As regulatory deadlines for the incorporation of recycled materials approach, the recycling sector faces the critical challenge of scaling up. Chemical recycling technologies are progressively establishing themselves as an essential complement to mechanical recycling, particularly for addressing specific market demands, such as polyolefin packaging plastics suitable for food contact. By the end of 2024, over 50 chemical recycling projects have been announced or are operational in Europe, with a combined capacity of nearly 1 million tons per year, driven by a diverse range of players, from petrochemical companies to waste management operators. However, the gap between market expectations and production capacities is widening, increasing the premium level for certain recycled resins.
- In 2025, we will closely monitor market developments, particularly the key challenges for the development of the sector: Further development of an incentivizing regulatory framework: Measures that reaffirm the necessity of local recycling industries while providing long-term visibility to encourage investment in these capital-intensive infrastructures.
- Long-term sustainability of premiums: The ability of the market to maintain premium levels for recycled resins with quality equivalent to virgin materials.
- Acceleration of technological advancements: Driven by growing investments from actors across the value chain, fostering the maturation of chemical and hybrid recycling solutions.
- Securing waste feedstock inputs: A critical step to ensure stable supply and scale up capacity in a sector where resource availability is a decisive factor.
Development of value capture strategies: Facing the choice between cautious wait-and-see approaches and active involvement in the industry’s development, what strategies will various players—ranging from petrochemical companies to brand owners, as well as collection, sorting, and reprocessing
E-CUBE has developed strong expertise in Chemical recycling through its recent projects and the experience of its consultants. We would be delighted to discuss these market perspectives and opportunities with you. Feel free to contact our experts below to arrange a discussion on the topic.
