March 2025
The global chemical recycling feedstock market is witnessing rapid growth as companies transform plastic waste into valuable raw materials for polymer and fuel production. The market growth is attributed to expanding technological advancements in chemical recycling and increasing corporate commitments to circular economy goals.
The plastic waste crisis, which is increasing worldwide, is a major driver of the chemical recycling feedstock market. By 2024, the United Nations Environment Programme (UNEP) had reported that the amount of material used globally. They had increased three times over the last 50 years, with the majority of materials entering the economy being virgin materials.
This linear form of economy has contributed to significant waste and an environmental footprint, necessitating a shift to solutions for the circular economy. One of the most promising technologies is chemical recycling, where plastic waste can be transformed into useful chemicals and fuels by the use of pyrolysis. The 2024 report published by the U.S. Department of Energy highlighted the potential of chemical recycling to address the plastic waste issue. Further development of recycling facilities and refurbishment of infrastructure would help attract more investors, speed up plant commissioning timeframes, and thus fuel the market. (Source: https://www.unep.org)
The chemical recycling feedstock market is undergoing a period of radical technological transformation driven by the need for sustainability, resource efficiency, and alignment with the goals of the global circular economy. The development of pyrolysis and depolymerization operations can be described as one of the biggest changes. These are beneficial for improving the recovery of high-quality feedstocks from mixed plastic waste streams.
In 2024, Carbios, Loop Industries, and Plastic Energy, among others, made breakthroughs related to enzymatic recycling and solvent-based depolymerisation, and high-purity recovery of polyethene terephthalate (PET) and polypropylene (PP) became scalable. The other significant development is the introduction of AI-based sorting and automated material recognition technology, which optimizes feedstock segregation and reduces the rate of contamination, thereby enhancing conversion efficiency. Furthermore, chemical recycling technologies are expected to play a critical role in facilitating sustainable production and achieving ambitious carbon neutrality goals.
The chemical recycling feedstock market is being transformed by the use of artificial intelligence (AI) to improve efficiency, lower costs, and open new avenues to scalability. AI-based computer vision systems assist companies in recognising, sorting, and isolating mixed plastic waste more precisely than is possible by manual or traditional mechanical methods. This has a direct effect on the quality and consistency of feedstock streams. Furthermore, the companies also use AI-powered digital twins to model real-time chemical reactions and feedstock conversion operations, optimizing parameters to achieve maximum output.
(Source: https://blog.itpweb.com)
(Source: https://www.researchgate.net)
(Source: https://www.eea.europa.eu)
(Source: https://www.hul.co.in)
(Source: https://www.reuters.com)
| Country / Region | Regulatory Body | Key Regulations | Focus Areas | Notable Notes |
| United States | U.S. EPA (Environmental Protection Agency) | National Recycling Strategy (2021) - Resource Conservation and Recovery Act (RCRA) - Sustainable Chemistry Challenge | Advanced recycling standards - Feedstock quality requirements - Environmental impact reporting | In 2024, the EPA introduced guidelines for chemical recycling feedstocks under the National Recycling Strategy, emphasizing the traceability and safety of feedstocks. Several pilot projects are underway to align pyrolysis outputs with food-contact regulations. |
| European Union | European Commission Directorate-General for Environment & ECHA | Circular Economy Action Plan - EU Waste Framework Directive - End-of-Life Plastics Regulation | Waste hierarchy compliance - Recycled content targets - Traceability of recycled polymers | The EU is implementing the SUP Directive and is advancing legislation to ensure chemical recycling meets the same safety requirements as virgin materials. In 2024, ECHA released a guidance document for chemical recycling facilities on the qualification of feedstock. |
| China | Ministry of Ecology and Environment (MEE) | Circular Economy Promotion Law - Technical Guidelines for Plastic Waste Recycling - GB Standards | Feedstock purity and classification - Industrial recycling infrastructure development | China’s 2024 Five-Year Plan emphasizes the development of a circular economy, with chemical recycling identified as a key priority. MEE mandates feedstock certification and limits on hazardous content for recovered plastics. |
| India | MoEFCC + Central Pollution Control Board (CPCB) | Plastic Waste Management Rules, 2021 - Hazardous Waste (Management, Handling and Transboundary Movement) Rules | egregation and recovery standards - Licensing for recycling facilities - Compliance audits | India’s 2024 draft amendments to the Plastic Waste Management Rules propose specific standards for chemical recycling feedstocks. The CPCB is establishing national guidelines for feedstock certification to encourage investment in advanced recycling. |
| Japan | METI + Ministry of the Environment (MOE) | Basic Environment Law - Recycling Promotion Law - Industrial Waste Management Law | Feedstock traceability - Safety and quality control - Resource efficiency | In 2024, Japan expanded its Industrial Waste Management Law to incorporate chemical recycling feedstocks. The government promotes pilot projects for enzymatic and depolymerization recycling routes as part of its Circular Economy Strategy. |
| South Korea | Ministry of Environment (MOE) | Framework Act on Resource Circulation - Act on Promotion of Saving and Recycling of Resources | Quality verification of recycled feedstocks - Certification programs - Green product incentives | In 2024, South Korea introduced a national certification system for chemical recycling facilities to ensure the quality of feedstock, thereby facilitating trade in recycled polymers and aligning with its Green New Deal initiatives. |
| Australia | Department of Climate Change, Energy, the Environment, and Water | National Waste Policy Action Plan - Product Stewardship Act - Recycling Modernisation Fund | Feedstock quality standards - Investment in recycling infrastructure - Public–private partnerships | In 2024, Australia increased funding for advanced chemical recycling projects, emphasizing transparent quality verification and alignment with circular economy objectives. Industry guidelines for pyrolysis and depolymerization feedstocks are under development. |
| Report Coverage | Details |
| Dominating Region | North America |
| Fastest Growing Region | Asia Pacific |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Feedstock Type, Recycling Technology, End-Use Applications, Scale of Operation, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
How Is Increasing Demand for Sustainable Plastic Solutions Driving Growth in the Chemical Recycling Feedstock Market?
Increasing demand for sustainable plastic solutions is expected to drive the chemical recycling feedstock market in the coming years. Increased consumer and regulatory pressure on brand owners to use recycled content in packaging is pushing companies. They find an alternative to mechanical recycling, which is frequently hampered by contaminated or mixed streams.
The leaders in the consumer goods sector worldwide invest heavily in ensuring a steady supply of feedstock to minimize reliance on fossil-based feedstock, which directly underlies the market's growth. The 2024 progress report on the Global Commitment by the Ellen MacArthur Foundation reported that signatories achieved a 14% PCR share of their plastic packaging in 2023. With a target of 26% by 2025, it creates commercial pressure to ensure reliable streams of feedstock. Furthermore, the growing regulatory frameworks supporting circular economy initiatives are anticipated to accelerate market development. (Source: https://www.ellenmacarthurfoundation.org)
Insufficient Feedstock Availability
A lack of suitable feedstock is expected to hinder the chemical recycling feedstock market. A limited supply is likely to impede the development of chemical recycling technologies, as the availability of quality feedstock is crucial to the successful recycling process. Additionally, chemical recycling technologies often involve complex processes that require significant energy inputs, resulting in high operating costs.
How Are Surging Investments from Petrochemical and Energy Majors Fuelling the Chemical Recycling Feedstock Market?
Surging investments from petrochemical and energy majors are projected to boost the market’s opportunities for the market. Cooperation with such innovators as Agilyx, Carbios, and Plastic Energy develops new technology platforms that optimise the feedstock conversion efficiency and scalability. Such collaborations promote quicker commercialisation and geographic expansion, increasing the availability of varied sources of feedstock.
Increasing capital inflows also enhances the resilience of the supply chains, decreases the bottlenecks in operations, and speeds up competitive differentiation in the industry. In 2024, the Ellen MacArthur Foundation found that corporate investments in recycling innovation increased more than 22% over 2023, as the need to access high-quality feedstock streams became more urgent. Additionally, the high demand for advanced waste management solutions is likely to support the availability of feedstock. (Source: https://www.ellenmacarthurfoundation.org)
Why Is Polyethylene (PE) the Leading Feedstock in the Market for Chemical Recycling Feedstock?
The polyethylene (PE) segment dominated the chemical recycling feedstock market in 2024, accounting for an estimated 30% market share, primarily due to its use in film, rigid containers, and single-use packaging, which produce large volumes and relatively homogeneous waste streams. HDPE and LDPE streams are the focus, as pyrolysis and steam-cracking integration return intermediates.
These are equal to the current petrochemical cracker feedstocks, enhancing commercial offtake and making converters less prone to compatibility issues. Furthermore, the use of polymer-specific sorting upgrades and digital traceability pilots to document provenance and composition provided buyers with a boost in sourcing recycled PE and strengthened PE's competitive advantage.
The Polypropylene (PP) segment is expected to grow at the fastest rate in the coming years, as players in the industry seek to meet the engineering-grade polymer requirements for automotive, durable goods, and technical packaging products. Moreover, the technical specifications and industry alliances and brand procurement pilots signed resulted in capacity additions and made PP the fastest-growing sub-segment in the coming years.
How Has Pyrolysis Emerged as the Dominant Recycling Technology in the Chemical Recycling Feedstock Sector?
The pyrolysis segment held the largest revenue share in the chemical recycling feedstock market in 2024, accounting for 40% of the market, due to its established route to creating oil-grade intermediates that feed into existing petrochemical crackers. Furthermore, the use of pyrolysis-derived oil as a co-processing material in steam crackers or upgrading olefins enhances the commercial offtake contracts, further fuelling the segment.
The depolymerization segment is expected to grow at the fastest CAGR in the coming years, as industry players seek superior-quality monomers and polymer-based recycled products that meet very high technical and regulatory standards.
To achieve virtually virgin PET, polyesters and some polyamides are recovered by chemical engineers using catalytic and enzymatic depolymerisation pathways. They are useful in food-contact, automotive, and engineering-grade applications. Additionally, the capital investments into depolymerisation capacity in priority regions are expedited to facilitate the recycling technology market.
Why Does Packaging Account for the Largest Share of the Chemical Recycling Feedstock Market?
The packaging segment dominated the chemical recycling feedstock industry in 2024, holding a market share of approximately 50%, due to the large number of single-use PET and polyolefin packages in use in the food, beverage, and consumer products sectors. Brand procurement teams started buying more chemically reclaimed PET and PE to fulfil corporate commitments and changing regulations on recycled content in purchases, providing predictable offtake pipelines to recyclers.
The Packaging and Packaging Waste Regulation was adopted by the European Council on 16 December 2024. Binding reuse and minimum recycled-content thresholds were established, which had a direct impact on sourcing strategies and supplier specifications throughout the EU. Furthermore, the significant consumer goods companies increased technical certification of chemically recycled products, further facilitating the chemical recycling technology. (Source: https://environment.ec.europa.eu)
The textiles segment is expected to grow at the fastest CAGR in the coming years, as clothing brands seek circular polyester-based fibres and design textiles. Recycling policies, including the Sustainable and Circular Textiles agenda of the EU, and local plans under the UNESCAP, have raised the recycled-content standards. Further fuelling the investment case in depolymerisation plants and specific collection systems of textile feedstocks.
How Have Large-Scale Facilities Secured the Majority Share in the Chemical Recycling Feedstock Market?
Large-scale segment held the largest revenue share in the chemical recycling feedstock market in 2024, accounting for an estimated 60% market share, as it can offer economies of scale and per-unit conversion costs lower than those of smaller plants, and receive offtake contract benefits in large-scale operations where major petrochemical and consumer-goods purchasers are involved. Moreover, large facility locations in industrial complexes, where joint utilities, a trained labor force, and supplier networks are available, are favored by strategic investors.
The medium-scale segment is expected to grow at the fastest rate in the coming years, owing to higher-speed, lower-risk scale-ups that align with regional feedstock supply and niche product demand. Additionally, technology licensors and engineering companies are citing quicker pacing in process enhancements at medium scale, which equates to incremental capacity builds in numerous geographies and resistance to single-site operational breaches.
Why Did North America Dominate the Chemical Recycling Feedstock Market?
North America led the chemical recycling feedstock market, capturing the largest revenue share in 2024, which accounted for approximately 35%. This dominance was driven by intensive investment in the industry and early commercial pilots that successfully connected chemically reclaimed feeds with the downstream offtake. In November 2024, the U.S. Environmental Protection Agency released its National Strategy to Prevent Plastic Pollution, which sent decisive regulatory signals and may have steered capitals into high-tech recycling yard shows. (Source: https://www.dlapiper.com)
Asia Pacific is anticipated to grow at the fastest rate in the market during the forecast period, as governments and industries stepped up national structures and capital programs towards recycling. In 2024, China announced its intention to establish a national resources-recycling group, enhance domestic infrastructure, improve logistics, and standardize industrial recovery practices. (Source: https://www.reuters.com)
By Feedstock Type
By Recycling Technology
By End-Use Applications
By Scale of Operation
By Region
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