Advanced Recycling Market to Reach US$10.2 Billion by 2035 Driven by Regulations and Sustainability Goals
The global advanced recycling market is projected to reach US$10.2 billion by 2035, growing from US$2.8 billion in 2025, driven by stringent plastic waste regulations, FMCG sustainability targets, and chemical recycling innovations. Pyrolysis dominates the technology landscape, efficiently processing mixed plastics, while depolymerization gains traction for high-purity outputs. North America leads market expansion with significant industrial investments, underscoring a global shift towards circular economy principles to combat plastic pollution.
The global advanced recycling market is on a robust growth trajectory, anticipated to surge from US$2.8 billion in 2025 to US$10.2 billion by 2035, exhibiting a compound annual growth rate (CAGR) of 13.9%. This significant expansion is primarily fueled by a confluence of factors, including increasingly stringent global regulations aimed at curbing plastic waste, ambitious sustainability targets set by Fast-Moving Consumer Goods (FMCG) companies, and continuous advancements in chemical recycling technologies. Governments worldwide are implementing policies that not only restrict plastic waste generation but also mandate higher incorporation of post-consumer recycled (PCR) content in products, even for sensitive applications like food packaging and medical devices, thanks to improved recycling methods and certification processes.TheThe FMCG sector plays a pivotal role, leading the consumption of advanced recycled products and intensely competing for reliable supplies of food-grade recycled resins such as rPET, rPE, and rPP. Regulatory catalysts like the UK Plastic Packaging Tax further compel brands to prioritize recycled polymers. Technologically, pyrolysis stands out as the dominant method, accounting for over 60% of operational capacity in 2025 due to its versatility in processing mixed polyolefins. Alongside, depolymerization technologies, particularly for PET, are gaining traction by breaking plastics into original monomers for virgin-quality output. Government intervention, exemplified by the Global Plastics Treaty and robust state-level incentives in the US, forms the bedrock of this growth. North America currently commands a leading 34.33% market share, propelled by aggressive industrial expansions along the US Gulf Coast, with major projects by ExxonMobil and Encina demonstrating significant investment in large-scale advanced recycling facilities. This collective effort underscores a global commitment to circular economy principles and sustainable waste management.
