Circular Polymer Market Report 2026

The circular polymer market size has grown rapidly in recent years. It will grow from $103.16 billion in 2025 to $117.1 billion in 2026 at a compound annual growth rate (CAGR) of 13.5%. The growth in the historic period can be attributed to advancements in polymer chemistry, demand for high performance plastics, expansion of packaging industry, growth of automotive materials research, academic research funding.

The circular polymer market size is expected to see rapid growth in the next few years. It will grow to $192.2 billion in 2030 at a compound annual growth rate (CAGR) of 13.2%. The growth in the forecast period can be attributed to circular economy initiatives, demand for recyclable polymers, innovation in polymer synthesis, growth of sustainable packaging, adoption in electronics applications. Major trends in the forecast period include rising development of advanced polymer architectures, growing focus on high thermal stability materials, increasing research in closed loop polymer systems, expansion of circular polymer use in packaging, higher adoption in lightweight automotive components.

The growth in vehicle production is expected to drive the expansion of the circular polymer market in the coming years. Vehicle production involves the manufacturing of various types of motorized transportation, including passenger cars, trucks, buses, motorcycles, and other vehicles. The rise in vehicle production is supported by factors such as economic development in emerging regions, rapid urbanization, population growth, and ongoing advancements in automotive technologies. Circular polymers are increasingly used in vehicle manufacturing as part of the automotive industry’s efforts to improve sustainability, reduce environmental impact, and retain flexibility across production processes. For example, in April 2024, according to the Serbian Association of Importers of Vehicles and Parts, a Serbia-based non-governmental organization, global vehicle production reached approximately 93,546,599 units in 2023, reflecting a notable increase compared with previous levels. As a result, increasing vehicle production is contributing to the growth of the circular polymer market.

Companies operating in the circular polymer market are actively developing innovative products, such as single-pellet solutions, to enhance sustainability by improving material efficiency, minimizing waste, and simplifying recycling processes. Single-pellet solutions represent a form of masterbatch technology that streamlines production by eliminating the need for multiple additive components, thereby improving efficiency and ensuring consistent quality in finished products. For instance, in August 2023, LyondellBasell, a UK-based polymer manufacturer, launched its CirculenRecover portfolio, which includes CirculenRecover, CirculenRevive, and CirculenRenew polymers offered as single-pellet solutions. The CirculenRecover range comprises eight new polymer grades designed to enhance sustainability in plastic packaging and includes materials produced from plastic waste through mechanical recycling. These polymers can contain up to 100% post-consumer resin and are engineered to meet performance requirements across a range of applications, particularly in industrial and food packaging.

In September 2025, Shell Chemical Appalachia LLC, a US-based polymer manufacturing business, partnered with Charter Next Generation Inc. to deliver certified circular film solutions. Through this collaboration, the companies aim to advance sustainable flexible packaging by supplying ISCC PLUS-certified circular polyethylene, enabling Charter Next Generation to manufacture high-performance packaging films. The partnership supports waste reduction, circular economy objectives, and compliance with regulatory and functional requirements. Charter Next Generation Inc. is a US-based materials science company specializing in specialty films and advanced packaging solutions for food, healthcare, industrial, and consumer applications.

Major companies operating in the circular polymer market are BASF SE, Dow Chemical Company, Evonik Industries AG, Arkema S.A., DSM-Firmenich, Mitsubishi Chemical Group, Toray Industries Inc., Kuraray Co. Ltd., Asahi Kasei Corporation, UBE Corporation, Solvay S.A., Lanxess AG, Wacker Chemie AG, Shin-Etsu Chemical Co. Ltd., Sumitomo Chemical Company, LG Chem Ltd., SK Chemicals, SABIC, Covestro AG, Eastman Chemical Company.

Asia-Pacific was the largest region in the circular polymer market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the circular polymer market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the circular polymer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The circular polymer market consists of sales of bio-based polymers, compostable polymers, and de-polymerizable polymers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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