Chemical Recycling of PET Market - Size, Share | Industry Trend & Forecast 2025 - 2030

Chemical Recycling of PET Market Overview

The Chemical Recycling Of PET market size is forecast to reach USD 9,485.82 million by 2030, after growing at a CAGR of 14.53% during the forecast period 2025-2030. Polyethylene terephthalate (PET) is a transparent, durable plastic known for its lightweight properties and full recyclability. Unlike disposable plastics, PET is highly versatile, allowing it to be reused and repurposed multiple times. It constitutes approximately 7.4% of all plastic production and is extensively utilized in the creation of packaging materials for food, as well as in films and textiles due to its strength and adaptability. Chemical recycling of PET involves breaking down polyethylene terephthalate (PET) into its original monomers using chemical processes. These monomers can then be polymerized to create new PET, maintaining its original quality without degradation. Unlike mechanical recycling, which may lead to a reduction in material quality, chemical recycling allows for a "circular" process, ensuring that PET can be recycled indefinitely with high-grade output.

Report Coverage

The report “Chemical Recycling Of PET Market– Forecast (2025-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of Chemical Recycling Of PET.

By  Process: Hydrolysis, Methanolysis, Glycolysis, Ammonolysis, Aminolysis, Others

By Catalysts: Ionic Liquids, Metal Salts, Hydrotalcite, Enzymes

By Geography:  North America, South America, Europe, APAC, RoW

Key Takeaways

• On May 24, 2024, Recent research by U.S. scientists, particularly from the Macromolecules Innovation Institute, highlights critical advancements in PET recycling that are set to boost the Chemical Recycling of PET Market. Their report identifies key areas of focus for researchers to accelerate the commercial viability of new recycling technologies. Specifically, they investigated chemical recycling processes that can effectively remove additives, impurities, and dyes from PET, offering a significant advantage over current mechanical recycling methods. These innovations enable a higher percentage of PET to be recycled, improving overall efficiency and material purity, thus driving the adoption of chemical recycling solutions in the market.
• On April 21, 2024, SK Chemicals and NAVER Corp., through their "Green Empowering Program" aimed at helping SMEs adopt eco-friendly materials, supported toothbrush manufacturer KNK in launching the "6℃ Eco Toothbrush." Made from recycled materials, the toothbrush uses GRS-certified recycled plastic for both the head and handle, reducing petroleum-based plastic by 32%. Safety was ensured through tests for harmful substances by SGS. KNK highlighted that this collaboration provided a complete solution solution from NAVER and SK chemicals EUUM Platform, including 'ECOTRIA CR,' which is a chemically recycled material, including eco-friendly materials, design, mold support, and promotion, boosting their competitiveness in ESG initiatives.
• The chemical recycling of PET is experiencing rapid growth due to increased environmental awareness and the need for sustainable packaging solutions. Companies like SABIC are expanding their portfolios with innovations like TRUCIRCLE™, which offers chemically recycled PET for food-grade applications on May 2023. The global market for chemically recycled plastics, including PET, is expected to grow significantly, driven by advancements in chemical recycling technology and strong demand from industries such as food and beverage packaging. 

By Process - Segment Analysis

Glycolysis led the market with a 36.65% market share in 2024. Glycolysis is a versatile recycling process that can handle PET waste that is both clean and contaminated. It works well with many different types of PET materials, such as textiles, packaging, and even PET that contains colorants or other contaminants. Because of its flexibility, additional PET waste streams can be recycled, which is crucial as PET consumption is rising worldwide.
For instance, in January 2023, Revelau Resources, a chemical full glycolysis recycling company, declared that it has committed $50 million to its first facility in the United States as part of a strategic expansion. Stateside, Georgia will be the site of the company's new plant. Construction is expected to begin in the first half of 2023, and the facility is expected to be fully operational by 2024. With this facility, spent PET trash will be able to be recycled and processed into rPET chips and sustainable PET polymers (esters) over 225,000 pounds per day. Up to 450,000 pounds can be processed by the factory in its expanded state.

A growing number of consumers are demanding products manufactured from recycled materials as awareness of the issue of plastic pollution develops. To address this need, manufacturers can use high-grade recycled PET using glycolysis without sacrificing product quality.

By Catalyst Segment Analysis

Metal Salts occupied a dominant position in the Chemical Recycling Of PET market in 2024. Due to several significant advantages, metal salt catalysts are becoming a growing trend for recovering PET chemicals. By reducing the activation energy required for the depolymerization process, they improve reaction efficiency by hastening the disintegration of PET into its component monomers. Recycling may become more profitable as a result of this acceleration, which can also save operating expenses and energy usage. They can selectively target PET polymers thanks to their selective breakdown capabilities, which reduces the production of unwanted byproducts. To preserve the quality of recycled PET and qualify it for high-value applications, selectivity must lead to a cleaner process and improved purity of the recycled materials.

Due to their effectiveness in converting PET polymers into useful monomers and raising the total recycling yield, metal salt catalysts are becoming more and more popular in the recycling of PET chemicals. High-quality recycled PET production depends on their ability to provide high selectivity, accelerate reaction rates, and aid in achieving more purity in recycled products.

By Geography - Segment Analysis

The APAC region in the Chemical Recycling Of PET market is anticipated to hold a major share with a CAGR of 17.30% during the forecast period (2025-2030) reflecting the increasing adoption of chemical recycling technologies across key markets like China, India, Japan, and South Korea.   Chemical recycling of PET (polyethylene terephthalate) is gaining traction in China due to the growing concerns over plastic waste pollution and the need for sustainable solutions. The market for chemical recycling of PET in China is anticipated to witness significant growth in the coming years as companies and government bodies push for environmentally friendly alternatives to traditional plastic recycling methods.

China is one of the largest consumers of PET globally, which generates a significant amount of plastic waste. To address this issue, the Chinese government has implemented several policies and initiatives to promote PET recycling. For example, in 2021, the China Plastic Waste Reduction Project received a $430 million grant from the World Bank's Board of Executive Directors. The project aims to minimize plastic waste from municipal solid garbage and enhance plastic waste management throughout China at both the national and subnational levels. The rise in government initiatives and support programs is in turn also anticipated to drive market growth.

Drivers – Chemical Recycling Of PET Market

• High Technological Advancements And Innovation:

Continued innovation in chemical recycling technology is required to meet the present issues of energy consumption, scalability, and environmental impact. Research into novel catalysts, process improvements, and alternative feedstocks could decrease the energy needs and costs involved with chemical recycling, propelling the PET chemical recycling market.

For instance, Axens, IFPEN, and JEPLAN formed a partnership in 2020 to develop and license a revolutionary recycling method dubbed Rewind® PET, which can be used to recycle all forms of waste PET, particularly those that are difficult to recycle mechanically. In October 2023, they announced the launch of the Rewind® PET semi-industrial unit in Japan for PET chemical recycling, with the backing of the French Environment and Energy Management Agency (ADEME).  This breakthrough is the culmination of over ten years of development at Axens, IFPEN, and JEPLAN, as well as the three partners' synergy, which has been developed for over three years. It will substantially assist the PET market in meeting its recycled material integration objectives, in addition to mechanical recycling.

At the World Economic Forum 2023 Meeting, Sabic revealed that it is exploring a new world-scale commercial chemical recycling investment. This proposed factory might have a capacity of roughly 200 kilotonnes per year. Sabic signed a memorandum of agreement in March 2024 with the Pashupati Group, a mechanical and chemical recycler of PET and polyolefins headquartered in India. The firms will investigate, assess, and develop local business prospects for recycling waste plastics in India, including possibly establishing a pyrolysis facility to supply Sabic with feedstock for its circular polymers.

In March 2023, SK Chemicals established SK Shantou by acquiring Shuye's chemical recycling and chemically recycled PET business assets. This allowed SK Chemicals to acquire the world's first commercialized raw material and manufacturing facilities for polyester chemical recycling. In May 2024, SK Chemicals’ breakthrough circular chemical recycling technology gained recognition in Europe at the Plastic Industry & Environment Congress hosted by the French Society of Plastics Engineers. These innovations are not only making PET recycling more efficient but also expanding the range of recyclable materials, thus contributing to the market growth

• Increasing Demand From The Food And Beverage Industry:

Food packaging and bottle processing requirements have triggered the growth of PET chemical recycling approaches attributed to the degradation of chains and re-polymerization. People's changing lifestyles and food choices, as well as developing countries' expanding populations, will fuel market expansion throughout the projection period. People's increased demand for processed foods is also driving the food packaging business, due to an increase in the number of people working, rising disposable incomes, and hectic lifestyles, as well as the relocation of people from rural to urban regions.

Over the years, new packaging technologies such as active packaging, intelligent packaging, and novel packaging designs have emerged. Companies are creating environmentally friendly packaging by using biodegradable materials that may be recycled, refilled, and reused. However, the market is projected to remain heavily regulated, with organizations such as the FDA and the European Commission implementing rigorous guidelines regarding the types of food packaging and the materials that come into contact with food.

The food and beverage industry is increasingly adopting circular economy principles, where used PET bottles are recycled back into new bottles in a closed-loop system. For instance, Coca-Cola and PepsiCo have committed to using more rPET through "bottle-to-bottle" recycling programs, reducing their reliance on virgin PET and contributing to a circular packaging model.

For instance, in October 2022, Indorama Ventures and Coca-Cola's bottling arm in the Philippines collaborated to open the country's largest PET recycling plant. The factory is IVL's latest recycled PET facility, as the worldwide integrated petrochemicals corporation strengthens its position as the world's leading manufacturer of recycled resin used in plastic beverage bottles.

These collaborations are essential for scaling up chemical recycling processes and integrating rPET into packaging lines. As a result, the demand for chemically recycled PET is rising as companies look to secure reliable, food-grade recycled materials

Challenges – Chemical Recycling Of PET Market

• High Cost Is A Challenge For The Market: 

As per the report by an Italian company, Garbo, chemical recycling is a sustainable option since it uses low-value feedstock, but it requires a greater initial investment than typical mechanical recycling. This includes costs for advanced equipment and processes needed to break down PET into its monomers.

The cost of producing virgin PET, derived from petrochemicals, is often lower than that of chemically recycled PET, especially when oil prices are low. This pricing dynamic makes it difficult for chemical recycled PET to compete.
Overcoming these barriers will require more technological advancements and regulatory support. Until then, the high costs and constraints will continue to limit the widespread adoption of chemical recycling for PET.

Market Landscape

In 2023, the top seven players in the Chemical Recycling Of PET market share accounted for 86% of the share. Major players in the Chemical Recycling Of PET market are SK Chemical, Far Eastern Group, Veolia, SABIC, Indorama Ventures, Mitsubishi Corporation, JEPLAN, INC., and Others.

Developments:

• SK chemicals Establishes Korea's First 'Waste Banner Resource Circulation Ecosystem' Based on Chemical Recycling on Aug, 2024 
• On July, 2023, Far Eastern Group launched a new rPET product line, focusing on producing high-quality recycled PET flakes for the textile industry using chemical recycling processes.
• On May 2023,  SABIC expanded its TRUCIRCLE™ product portfolio by launching new chemically recycled PET materials designed for use in food-grade packaging.

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