial incentives for companies that invest in chemical recycling technology - Regulations that mandate the use of recycled content in products - Public awareness campaigns to educate consumers about the benefits of chemical recycling Government support is helping to create a more favorable environment for the growth of the Chemical Recycling Plastic Market Industry.
Chemical Recycling Plastic 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.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
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.
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.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Chemical Recycling Plastic Market 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 Include
Chemical Recycling Plastic Market Industry Developments
The chemical recycling plastic market is projected to reach USD 141.1 billion by 2032, exhibiting a CAGR of 20.72% from 2024 to 2032. The market is driven by factors such as increasing environmental concerns, growing demand for sustainable packaging, and technological advancements.Major industry players are focusing on strategic collaborations and acquisitions to strengthen their market position. For instance, in February 2023, SABIC and Plastic Energy announced a partnership to develop and commercialize advanced recycling technologies for plastics. The partnership aims to accelerate the adoption of circular economy solutions and reduce plastic waste.Moreover, government regulations and initiatives to promote sustainable practices are expected to drive market growth. The European Union has set a target to recycle 50% of plastic waste by 2025, which is expected to boost demand for chemical recycling technologies.
Chemical Recycling Plastic Market Segmentation Insights
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Report Attribute/Metric
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Details
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Market Size 2022
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21.46(USD Billion)
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Market Size 2023
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25.91(USD Billion)
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Market Size 2032
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141.1(USD Billion)
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Compound Annual Growth Rate (CAGR)
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20.72% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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SABIC ,Plastic Energy ,Sabic ,Dow ,Fuenix Ecogy ,Chevron Phillips Chemical ,LyondellBasell ,TotalEnergies ,BASF ,Mura Technology ,UOP ,Circa ,Shell ,ExxonMobil ,KBR
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Segments Covered
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Feedstock ,Process ,Product Type ,Application ,End-Market ,Regional
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Key Market Opportunities
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Circular economy initiatives Growing demand for sustainable packaging Technological advancements in depolymerization Government regulations and incentives Collaboration between stakeholders
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Key Market Dynamics
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Increasing demand for sustainable plastics Rising environmental concerns Technological advancements Government regulations Collaboration between stakeholders
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Chemical Recycling Plastic Market is expected to reach a valuation of USD 25.91 billion in 2023 and is projected to grow at a CAGR of 20.72% to reach USD 141.1 billion by 2032.
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.
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.
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.
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.
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.
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
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.
The Chemical Recycling Plastic Market is expected to grow significantly in the coming years, driven by the increasing demand for sustainable materials, government regulations, and technological advancements. The market is projected to reach a valuation of USD 141.1 billion by 2032, growing at a CAGR of 20.72% from 2023 to 2032.
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.
