Global Chemical Recycling Market Research Report: Forecast (2024-2030)

Market Definition

Chemical recycling is a process of breaking down polymeric waste (mainly plastics) into molecular levels that is, by breaking down to their basic chemical constituents or plastic feedstock by involving multiple techniques such as pyrolysis, gasification, hydrothermal treatment, purification, and depolymerization, and turning them into raw materials for different products.

Market Insights & Analysis: Global Chemical Recycling Market (2024-30):

The Global Chemical Recycling Market size is valued at around USD 15.5 billion in 2024 & is estimated to grow at a CAGR of around 9.8% during the forecast period, i.e., 2024-30. The huge growth potential in the market is primarily due to two factors, one is that the world is witnessing a large amount of plastic waste generation due to it being a versatile product that is used extensively across many industries. The second factor is the rising awareness of people and governments about the harmful environmental impact plastics have on the environment as they are dumped into landfills or incinerated causing huge CO₂ emissions. These scenarios led governments across the globe to make a major policy change to implement regulations for adopting sustainable measures to recycle plastic waste effectively.

These developments provide a great growth opportunity for the chemical recycling industry as chemical recycling not only effectively disposes the plastic waste but also provides the basic ingredients of it which then can either be value-added to create different products or burned as fuel for energy. Additionally, through chemical recycling, we generate a high-quality output compared to other techniques available for plastic recycling, these high-quality outputs can substitute these virgin plastics.

However, it comes with its challenges as well such as the implementation cost of chemical recycling is huge as for this not just the technology but also the extensive infrastructure development is needed. Also, while the quality of the output is significantly higher in chemical recycling than the other plastic recycling methods the process comes with a lower yield, hence chemical recycling should be done on scale for it to be economically viable. Also, the process consumes too much energy so unless it is not using renewable energy, the whole purpose will be counterproductive. But with further advancement in technologies and the fast adoption of renewable energy sources such challenges can be resolved. With the rising awareness of people about sustainable measures and the impact of plastics on the environment businesses and governments will be forced to support such innovative methods.

Global Chemical Recycling Market Driver:

Government Strict Regulations Driving Market Growth – The wider adoption of chemical recycling needs a necessary push from the stringent government regulations to meet the emission targets and mitigate the increasing plastic waste otherwise it will continue to get either dumped in landfills or incinerated, leading to massive pollution and CO₂ emission. For instance,

• In April 2024, the Geneva Environment Network a coordinated network of the United Nations Environment Programme highlighted that out of the total plastic waste produced in the world only about 9% gets recycled. The majority of the plastic waste about 50% ends up in landfills, 22% gets dumped into uncontrolled sites, and the remaining gets incinerated.

So, as the world is looking to tackle the phenomenon such as climate and global warming a policy shift towards sustainability and environmentally friendly approaches can create a scenario, presenting a massive growth opportunity for the Global Chemical Recycling Market over the forecasted period. At the 16^th COP conference held in May 2023, the attending parties to the Basel Convention accepted the guidelines for proper plastic waste management. Such developments are anticipated to augment the size & volume of the chemical recycling industry in the coming years.

Global Chemical Recycling Market Opportunity:

Rising People’s Awareness About the Harmful Impact of Plastic Waste Offering Lucrative Opportunities – People across the world become aware of the harmful impact of plastic waste. About how these plastics waste contaminate the air, soil, and water and eventually find their way into the ocean through rivers. Plastic a non-biodegradable material over time breaks down into smaller plastics known as “microplastic” which find their way into the human body through water or food and can lead to many health issues. For instance,

• In March 2024, the World Economic Forum published a report that highlights the presence of microplastics in the human body can increase a person's chances and risk exposure of getting heart attacks and strokes.

As such discoveries become more prominent, the rising awareness can change consumer behavior prompting the government to implement necessary regulations for it and businesses to recycle their plastic waste. This trend can likely support the market growth and boost plastic recycling from the current 9%. Such trends highlight the growth potential of the market over the forecasted period.

Global Chemical Recycling Market Challenge:

High Setup & Installation Costs – Chemical recycling is an effective technique to recycle plastic waste and also get back the basic constituents of it, as a high-quality output. However, the implementation, running, and maintenance costs associated with it are very high. This is primarily due to some key factors such as the setup and installation costs of the plant being substantial, the need for the massive infrastructure requirement that supports the process from collection to segregation, and finally, the very operation that runs constantly for a prolonged period consumes massive electricity adds significant cost and makes the entire process an expensive implementation. Thus, high setup and installation costs are hindering the growth & expansion of the market.  

Global Chemical Recycling Market Trend:

Increasing Focus on Sustainable Chemical Recycling – Globally it is being witnessed that major investments are flowing into developing chemical recycling capabilities. For instance,

• In August 2023, The European Commission in its press release highlighted that through the InvestEU program, EIF will invest around euro 50 million to support circular plastics. The target size is around euro 150 million, which will strengthen the scalability of industries and companies to acquire advanced (Chemical) recycling of plastics. 

Major chemical, and oil companies across the globe have been investing heavily in acquiring various capabilities by forming partnerships and signing agreements with chemical recycling technology providers and other companies. These developments highlight the trend that for sustainable recycling of plastic waste, major investments are taking place in the Global Chemical Recycling Market.

Global Chemical Recycling Market (2024-30): Segmentation Analysis

The Global Chemical Recycling Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Product:

• Polyethylene (PE)
• Polyethylene Terephthalate (PET)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS)
• Polycarbonate
• Others

The polyethylene (PE) segment holds the largest market share primarily due to its extensive application across various industries in the world. These applications include 1) packaging products such as plastic bags, plastic films, and bottles, 2) PE pipes used in the building and construction industries for drainage, and insulation materials, and 3) In automobiles it is used as a noise & vibration absorber and thermal insulation, and 4) Others products used in medical and healthcare industry. Such broad usage across various industries provides a positive future growth outlook for the polyethylene (PE) segment in the market over the forecasted period.

Based on End User:

• Packaging
• Automotive
• Building & Construction
• Electronics
• Others

When considering segmentation based on end-users packaging industry dominates the market for the extensive use of plastic in the packaging industry, and this scenario will most likely continue to play out in the market over the forecasted period. The primary reason for this is due to the plastic material is highly flexible, durable, and lightweight. Most of the products that we use daily have the involvement of plastic in them whether it is your favorite snacks, the bottle you use, your medicines, or the cover of your smartphone, one can see the extensive use of plastic in packaging.

Global Chemical Recycling Market (2024-30): Regional Projections

Geographically, the Global Chemical Recycling Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Europe holds the largest share in the Global Chemical Recycling Market, due to its adherence to strict environmental regulations. European Union has also launched a circular economy action plan under which the EU aims to achieve a circular economy by 2050. However, the Asia-Pacific region is showing quick revenue growth and will show solid momentum over the forecasted period. The primary rationale for this is due to the presence of large economies like India and China with their huge population and consumption generate significant volumes of plastic waste that needs to be recycled. Additionally, the policy push by governments in the region towards the recycling of waste in a sustainable way pushes the need for chemical recycling and indicates the growth prospects of it coming from the region.

Global Chemical Recycling Industry Recent Development:

• February 2024: BASF launches chemical recycling at Port Arthur, Texas in the United States of America. This is the first time the company to brought its products from recycled plastic feedstock into the US market.
• March 2024: Eastman Chemical Company will receive an investment of up to USD 375 million for the second recycling project from the US Department of Energy.
• October 2023: Plastic Energy comes under an agreement with PETRONAS Chemical Group Berhad (PCG) to provide chemical recycling technology to it. PCG is planning to construct Asia’s largest Advanced Chemical Recycling plant.

Gain a Competitive Edge with Our Global Chemical Recycling Market Report

1. Global Chemical Recycling Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Chemical Recycling Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.