Advanced Recycling Market to Reach US$ 10.2 Billion by 2035 Driven by Plastic Waste Regulations, FMCG Sustainability Targets, and Chemical Recycling Technologies Says Astute Analytica
The global advanced recycling market is projected to grow significantly, driven by regulatory mandates and corporate sustainability goals. Pyrolysis and gasification technologies are transforming hard-to-recycle plastic waste into valuable raw materials.
Chicago, Feb. 02, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the global advanced recycling market was valued at US$ 2.8 billion in 2025 and is projected to hit the market valuation of US$ 10.2 billion by 2035 at a CAGR of 13.9% during the forecast period 2026–2035.
One of the primary forces driving the rapid advancement of engineered plastics is the worldwide implementation of stringent regulations aimed at curbing plastic waste and promoting sustainability. Governments across the globe are enacting tough policies that not only limit the amount of plastic waste generated but also mandate higher incorporation of post-consumer recycled (PCR) content in various products.
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A particularly noteworthy trend is the growing acceptance and regulatory approval of PCR materials for sensitive applications such as food contact packaging and medical devices. Traditionally, these sectors demanded virgin-grade plastics to meet rigorous safety and hygiene standards. However, advancements in recycling technologies and stringent certification processes are enabling the use of recycled polymers without compromising product safety or performance.
FMCG Sector: The Leading Force in Advanced Recycled Product Consumption
The Fast-Moving Consumer Goods (FMCG) sector stands as the undisputed leader in the consumption of advanced recycled products, driving significant demand for sustainable materials across the global market. As consumer awareness around environmental impact grows and regulatory pressures intensify, brand owners within this sector are engaged in a competitive race to secure reliable supplies of food-grade recycled resins.
A key regulatory catalyst influencing FMCG companies is the UK Plastic Packaging Tax, which saw an increase to GBP 223.69 per ton in April 2025. This tax imposes financial penalties on packaging materials that do not meet recycled content requirements, compelling brands to prioritize the use of recycled polymers. The rising tax rate underscores the urgency for companies to comply with evolving legislation and avoid costly penalties, making the acquisition of certified circular polymers a top strategic priority within the sector.
To meet both regulatory and consumer expectations, FMCG companies require recycled polymers—such as recycled PET (rPET), recycled polyethylene (rPE), and recycled polypropylene (rPP)—that match the performance and safety standards of virgin plastics. These certified circular polymers must maintain the shelf-life, safety, and aesthetic qualities essential for food and beverage packaging.
Pyrolysis: The Dominant Force in Advanced Recycling Technology
In the advanced recycling market, pyrolysis stands out as the dominant technology, commanding over 60% of operational capacity in 2025. This process, which involves thermal conversion in the absence of oxygen, is widely regarded as the workhorse of the industry. Its robust capability to process mixed polyolefins—a common and challenging category of plastic waste—makes it the preferred choice for industry leaders such as ExxonMobil and Alterra Energy.
The appeal of pyrolysis lies in its versatility and scalability. Unlike other recycling methods that may require highly sorted or specific types of plastics, pyrolysis can handle heterogeneous plastic waste, reducing the need for extensive pre-processing. This flexibility enables companies to process a broad spectrum of waste materials, addressing one of the biggest challenges in plastic recycling.
While pyrolysis dominates, depolymerization technologies such as methanolysis are rapidly gaining traction, especially for recycling specific polymer types like polyethylene terephthalate (PET). Depolymerization breaks plastics down to their original monomers, enabling the production of virgin-quality materials. This method offers a promising complement to pyrolysis by targeting polymers that are less efficiently processed by thermal conversion, providing a more tailored and high-purity recycling solution for PET waste streams.
Government Intervention: The Foundation of Advanced Recycling Growth
Government intervention continues to serve as the fundamental driver behind the rapid expansion of the advanced recycling market. Recognizing the urgent need to combat plastic pollution, global policymakers have taken decisive action to foster sustainable waste management solutions. At the heart of this effort is the Global Plastics Treaty (INC-5), convened in late 2024 with participation from 175 nations.
The Global Plastics Treaty represents a historic commitment by the international community to tackle plastic waste on a coordinated scale. By mandating countries to implement policies that reduce plastic pollution, the treaty compels governments to subsidize and promote advanced recycling technologies. This global consensus not only accelerates the adoption of circular economy principles but also ensures that advanced recycling is recognized as a critical waste management necessity, enabling the efficient recovery and reuse of plastic materials at scale.
Within the United States, the landscape of government support for advanced recycling is marked by both challenges and resilience. Although the Department of Energy (DOE) canceled a high-profile US$ 375 million grant initially awarded to Eastman Chemical Company, signaling some volatility at the federal level, state governments have continued to demonstrate a strong commitment through robust incentives.
North America’s Commanding Lead in the Advanced Recycling Market
North America currently holds a dominant position in the advanced recycling market, controlling an impressive 34.33% share. This leadership is largely driven by aggressive industrial expansion, particularly along the US Gulf Coast, where large-scale infrastructure projects are transforming the recycling landscape. Unlike regions that depend primarily on voluntary environmental commitments, North America has adopted a more industrialized approach, investing heavily in advanced recycling facilities that promise to scale operations and meet growing demand for sustainable material recovery.
A prime example of this industrial momentum is ExxonMobil’s ambitious expansion of its Baytown facility. By 2025, the upgraded plant is expected to reach a processing capacity of 80,000 metric tons annually, marking a significant boost in the region’s ability to recycle and repurpose plastics and other materials.
Further strengthening North America’s dominance is Encina’s bold investment of US$ 1.1 billion to build a cutting-edge circular manufacturing facility in Pennsylvania. This project is strategically designed to produce feedstock close to major consumer markets, reducing transportation costs and emissions while improving supply chain efficiency. Encina’s facility exemplifies the integration of recycling processes with manufacturing, creating a seamless loop that transforms waste into valuable raw materials, fostering sustainability across multiple industries.
Top Companies in the Advanced Recycling Market
- Agilyx
- BASF
- BlueAlp Innovations
- Brightmark
- Carbios
- Enerkem
- ExxonMobil Chemical
- Gr3n Recycling
- GreenMantra Technologies
- Ioniqa Technologies
- Loop Industries
- LyondellBasell
- Mura Technology
- Plastic Energy
- Polystyvert
- Pyrowave
- Quantafuel
- Recycling Technologies
- Renewlogy
- Shell
- Other Prominent Players
Market Segmentation Overview
By Technology
- Thermal pyrolysis (plastic-to-oil)
- Catalytic pyrolysis
- Depolymerization (including glycolysis, methanolysis)
- PET depolymerization to monomers
- Polyurethane/nylon depolymerization
- Enzymatic/biochemical recycling
- Gasification
- Pyrolysis
- Syngas production for chemicals/fuels
- High-temp gasification of mixed feedstock
- Solvolysis / chemical solvolysis
- Solvent-based recycling of polymers
- Hydrothermal liquefaction (HTL)
- Wet waste/biomass co-processing
- Enzyme-assisted depolymerisation pilots
- Others
By Feedstock
- Mixed plastic waste (unsorted municipal plastic)
- Polyethylene (PE)
- Polypropylene (PP)
- Polyethylene terephthalate (PET)
- Multi-layer films & flexible packaging
- Styrenics, ABS & other engineering plastics
By Application
- Packaging (rigid & flexible)
- Automotive & transportation
- Consumer goods & electronics
- Building & construction materials
- Textiles & fibers
- Industrial & oilfield applications
By End-Product
- Recycled feedstock oils & fuels (pyrolysis oil)
- Recovered monomers / chemical intermediates
- rPET / recycled resin pellets
- Performance/engineering polymers
- Waxes & specialty chemicals
- Energy/cogeneration outputs
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
For more information about this report visit: https://www.astuteanalytica.com/industry-report/advanced-recycling-market
About Astute Analytica
Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements.
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