February 22, 2024

Plastics Chemical Recycling Market to Witness Remarkable 30% CAGR, Reaching US$50 Billion by 2030

The global plastics chemical recycling market is poised to experience extraordinary growth, with a projected CAGR of 30% during the assessment period from 2023 to 2030. By the end of 2030, the market is expected to reach a substantial value of approximately US$50 billion.

Market Overview:

Plastics chemical recycling involves the dissolution of discarded plastic into its chemical constituents through various chemical reactions. The recovered chemicals can serve as raw materials for the production of new polymers, fuels, or other valuable products. Unlike mechanical recycling, which involves melting and reshaping plastics, chemical recycling focuses on altering the molecular structure of plastic polymers. This method enables the recovery of a broader range of plastics, even those with contamination, mixed compositions, or degradation, compared to conventional recycling techniques.

Key Report Findings:

  • The plastics chemical recycling market is set to undergo significant multifold expansion in revenue between 2023 and 2030.
  • The market’s rapid growth is driven by the global plastic waste challenge and the demand for more environmentally friendly waste management methods.
  • The demand for depolymerization in plastics chemical recycling is expected to drive market growth.
  • Asia Pacific will continue to lead the market, with North America’s plastics chemical recycling sector experiencing the strongest growth through 2030.

Market Drivers:

Rising Public Concerns Around Environmental Impact and Recycling Advancements:

The plastic recycling industry has witnessed substantial growth in recent years due to various factors. Increased awareness of the adverse environmental effects of plastic waste and the desire to reduce carbon emissions are primary drivers propelling the plastic recycling industry’s growth. Cutting-edge recycling technologies such as chemical recycling and pyrolysis have expanded the range of plastics that can be recycled, further benefiting the market. A growing recognition of the importance of circular economy concepts and the need to transition towards a more sustainable future is also driving the plastic recycling industry. In just one year, 359 million tonnes of plastic were produced worldwide, but a significant portion of that material is either incinerated or deposited in landfills because it cannot be recycled.

The plastic chemical recycling industry offers numerous opportunities for entrepreneurs and investors. As global awareness of the detrimental impacts of plastic waste on the environment continues to grow, there is an increasing demand for alternatives. Investing in the plastic recycling industry can take various forms, including establishing recycling facilities, developing advanced recycling technologies, or acquiring stakes in existing recycling enterprises. Entrepreneurs may also explore opportunities in creating new products from recycled plastic or providing recycling-related services, which are expected to further boost market expansion.

Globally Expanding Government Policies to Reduce Plastic Waste Fuel Market Growth:

Government incentives and regulations worldwide are driving the plastic recycling industry forward. Government policies significantly impact the growth of the recycled plastic sector. Many countries have implemented policies to promote sustainable practices and the development of the recycling industry. Several nations have banned single-use plastic products and imposed levies on plastic bags. For instance, India’s Environment Ministry introduced draft regulations in 2021, directing producers of plastic packaging materials to collect all their products by 2024 and ensure a certain percentage is recycled and used in subsequent supplies. These policies foster a favorable environment for expanding the plastics chemical recycling market as they promote the development of innovative recycling technologies and increase consumer demand for recycled plastics.

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Furthermore, the plastic recycling market is advancing and implementing several cutting-edge technologies, such as chemical recycling and pyrolysis, with the potential to revolutionize the industry. As of 2022, more than 40 companies, including Shell, Dow, and Chevron Phillips, were involved in or managing chemical recycling projects in the United States. Chemical recycling involves breaking down discarded plastics into chemical components that can be used to produce new plastic products. This process can handle a wider range of plastic waste, including mixed and contaminated plastics, while producing higher-quality recovered materials. Many companies are actively developing and commercializing chemical recycling technologies.

Market Challenges:

High Capital Investments:

High capital investment poses a significant barrier to the global plastics chemical recycling market. This investment encompasses various costs related to establishing the technology and infrastructure required to transform plastic waste into valuable chemical feedstocks. Such capital-intensive processes may deter the widespread adoption of chemical recycling for plastic waste disposal. Reactors, processing units, and specialized equipment are necessary for plastic chemical recycling, all of which often require a substantial upfront investment. These processes may also require ongoing technical enhancements to improve productivity and efficiency, further increasing capital costs.

Additionally, extensive research and development efforts are needed to develop and enhance chemical recycling methods. Companies and academic institutions invest significantly in understanding complex chemistry, refining reaction conditions, and developing scalable technologies, contributing to the overall capital investment. Moreover, constructing chemical recycling facilities entails high building costs. Obtaining the necessary permits and complying with regulatory requirements can further escalate the total capital investment, particularly in complex or ambiguous regulatory environments.

Overview of Key Segments:

Pyrolysis and Gasification Leading Market Segments:

Pyrolysis and gasification together represent a significant portion of the plastics chemical recycling market, as they break down waste plastic into feedstocks. These technologies collectively account for approximately 80% of planned chemical recycling capacities. In pyrolysis, plastics are thermally decomposed in the absence of oxygen, resulting in a range of basic hydrocarbons. These hydrocarbons can be further processed via distillation to produce various products, from heavy waxes and oils to light oils and gases. These processes divert plastic waste from landfills and the environment. Plastic waste is collected from various sources, including households, businesses, and industries, and undergoes sorting to separate different plastic types based on their chemical composition and characteristics.

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Depolymerization is another process employed in the chemical recycling of plastics, offering several benefits, such as the ability to recycle a wide variety of plastic types, reduced greenhouse gas emissions compared to fossil fuel-based plastics production, and support for the circular economy by promoting the reuse of plastic waste. However, this process can be energy-intensive and may require further technological development to become commercially and economically viable.

Growth Opportunities Across Regions:

Asia Pacific Retains Top Position:

Asia Pacific is expected to maintain its leadership in initiating new projects in the plastics chemical recycling market. The region faces challenges related to inadequate recycling facilities and waste disposal, raising environmental concerns. Plastic chemical recycling presents a potential solution to these issues and a means of reducing plastic pollution. Additionally, several countries in Asia Pacific have begun implementing regulations and policies to promote circular economy practices and sustainable waste management. Governments have encouraged investments in cutting-edge recycling technology, including chemical recycling of plastics, through incentives and supportive policies. Private enterprises and investors have financed commercial-scale operations, research and development, contributing to the rapid growth of the market in the region. Ongoing research and technology advancements have improved the efficiency and affordability of plastic chemical recycling technologies, making them increasingly attractive to regional stakeholders.

Europe to Provide a Strong Breeding Ground:

The European plastics chemical recycling market is set to experience significant growth during the forecast period. The management of plastic waste has emerged as a critical concern in Europe, driven by issues such as plastic pollution, landfill capacity constraints, and a lack of recycling infrastructure. Numerous European businesses have set ambitious sustainability targets, including commitments to use higher proportions of recycled materials in their products. Chemical recycling of plastics offers a viable means of achieving these goals while mitigating their negative environmental impact. Growing public concern over plastic pollution and its adverse effects on the environment has increased the demand for sustainable solutions. Companies are investing in advanced recycling technologies to gain consumer support for products made from recycled materials. Several European countries have enacted regulations and policies to promote environmentally friendly recycling and waste management practices. Incentives, grants, and funding programs have been introduced to facilitate the development and adoption of cutting-edge recycling technologies.

Plastics Chemical Recycling Market Players:

Leading players in the plastics chemical recycling market include Agilyx ASA, NextChem S.p.A., INEOS, Recycling Technologies Ltd., Exxon Mobil Corporation, JEPLAN Inc., and BlueAlp Innovations BV. These companies are actively contributing to the advancement of recycling technologies, innovation, and the growth of the plastics chemical recycling market.

Browse Global Plastic Chemical Recycling Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – (By Type Coverage, By Geographical Coverage, Leading Companies): https://www.fairfieldmarketresearch.com/report/plastic-chemical-recycling-market

 

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This press release first seen on Brilad