Plastic Mechanical And Chemical Recycling Market
Plastic Mechanical & Chemical Recycling Market Forecasts to 2032 – Global Analysis By Type (Mechanical Recycling and Chemical Recycling), Source, Process Technology, End User and By Geography
According to Stratistics MRC, the Global Plastic Mechanical & Chemical Recycling Market is accounted for $64.7 billion in 2025 and is expected to reach $113.2 billion by 2032 growing at a CAGR of 8.3% during the forecast period. Plastic mechanical and chemical recycling are two complementary methods used to recover and repurpose plastic waste. Mechanical recycling involves sorting, cleaning, shredding, and reprocessing plastics into new products without altering their chemical structure. It is most effective for single-polymer plastics like PET and HDPE. Chemical recycling, on the other hand, breaks down complex or contaminated plastics into their basic chemical components through processes like pyrolysis, gasification, or depolymerization. These components can then be reused to produce virgin-quality plastics. Together, these methods support circular economy goals by reducing landfill waste, conserving resources, and minimizing environmental impact from plastic pollution.
Market Dynamics:
Driver:
Environmental Regulations & Policies
Stringent environmental regulations and global sustainability mandates are driving the growth of plastic recycling. Policies like Extended Producer Responsibility (EPR), bans on single-use plastics, and landfill restrictions are compelling industries to adopt mechanical and chemical recycling solutions. Governments and international bodies are promoting circular economy models, encouraging investment in recycling infrastructure. These regulations not only reduce plastic pollution but also create economic incentives for companies to innovate and comply, making regulatory pressure a powerful catalyst for market expansion.
Restraint:
Complexity of Composite Materials
The recycling of composite materials presents a significant challenge for the market. Plastics combined with other materials—such as metal foils, adhesives, or multilayer films—are difficult to separate and process using conventional recycling methods. Mechanical recycling struggles with contamination, while chemical recycling requires advanced technologies and high energy input. These complexities limit the recyclability of many consumer and industrial products, slowing adoption rates and increasing operational costs, thereby restraining the overall growth of the recycling market.
Opportunity:
Technological Advancements
Technological innovations are unlocking new possibilities in plastic recycling. Breakthroughs in chemical recycling—such as depolymerization, enzymatic processes, and solvent-based purification—enable the treatment of previously unrecyclable plastics. Automation, AI-driven sorting systems, and advanced pelletizing techniques are improving efficiency and scalability. These advancements allow for higher recovery rates, better material quality, and reduced environmental impact. As companies invest in R&D and pilot projects, technology becomes a key opportunity to expand market reach and meet global sustainability goals.
Threat:
Economic Challenges
Economic instability poses a threat to the plastic recycling market. Global recessions, inflation, and geopolitical tensions can disrupt supply chains, reduce investment in recycling infrastructure, and slow regulatory enforcement. High operational costs, especially for chemical recycling, may deter adoption during financial downturns. Additionally, fluctuating oil prices can make virgin plastic cheaper than recycled alternatives, undermining market competitiveness. These economic pressures can stall progress, making financial resilience and policy support critical for sustained market growth.
Covid-19 Impact:
The COVID-19 pandemic had a mixed impact on the plastic recycling market. On one hand, increased use of single-use plastics in medical and packaging sectors led to higher plastic waste generation. On the other hand, lockdowns and economic disruptions slowed recycling operations, reduced workforce availability, and delayed infrastructure projects. Supply chain interruptions and shifting policy priorities temporarily hindered market momentum. However, the pandemic also highlighted the need for resilient waste management systems, prompting renewed focus on recycling innovation post-crisis.
The pelletizing segment is expected to be the largest during the forecast period
The pelletizing segment is expected to account for the largest market share during the forecast period due to its efficiency, scalability, and versatility. Pelletizing transforms plastic waste into uniform pellets, which are easily reused in manufacturing processes across industries like packaging, automotive, and consumer goods. Its compatibility with various polymer types and ability to produce high-quality recycled material make it a preferred method. Growing demand for sustainable raw materials and advancements in pelletizing technology further reinforce its market leadership.
The polyvinyl chloride (PVC) segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the polyvinyl chloride (PVC) segment is predicted to witness the highest growth rate due to its widespread use and increasing recyclability. Found in construction, healthcare, and packaging applications, PVC has historically posed recycling challenges. However, recent innovations in chemical recycling—such as depolymerization and solvent-based purification—have improved its recovery and reuse potential. Rising environmental awareness, regulatory pressure, and demand for sustainable materials are driving industries to invest in PVC recycling, making it one of the fastest-growing segments in the market.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share owing to rapid industrialization, urbanization, and high plastic consumption in countries like China, India, and Japan contribute to substantial waste generation. Government initiatives promoting circular economy practices and investments in recycling infrastructure are accelerating growth. The region’s strong manufacturing base, presence of key recycling companies, and favorable policy frameworks position Asia Pacific as a central hub for plastic recycling innovation and capacity.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR because region benefits from stringent environmental regulations, corporate sustainability commitments, and advanced recycling technologies. Increasing consumer demand for eco-friendly products and public-private partnerships are driving investment in mechanical and chemical recycling infrastructure. Innovations in sorting, processing, and chemical conversion methods are enhancing efficiency and scalability, positioning North America as a leader in sustainable plastic waste management and recycling growth.
Key players in the market
Some of the key players in Plastic Mechanical & Chemical Recycling Market include Veolia Environnement S.A., Econic Technologies, SUEZ SA, Mura Technology, Waste Management, Inc., PureCycle Technologies, Republic Services, Inc., Loop Industries, REMONDIS SE & Co. KG, Biffa, Indorama Ventures Public Company Limited, The Shakti Plastic Industries, ALPLA Group, KW Plastics and Paprec Group.
Key Developments:
In July 2025, Veolia and AFD have inked a three-year strategic partnership to bring Veolia’s technical strength together with AFD’s local presence, targeting water, waste, energy sectors in developing regions (Latin America, Africa, Balkans, Middle East) to drive ecological transformation.
In February 2025, Veolia and ADNOC signed a memorandum of understanding during the UAE-France High-Level Business Council meeting. This strategic partnership aims to optimize water consumption and reduce carbon footprints across ADNOC’s industrial operations. Leveraging Veolia’s global expertise, the collaboration focuses on evaluating water management strategies, conducting comprehensive water cycle assessments, and enhancing flow monitoring systems.
Types Covered:
• Mechanical Recycling
• Chemical Recycling
Sources Covered:
• Polyethylene Terephthalate (PET)
• Polyvinyl Chloride (PVC)
• High-Density Polyethylene (HDPE)
• Polystyrene (PS)
• Polypropylene (PP)
• Low-Density Polyethylene (LDPE)
Process Technologies Covered:
• Extrusion
• Pelletizing
• Solvent-Based Recycling
End Users Covered:
• Packaging
• Construction
• Automotive
• Electronics & Electrical
• Textiles
• Consumer Goods
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Technology Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Plastic Mechanical & Chemical Recycling Market, By Type
5.1 Introduction
5.2 Mechanical Recycling
5.3 Chemical Recycling
5.3.1 Pyrolysis
5.3.2 Solvolysis
5.3.3 Gasification
5.3.4 Depolymerization
6 Global Plastic Mechanical & Chemical Recycling Market, By Source
6.1 Introduction
6.2 Polyethylene Terephthalate (PET)
6.3 Polyvinyl Chloride (PVC)
6.4 High-Density Polyethylene (HDPE)
6.5 Polystyrene (PS)
6.6 Polypropylene (PP)
6.7 Low-Density Polyethylene (LDPE)
7 Global Plastic Mechanical & Chemical Recycling Market, By Process Technology
7.1 Introduction
7.2 Extrusion
7.3 Pelletizing
7.4 Solvent-Based Recycling
8 Global Plastic Mechanical & Chemical Recycling Market, By End User
8.1 Introduction
8.2 Packaging
8.3 Construction
8.4 Automotive
8.5 Electronics & Electrical
8.6 Textiles
8.7 Consumer Goods
8.8 Other End Users
9 Global Plastic Mechanical & Chemical Recycling Market, By Geography
9.1 Introduction
9.2 North America
9.2.1 US
9.2.2 Canada
9.2.3 Mexico
9.3 Europe
9.3.1 Germany
9.3.2 UK
9.3.3 Italy
9.3.4 France
9.3.5 Spain
9.3.6 Rest of Europe
9.4 Asia Pacific
9.4.1 Japan
9.4.2 China
9.4.3 India
9.4.4 Australia
9.4.5 New Zealand
9.4.6 South Korea
9.4.7 Rest of Asia Pacific
9.5 South America
9.5.1 Argentina
9.5.2 Brazil
9.5.3 Chile
9.5.4 Rest of South America
9.6 Middle East & Africa
9.6.1 Saudi Arabia
9.6.2 UAE
9.6.3 Qatar
9.6.4 South Africa
9.6.5 Rest of Middle East & Africa
10 Key Developments
10.1 Agreements, Partnerships, Collaborations and Joint Ventures
10.2 Acquisitions & Mergers
10.3 New Product Launch
10.4 Expansions
10.5 Other Key Strategies
11 Company Profiling
11.1 Veolia Environnement S.A.
11.2 Econic Technologies
11.3 SUEZ SA
11.4 Mura Technology
11.5 Waste Management, Inc.
11.6 PureCycle Technologies
11.7 Republic Services, Inc.
11.8 Loop Industries
11.9 REMONDIS SE & Co. KG
11.10 Biffa
11.11 Indorama Ventures Public Company Limited
11.12 The Shakti Plastic Industries
11.13 ALPLA Group
11.14 KW Plastics
11.15 Paprec Group
List of Tables
1 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Region (2024-2032) ($MN)
2 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Type (2024-2032) ($MN)
3 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Mechanical Recycling (2024-2032) ($MN)
4 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Chemical Recycling (2024-2032) ($MN)
5 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Pyrolysis (2024-2032) ($MN)
6 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Solvolysis (2024-2032) ($MN)
7 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Gasification (2024-2032) ($MN)
8 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Depolymerization (2024-2032) ($MN)
9 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Source (2024-2032) ($MN)
10 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Polyethylene Terephthalate (PET) (2024-2032) ($MN)
11 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Polyvinyl Chloride (PVC) (2024-2032) ($MN)
12 Global Plastic Mechanical & Chemical Recycling Market Outlook, By High-Density Polyethylene (HDPE) (2024-2032) ($MN)
13 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Polystyrene (PS) (2024-2032) ($MN)
14 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Polypropylene (PP) (2024-2032) ($MN)
15 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Low-Density Polyethylene (LDPE) (2024-2032) ($MN)
16 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Process Technology (2024-2032) ($MN)
17 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Extrusion (2024-2032) ($MN)
18 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Pelletizing (2024-2032) ($MN)
19 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Solvent-Based Recycling (2024-2032) ($MN)
20 Global Plastic Mechanical & Chemical Recycling Market Outlook, By End User (2024-2032) ($MN)
21 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Packaging (2024-2032) ($MN)
22 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Construction (2024-2032) ($MN)
23 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Automotive (2024-2032) ($MN)
24 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Electronics & Electrical (2024-2032) ($MN)
25 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Textiles (2024-2032) ($MN)
26 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Consumer Goods (2024-2032) ($MN)
27 Global Plastic Mechanical & Chemical Recycling Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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