Global Chemical Recycling Service Market Accelerates Toward USD 196.2 Billion by 2035, Europe Commands the Largest Regional Share

The global chemical recycling service market is entering a high-growth phase as governments, industries, and consumers push aggressively toward circular economy models. Valued at USD 19.8 billion in 2025, the market is projected to skyrocket to USD 196.2 billion by 2035, expanding at a CAGR of 25.8%. Europe holds the largest share of the global market, driven by ambitious recycling mandates, strong regulatory alignment, and large-scale industrial investments in advanced recycling infrastructure.

Chemical recycling is emerging as a critical solution to the world’s plastic waste crisis. Unlike mechanical recycling—which degrades polymer quality—chemical recycling transforms complex and contaminated plastics back into high-value molecular building blocks with no loss of performance. Technologies such as depolymerization, pyrolysis, and purification are allowing companies to convert plastic waste into high-grade feedstock, synthetic crude oil, and reusable monomers.

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Circular Economy Pressures Accelerate Demand Globally — Europe Leads Transformation

Europe currently accounts for around 50% of the global chemical recycling service market, anchored by strict sustainability mandates, including the EU Circular Economy Action Plan and the Single-Use Plastics Directive. The region targets a 50% reduction in landfill waste by 2035, fueling investments in chemical recycling facilities and partnerships between polymer manufacturers and waste processors.

Across global markets, industry-wide adoption is being driven by:

• Growing plastic pollution concerns
• Corporate sustainability commitments and net-zero goals
• Rising demand for high-quality polymers made from recycled materials

“Chemical recycling has shifted from a pilot-phase technology to a commercial force,” stated the research analyst behind the study. “Europe’s regulatory maturity positions it as the global testing ground for scale and commercialization.”

Key Market Highlights (2025–2035)

• Market value expected to expand 9.4X by 2035
• Feedstock recycling leads the technology segment, with a 27.4% share in 2025
• Purification dominates product output with 33.1% share
• Pyrolysis expected to achieve 17.2% CAGR, making it the preferred recycling method
• Synthetic crude oil expected to grow at 16.9% CAGR, driven by energy-recovery opportunities

Technology Segment: Feedstock Recycling at the Forefront

Feedstock recycling has emerged as the market leader due to its capacity to process heterogeneous and contaminated plastics that traditional methods cannot manage. The process converts polymers into hydrocarbons and reintroduces them into the petrochemical supply chain — a closed-loop recycling model that supports carbon-neutral manufacturing.

Strategic partnerships between petrochemical companies and waste management firms are accelerating commercialization and infrastructure deployment.

Product Segment: Purification Leads for High-Purity Applications

Purification holds the largest product segment, accounting for 33.1% of total output. Its ability to deliver high-quality recycled polymers for packaging, automotive components, and industrial films has positioned it as a key driver of premium recycled-material adoption.

Technological advances — including solvent extraction and advanced filtration — continue to increase cost efficiency, throughput, and yield.

Regional Momentum: Europe Dominates, Asia Emerging as the Fastest-Growing Hub

Europe maintains the strongest installed base of chemical recycling facilities, supported by:

• Government-funded pilot programs
• Cross-industry consortiums
• Recycling-content regulations that require minimum levels of recycled material in packaging and product manufacturing

Meanwhile, Asia-Pacific is rapidly scaling capacity, led by India and China.

Projected CAGR (2025–2035):

• India — 28.0%
• China — 27.5%
• Germany — 25%
• United Kingdom — 24%
• Japan — 23%

Competitive Landscape

The global market is moderately fragmented, with top players holding 25%–30% market share. Industry leaders include:

Agilyx, BASF, Chevron Phillips, ExxonMobil, Honeywell, LyondellBasell, Dupont Teijin Films, Mitsubishi Chemical, Covestro, Eastman, Quantafuel, and Renew ELP (UK), among others.

Recent industry developments include:

• Covestro, LyondellBasell & Invest-NL invested €13M in advanced recycling technologies (Feb 2025).
• Reliance (India) achieved the first ISCC-Plus certified circular polymer production using chemical recycling (Dec 2025).
• Re Sustainability & PolyCycl to build feedstock supply ecosystems for chemical recycling in India (Oct 2025).

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Future Outlook

Continuous R&D investment in catalyst innovation, reactor design, and process optimization is expected to strengthen scalability and cost competitiveness. As regulatory frameworks advance and brands prioritize recycled content, chemical recycling will become a backbone of circular manufacturing.

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