Circular Polymers Market Size (2023-2030)

The Global Circular Polymers Market was estimated to be worth USD 66 Billion in 2022 and is projected to reach a value of USD 151.01 Billion by 2030. The market is projected to grow with a CAGR of 10.9% per annum during the period of analysis (2023 - 2030).

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Circular polymers are a type of polymer designed and produced to create a closed-loop system, where the polymer waste is collected, recycled, and transformed back into new polymers without degradation. Circular polymers are an essential component of the circular economy, which aims to minimize waste and maximize resource efficiency.

Circular polymers address the need for reducing plastic waste by enabling the recycling and reuse of plastic materials. They help prevent plastic waste by closing the loop and reducing the demand for virgin resources like petroleum or natural gas. Recycling plastic waste into circular polymers requires less energy and produces lower greenhouse gas emissions compared to producing virgin polymers. This contributes to energy conservation and emissions reduction, making circular polymers environmentally preferable to traditional linear polymers. Overall, circular polymers help conserve resources, reduce environmental impact, and promote a more sustainable approach to polymer production and waste management.

For instance, the EU has been actively promoting the circular economy and the EU's Plastics Strategy aims to ensure that all plastic packaging placed on the EU market is reusable or recyclable by 2030. Nestlé and Unilever have committed to using 100% recyclable or reusable packaging by 2025. Adidas has partnered with companies like Parley for the Oceans to create shoes and apparel using recycled ocean plastics.

The increasing consumer awareness and demand for sustainable products are driving the need for circular polymers. Consumers are seeking environmentally friendly alternatives and are willing to support products and brands that embrace circular economy principles.

Global Circular Polymers Market Drivers:

The persistent rise in consumer product consumption is fuelling market demand for circular polymers.

The packaging industry is witnessing a surge in demand for circular polymers due to the persistent rise in consumer product consumption. As consumer purchasing power and consumption patterns continue to expand, there is a pressing need for sustainable packaging solutions. Patagonia, an outdoor clothing and gear company, has been using recycled materials, including circular polymers, in its product packaging. Danone, a multinational food-products corporation, is committed to using 100% recyclable, reusable, or compostable packaging by 2025. They have been exploring the use of circular polymers in their packaging and have introduced bottles made from recycled plastics in various regions. Coca-Cola has introduced bottles made from recycled PET (rPET) in several markets worldwide.

The shift towards Circular Economy is drawing the need for circular polymers globally.

The circular economy concept, which aims to minimize waste, maximize resource efficiency, and promote closed-loop systems, is gaining momentum. Circular polymers play a crucial role in achieving a circular economy by enabling the recycling and reuse of plastic materials and reducing dependency on virgin resources. One significant instance is the partnership between Loop Industries and PepsiCo. Loop Industries is a technology company that has developed a proprietary process to recycle PET plastic without degradation. In collaboration with PepsiCo, Loop Industries is providing high-quality recycled PET resin, known as Loop PET, which is used by PepsiCo in its beverage packaging.

Global Circular Polymers Market Restraints:

Quality and Performance Requirements are restraining market growth.

Circular polymers often face challenges in meeting the quality and performance requirements of certain applications. In some cases, the mechanical, thermal, or chemical properties of circular polymers may not be on par with those of virgin polymers. This can limit their use in applications that require specific performance characteristics.

Cost Competitiveness is one major factor limiting market growth scope.

Circular polymers may face cost competitiveness issues compared to traditional linear polymers. The recycling and processing of plastic waste into circular polymers can involve additional steps and technologies, making the production costs higher than those of virgin polymers. As a result, the price of circular polymers may be higher, which can limit their adoption, especially in price-sensitive markets.

COVID-19 Impact on the Circular Polymers Market.

The COVID-19 pandemic has had both positive and negative impacts on the circular polymers market. During the early stages of the pandemic, lockdown measures and supply chain disruptions resulted in reduced collection and sorting of plastic waste, impacting the availability of feedstock for recycling, which affected the circular polymers market. The pandemic increased the use of single-use plastics for hygiene and safety purposes, raising awareness of plastic pollution and the need for sustainable solutions like circular polymers. It accelerated the demand for sustainable packaging made from recycled materials, including circular polymers, as consumers became more environmentally conscious. This trend has created opportunities for companies offering sustainable packaging solutions.

Governments worldwide have implemented stimulus packages and policies to support economic recovery and sustainability, including incentives for using recycled materials and investments in circular economy projects. In May 2020, Plastic Energy announced the construction of its first commercial-scale plant in the United Kingdom, which converts plastic waste into circular polymers. This support has facilitated the adoption of circular polymers across industries.

Despite pandemic challenges, there has been ongoing investment and innovation in circular polymers. Companies, research institutions, and start-ups are developing advanced recycling technologies, enhancing recycled material quality, and exploring new applications for circular polymers.

CIRCULAR POLYMERS MARKET REPORT COVERAGE:

Global Circular Polymers Market- By Polymer Type

• Polyethylene Terephthalate

• Polyethylene

  • High-Density Polyethylene

  • Low-Density Polyethylene

• Polyvinyl Chloride

• Polypropylene

• Polystyrene

• Others

Based on types, the circular polymer market has been segmented into Polyethylene Terephthalate, Polyethylene, Polyvinyl Chloride, Polypropylene, Polystyrene, and others. Polyethylene is the largest segment, which is widely used in various industries, including packaging, films, and pipes. It offers versatility, durability, and good chemical resistance. Due to its broad application scope and high demand, PE-based circular polymers represent the largest segment in the market. The fastest-growing segment among the polymer types is Polyethylene Terephthalate (PET), which is widely used in the packaging industry, particularly for beverage bottles and food containers.

Global Circular Polymers Market- By Application

• Packaging

• Construction

• Automotive

• Electronics

• Agriculture

• Others

Based on the application type, the circular polymer market has been segmented into Packaging, Construction, Automotive, Electronics, Agriculture, and Others. The packaging industry is typically the leading one in the market because of the factors like consumer awareness and preference, regulatory pressure and industry initiatives, high volume of consumer goods packaging.

Global Circular Polymers Market- By Source

• Post-Consumer Recycled Plastics

• Post-Industrial Recycled Plastics

• Bio-Based Feedstock

Based on the source type, the circular polymer market has been segmented into Post-Consumer Recycled Plastics, Post-Industrial Recycled Plastics, and Bio-Based Feedstock Circular polymers sourced from post-consumer recycled plastics are derived from plastic waste that has been used by consumers and then collected for recycling which includes items such as packaging, bottles, containers. Circular polymers sourced from post-industrial recycled plastics are obtained from manufacturing waste or byproducts generated during industrial processes.  Circular polymers sourced from bio-based feedstock are derived from renewable resources, such as plant-based materials or agricultural waste. Post-Consumer Recycled (PCR) plastics are readily available from consumer waste streams, making them a convenient and accessible feedstock for circular polymer production.

Global Circular Polymers Market- By Region

• North America

• Europe

• Asia-Pacific

• South America

• The Middle East and Africa

North America is a significant market for circular polymers, driven by the presence of a well-established recycling infrastructure and a growing emphasis on sustainability.

Europe is a leading market for circular polymers, with countries like Germany, France, and the Netherlands at the forefront of sustainable practices.

The Asia-Pacific region, particularly countries like China, Japan, and South Korea, has witnessed significant growth in the circular polymer market. Rising consumer awareness, government initiatives, and expanding manufacturing industries drive the demand for sustainable packaging and materials in the region.

Brazil, Mexico, Argentina, and Chile are key players in the circular polymers market in Latin America. These countries have well-established recycling infrastructures and are witnessing growing consumer awareness and demand for sustainable products.

In the Middle East, countries like the United Arab Emirates, Saudi Arabia, and Qatar have been investing in advanced recycling technologies and infrastructure to support circular economy initiatives. In Africa, countries like South Africa, Nigeria, and Kenya are also making strides in the circular polymer market. They are implementing policies and regulations to encourage recycling and sustainable practices. Additionally, there are growing efforts to develop local recycling infrastructure and enhance collection systems to support the production of high-quality circular polymers.

Global Circular Polymers Market- By Companies

1. SABIC

2. Lyondell Basel

3. BASF

4. Dow

5. Total Energies

6. Indorama