Plastic Chemical Recycling Market Trends Accelerated by Environmental Regulations and Government Incentives

InsightAce Analytic Pvt. Ltd. announces the release of a market assessment report on the “Global Plastic Chemical Recycling Market Size, Share & Trends Analysis Report By Type (Pyrolysis, Gasification, Dissolution, Depolymerization)- Market Outlook And Industry Analysis 2031″

The Global Plastic Chemical Recycling Market is valued at US$ 10.1 Bn in 2023, and it is expected to reach US$ 66.0 Bn by 2031, with a CAGR of 27.4% during the forecast period of 2024-2031.

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Plastic chemical recycling encompasses a range of advanced technologies designed to break down plastic waste into its basic chemical building blocks. Techniques such as pyrolysis, gasification, depolymerization, and dissolution alter the molecular structure of plastics, enabling the recycling of complex materials that are often unsuitable for conventional mechanical recycling methods.

The recovered chemical feedstocks can be used to manufacture new plastics, supporting the establishment of a sustainable circular economy. Chemically recycled plastics find applications across various industries, including food and beverage packaging, automotive manufacturing, textiles, and construction, thereby enhancing resource efficiency and promoting material circularity.

The strategic value of chemical recycling lies in its ability to address the growing environmental challenges posed by plastic waste. As global plastic production continues to increase, the demand for scalable and effective recycling solutions has become more urgent.

Chemical recycling not only improves recycling rates but also generates high-quality materials comparable in performance to virgin plastics. Furthermore, this approach contributes to a significant reduction in greenhouse gas emissions associated with plastic production and disposal, advancing broader environmental sustainability goals.

List of Prominent Players in the Plastic Chemical Recycling Market:

• NextChem S.p.A.
• Agilyx ASA
• Exxon Mobil Corporation
• INEOS
• Recycling Technologies Ltd.
• Trinseo
• JEPLAN Inc.
• Borealis AG
• Ioniqa Technologies B.V.
• Sepco Industries Co., Ltd.
• BlueAlp Innovations BV
• Clean Planet Group
• Versalis
• Veolia Environnement SA
• SABIC
• LyondellBasell Industries Holdings B.V.
• Mura Technology
• Plagazi
• Fuenix
• Brightmark
• Shell
• Eastman Chemical Company
• BASF
• Axens
• OMV
• Klean Industries
• JGC HOLDINGS

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Market Dynamics

Drivers:

The plastic chemical recycling market is being propelled by increasing public awareness of plastic pollution, coupled with the enforcement of stringent environmental regulations and government-led initiatives aimed at promoting sustainable waste management.

Rising demand for recycled plastics across key sectors—including packaging, automotive, and construction—alongside advancements in chemical recycling technologies such as pyrolysis, gasification, depolymerization, and dissolution, is improving both process efficiency and cost-effectiveness. These developments are positioning chemical recycling as a commercially viable and economically attractive solution for managing plastic waste.

Challenges:

The market faces several significant challenges. High initial capital expenditures required to deploy advanced recycling technologies and develop the necessary infrastructure can pose barriers, particularly for smaller industry players. Technological limitations related to process efficiency, scalability, and the ability to handle diverse plastic waste streams further constrain growth. Additionally, the lack of comprehensive regulatory frameworks—encompassing clear standards, policies, and incentives—can restrict investment and hinder innovation within the sector.

Regional Trends:

The Asia-Pacific region currently leads the global plastic chemical recycling market, driven by proactive government policies, growing environmental awareness, and substantial investments in advanced recycling technologies. Countries such as China are implementing regulations and incentives to advance recycling initiatives, while increasing public concern regarding plastic pollution is driving demand for recycled plastics across multiple industries.

Significant investment in recycling infrastructure and technological capabilities is supporting the region’s shift toward circular economy models. Furthermore, the region’s diverse economic landscape, encompassing developed markets such as Japan alongside emerging economies including India and Vietnam, facilitates the adoption of tailored recycling strategies, thereby accelerating market growth.

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Recent Developments:

• In March 2024, Borealis has received Letters of No Objection (LNOs) from the US FDA for using specific grades of its Borcycle M post-consumer recycled plastics in food-grade packaging, reinforcing its leadership in value-added circular economy solutions.
• In Sep 2023, Pennsylvania-based Trinseo has expanded its polymethyl methacrylate (PMMA) depolymerization facility in Rho, Italy, to full production. The plant, which began operations last December, uses chemical recycling technology to convert end-of-life acrylic products into the monomer methyl methacrylate (MMA).

Segmentation of Plastic Chemical Recycling Market-

By Type:

• Pyrolysis
• Gasification
• Dissolution
• Depolymerization

By Region-

North America-

• The US
• Canada
• Mexico

Europe-

• Germany
• The UK
• France
• Italy
• Spain
• Rest of Europe

Asia-Pacific-

• China
• Japan
• India
• South Korea
• South East Asia
• Rest of Asia Pacific

Latin America-

• Brazil
• Argentina
• Rest of Latin America

 Middle East & Africa-

• GCC Countries
• South Africa
• Rest of Middle East and Africa

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Tags: Plastic Chemical Recycling Market