Global Chemical Recycling Market Outlook 2024–2031 | Growth Drivers, Technologies, and Sustainability Trends
The global Chemical Recycling Market size was valued at USD 13.43 billion in 2023 and is projected to grow from USD 14.04 billion in 2024 to USD 19.97 billion by 2031, exhibiting a CAGR of 5.16% during the forecast period. The growth of the market is primarily driven by increasing global plastic waste generation, rising environmental concerns, and growing demand for circular economy solutions across industries.
Chemical recycling, also referred to as advanced recycling, plays a critical role in addressing the limitations of traditional mechanical recycling by converting plastic waste into its chemical building blocks. This enables the production of high-quality recycled materials that can be reused across packaging, automotive, construction, and consumer goods industries.
Chemical Recycling Market: Key Highlights
The chemical recycling market is witnessing significant momentum as governments, manufacturers, and consumers shift toward sustainable waste management practices.
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Rising plastic pollution and landfill overflow are accelerating the adoption of chemical recycling technologies.
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Chemical recycling allows for the processing of mixed, contaminated, and multilayer plastics, which are difficult to recycle mechanically.
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Strong policy support for carbon reduction and circular economy initiatives is boosting market growth.
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Major chemical companies are investing heavily in R&D, pilot plants, and commercial-scale recycling facilities.
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Europe and North America lead the market due to strict environmental regulations, while Asia-Pacific is emerging as the fastest-growing region.
The growing emphasis on closed-loop recycling systems is positioning chemical recycling as a strategic solution for achieving long-term sustainability goals.
Chemical Recycling Market Drivers and Emerging Trends to 2031
Market Drivers
Several factors are contributing to the steady expansion of the global chemical recycling market:
Rising Plastic Waste Generation
Global plastic production continues to rise, leading to severe waste management challenges. Chemical recycling offers an effective pathway to convert plastic waste into reusable feedstock, reducing environmental impact.
Limitations of Mechanical Recycling
Mechanical recycling often degrades plastic quality and cannot handle contaminated or composite plastics. Chemical recycling overcomes these challenges by breaking polymers into monomers or fuels.
Stringent Environmental Regulations
Governments worldwide are implementing strict regulations to reduce plastic waste, carbon emissions, and landfill dependency, encouraging industries to adopt advanced recycling technologies.
Corporate Sustainability Commitments
Major brands are committing to using recycled content in packaging and products, driving demand for high-quality recycled polymers produced through chemical recycling.
Advancements in Recycling Technologies
Continuous innovation in depolymerization, pyrolysis, and gasification technologies is improving efficiency and scalability.
Emerging Trends
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Integration of Chemical Recycling with Petrochemical Infrastructure
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Use of AI and Automation in Waste Sorting
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Increased Investments in Pilot and Demonstration Plants
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Focus on Bio-based and Low-Carbon Feedstocks
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Strategic Partnerships Between Waste Management and Chemical Companies
These trends are shaping a more resilient and scalable chemical recycling ecosystem.
Why This Report Stands Out?
This comprehensive chemical recycling market analysis provides valuable insights for investors, manufacturers, policymakers, and sustainability leaders. The report delivers:
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In-depth market dynamics analysis
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Technology-level and application-based segmentation
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Regional growth outlook and opportunity mapping
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Competitive landscape and strategic developments
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Long-term forecast backed by industry trends
The study enables stakeholders to make informed decisions aligned with evolving environmental and regulatory frameworks.
Chemical Recycling Market Segmentation Analysis
By Technology
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Pyrolysis
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Gasification
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Depolymerization
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Hydrogenation
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Solvolysis
Among these, pyrolysis technology holds a significant market share due to its ability to process diverse plastic waste streams and produce fuels and feedstock.
By Feedstock
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Polyethylene (PE)
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Polypropylene (PP)
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Polystyrene (PS)
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Polyethylene Terephthalate (PET)
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Mixed Plastics
The mixed plastics segment is expected to witness robust growth due to chemical recycling’s capability to handle heterogeneous waste.
By End-Use Industry
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Packaging
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Automotive
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Construction
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Textiles
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Consumer Goods
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Industrial Applications
The packaging industry dominates the market, driven by growing demand for recycled content and sustainable packaging materials.
Who Are the Largest Global Manufacturers in the Chemical Recycling Market?
Key players operating in the global chemical recycling market include:
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BASF SE
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Dow Inc.
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SABIC
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Shell plc
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Eastman Chemical Company
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LyondellBasell Industries
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TotalEnergies
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Plastic Energy
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Agilyx
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Brightmark
These companies are focusing on capacity expansion, technology innovation, and strategic collaborations to strengthen their market position.
Regional Outlook: Chemical Recycling Market
North America
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United States
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Canada
North America remains a leading region due to strong corporate sustainability initiatives, technological advancements, and increasing investments in advanced recycling facilities.
Europe
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Germany
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United Kingdom
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France
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Italy
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Netherlands
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Rest of Europe
Europe’s dominance is supported by stringent environmental regulations, extended producer responsibility (EPR) programs, and ambitious recycling targets.
Asia-Pacific
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China
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India
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Japan
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South Korea
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Southeast Asia
Asia-Pacific is expected to witness the fastest growth, driven by rapid urbanization, rising plastic consumption, and increasing government focus on waste management infrastructure.
Latin America
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Brazil
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Mexico
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Argentina
The region is gradually adopting chemical recycling technologies due to growing environmental awareness and industrial development.
Middle East & Africa
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UAE
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Saudi Arabia
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South Africa
Increasing investments in petrochemical diversification and sustainability projects are supporting market growth in this region.
Chemical Recycling Market Future Scope, Trends, and Forecast [2024–2031]
The future outlook of the chemical recycling market is highly promising, supported by global efforts to reduce plastic pollution and transition toward circular economies.
Key developments expected over the forecast period include:
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Commercial-scale deployment of advanced recycling plants
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Increased regulatory incentives and funding support
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Integration of renewable energy into recycling processes
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Expansion of recycled polymer applications across industries
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Growing consumer demand for sustainable products
As chemical recycling technologies mature, they are expected to complement mechanical recycling and play a pivotal role in global waste management strategies.
Kings Research Says
According to Kings Research, the chemical recycling market is poised for steady growth as industries and governments prioritize sustainability and resource efficiency. Chemical recycling is emerging as a transformational solution capable of addressing complex plastic waste challenges that traditional recycling methods cannot solve.
Kings Research highlights that continued investment in technology innovation, regulatory alignment, and cross-industry collaboration will be critical for scaling chemical recycling globally. Companies that proactively adopt advanced recycling solutions and integrate them into their value chains will gain a competitive advantage in the evolving circular economy landscape.
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