Chemical Recycling Of Plastics Market Size, Share & Trends Analysis Report By Type, By Region, And Segment Forecasts, 2021 To 2028

The plastic demand is expected to grow from 265 million tons in 2017 to over 460 million tons by the end of 2030. This in turn is expected to severely affect the global environment over the next ten years. Thus, in the face of public outcry related to environmental pollution due to plastic, chemical companies such as BASF SE are engaging in the development of processes to mobilize the chemical recycling of plastics.

Basis our analysis, approximately 80% of the annually generated plastic waste ends up in landfills or is incinerated, annually which adds to the carbon dioxide emissions and leads to the wastage of several key resources. The advancements in chemical recycling technologies have led to the development of complementary solutions to the existing mechanical recycling of plastic waste that would result in an increase in plastic recycling rates.

Chemical Recycling Of Plastics Market Segmentation

These technologies can disintegrate plastic and transform them into useful secondary raw materials which can be further used to produce new plastics and chemicals. Through the collaboration of value chain partners, the chemical industry has successfully developed consumer products like refrigerator parts, food packaging, carpets, mattresses, and car dashboards on an R&D scale. As part of the next step, the industry plans to implement these technologies at the industrial level.

There are three major routes followed to treat plastic waste that includes dissolution, depolymerization, and conversion. These three routes enable the breaking down of plastics into their building blocks, thus allowing their transformation into secondary raw materials.

Implementation of chemical technologies for the recycling of plastics at a larger scale is expected to enhance resource efficiency which is further expected to facilitate the formation of a circular economy for plastics. The implementation of these technologies is also expected to assist in the reduction of dependence on carbon imports and the usage of carbon-rich streams as readily available resources.

The implementation of recycling technologies is also expected to limit the leakage of plastic waste into the environment, including the discharge into the oceans or other water bodies. The use of these technologies is also expected to lower the carbon footprint as compared to the conventional practices of incineration and landfills.

Agylx, one of the plastic recycling technology solution providers is playing a critical role in bolstering the use of chemical recycling technologies across the industry. In 2018, the company constructed a plastic recycling facility in Tigard, Oregon. The facility is now being operated as a joint venture with Americas Styrenics, a polystyrene maker, and has the capacity of breaking down 10 metric tons of polystyrene waste per day into styrene material.

The market has also witnessed multiple forays by large chemicals & plastics manufacturers to tap into the growth potential. For instance, Ineos Styrolution and Americas Styrenics planned to build an advanced polystyrene recycling facility in Channahon, Illinois using Agilyx technology. The facility is expected to be ready by 2023 and is expected to operate a polystyrene waste recycling capacity of 100 tons per day. Moreover, Ineos Styrolution and Trinseo also planned to build commercial polystyrene recycling facilities in France and Belgium respectively. These companies have considered Recycling Technologies as their technology partner and both the plants are expected to exhibit an annual polystyrene recycling capacity of 15 kilotons each.

In 2018, BASF SE, one of the largest chemical producers initiated a project by the name ChemCycling for recycling plastic waste. The company is currently involved in the development of pyrolysis oil which turns plastic waste into a secondary raw material pyrolysis oil. This secondary raw material can be used at the beginning of the value chain of BASF’s verbund production, thus saving the fossils fuels.

Several other companies playing their part in creating a circular plastic economy. Shaw industries are using chemical recycling technologies for polyester and nylon fiber in their carpets. Patagonia, an outdoor clothing brand uses chemical recycling technology to recycle non-wearable Capilene polyester and fleece products. In 2021, PlasticEurope, a plastic manufacturers association in Europe announced a significant increase in the planned chemical recycling investment from USD 3 billion in 2025 to USD 8.3 billion in 2030. In addition, to further boost the investments in shifting to a circular economy PlasticEurope also expects the implementation of more harmonized and strong regulatory policies.

Chemical Recycling of Plastic Market Report Scope