Circular Economy Plastics Market Forecasts to 2032 – Global Analysis By Polymer Type (Polyethylene Terephthalate [PET], Polypropylene [PP], Polyvinyl Chloride [PVC], Polystyrene & Expanded Polystyrene [PS & EPS], Polyurethane [PUR], and Other Polymers), S
Description
According to Stratistics MRC, the Global Circular Economy Plastics Market is accounted for $78.5 billion in 2025 and is expected to reach $151.1 billion by 2032, growing at a CAGR of 9.8% during the forecast period. Circular Economy Plastics refers to a sustainable approach where plastic materials are designed, produced, used, and recycled in a continuous loop to minimize waste and environmental impact. Instead of the traditional “take-make-dispose” model, this system promotes reusing, remanufacturing, and recycling plastics to keep them in use for as long as possible. It aims to conserve resources, reduce pollution, and create a more efficient, eco-friendly plastic lifecycle.
According to the Organisation for Economic Co-operation and Development (OECD), only 9% of plastic waste worldwide is successfully recycled, while 22% is mismanaged.
Market Dynamics:
Driver:
Increasing environmental regulations and government policies
Governments worldwide are implementing stringent regulations, such as bans on single-use plastics and mandatory recycled content targets. These policies compel manufacturers to integrate circular plastics into their supply chains, creating a guaranteed and growing demand. Furthermore, extended producer responsibility (EPR) schemes are shifting the financial burden of plastic waste management onto producers, making recycling a financially strategic imperative rather than just an environmental goal, thereby accelerating market expansion.
Restraint:
Contamination issues in plastic waste streams
A significant impediment to market growth is the high level of contamination present in collected plastic waste. The commingling of different polymer types, along with food residues and non-recyclable materials, severely degrades the quality of recycled output. This contamination complicates the sorting and processing stages, leading to increased operational costs and inferior material quality that often fails to meet the stringent specifications required for many high-value applications, thus limiting its adoption and creating a key challenge for industry stakeholders.
Opportunity:
Innovation in chemical recycling and advanced processing technologies
Breakthroughs in chemical recycling and advanced sorting technologies present a substantial opportunity to overcome existing market limitations. Unlike mechanical recycling, chemical processes can break down plastics to their molecular building blocks, enabling the handling of contaminated or complex multi-layer materials. This innovation allows for the production of virgin-quality recycled plastics suitable for food-grade and medical applications, thereby unlocking new, high-value market segments and significantly enhancing the economic viability of the circular plastics model.
Threat:
Regulatory uncertainties and varying standards across countries
Divergent standards for recycled content, material definitions, and waste trade policies between regions create a complex compliance landscape for multinational corporations. This inconsistency can disrupt supply chains, increase administrative burdens, and stifle cross-border investment. Moreover, uncertainty around future policy directions can deter long-term capital commitment into recycling infrastructure, potentially slowing down the overall pace of market development and fragmentation.
Covid-19 Impact:
The pandemic initially disrupted the circular plastics market through lockdowns that halted collection systems and reduced waste volumes from commercial sources. Supply chain bottlenecks and a crash in virgin plastic prices, linked to plummeting oil prices, temporarily undermined the competitiveness of recycled materials. However, the crisis also amplified consumer and corporate awareness of sustainability, leading to a surge in demand for recycled content in packaging. This renewed commitment, coupled with the recognition of supply chain vulnerabilities, has ultimately accelerated the market's recovery and long-term growth trajectory.
The polyethylene terephthalate (PET) segment is expected to be the largest during the forecast period
The polyethylene terephthalate (PET) segment is expected to account for the largest market share during the forecast period driven by its widespread use in easily identifiable and highly recyclable applications, particularly beverage bottles and food packaging. Well-established collection and mechanical recycling infrastructure for PET already exists globally. Additionally, brand owners are aggressively pursuing ambitious recycled PET (rPET) content targets in response to both consumer demand and regulatory pressure, creating a strong, stable, and high-volume demand pull that secures its leading market position for the foreseeable future.
The post-consumer waste segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the post-consumer waste segment is predicted to witness the highest growth rate as it represents the largest and most critical waste stream for a truly circular economy. Heightened regulatory focus on reducing landfill waste and increasing recycling rates is channeling massive investments into collection and sorting facilities. Moreover, corporations are increasingly prioritizing post-consumer recycled (PCR) content in their products to meet sustainability pledges, creating a powerful demand-side driver that will propel this segment at an accelerated rate compared to industrial waste streams.
Region with largest share:
During the forecast period, the Europe region is expected to hold the largest market share anchored by the European Union's comprehensive and ambitious circular economy action plan, which sets binding recycling targets and strict extended producer responsibility rules. The region benefits from advanced waste management infrastructure and high consumer awareness, which ensures consistent feedstock supply. Furthermore, supportive legislation like the Single-Use Plastics Directive creates a powerful regulatory push, making Europe a mature and policy-driven market that will continue to account for the largest share of global circular plastics activity.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR fueled by a combination of escalating plastic consumption and a pressing need to address critical waste management challenges. Governments in China, India, and Southeast Asian nations are implementing new policies to curb plastic pollution and invest in recycling capabilities. This, combined with a growing manufacturing base for recycled products and increasing investment from both public and private sectors, creates a dynamic environment ripe for rapid market expansion and the highest growth rate globally.
Key players in the market
Some of the key players in Circular Economy Plastics Market include LyondellBasell Industries N.V., Borealis AG, Eastman Chemical Company, Indorama Ventures Public Company Limited, TOMRA Systems ASA, Veolia Environnement S.A., Saudi Basic Industries Corporation, Dow Inc., BASF SE, Braskem S.A., TotalEnergies SE, Covestro AG, Amcor plc, ALPLA Werke Alwin Lehner GmbH & Co KG, Plastipak Packaging, Inc., Carbios SA, Loop Industries, Inc., and Republic Services, Inc.
Key Developments:
In November 2025, Official opening of “Områ” transforms Norway’s plastic recycling capability. Jointly owned by TOMRA (65%) and Plastretur (35%), the state-of-the-art facility has the capacity to process 90,000 tonnes of plastic per year, transforming plastic packaging waste into uniform polymer fractions ready for recycling.
In August 2025, Indorama Ventures Public Company Limited, a global sustainable chemical company, today announced it has recycled more than 150 billion post-consumer PET bottles since 2011. This significant milestone underscores the company’s long-term commitment to circular economy practices and its sustained investment in global recycling infrastructure.
In March 2025, LyondellBasell showcased its Advanced Polymer Solutions portfolio at Plástico Brasil 2025, emphasizing sustainable plastic solutions and high-performance materials designed to meet evolving market needs in South America, especially for packaging and transportation sectors.
Polymer Types Covered:
• Polyethylene Terephthalate (PET)
• Polyethylene (PE)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS) & Expanded Polystyrene (EPS)
• Polyurethane (PUR)
• Other Polymers
Sources Covered:
• Post-Consumer Waste
• Post-Industrial Waste
Recycling Process Covered:
• Mechanical Recycling
• Chemical/Advanced Recycling
• Biological Recycling
Applications Covered:
• Packaging
• Building & Construction
• Automotive & Transportation
• Textiles & Apparel
• Electrical & Electronics
• Agriculture
• Household & Consumer Goods
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
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
According to the Organisation for Economic Co-operation and Development (OECD), only 9% of plastic waste worldwide is successfully recycled, while 22% is mismanaged.
Market Dynamics:
Driver:
Increasing environmental regulations and government policies
Governments worldwide are implementing stringent regulations, such as bans on single-use plastics and mandatory recycled content targets. These policies compel manufacturers to integrate circular plastics into their supply chains, creating a guaranteed and growing demand. Furthermore, extended producer responsibility (EPR) schemes are shifting the financial burden of plastic waste management onto producers, making recycling a financially strategic imperative rather than just an environmental goal, thereby accelerating market expansion.
Restraint:
Contamination issues in plastic waste streams
A significant impediment to market growth is the high level of contamination present in collected plastic waste. The commingling of different polymer types, along with food residues and non-recyclable materials, severely degrades the quality of recycled output. This contamination complicates the sorting and processing stages, leading to increased operational costs and inferior material quality that often fails to meet the stringent specifications required for many high-value applications, thus limiting its adoption and creating a key challenge for industry stakeholders.
Opportunity:
Innovation in chemical recycling and advanced processing technologies
Breakthroughs in chemical recycling and advanced sorting technologies present a substantial opportunity to overcome existing market limitations. Unlike mechanical recycling, chemical processes can break down plastics to their molecular building blocks, enabling the handling of contaminated or complex multi-layer materials. This innovation allows for the production of virgin-quality recycled plastics suitable for food-grade and medical applications, thereby unlocking new, high-value market segments and significantly enhancing the economic viability of the circular plastics model.
Threat:
Regulatory uncertainties and varying standards across countries
Divergent standards for recycled content, material definitions, and waste trade policies between regions create a complex compliance landscape for multinational corporations. This inconsistency can disrupt supply chains, increase administrative burdens, and stifle cross-border investment. Moreover, uncertainty around future policy directions can deter long-term capital commitment into recycling infrastructure, potentially slowing down the overall pace of market development and fragmentation.
Covid-19 Impact:
The pandemic initially disrupted the circular plastics market through lockdowns that halted collection systems and reduced waste volumes from commercial sources. Supply chain bottlenecks and a crash in virgin plastic prices, linked to plummeting oil prices, temporarily undermined the competitiveness of recycled materials. However, the crisis also amplified consumer and corporate awareness of sustainability, leading to a surge in demand for recycled content in packaging. This renewed commitment, coupled with the recognition of supply chain vulnerabilities, has ultimately accelerated the market's recovery and long-term growth trajectory.
The polyethylene terephthalate (PET) segment is expected to be the largest during the forecast period
The polyethylene terephthalate (PET) segment is expected to account for the largest market share during the forecast period driven by its widespread use in easily identifiable and highly recyclable applications, particularly beverage bottles and food packaging. Well-established collection and mechanical recycling infrastructure for PET already exists globally. Additionally, brand owners are aggressively pursuing ambitious recycled PET (rPET) content targets in response to both consumer demand and regulatory pressure, creating a strong, stable, and high-volume demand pull that secures its leading market position for the foreseeable future.
The post-consumer waste segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the post-consumer waste segment is predicted to witness the highest growth rate as it represents the largest and most critical waste stream for a truly circular economy. Heightened regulatory focus on reducing landfill waste and increasing recycling rates is channeling massive investments into collection and sorting facilities. Moreover, corporations are increasingly prioritizing post-consumer recycled (PCR) content in their products to meet sustainability pledges, creating a powerful demand-side driver that will propel this segment at an accelerated rate compared to industrial waste streams.
Region with largest share:
During the forecast period, the Europe region is expected to hold the largest market share anchored by the European Union's comprehensive and ambitious circular economy action plan, which sets binding recycling targets and strict extended producer responsibility rules. The region benefits from advanced waste management infrastructure and high consumer awareness, which ensures consistent feedstock supply. Furthermore, supportive legislation like the Single-Use Plastics Directive creates a powerful regulatory push, making Europe a mature and policy-driven market that will continue to account for the largest share of global circular plastics activity.
Region with highest CAGR:
Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR fueled by a combination of escalating plastic consumption and a pressing need to address critical waste management challenges. Governments in China, India, and Southeast Asian nations are implementing new policies to curb plastic pollution and invest in recycling capabilities. This, combined with a growing manufacturing base for recycled products and increasing investment from both public and private sectors, creates a dynamic environment ripe for rapid market expansion and the highest growth rate globally.
Key players in the market
Some of the key players in Circular Economy Plastics Market include LyondellBasell Industries N.V., Borealis AG, Eastman Chemical Company, Indorama Ventures Public Company Limited, TOMRA Systems ASA, Veolia Environnement S.A., Saudi Basic Industries Corporation, Dow Inc., BASF SE, Braskem S.A., TotalEnergies SE, Covestro AG, Amcor plc, ALPLA Werke Alwin Lehner GmbH & Co KG, Plastipak Packaging, Inc., Carbios SA, Loop Industries, Inc., and Republic Services, Inc.
Key Developments:
In November 2025, Official opening of “Områ” transforms Norway’s plastic recycling capability. Jointly owned by TOMRA (65%) and Plastretur (35%), the state-of-the-art facility has the capacity to process 90,000 tonnes of plastic per year, transforming plastic packaging waste into uniform polymer fractions ready for recycling.
In August 2025, Indorama Ventures Public Company Limited, a global sustainable chemical company, today announced it has recycled more than 150 billion post-consumer PET bottles since 2011. This significant milestone underscores the company’s long-term commitment to circular economy practices and its sustained investment in global recycling infrastructure.
In March 2025, LyondellBasell showcased its Advanced Polymer Solutions portfolio at Plástico Brasil 2025, emphasizing sustainable plastic solutions and high-performance materials designed to meet evolving market needs in South America, especially for packaging and transportation sectors.
Polymer Types Covered:
• Polyethylene Terephthalate (PET)
• Polyethylene (PE)
• Polypropylene (PP)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS) & Expanded Polystyrene (EPS)
• Polyurethane (PUR)
• Other Polymers
Sources Covered:
• Post-Consumer Waste
• Post-Industrial Waste
Recycling Process Covered:
• Mechanical Recycling
• Chemical/Advanced Recycling
• Biological Recycling
Applications Covered:
• Packaging
• Building & Construction
• Automotive & Transportation
• Textiles & Apparel
• Electrical & Electronics
• Agriculture
• Household & Consumer Goods
• Other Applications
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
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
Table of Contents
200 Pages
- 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 Application Analysis
- 3.7 Emerging Markets
- 3.8 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 Circular Economy Plastics Market, By Polymer Type
- 5.1 Introduction
- 5.2 Polyethylene Terephthalate (PET)
- 5.3 Polyethylene (PE)
- 5.3.1 High-Density Polyethylene (HDPE)
- 5.3.2 Low-Density Polyethylene (LDPE) & Linear Low-Density Polyethylene (LLDPE)
- 5.4 Polypropylene (PP)
- 5.5 Polyvinyl Chloride (PVC)
- 5.6 Polystyrene (PS) & Expanded Polystyrene (EPS)
- 5.7 Polyurethane (PUR)
- 5.8 Other Polymers
- 6 Global Circular Economy Plastics Market, By Source
- 6.1 Introduction
- 6.2 Post-Consumer Waste
- 6.3 Post-Industrial Waste
- 7 Global Circular Economy Plastics Market, By Recycling Process
- 7.1 Introduction
- 7.2 Mechanical Recycling
- 7.2.1 Grinding
- 7.2.2 Washing
- 7.2.3 Re-pelletizing
- 7.3 Chemical/Advanced Recycling
- 7.3.1 Depolymerization
- 7.3.2 Pyrolysis
- 7.3.3 Gasification
- 7.3.4 Solvent-based Purification
- 7.4 Biological Recycling
- 8 Global Circular Economy Plastics Market, By Application
- 8.1 Introduction
- 8.2 Packaging
- 8.3 Building & Construction
- 8.4 Automotive & Transportation
- 8.5 Textiles & Apparel
- 8.6 Electrical & Electronics
- 8.7 Agriculture
- 8.8 Household & Consumer Goods
- 8.9 Other Applications
- 9 Global Circular Economy Plastics 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 LyondellBasell Industries N.V.
- 11.2 Borealis AG
- 11.3 Eastman Chemical Company
- 11.4 Indorama Ventures Public Company Limited
- 11.5 TOMRA Systems ASA
- 11.6 Veolia Environnement S.A.
- 11.7 Saudi Basic Industries Corporation
- 11.8 Dow Inc.
- 11.9 BASF SE
- 11.10 Braskem S.A.
- 11.11 TotalEnergies SE
- 11.12 Covestro AG
- 11.13 Amcor plc
- 11.14 ALPLA Werke Alwin Lehner GmbH & Co KG
- 11.15 Plastipak Packaging, Inc.
- 11.16 Carbios SA
- 11.17 Loop Industries, Inc.
- 11.18 Republic Services, Inc.
- List of Tables
- Table 1 Global Circular Economy Plastics Market Outlook, By Region (2024–2032) ($MN)
- Table 2 Global Circular Economy Plastics Market Outlook, By Polymer Type (2024–2032) ($MN)
- Table 3 Global Circular Economy Plastics Market Outlook, By Polyethylene Terephthalate (PET) (2024–2032) ($MN)
- Table 4 Global Circular Economy Plastics Market Outlook, By Polyethylene (PE) (2024–2032) ($MN)
- Table 5 Global Circular Economy Plastics Market Outlook, By High-Density Polyethylene (HDPE) (2024–2032) ($MN)
- Table 6 Global Circular Economy Plastics Market Outlook, By Low-Density Polyethylene (LDPE) & Linear Low-Density Polyethylene (LLDPE) (2024–2032) ($MN)
- Table 7 Global Circular Economy Plastics Market Outlook, By Polypropylene (PP) (2024–2032) ($MN)
- Table 8 Global Circular Economy Plastics Market Outlook, By Polyvinyl Chloride (PVC) (2024–2032) ($MN)
- Table 9 Global Circular Economy Plastics Market Outlook, By Polystyrene (PS) & Expanded Polystyrene (EPS) (2024–2032) ($MN)
- Table 10 Global Circular Economy Plastics Market Outlook, By Polyurethane (PUR) (2024–2032) ($MN)
- Table 11 Global Circular Economy Plastics Market Outlook, By Other Polymers (2024–2032) ($MN)
- Table 12 Global Circular Economy Plastics Market Outlook, By Source (2024–2032) ($MN)
- Table 13 Global Circular Economy Plastics Market Outlook, By Post-Consumer Waste (2024–2032) ($MN)
- Table 14 Global Circular Economy Plastics Market Outlook, By Post-Industrial Waste (2024–2032) ($MN)
- Table 15 Global Circular Economy Plastics Market Outlook, By Recycling Process (2024–2032) ($MN)
- Table 16 Global Circular Economy Plastics Market Outlook, By Mechanical Recycling (2024–2032) ($MN)
- Table 17 Global Circular Economy Plastics Market Outlook, By Grinding (2024–2032) ($MN)
- Table 18 Global Circular Economy Plastics Market Outlook, By Washing (2024–2032) ($MN)
- Table 19 Global Circular Economy Plastics Market Outlook, By Re-pelletizing (2024–2032) ($MN)
- Table 20 Global Circular Economy Plastics Market Outlook, By Chemical/Advanced Recycling (2024–2032) ($MN)
- Table 21 Global Circular Economy Plastics Market Outlook, By Depolymerization (2024–2032) ($MN)
- Table 22 Global Circular Economy Plastics Market Outlook, By Pyrolysis (2024–2032) ($MN)
- Table 23 Global Circular Economy Plastics Market Outlook, By Gasification (2024–2032) ($MN)
- Table 24 Global Circular Economy Plastics Market Outlook, By Solvent-based Purification (2024–2032) ($MN)
- Table 25 Global Circular Economy Plastics Market Outlook, By Biological Recycling (2024–2032) ($MN)
- Table 26 Global Circular Economy Plastics Market Outlook, By Application (2024–2032) ($MN)
- Table 27 Global Circular Economy Plastics Market Outlook, By Packaging (2024–2032) ($MN)
- Table 28 Global Circular Economy Plastics Market Outlook, By Building & Construction (2024–2032) ($MN)
- Table 29 Global Circular Economy Plastics Market Outlook, By Automotive & Transportation (2024–2032) ($MN)
- Table 30 Global Circular Economy Plastics Market Outlook, By Textiles & Apparel (2024–2032) ($MN)
- Table 31 Global Circular Economy Plastics Market Outlook, By Electrical & Electronics (2024–2032) ($MN)
- Table 32 Global Circular Economy Plastics Market Outlook, By Agriculture (2024–2032) ($MN)
- Table 33 Global Circular Economy Plastics Market Outlook, By Household & Consumer Goods (2024–2032) ($MN)
- Table 34 Global Circular Economy Plastics Market Outlook, By Other Applications (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.
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